Total Quality Management implementation at Tata Steel along with its evolution over time

1. TOTAL QUALITY MANAGEMENT
@TATA STEEL

2. TOTAL QUALITY MANAGEMENT
•
•
TQM is an process oriented approach which focuses on process efficiencies to
achieve results.
Customer satisfaction will be achieved only with an collective effort from all the
employees
TQM Systems
and Tools
TQM
Philosophy

3. TQM PHILOSPHY
Employee
Empowerment and
development
Absolute Customer
Focus
Continuous
Improvement
Systemic Approach
to Management

4. OBJECTIVES OF TQM
Quality as first priority leading to Total Customer Satisfaction
Market In-Customer Orientation
Management by facts-the data driven scientific approach
Process Management-Preventive Planning and Control
Upstream Control-Marketing is the key to control
Employee Respect-Total Satisfaction
Top Management Commitment

5. FRAMEWORK OF TQM

6. SCOPE OF TQM
Quality System
Process of Continuous
Improvement
Development of the
staff involved

7. CONS OF TQM
Lack of focus in the mission
statement
Lack of attention to some
critical points
implementation of TQM.
Absence of proper
performance management
system.
Excessive focus on
company’s image instead
analyzing facts and
outcomes.

8. CORE VALUES OF TBEM
•
•
•
To improve upon the organizational performance practices and capabilities.
To facilitate communication and share best practices among the group companies.
To serve as a working tool for managing performance and guiding organizational
opportunities for learning.
Visionary Leadership
Customer driven
Excellence
Organizational &
Personal Learning
Agility
Focus on Future
Social Responsibility

9. FRAMEWORK OF TBEM
Leadership
• Credited for creating a sustainable organization focus
Strategic Planning
• Deployment and measurement of action plans
Customer & Market Focus
• Ensuring long term competitiveness of the firm
Measurement Analysis & Knowledge Management
• Alignment and integration across the organization

10. FRAMEWORK OF TBEM (Contd..)
Workforce focus
• Employee engagement and agility of employees
Process Management
• Cost and cycle time reduction are primary drivers
Business Results
• Analysing all the six outcomes on the whole

11. INDUSTRY CHALLENGES OF TATA STEEL
•
•
•
•
Market driven realizations
New players, glut and fight for survival
Lower import tariffs
Emergence of buyer’s market

12. CHALLENGES OF TATA STEEL (Contd..)
•
•
•
Financially burdened
Human resource under utilization
Lack of competitive culture in the firm
Domestic
demand
slow
down
Lower
prices and
margins
Slow
down in
global
markets
Overcapa
city in
domestic
markets

13. STEPS TOWARDS EXCELLENCE
“If we don’t take care of our customers, somebody else does”- Tata Steel CMD
Lead the change process and avoid delegation
Pave way for endless two way communication in the company
Set up a small group of handpicked personnel to drive change in the organization.
Including even the top management for accountability by rolling out Key Result
Areas (KRA’s)
Implementation 3C Model of Excellence

14. INITIATIVES IDENTIFIED FOR EXCELLENCE
•
•
Operational Improvement
– Reduce cost of production
– Manage investment and maximize return
– Improve capital structure
– Improve supply chain/ logistics
Strategic Priorities
– Refine product mix as per customer
requirement
– Manage human resources in effective manner
– Strategize long term goals in line with industry
attractiveness
CHANGE
CODE OF
CONDUCT
COST
CUSTOME
R

15. TOOLS USED FOR DELIVARABLES
TOTAL OPERATIONAL PERFORMANCE
Minimal
investment
Shortest time
span
Impacting the
company bottom
line
PRODUCT & CUSTOMER RATIONALIZATION
Fragmented
Customer Base
Data Duplication
& over burden on
employees
Rationalize
customer
requirement with
SAP

16. TOOLS USED (Contd..)
• CUSTOMER VALUE MANAGEMENT
It is used to plug any gaping holes of the process and maximise customer
returns.

17. TOOLS USED (Contd..)
• RETAIL VALUE MANAGEMENT
For better estimates of the market prices and demand planning.

18. TOOLS USED (Contd..)
• STRATEGIC SOURCING
Understand the
category
Supplier market
assessment
Prepare a
supplier survey
Selection and
communication
Building the
strategy

19. RESULTS
Change
• Specific fuel consumption was reduced by 80% and 3097 new ideas were
initiated
Cost
• Raw material consumption had reduced by 56.7% and net 15% reduced
cost of steel
Quality
• 400+ personnel was exposed to initiatives and safe working place
Investments
• Labour productivity increased by 95%

20. RESULTS (Contd..)
Financials
• Company’s debt to equity ratio reduced from 1.5 to 1 & higher margin
realization
Specific Energy Consumption
• Bottom line savings of Rs.720 crore
Lowest of cost of production
S.No
Commodity
POSCO
NIPPON
SAIL
TATA
STEEL
1
Coke
65
107
99
56
2
Sinter
30
29
18
15
3
Hot Metal
87
119
106
75
4
Liquid Steel
123
160
154
109
5
HR Coil
156
233
221
151

21. RECOMMENDATIONS
Alternative ways of
production
• Optimizing controls in BF units
• Direct reduced iron- EAF
Increase R&D spend
• Product diversification
• Reuse of Slag
Raw Material
Untapped Rural Markets
• Coking coal imports
• Iron ore alternatives
• Tapping in to infrastructural schemes of Govt. of
India
• Distribution network

22. RECOMMENDATIONS (Contd..)
• INVESTING IN EMERGING TECHNOLOGIES
FINEX
• Adopted by POSCO and lowers emissions
FASTMELT
• Lower raw material consumption and better energy efficiency
HISMELT
• Direct Smelting process with lower capital investment and
operational costs

24. REFERENCES
1. http://www.tataquality.com/- TBEM assessment related data
2. http://www.emeraldinsight.com/journals.htm?issn=0954478X&volume=17&issue=2&ar
ticleid=1464335&show=html- Journal on Components of TQM
3. http://www.emeraldinsight.com/journals.htm?issn=0954478X&volume=15&issue=6&ar
ticleid=842084&show=html- Journal on Impact on productivity
4. http://www.emeraldinsight.com/journals.htm?issn=1355252X&volume=4&issue=1&arti
cleid=871929&show=html- Journal on Total Quality Management in a nutshell
5. www.emeraldinsight.com/0265-671X.htm- Enhancing customer satisfaction
6. www.emeraldinsight.com/0267-6521X.htm- Frame work proposal for TQM
7. http://www.tatasteel.com/- Tata Steel annual report