TATA STEEL

Introduction to Lean:
Why is Lean Manufacturing or thinking so prevalent in the modern current economies of
scale? To remain competitive, agile and the lowest cost producers, providers and
streamlined business, getting rid of waste and being highly, consistently and sustainable
is key for survival and thriving in this new economy.

Lean manufacturing or thinking is exactly what the name sounds like - it is about 'cut to
the bone', fat-trimmed, streamlining operation and organizations.

Authors Womack and Jones define lean thinking as a set or collection of 'efficiency tools'
that you can unleash in your business to save money, reduce cost and waste and deliver
consistent and effective service that is affordable and pleasing to your customers. It is
about vision and tools for reducing variability and cutting down on waste, being efficient
and running a smooth and competitive, even profitable operation, well.

The thinking was initially championed by pioneers like Toyota and it was eventually
adopted by the Japanese automakers as the principle upon which they wanted to build,
run and grow their businesses.
Only a little later, will the Western world catch onto the value and potential of this
approach to their respective organizations and operations.

Some have referred to lean manufacturing as the TOYOTA PRODUCTION SYSTEM, or

JIT (just-in-time) manufacturing, paying attention to things like flow productions, line
operations, value streams, Kaizen (which we will get to later). In any lean manufacturing
process and approach there are a couple of things to pay attention to. There is discipline,
planning, rigor, scientific approach and statistically-based tools required and applied to
make this business paradigm fit, work and last.
Lean manufacturing will help you in your business take a serious look at visible causes
and effects in your business. Aspects that could get some attention could include things
like:

1. Inventory
2. Movement/motion
3. Waiting or queues
4. Broken machines or tools (missing)
5. Dirt and clutter
6. Noise
7. And many others....

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Table 2. Five Steps of Lean Thinking Step Description
Specify Value Value is defined by the end customer
Identify the Value Stream: The set of all specific end-to-end and
linked actions, processes and functions
necessary to transform information or raw
materials into the product expected by the
customer, and then provide post-delivery
customer support. Actions either a.) create
value; b.) create no value but are
necessary or unavoidable; c.) creates no
value and can be eliminated. Action
focuses in minimizing non-value added
activities.
Make Value Flow Continuously: With non-value added activities
eliminated, next all bottlenecks to the
smooth flow of information or material
processing (indicated by work-in-process
—WIP) are removed. Lean relentlessly
pursues the elimination of such WIP.
Let Customers Pull Value: Deliver the value when it is expected by
the customer (“just-in-time”), and use this
to “pull” value from all “upstream”
activities.
Pursue Perfection: Lean is not a “state”, but a “journey” in
which continual improvement is sought to
make processes better and better—as
measured by their value delivery.

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Company overview:

Tata Steel formerly known as TISCO and Tata Iron and Steel Company Limited is
the world's seventh largest steel company with an annual crude steel capacity of 31
million tones. It is the largest private sector steel company in India in terms of domestic
production. Currently ranked 410th on Fortune Global 500, it is based in Jamshedpur,
Jharkhand, India. It is part of Tata Group of companies. Tata Steel is also India's second-
largest and second-most profitable company in private sector with consolidated revenues
of 132,110 crore (US$28.67 billion) and net profit of over 12,350 crore (US$2.68
billion) during the year ended March 31, 2008. Tata steel is the 8th most valuable brand
according to an annual survey conducted by Brand Finance and The Economic Times in
2010.

Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions; the
company has become a multinational with operations in various countries. The
Jamshedpur plant contains the DCS supplied by Honeywell. The registered office of Tata
Steel is in Mumbai. The company was also recognized as the world's best steel producer
by World Steel Dynamics in 2005. The company is listed on Bombay Stock Exchange
and National Stock Exchange of India, and employs about 82,700 people (as of 2007).

The Tata Steel Group has always believed that mutual benefit of countries, corporations
and communities is the most effective route to growth. Tata Steel has not limited its
operations and businesses within India but has built an imposing presence around the
globe as well. With the acquisition of Corus (now Tata Steel Europe) in 2007 leading to
commencement of Tata Steel's European operations, the Company today is the tenth
largest steel producer in the world .During the financial year 2009-10, the Group
recorded deliveries of 24 million tonnes against 28 million tonnes in the previous year,
the decline being a reflection of the global economic slowdown mainly in the UK and
European operations. The Group recorded a turnover of Rs.102, 393 Crores in 2009 -
2010. The Company has always had significant impact on the economic development in
India and now seeks to strengthen its position of pre-eminence in international domain by
continuing to lead by example of responsibility and trust.

 Tata Steel’s overseas ventures and investments in global companies have helped the
Company create a manufacturing and marketing network in Europe, South East Asia and
the Pacific-rim countries. The Group’s South East Asian operations comprise Tata Steel
Thailand, in which it has 67.1% equity and Nat Steel Holdings, which is one of the
largest steel producers in the Asia Pacific with presence across seven countries.

Tata Steel has maintained the confidence to improve performance globally even in the
face of a challenging economic climate in which the steel industry happens to be severely
affected. One factor that contributes to this confidence is the Company’s adherence to
Total Quality Management (TQM) to achieve its goals. Since the formal incorporation of

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TQM for Business Excellence in the late 1980’s Tata Steel has adopted a number of
improvement initiatives popular around the world. 

At Tata Steel’s European operations, Continuous Improvement activities are focused on

providing Business Units with the ability to drive business through Lean Management, a
common strategy deployment process, training of CI coaches and knowledge sharing
through operations.

Tata Steel in Europe

Tata Steel is Europe's second largest steel producer with main steelmaking operations in
UK and the Netherlands. We are a leading supplier to many of the most demanding
markets around the world including construction, automotive, packaging, and mechanical
and electrical engineering, metal goods, and oil & gas.

With innovation and continuous improvement at the heart of our business performance,
we aim to create value by offering a differentiated product range supported by unrivalled
customer service.

Tata Steel has manufacturing operations in many European countries with major plants
located in the UK, The Netherlands, Germany, France and Belgium.

Tata Steel produces carbon steel by the basic oxygen steelmaking method at four
integrated steel works at Port Talbot, Scunthorpe and Teesside in the UK and at IJmuiden
in The Netherlands.

