TQM implementation in TATA Steel

TQM implementation in TATA Steel

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  TQM in TATASTEEL
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  TQM TQM is anapproach that seeks to improve quality and performance which will meet or exceed customer expectations. Can be achieved by:  Integrating all quality related functions and processes throughout the company Holistic model which uses multidisciplinary approach to quality  Increase in quality – higher productivity - less rework, rejects and waste – lower costs and customers complaints
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  TQM Implementation  Topdown strategy Pillars of TQM – 1. Organization : must emphasize on total employee involvement (TEI) and work based design. 2. Products : Attention must be given onto the processes as quality of the product is impossible without quality of the process 3. Commitment : Management control system implying the utmost need of top management commitment 4. Leadership : required for coordination in continuous improvement. 5. Process : defined as a set of interrelated activities. SPC, SQC, MRP, JIT are few examples of processes.
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  TATA Steel  TATASteel was founded by J. N. Tata in 1907 near a village called Sakchi (now called Jamshedpur)  Initially called – TISCO  Changed its name from TISCO to Tata Steel in 2005  TATA Steel Limited is an Indian multinational steel-making company  Headquartered in Mumbai, Maharashtra  Subsidiary of TATA Group Second largest steel company in India (measured by domestic production) with an annual capacity of 13 million tones after SAIL.  World’s 7th largest steel company  Annual crude oil capacity – 31 million tones
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  TQM in TATASteel  Formal incorporation of TQM for Business Excellence in late 1980’s – initiated several quality activities like quality circles, ISO certification, quality improvements using Juran Methods  TATA Steel conducted TQM diagnosis along with JUSE team  TQM diagnosis gave the company deeper understanding and clarity on its approach to quality TATA steel specifically looked at : 1. Strategic aspects or policy management 2. Daily management 3. People involvement
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  TQM in TATASteel  TATA Steel European operations – continuous improvement activities focused on providing Business Units with the ability to drive business through Lean Management, training of CI coaches and knowledge sharing  NatSteel- maintains systematic approach towards improving productivity and enhancing quality while reducing cost at the same time  Singapore operations – concentrated on yield improvement, reduction in power consumption and a significant bottom line benefit  Xiamen operations – adopted measures to reduce vulnerability caused by price fluctuations
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  TATA Steel- Journeyin Field of Quality  Tata Steel is among the world’s top steel makers today, but 2 decades ago Tata Steel went through a dark period  It was considered to be a sunset industry and the Tata group actually contemplated selling it off  Fortunately, that did not happen. Instead, the company invested in a quality and business excellence movement that has successfully transformed the Indian steel major into a world-class company Tata Steel Bigger LeanerBetter It is one of the lowest cost producers of steel in the world Its global workforce of 70,000 now produces 30 million tonnes of steel annually in plants across the world. One of the biggest adopters of IT in the steel industry and among the top 10 steel makers in the world.
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  TATA Steel- Journeyin Field of Quality (Cont’d) - Tata Steel Realized that they needed to accept the importance of improvement - Dr. JJ Irani Saw the value of initiating the quality drive 1. Acceptance - In 1990, Tata Steel adopted TQM as integral part - In 1995, Tata steel introduced a self- assessment tool called Tata Business Excellence Model (TBEM) 2. Adopting TQM - Achieved a miserable 201 points on a scale of 1,000 - Tata Steel went for complete makeover with a focus on crucial aspects such as productivity, technology, innovation, customer centricity, safety and so on 3. TBEM assessment Tata Steel Decided to go for benchmark with the best
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  Process of Benchmark& Improved Result Customer complaints management • Benchmarked with Modi Xerox Credit management • Benchmarked with Citibank Operational excellence and innovation • Benchmarked with GE Retail distribution • Benchmarked with several FMCG companies - Productivity Improved by 15 times - In 2000, Tata Steel became the first Tata company to win the JRD QV award. - In 2004, Tata Steel Achieved 700 on scale of 1000 in TBEM assessment
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  Tata Steel InnerFocus Inner Focus Strategic aspects or policy management People involvement Daily management Areas needed to change the business Revisiting Quality Goals Looking for incremental improvements Quality circles Suggestion management Managing day-to-day operations Stability of day-to- operations As a Result Tata Steel won Deming Application prize in 2008 & later in 2012 they won Deming Grand Prize
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  Long-term impact ofTQM on Tata Steel Continuous improvement process as a integral part of the organization Optimize the use of Consumables such as lime, zinc, etc. Reduction in Turnaround & shutdown time through critical chain project management
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