TQM Implementation Case Study

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Implementation of TQM in

TATA Steel
What is TQM?
 TQM is a management approach aimed at continuously improving the quality of products,
services, and processes within an organization.
 TQM is defined as continuous effort by the management as well as employees of a
particular organization to ensure long term customer satisfaction and customer loyalty.
 TQM ensures that every single employee is working towards the improvement of a culture,
processes, services , systems and so onto ensure the long term success.
Three elements of TQM
 Total: Involving the entire organization(made up of whole ).

 Quality: Degree of excellence a product or service provide.

 Management: The system of managing the steps like Plan, Organize , Control , lead and
so on.

Therefore ,TQM is defined as art of managing the whole to achieve the


excellence.
TATA STEEL - INTRODUCTION
 Tata Steel Limited is an Indian multinational steel making company
 Established in 1907 as the Asia’s first integrated private sector steel company
 Founder – Jamsetji Tata
 Tata steel is among the top ten global steel company.
 Annual crude steel capacity of nearly 30 million tonnes per annum.
 It has manufacturing operation in 26 countries including Australia, China, India,
Netherlands, Singapore, Thailand and Uk.
 It is now the world’s second most geographically diversified steel producer
 Also the second largest steel company in India with an annual capacity of 9.7 million
tonnes after SAIL
 It is the first steel company in the world to win the Deming Application Prize
WHY TATA STEEL NEEDED TQM?
 World’s top steel makers today, but 25 years ago Tata steel went through a dark period .
 Company wants strengthened competitive position, higher productivity, elimination of
defects and waste , reduced costs and better cost management and many more .
 To Increase the customer satisfaction and to better supplier relationship.
 Tata steel needed to accept was the need for the improvement.
 So the company invested in a quality and business excellence movement and adopting the
TQM in 1990
Implementation of TQM in TATA STEEL
Tata Steel's implementation of Total Quality Management (TQM) has been a top-down commitment,
emphasizing employee training, cross-functional collaboration, and continuous improvement.
Implementation of TQM in TATA STEEL
Understanding customer Needs and Infrastructure strengthening.
Implementation of TQM in TATA STEEL
Through methodologies like Six Sigma and Lean manufacturing, the company has focused
on customer needs, supplier relationships, and data-driven decision-making to drive quality
excellence.

Lean manufacturing, also known as lean production, is a


system of techniques and activities designed to optimize
manufacturing or service operations. The underlying principle
of lean is the elimination of non-value-adding activities and
waste from the business.
Implementation of TQM in TATA STEEL
Employee empowerment, regular evaluation, and the use of various tools have helped
overcome challenges, leading to improved quality, reduced costs, and a culture of excellence.
Results of Implementation of TQM in TATA
Steel
 TQM implementation has helped Tata Steel in reducing production cost and the cost of production
of a tonne of saleable steel has dropped by 2.5 per cent.
 Improvement of the working of the Coal Washeries has brought down ash content in domestic
coal from 17 percent to 13 percent.
 Elimination of defects and waste.
 Company’s dependence on imported coal has declined.
 Also helped TATA Steel in improving productivity of blast furnaces.
 Raw Material Division kept pace with producing highest ever iron ore at 10.72 Million tonnes.
(Previous best 10.09 Million tonnes)
 Company’s continuing focus on safety resulted in a 10% reduction lost time injury frequency
(LTIF) rate in the works and an 80% reductio in the Raw Material Division.
 Company’s TQM Initiatives benefits both in manufacturing processes and selling finished
products in a competitive environment.
 Improved customer focus and satisfaction.

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