Engineering steels are produced at Rotherham, UK, using the electric arc furnace
method.  A number of Tata Steel's rolling mills and process lines are on the same sites as
the steelworks, but most of Tata Steel's operating sites do not have steelmaking facilities.
These include:

 the strip mills at Llanwern, South Wales

 the tinplate works at Trostre, South Wales
 the coating works at Tafarnaubach, South Wales, Shotton, North Wales and
Maubeuge, North France
 the electrical steel works at Newport, South Wales and Surahammer, Sweden
 the tube mills at Corby and Hartlepool, England and Oosterhout, Arnhem and
Maastricht, Netherlands
 the plate mill at Dalzell, Scotland
 the rail mill at Hayange, North-East France
 the narrow strip mills at Brinsworth, England, Düsseldorf & Trier, Germany and
Warren & Bethlehem, USA

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NatSteel maintains a systematic approach towards improving productivity and enhancing
quality while reducing cost at the same time. The Singapore operations concentrated on
yield improvement, reduction in power consumption and a significant bottom line
benefit. The Xiamen operations have also adopted measures to reduce vulnerability
caused by price fluctuations.

Facilities

• One 80-tonne DC electric arc finger shaft furnace

• One 80-tonne ladle furnace
• One high-speed 5-strand continuous casting machine
Two high speed rolling mills to produce a full range of deformed bars, round bars
•
and wire rods
The latest cut-and-bend (CAB) machines for accurate fabrication of reinforcement
•
bars.
State-of-the-art machines for production of cold rolled wires stretched wires and
•
welded wire mesh.

Tata Steel set up the Performance Improvement Committee (PIC) in January 2008 to
accelerate performance improvement on a continual basis. Seven (7) PI groups have
started functioning under the PIC identifying Key Performance Indicators (KPI) to be
improved and improvement projects to be undertaken.

 Lean Methodologies:

As the companies are giving more stress on cost reduction and process optimization so
the need of finding better ways and techniques are getting crucial. The methodologies
that will enable the companies to achieve their goal and sustain in the long run are,

The various improvement initiatives adopted by Tata Steel which

are recognized as Aspire Tools are:
 Value Engineering (VE): Value Engineering is an
organized approach for identification and elimination of
unnecessary cost.
 QIP, QC & Benchmarking: Tata Steel adopted Juran
Trilogy concept for undertaking Quality Improvement
Projects (QIP). Quality Circles (QC) are small group
activities which involves first-line employees who

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 continually control and improve the quality of their work,
products and services. Benchmarking is a process of
exploring for best practices and performances across the
world and putting systematic efforts to bridge the gap.
 Total Operational Performance (TOP): Total
Operational Performance initiative was launched in 1998
with the help of McKinsey. Major focus of this initiative
was on cost reduction, quality & throughput
improvement.
 Total Productive Maintenance (TPM): TPM is an
approach to maintenance that
optimises equipment effectiveness, eliminates breakdown
s and promotes autonomous maintenance by operators
through day to day activities involving the total
workforce.
 Knowledge Management (KM): Tata Steel decided to
embark on formal KM initiative in the year 1999. The
beginning was made in July ’99 to place a Knowledge
Management (KM) program for the company and
systematically as well as formally share and transfer
learning concepts, best practices and other implicit
knowledge.
 Define-Measure-Analyze-Improve-Control (DMAIC):
The fundamental objective of the DMAIC methodology is
the implementation of a measurement-based strategy that
focuses on process improvement and variation reduction.
 Define-Measure-Analyze-Design-Improve-Control
(DMADIC): This tool is based on Design for Six Sigma
Philosophy. DMADIC focus is predominantly on design
aspects. It is generally used for Task Achieving Projects
like New Product Development, New Market
Development etc.
 TOP in Marketing: Launched in 2002 with the help of
McKinsey, TOP in Marketing was the first new ASPIRE
initiative launched with a focus on creating value through
partnership with customers.
 Supplier Value Management (SVM): This aims to
reduce costs and resources in the entire value chain of
supplier and Tata Steel. Value creation is focused through
better understanding of customer (internal) requirements
and supplier capabilities.
 Quality Management Systems (QMS): Quality

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 Management Systems as required, like ISO 9000,
TS16949, OSHAS, ISO 14000 etc. are adopted by various
units to establish basic management systems.
 Small Group Activities (SGA): Small Group Activities
(SGA) are promoted under daily management through
SGA teams who meet, identify, discuss and implement
small improvements (Kaizens) in the area of work. QC
circles and TPM circles are known as SGA teams.
 Deming Assessment: This assessment is done by
Japanese Union of Scientists and Engineers (JUSE) for
the companies implementing TQM practices and applying
for Deming Application Prize.

These are the tools that can make a company sustain in the long
run.

Lean Practices those have been implemented in TATA STEEL

It may not make sense to many in the steel industry to invest in various quality control
drives during such a tough time, but for Tata Steel, pursuing such goals has been a
passion and the very essence of its existence. The company has recently won the Deming
Application Prize for its excellence in total quality management (TQM), the only steel
company in the world outside Japan to bag the award.

The steel major, which in earlier years had been saving around Rs 200-300 crore
annually, would, aided by Deming this year (2008-09), target to save around Rs 600
crore.

"This is not because of the effect of market prices or impact of raw material costs going
up or down, it is purely internal—from improvements in the work processes the company
has brought about," said Avneesh Gupta, TQM chief of Tata Steel.

The steel major’s commitment to the best practices

can be gauged by the remarks of Tata Steel managing director B Muthuraman recently:
"In every walk of life, whether it is in running a business, in sports or education, if you
take care of the processes, the results will take care of themselves." He was speaking at
the ‘JJ Irani award for excellence in education in Jamshedpur schools’.

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Tata Steel, which expects to emerge strongly from the ongoing global recession, has
already put in place a revised plan for the second half of 2008-09 (Oct onwards). The
plan includes techniques/benefits learnt in Deming and the target has been set in crores.

Various items, right from the raw material side to marketing & sales, several daily
management items which could be done better while bringing about cost reduction, cost-
cutting contributions from its ‘Aspire’ projects (problem solving, Six Sigma application,
etc), efforts from supply chain management by following inventory replenishment
models... (while ensuring that whatever the customer was wanting was readily available
to him) have been listed.

"It (Deming) is a very robust and a very involving process in which you cannot escape
the enlightenment at the end of it," Gupta told FE here recently. It is only the application
of the steps involved in Deming and the consequent effects that emerged gives one the
real insight into its working, he added.

"Each key performance indicator (KPI) is being tracked by the company, like zinc
consumption, coal rate, coke rate, etc, including whether any delays were taking place or
not," Gupta said. Even the monthly performance improvement review of the company’s
TQM efforts by chief operating officer HM Nerurkar ensures that things were moving in
the right direction....

TQM is an integrated organizational approach in delighting customers (both

external and internal) by meeting their expectations on a continuous basis
through everyone involved with the organizational working on continuous
improvement in all products/processes along with proper problem solving
methodology.

“TO DELIVER HIGHEST VALUE AT LOWEST COST” is the main objective

of TQM

• Total - The responsibility for achieving Quality rests with everyone a business no
matter what their function. It recognizes the necessity to develop processes across
the business, that together lead to the reliable delivery of exact, agreed customer
requirements. This will achieve the most competitive cost position and a higher
return on investment.

• Quality - The prime task of any business is to understand the needs of the
customer, then deliver the product or service at the agreed time, place and price,
on every occasion. This will retain current customers, assist in acquiring new ones
and lead to a subsequent increase in market share.

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 • Management - Top management lead the drive to achieve quality for customers,
by communicating the business vision and values to all employees; ensuring the
right business processes are in place; introducing and maintaining a continuous
improvement culture.

TQM is the foundation for activities, which includes:

• Commitment by senior management and all employees

• Meeting customer requirements

• Reducing development cycle times

• Just In Time/ Flow Manufacturing

• Improvement teams

• Reducing product and service costs

• Systems to facilitate improvement

• Employee involvement and empowerment

• Recognition and celebration

• Challenging quantified goals and benchmarking

• Focus on processes / improvement plans

This shows that TQM must be practiced in all activities, by all personnel, in
Manufacturing, Marketing, Engineering, R&D, Sales, Purchasing, HR, etc.

• The journey of TQM in the company began on September 15, 1995 with the
setting up of the TQM Cell.

• To meet the quality planning requirements as well as to facilitate continuous

improvement, the company has established, documented, implemented and
maintained the Quality Management System (QMS) in accordance with the
requirements of the International Standards.

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 • In order to verify and determine the effective implementation and maintenance of
the QMS, quality audits were carried out at regular intervals by the Internal
Quality Auditors.

• The company also implemented a number of TQM tools such as

• Formation of Quality Improvement Projects (QIPs ),

• Signing of MOUs

• ISO certification

• Benchmarking

• Employee involvement schemes

• House keeping

• The company embarked upon both external and internal benchmarking for
improving its production, commercial, and financial performance.

• It benchmarked with British Steel Co., South Korea Steel Plant (POSCO)1 SAIL,
for reduction in the rejection rate, off ore station, and improving manpower
productivity respectively.

• Annual improvement action plans were implemented involving techniques like

Kaizen cycle time reduction for further improvement in delivery and technological
process up gradation, leading to improvement in quality of products and enhanced
customer focus.

Tangible benefits of implementing TQM

• Increase in sales per year from Rs. 3263.66 cr to Rs. 7867.6 cr

• Reduced manufacturing expenses from Rs. 3,94,706.6 cr to Rs. 3,46,158.86 cr

• Reduced net loss incurred by the company from Rs. 6,97,525.90 cr to Rs. 4,00,
94.58 cr

• Reduced the defective products from 5.76% to 1.2%

• Accident rates reduced from 113 to 107 (both fatal and non-fatal)

• Customer complaint rates from 0.27 to 0.13 (of total sales)

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 • Increased productivity rate (tonnes per man year) from 176 to 194 from the pre-
TQM to post-TQM period.

• Image of the organization has improved.

• Reduction in inventory.

• Shorter lead time in design, manufacturing, procurement service etc.,

• Reduction in rejections and complaints.

• Customer satisfaction.

• Quality cost % to turnover reduction.

• Lower manufacturing cost.

• Reduction in deviation.

• Continuous improvement.

• Drastic reduction in defectives and number of defects.

Proposed Implementation Plan for TPM

On the basis of surveyed literature following points were considered to implement
during TPM implementation programme in the cold rolling unit (CR unit) and
adopted in the system step by step;
- Focused improvement (Kobetsu Kaizen),
- Autonomous Maintenance (Jishu Hozen),
- Education & Training,
- Planned maintenance,

- Overall Equipment effectiveness

TPM development program

The ten TPM development programme steps were taken as described in

Step Key point
1. Formally announce decision to introduce TPM Top management announcement at in
house
meeting publish in any company magazine.
2. Conduct TPM introductory education & group
training for specific employees.

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Senior management level.
3. Create a TPM promotion organization,
committee and specialist sub committees.
Steering TPM promotion Office.
4. Establish basic TPM policies and goals Set baseline and targets.
5. Draft a master plan for implementing TPM
from preparation stage to application
Forecast effects.
6. Kick off TPM initiatives Invite customers, affiliates& subcontractors
7. Build a corporate constitution designed pursue
the ultimate in production effectiveness to
maximize production effectiveness.
Conduct Focused improvement activities,
Project-team activities and workplace small
group activities, Establish and deploy
autonomous maintenance proceed Step by step,
with audits and pass certificates.
8. Implement planned maintenance, corrective,
shutdown, and predictive maintenance. Conduct
operation and maintenance group education.
Training to members by identifying their needs
through skill evaluation form.
9. Build an early management system. Develop equipments/products that are easy to
use.
10. Build a quality maintenance system. Establish, maintain and control conditions for

zero defects, zero accidents.

Step by Step Procedure for Focused Improvement.

Step Activity Detailed action plan
1. Select Improvement topic Select and register topic on topic registration form.
Form project team. Plan activity.
2. Understand situation Identify bottleneck processes.
Measure failures, defects and other losses.
Use base lines to set targets.
3. Expose and eliminate
abnormalities
Painstakingly expose all abnormalities.
Restore deterioration and correct minor flaws.
Establish basic equipment conditions.
4. Analyze causes Stratify and analyze losses.
Apply analytical technique (why-why analysis, FTA, P-M analysis).
5. Plan Improvement Draft improvement proposals and prepare drawings. Compare

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cost effectiveness of alternate proposals and compile budget
Provide instructions on improved equipment, operating
methods etc.
6. Implement improvement Carry out improvement plan. Practice early management
(perform test operation and formal acceptance)
7. Check Results Evaluate results with time as improvement project proceeds
8. Consolidate gain Draw up control standards to sustain results.
Formulate work standards and manuals
Feed information back to maintenance prevention programme
9. Rewards for Kaizen Spot award given for every kaizen submitted, implemented
will be rewarded 10% of the annual saving made by that
improvement after implementation.
Good KAIZENS rewarded and addressed at common forums by

ED/Department/Unit heads to boost the morale of employees.

Tata Steel India

Tata Steel's management approach to sustainability is to integrate consideration of the

‘triple bottom line' – economic, environmental and social performance - into the
Company's thinking and business practice. At Tata Steel, the purpose of the organisation
is to go ‘beyond business', to invest and develop for the benefit of society. This is achieved
through the principles of Corporate Citizenship and Inclusive Growth.

Goal 2012
 “We aspire to be the global steel industry benchmark for
Value Creation and Corporate Citizenship”

The Vision places equal emphasis on economic performance and corporate citizenship
through social and environmental performance, thus truly integrating sustainability into
the ethos and aims of the Tata Steel Group. One of the main goals is to reduce CO2
emissions to less than 1.7 tonnes per liquid tonne of steel (t/tls)

Reduce Emissions

 Continuous process improvements, for example increasing energy efficiency of

process units and maximising the recovery and utilisation of by-product gases.
 Invest in breakthrough technologies.
 Responsible product development.
 Employee engagement.
 Proactive role in global steel sector initiatives.
 Implement identified Clean Development Mechanism (CDM) projects.

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During FY 2009-10, the Jamshedpur Steel Works benchmarked its activities with the
IJmuiden Steel Works in the Netherlands and has undertaken several energy efficiency
measures like maximising the utilisation of by-product gases, efficient operations of blast
furnaces, etc. In addition, a number of other Indian divisions of the Company too,
undertook the Carbon Foot Print exercise to assess the base levels and formulate a plan
for setting targets and actions. Tata Steel has implemented a variety of control measures
to improve the working environment at the shop floor. The objective has been to create
an atmosphere that respects both nature and community at the same time. The
Jamshedpur works is the first in the world to be conferred the SA 8000 for work
conditions and improvements in workplace. All its operations have achieved the ISO-
14001 certification for environment management.

 During this year, specific water consumption including power and steam generation in
the Indian operations reduced by 18.3% to the level of 5.57 m3/tcs mainly driven by
recovery of wastewater from the drains of the Steel Works. Solid waste utilisation
increased by 1.55% in 2009-10 to the level of 91.1%.

Tata Steel Europe

Environmental protection being integral to Corus' Business strategies, the company is

committed to bringing down greenhouse gas emissions and progressively reducing any
negative impact of its operations through the adoption of sustainable practices.
Continuous improvement initiatives for improved environmental performance may be
categorized in the following ways:

 Effective environment management systems are in place to ensure awareness and

responsibility of the workforce with regard to environment.

 Continuous research and development of new technologies improve the

performance of processes and products through prevention and reduction of
emissions, releases, waste and pollution.
 Sustainable development is ensured by using energy, water and raw materials
more efficiently and through optimum utilization of all available resources.
 Product reuse and recycling is promoted through a better understanding of
environmental impact on the product life cycle.
 Corus is always committed towards responding to the concerns of local
communities and attaches respect to the environment and wildlife habitats in and
around its sites.

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Steel Recycling:

Tata Steel is the largest steel recycler in the UK. Tata Steel Packaging Recycling (TSPR)
promotes steel packaging recycling to consumers, local authorities and the commercial
sector, and offers an established end market for recovered used steel packaging.

Steel is 100% recyclable, and can be recycled over and over without loss of quality. It is
easy to collect, using kerbside collections, can banks and magnetic extraction, and is now
the most recycled packaging material in Europe.  

Recycling steel has major environmental benefits. By recycling steel, we can:

 Help preserve natural resources and protect the environment.

 Comply with landfill and packaging directives.
 To reach the recycling target of 69% by 2010.

The value of used steel cans in the waste stream is approximately £117 million a year.

Tata Steel Packaging Recycling works with local authorities, waste management
companies, the ferrous scrap industry and community and charity schemes to increase the
amount of this steel packaging that is recovered and recycled.

Our activities include:

 Providing advice and technical information on how to recycle steel packaging.

 Offering advice on setting up and promoting recycling schemes.
 Providing recycling equipment and support for recycling initiatives nationwide.
 Recycling steel at all our steelmaking plants: every steel plant is a recycling plant.
 Generating Packaging Waste Recovery Notes (PRN's) to enable obligated
companies and the UK to reach national recycling targets.
 Providing communication support for recycling schemes.
 Undertaking technical studies and strategic research to promote future steel
recycling.

All steel packaging is 100% recyclable.

Steel food, pet food and drinks containers account for about 60% of recyclable steel
packaging in the household. However, the other 40% includes many equally recyclable
containers, such as aerosols, household and DIY product containers, tins for biscuits,

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sweets and spirits, and steel caps and lids.

Most commonly recycled products in the UK

Corus research in 2005 showed the types of steel packaging that people actively recycle:

 Drinks cans – 57%

 Food cans – 53%
 Lids for glass jars and bottles – 22%
 Pet food cans – 21%
 Paint cans – 7%
 Aerosols – 7%

Raise awareness of the full range

To meet the Government’s target of recycling 71% of steel packaging in 2011, we need
to increase people’s knowledge of recyclable steel containers. By informing householders
about the full range of recyclable steel packaging, local authorities and collectors can:

 Help achieve the recycling targets for household waste.

 Improve the economics of household collection schemes

There are several cost-effective ways to collect packaging steel for recycling. The variety
of methods available means that steel packaging is particularly easy to collect.

  Kerbside collections

As the UK Government increases its household waste recovery targets, kerbside

‘recycling box’ or ‘recycling bag’ schemes operated by local authority contractors are
now widespread.

'Bring' schemes

With thousands of can banks or multi-material banks collecting steel cans across the UK,
'bring' schemes play an important role in supporting local authorities’ recycling
strategies.

Magnetic extraction

Magnetic recovery is the most efficient and cost effective way of extracting steel

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packaging from non-sorted domestic waste, achieving recovery rates of up to 85%.

Magnetic recovery at EFW plants

Conventional magnetic extraction technology at Energy From Waste (EFW) plants

recovers steel packaging present in the domestic waste stream after the incineration of
domestic waste.

Tata Steel Thailand

Tata Steel Thailand (TSTH) is wholeheartedly committed to the Group's environment

policies and goes beyond merely complying with norms and duties to actively participate
in stakeholders' concerns. Managing environmental impacts are the Company's
responsibility and it is subject to assessment and scrutiny.

Some of the main areas of focus of TSTH's environment initiatives are:

 To bring down Carbon Dioxide (CO2) emissions to less than 1.0 tonnes/tonne of
liquid steel after commissioning of the Mini Blast Furnace Project
 Focus on plant efficiency improvement.

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  Create good citizenship by promoting environment friendly activities in
communities around the plants.
 Investment in dust reduction projects.
 Investment in Continuous Emission Monitoring systems (CEMs).

Tata Steel NatSteel

NatSteel Holdings (NSH) has adopted and implemented an environmental management

system, which is certified to ISO 14001:2004 and complies with relevant local and
international environmental regulations and good practices. Activities are regularly
reviewed to identify significant impacts on the environment, and environment pollution
issues. As a responsible corporate citizen, NSH has opted for different measures to limit
adverse impacts caused by production. All activities are subject to assessment and apart
from monthly reviews, Environment, Safety and Health (ESH) Management Committee
meetings are held bi-annually.

NatSteel Holdings takes a multi-pronged approach to caring for our environment. We

encourage our staff to take responsibility for the environment, and optimise the
production life cycle to reduce waste, conserve energy and prevent pollution.

Over the past two decades, more than $20 million has been invested in pollution-control
equipment and barriers to protect the environment.

RadioactiveScrapMonitoringSystem
We were the regional pioneers in radiation detection for our steel scrap operations back in
1994. Our steel products are certified as compliant with the safety standards of the
International Atomic Energy Agency.

ReutilisationofSteelSlag
By effectively converting steel slag (a major by-product from the melting of steel scrap)
into slag premix for road construction, NatSteel Holdings achieved waste minimisation,
cost reduction, the conservation of natural resources and landfill space, and more durable
roads.

FingerShaftFurnace
By investing in the finger shaft furnace to replace the conventional electric arc furnace,

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we reduced energy usage by 25 percent.

Steel scrap is melted in batches at the furnace. The energy available in the exhaust gases
(also known as flue) from the melting process can be recovered by passing the hot flue
through the next batch of steel scrap, thus preheating it. The finger shaft forms the
preheating chamber for the passage of the hot flue.

HotCharging
In the late 1990s, our engineers modified the production process at the rolling mill by
linking the operation of the Meltshop directly to the reheating furnace at the rolling mill
via an automated conveyor system.

To roll billets into rebars or rods, the billets need to be at a temperature of around 1,100
degrees Celsius. Instead of reheating billets from room temperature, the automated
conveyor system enabled the billets to arrive at the reheating furnace at temperatures of
700 to 750 degrees Celsius, thus saving reheating costs.

As a result, fuel consumption was reduced by more than 40 percent. There were
manpower and time savings too with the automated conveyor system as the billets need
not be trucked from the Melt shop to the reheating furnace.

WaterRecycling
We built a drainage system to collect and recycle water used for cooling down billets as
they pass through the rolling mill.

Tata has taken various measures to optimize its process and practice lean to a greater
extent. Some of the measures taken by Tata are:

Green house Gas:

Of the six Greenhouse gases, Carbon Dioxide is most relevant for the steel industry. Tata
Steel has reduced the CO2 emission by 35% in the last 12 years.Following specific
measures to address Greenhouse gas emissions, there is a steady downward trend in CO 2
emissions from the Steel Works. In 2007-08, CO 2 emissions were reduced by 4.2% to
2.04t/tcs, equating to 2 t/tls. CO2 emissions calculations are based on GHG protocol
guidelines. Carbon Dioxide Emission ( t / tcs )

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Tata Steel India
Water discharges, runoff and the receiving ecosystems:

The Company discharges its treated effluent from the works and treated domestic sewage
from township to the rivers Subernarekha and Kharkai. Studies carried out by NEERI in
the year 1993-95 and 2000 to assess impact on ecosystems/ habitats of rivers have found
no significant impact on the aquatic eco-system. Noamundi and Joda Iron Ore Mines as
well as West Bokaro and Jharia Collieries have all achieved zero discharge. The domestic
effluent is discharged through the septic tank - soaking pit route at the mines and
collieries. Sewage treatment plants have been provided for the entire township at
Jamshedpur. 100% effluent water is treated before being discharged upstream.

Water Pollutant Discharge ( kg / tcs )

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Tata Steel Europe

There has been a steady reduction in absolute emission to water since 2000. Most of the
water used in the processes is for non-contact cooling and thus it is returned directly to
the source with no tampering in quality at all. An advanced range of biological, chemical
and physical effluent treatment technologies are employed at many of the plants to
minimize the impact of process effluents, and to adhere to emission limits. Pollution
causing materials that are used at Corus facilities are stored in contained systems and a
large number of pollution control measures are also deployed.

NatSteel Holdings

The discharge from the various cooling towers is treated to reduce the concentration of
oil and grease before they are discharged in the sewers. A certified laboratory is engaged
annually to take samples of the discharge for analysis. The analyzed results meet
stringent criteria set forth in the Sewage and Drainage (Trade Effluent) Regulations 1999.

Tata Steel India

Waste Handling:

89.6% of solid waste generated from Steel Works is recycled or reused. 17% of the solid
waste generated, amounting to approximately 6,12,300 tonnes in 2008-09 was used to fill
low-lying areas and for peripheral road construction around Jamshedpur.

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Effluent Management:

Wastewater from the steel making process is being treated with the best available physio-
chemical methods and being recycled as well. Wastewater from the coke plant is treated
biologically where organic pollutants are oxidised and decomposed by micro-organisms.
The Company has reduced the levels of total pollutant discharge in wastewater streams
from 0.211kg/tcs in 1999-2000 to 0.128 kg/tcs in 2008-09.

Solid Waste Management: Tata Steel generates around 659 kg of various kinds of solid
wastes (excluding fly ash) for every one tonne of crude steel produced. About 85% of
these wastes are utilised either through recycling and reuse in own processes or sold as
input materials to other industries. Remaining wastes are sent for safe land filling.

Solid Waste Utilisation (%)

Stack Emission - SPN ( kg/tcs )

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Tata Steel Europe

In spite of having an efficient energy conversion mechanism in place, some waste generation in manufacturing
processes is inevitable. The waste materials at Corus plants are reused, recycled or otherwise recovered for use in
other sectors of industry. The objective of sustainable consumption is met in a symbiotic way in which secondary
materials arising in other sectors of industry are used in Corus processes. Granulated slag from the blast furnaces is
used as a clinker substitute in the concrete sector. Steel making slags are used in well-established civil engineering
and agricultural applications, ferrous chloride solution is used in water treatment and tar and benzene are used within
the chemicals sector. 

NatSteel Holdings

To conserve resources, remnants from production process (cut ends) and rejected products (cobbles) are recycled by
adding to the scrap for melting. EAF slag is collected by a third party to be treated and used for roads and aircraft
runway paving.

A few initiatives taken by Nat Steel towards effective utilisation of wastes include:

 Seggregation of all waste in production centres under “General”, “Electrical”, “Waste Oil & Grease” & “Waste
Chemicals” to facilitate waste control.
 Selling “Electrical”, “Waste Oil” & “Waste Chemicals” waste to licensed collectors for recycling.
 Sending “General” & “Waste Grease” via proper channel for proper disposal.
 Monitoring amount of waste generated.
 Reviewing processes and implementing measures to reduce the amount of waste generated.
 Use of Electric Arc Furnace slag as road stones to surface roads.
 Disposing toxic waste by licensed contractors as stipulated by Environmental Public Health (Toxic Industrial
Waste) Regulation 1988.

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Raw material:
Tata Steel has made great strides in its effort to reduce the use of natural resources per tonne of steel manufactured
by it. The Company has reduced raw material consumption from a level of 5 t/tss to nearly 3 t/tss in the last 12 years.

Tata Steel India

Steel is 100% recyclable. However, the current rise in demand cannot be met by recycling steel alone. Hence,
recycling both steel and iron ore is required in order to meet this demand. The manufacturing process utilises raw
materials such as minerals and semi-processed materials. Tata Steel receives its raw materials from its captive
mines and collieries in the states of Jharkhand and Orissa. The only waste material from external sources that is
sometimes used by Tata Steel is the iron or steel scrap purchased from the market and used in the steel melting
shops.

Specific Raw Material Comsumption ( t/tcs)

 Tata Steel Europe

Committed to conserving all raw materials, particularly those that are non-renewable, processes at Corus have been
refined over many years to ensure optimum consumption of available resources. This is a positive step towards
creating a sustainable environment, in addition to being commercially profitable. Systems such as briquetting have
been advantageously utilised at manufacturing facilities to enable re-circulation of any residue materials that contain
valuable components, within processes.

NatSteel Holdings

At NSH the usage of oxygen had increased temporarily with the installation of the Virtual Lancing Burner (VLB) but
after the system stabilised, the consumption rate was effectively controlled and improved. The raw material usage per
tonne of billets is generally constant.

Two initiatives taken by NSH in optimising raw material usage are:

Page | 24
  Minimising remnant generation in Rolling Mill by tailoring billet lengths to diameter and lengths of bars
produced.
 Minimising scrap generation in Downstream through material optimisation and second order recycling of
remnants from both Rolling Mill & CAB.

Energy:
Tata Steel utilises many forms of energy for the purpose of steel production. The Company, through its Energy Policy
is committed to conserving the scarce energy resources of the earth. Through an intensive energy saving campaign,
the specific energy consumption of the Company has seen a drop of more than 36 % in the last 12 years and now it
is at a level of 27.580 G. Joules/ tonne of crude steel in 2008-09.

Tata Steel India

Tata Steel's energy conservation initiatives

include:

Tata Steel continually develops and

implements energy conservation and
efficiency measures. Its initiatives under
implementation for the reduction of energy
consumption include:

 Design, installation and

commissioning of rotary hearth
furnace where power consumption is
expected to reduce from 3,500
KWh/tonne to 2,800 KWh/tonne.
 Installation of top recovery turbine at  
‘G' & ‘H' Blast Furnaces.
 Recovery of sensible heat of coke by
installation of Coke Dry Quenching
system in Batteries 5, 6 & 7 at Coke
Plant.
 Enhancement of waste heat recovery
at Sinter Plants.
 BF Gas fired re-heating furnace at Hot
Strip Mill.
 Improvement in LD Gas recovery.

Renewable energy & product energy

efficiency initiatives

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Use of renewable energy is highly limited in
the main steel making process, due to techno-
commercial non-viability. However, Tata
Steel encourages and promotes the use of
renewable energy in the form of solar
electricity, biogas etc. In the Renewable
Energy for Rural Livelihood Project,
deprived villagers have been assisted to adopt
solar lighting and bio-gas plants; this has
reduced the use of wood as fuel thereby
enabling farmers to switch from fertilizers to
biogas manure in the future.

Additionally, Tata Steel is considering

energy sourcing

and energy efficiency very carefully in its product development. It is developing and
producing a range of high specification product solutions with attractive, more
sustainable qualities – for example products that are lighter, stronger and more durable.
These products meet customer needs and will allow them to develop better, cheaper and
more environment-friendly products for the end user. Stronger and more durable products
will facilitate more advanced uses and less frequent replacement (reducing further
impacts of production) whilst other features, such as lighter weight, can mean that the end
product is more energy-efficient or effective. For example, lightweight steel designed for
cars allow automotive customers to produce a lighter-weight vehicle that will have
greater fuel efficiency and will be less polluting to the atmosphere.

Specific Energy Comsumption ( Gcals/tcs )

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Tata steel Europe:

Adhering to its commitment towards creating a sustainable environment, Corus focuses

on finding energy efficient solutions for the construction, packaging, transport and other
industries. Corus' Electrical steels are supplied to various markets where they are used to
generate, transmit or facilitate the use of electrical power. It's small energy dissipation per
cycle helps reduce CO2 emission by reducing energy losses. Electrical steels are
gradually being incorporated into renewable energy technologies, and the Company is
collaborating with customers to develop more energy efficient transformers, traction
motors of hybrid vehicles and wave power generators.

By using recovered fuel oil as a chemical reductant in the blast furnace at Teesside Cast
Products, Corus has achieved a substantial reduction in annual consumption of coke, with
an associated CO2 saving equivalent to more than 25,000 tonnes per annum.

Corus' priority is to utilise gases arising at its blast furnaces, coke ovens and steel plants
as efficiently as possible, thereby curtailing the use of supplementary fossil fuels and
electricity imports to the site. The Company has achieved very high levels of on-site
electricity generation.

Tata steel Thailand:

TSTH has undertaken many initiatives to improve energy use. By installing a new
cooling tower for indirect water, TSTH saved energy consumption upto 5%. The
company has also applied Natural Gas (NG) to its Electric Arc Furnace consequently
saving energy by 3% (or 17-kWh/tonne billets).

NatSteel Holdings:

Actions to reduce electricity consumption at NatSteel's operations include substitution of

cheaper chemical energy for electrical energy by operating the Virtual Lancing Burners
and closing all outlets during operation to retain heat. This is evidenced by the decreasing
consumption rate of electricity per tonne of billets produced.

Some of the initiatives undertaken to minimise energy consumption are:

 Keeping scrap dry and clean to minimise inclusion of soil when scrap is charged
into the furnace, reducing electricity consumption and increasing steel-making
yield.
 Preheating scrap in shaft furnace before each change.
 Charging hot billets from Continuous Caster to Rolling Mill.
 Installing Virtual Lancing Burners to introduce chemical energy to replace
electricity and fuel in electric arc furnace.

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Water:

Tata Steel has taken various actions for optimum use of water. The increased emphasis
on water re-circulation in all process units has contributed to considerable reduction in
water consumption. Specific water consumption (including that of power generation) has
reduced by more than 60% over the last decade. Close monitoring of water losses,
recycling of processed waste water and treated sewage water for steel making and treated
effluent recovery from works drain have resulted in use of much less water for every
tonne of steel produced.

The Company does not use any ground   Water for industrial and domestic usage
water source for industrial or domestic use. at Jamshedpur is drawn from river
The entire domestic consumption of the city Subarnarekha. This river is perennial in
of Jamshedpur is ~65 million metric nature and water abstraction does not
cube/annum of water and is supplied and have any adverse impact on the eco
managed by the hundred percent subsidiary system. The other source of water at
Company JUSCO (Jamshedpur Utility Jamshedpur is a 92.6 square kilometer
Services Company). The potable water captive reservoir at Dimna with a
supplied by JUSCO to the city meets all capacity of 34.224 million metric cube.
national and international standards.
Gross make-up water requirement for
The total water withdrawal during the period the Steel Works was an average of
was 36.67 million metric cube for 105200 m cube/ day during 2008-09.
Jamshedpur Steel Works, which also
includes water used for expansion activities.
Water re-circulation and conservation efforts
are in place at process units and the new
processes that will come online in the
coming years are likely to reduce specific
water consumption.

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Water Consumption in Steel Works
including Power Generation

The Missing Link:

For the case study the biggest company on the Polish steel market, ArcelorMittal Poland,
has been chosen. In 2006 it commenced the introduction of the TPM concept and the 5S
method. The basis for the TPM implementation was the so-called Single Minute
Exchange of Die (SMED). SMED makes it possible to shorten the production
line changeover time. At ArcelorMittal Poland SMED was carried out together with the
Kaizen Institute coordinators. The whole process of machinery changeover was filmed,
and the duration of each activity timed. Next, together with the workers, the material was
analyzed and finally new standards for particular production changeovers were
established. The pilot 5S program was introduced in the Sosnowiec branch of Arcelor
Mittal Poland (at cold-rolled strip mill). The 5S principle was applied to all devices of the
mill. In February last year it was introduced to precision winders and
glow furnace, and in May to preliminary drawing machines and grindery in the welding
wire unit. In September works on the introduction of Kaizen to other steelworks

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departments started – the upgraded quality steel wire rod mill. As part of the program
workers tidy their work area and improve work organization at their
workplaces. The purpose behind both TPM and the 5S method is to increase efficiency
through the expansion of knowledge and skills of the workers, and their responsibility.
Workers become more committed to their work, they are able to properly understand a
given situation and make the right decisions. The company runs a
special incentive program called the "Idea of the Month". A special team composed of the
management of a given department and the CEO, award a financial prize to the authors of
best work organization improvement solutions. The "Idea of the Month" program at
ArcelorMittal Poland has contributed to:

– the installation of a drainpipe to prevent oil from dripping on the floor in the assembly
room,
– the use of a special pallet for a narrow production line so that it stays fixed and does not
wobble,
– improvement in guidance of scrap case on cuttern° 2.

Let us have a closer look at the specific elements of the 5S method. In the Sosnowiec
branch of ArcelorMittal (cold rolling mill) a crane for lifting and
installing rings on the spooling machine was disassembled, the floor in the assembly
room was renovated (any bumps or signs of unevenness were removed) and the
packaging line was equipped with oil mist ventilation to protect the worker’s health. The
cold rolling mill branch has already managed to dispose of around 80 percent of
all items marked with red cards. More over team leaders are responsible for checking
workplaces both before and after work to ensure that workers maintain order. The
control checks also take place during work. In 5S standardization and compliance with
procedures is needed. Standards may concern the item marking methods, the
use of colors, codes, marking models of the floor around the workplace, marking models
of tools access zones, etc. The whole system is subject to periodic and running
138 METALURGIJA 48 (2009) 2, 137-140
B. GAJDZIK: INTRODUCTION OF TOTAL PRODUCTIVE MAINTENANCE IN
STEELWORKS PLANTS controls. In addition, a cross control by workers holding
the same posts at different departments or branches of the company takes place _6_.
SAFETY OF WORK IN STEELWORKS
The Value statement of the ArcelorMittal concern is: “We are committed to the health
and safety of all employees, both on and off the job in order to become the
most admired steel company”. The marketing slogan of the company is: “We build a safe
organization. We are not as strong as our products and therefore health and
safety issues are "our priority" whereas its strategic goal is "Zero accidents". In 2003
there were 184 accidents in four steelworks plants of the company. In 2005 there
were 99 accidents. In 2006 there were 119 accidents and in 2007 there were 74 accidents.
Approximately 64,7% of all accidents are caused by human errors and routine,

Page | 30
whereas 35,3%of accidents are due to bad work organization, the majority of which
means lack of compliance with safety regulations concerning work organization
and the remaining part a consequence of inattention, forgetfulness or lack of knowledge.
Accidents are most frequent at toolmaker, smelter and electrician workstations.
The company organizes periodical health and safety trainings, courses and drills on e.g.
first aid to improve work. Besides all accidents are discussed with workers and analyzed.
The company wants to reduce the accident rate to 3,0 in 2008 (currently the accident rate
is 3,6). The accident rate = number of accidents x 1 000 000 / worked man-hours _7_.
THE ASSESSMENT SYSTEM FOR WORKER
AND SUPERVISOR POSITION – CASE STUDY
Due to organizational development of ArcelorMittal Company on the Polish steel market,
the company has decided to implement the Assessment System. The primary
goal for the implementation of the Current and Periodic Assessment system for worker
and supervisor positions is to ensure objectivity and comparability of results
and skill assessment for particular employees. The key components of the system are: an
assessment interview with a superior (it will provide an opportunity topresent mutual
expectations, exchange comments on results and quality of work as well as set the path of
professional development for each employee); appointment of a steering committee and a
review of workplaces and results achieved at individual workplaces, the review
will be based on the analysis of organizational documents and information gathered by
consultants during their visits at particular workplaces; identification of criteria
used for current and periodical assessment of employees; preparation of assessment rules
and tools to which employees holding a supervision position will be
introduced during trainings; assessment of employees and their work.

WORKERS’ AWARENESS

There are various types of awareness. There is ecological awareness, marketing

awareness, market awareness, productivity, work efficiency or work safety awareness,
etc. What is work safety awareness then? It is all the information and beliefs on how to
work not to cause an accident and the ability to see the link between efficiency
and working conditions and a worker’s health and life. Work safety awareness is
combination of the health and safety system and the TPM concept. Worker’s awareness
in the TPM system consists of their expertise, views and opinions on safe work methods,
work organization improvement, care for the machines, etc. It is also the assessment
of workers’ results and attitude at individual workplaces. It is also the adopted approach
to work and safe behavior models. The particular elements overlap
and blend creating a whole. The higher the level of worker’s TPM awareness, the higher
quality of organizational culture and the more efficient and safer the work is.
Lack of awareness invariably has a negative impact.

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CASE STUDY – WORKERS’ AWARENESS
MANAGEMENT PROJECT
In 2008 ArcelorMittal Poland commenced work on the development and introduction of a
project called ’management of workers’ awareness on health and
safety at work’. The project can be divided into the following stages:

1. Development of a planning document i.e. the so-called "Corporate Health and Safety at
Work Strategy". The document is based on the "photography" of the actual state of health
and safety and the identified workers’ awareness on safe work methods (interviews,
observations, surveys).

2. Dividing the strategy into action programs. Currently workshops for team leaders are
being organized at the company. Team leaders will be members of the
so-called project support teams. Team leaders participate in workshops during which they
learn about methods and courses of action that influence workers’ awareness
and, as a result, the change of their attitude to safety. The support teams also include
representatives of trade unions, supervision employees and public labor inspectors. These
teams play, first of all, an advisory role in the company. Team members hold regular
meetings with workers and explain them what awareness management is about. The first
workshops are also attended by management staff which is to set a good example.
The next workshops are attended by the remaining company workers.
METALURGIJA 48 (2009) 2, 137-140 139
B. GAJDZIK: INTRODUCTION OF TOTAL PRODUCTIVE MAINTENANCE IN
STEELWORKS PLANTS

3. Continuous improvement of the safety management system and implementation of new

methods for raising workers’ awareness on TPM and work safety.

BENEFITS OF TPM
In the companies that have implemented TPM the following can be seen: growth of
employees’ involvement, new skills learned and creativity released, for
many people participation in the TPM program provides the first opportunity to actively
engage in corporate life and feel ownership at a workplace; increase in work efficiency
(by as much as 150 %, experts say); breakdown reduction (drop by 90%or even 99 %);
drop in the number of accidents at work (62888 persons injured in accidents
at work in industry in 1995, 42871 persons in 2006, drop by 20017 persons); reduction of
internal waste (by 90 %); improvement of work quality and reduction
of complaints (by cca. 75 %); reduction of production costs by 30 %; reduction of
materials kept on-stock by 50 %; drop or lack of environment-related
breakdowns; increase in the number of proposals for new organizational solutions,
development of workers’ initiative in search of innovation.

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These are the techniques that should be implemented in TAAT STEEL to be a global
leader in operation and process in the production of steel.

CONCLUSION
The adjustment of a steelwork company activity to the new rules of global economy
requires the application of modern work organization solutions. The aim of
TPM and 5S is to increase worker’s efficiency through the improvement of their skill and
knowledge as well as the extension of their responsibilities. Workers become
more committed to their work, they are able to understand and interpret a given situation
correctly and make the right decisions, which altogether contributes to,
among others, higher productivity and improvement of working conditions. In the paper
attention was paid to the modern methods – TPM - Total Productive Maintenance
and "5 S". These methods are customer oriented and help to obtain permanent
competitive advantage. The process of introduction of these methods is long and
requires organizational and other changes.

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