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Critical skill mapping of employee based on 4Q Toyota model at TATA STEEL ltd. jamshedpur
Submitted By:
SUDHIR SINGH Roll No.1068470104
Research project on Critical skill mapping of employees based on 4Q toyota model TATA STEEL Ltd. jamshedpur This study is done under the guidance of the undersigned by partial fulfillment for the award of M.B.A. I wish him/her all the best for bright future ahead.
DECLARATION
I sudhir singh
based on 4Q Toyota model at TATA STEEL LTD.jamshedpur is my original work being submitted to the MAHAMAYA.TECHNICAL UNIVERSITY for the partial fulfillment of the requirement for the degree of the Master of Business Administration is my own endeavors and it has not being submitted earlier to any institute/university for any degree.
NAME-SUDHIR SINGH
ACKNOWLEDGEMENT
This project is a team project, while my name is on the cover page of this project, literally many of the people have contributed to this research report. Every work requires commitment, but this commitment goes in vein when there is no guidance.
I am short of words in expressing my sincere thanks to respected Mr. Bhavuk gupta (manager IR CSI) for his encouragement and support for the fulfillment of my project.
Last but not the least I also acknowledge with thanks director mam Ms. Savita Mohan and under the guidance of Ms. Alka for his valuable suggestions and I am also indebted to the faculty of GNITMS for making me worth this work.
Preface
The research is on the basis of A STUDY ON SKILL MAPPING OF EMPLOYEES WITH 4Q MODEL OF PELLET PLANT EMPLOYEES IN TATA STEEL LTD. JAMSHEDPUR. It is used to study the skill level of employees in their job level. Skill matrix is a tool to assess training needs. It is a table that shows skills of individuals in a team and any gaps between the skills of employees and the job roles they have. It is also known as a competency framework. If behind the maximum level, retrain and evaluate. The study was based on the descriptive research design. The sampling design being used here is Simple Random Sampling Thus this report seeks to utilize primary research, through questionnaires, Observation and secondary method involves data collection through magazines and websites. The tools being used for analysis and interpretation is Percentage analysis. The Suggestion made by the employees where mostly implemented whenever they were applicable.
Index
Sl.no. Topics
Institutes certificate
Page Number
Companys certificate Acknowledgement Declaration Preface 1 Introduction About the topic Objective of the study Methods employed Significance of the study 2 Industry Profile 3 Company Profile 4 Financial analysis of the company 5 Data analysis and interpretation 6 findings 7 Conclusion 8 Suggestion 9 Limitation of the study 10 Appendices Questionnaires Organizational Structure 12 Bibliography
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From 1 17
To
30 52 95 102
105 108
118
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INTRODUCTION
INTRODUCTION
In todays competitive business scenario and era of flatter organization, structures enabling high quality performance/contribution from each individual have become essential because skill level of employees is critical to the performance of any organization. The leaders role in motivating, guiding and facilitating employees in raising their performance and realizing their potential has assumed greater significance. Further, managers are called upon to develop the softer skill, attitudes and behaviours so as to ensure that each individual integrates well with the team and the overall organization culture. Also, employees today expect their manager to play an active and effective role in their career planning and professional development.
Thus for knowing the needs of the training and development of the employees, Toyota Motor, Japan has introduced the concept of Critical Skill Mapping by Four-Quadrant Model. By the use of model managers are able to evaluate and analyze the progress of skill index of a group of employees of same profile. In order to improve the skill level of employees, the Toyota model (4 quadrant) model of skill assessment has been adopted. This help in identifying the gaps and the training the Critical skills are those minimum skills required to successfully accomplish the assigned work/job. If skill of worker or employees lies below the critical skill, then the productivity of workers is hampered and the organizational output will be affected.
Non-critical skills are those skills, which help in enhancing the efficiency and effectiveness of an organization. It helps in achieving the benchmark of productivity of an organizational output.
Definition
Has the working knowledge of the subject and can work under supervision. Has adequate knowledge of the subject and can work independently on the job.
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Identifying skills required for each position. Assign desired level of proficiency against each position and skill. Assess each employees proficiency against this skills. Identify gaps based on assessment of proficiency. Identify training need for each employees based on the gap Prepare training plan, imparting training and assess improvement.
Critical skill Minimum reqired skill to complete job Non critical skill Additional skill to achieve benchmarking
Critical skill are those minimum skill required to successfully accomplish the assigned work / job. So this is known as critical skill. If skill of workers/employees lies below the critical skill, then the productivity of work and workers hampered and the organizational output will be affected.
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Non critical skill are those skill which help in enhancing the efficiency and effectiveness of an organization . It help in achieving the benchmarking of productivity of an organizational output.
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We have used squares instead of circles since we do not know how to make circles appear in Microsoft Excel. In our format for consulting skills there are levels 0 through 4 starting with a blank (white) matrix, levels 1 through 4 being blue.
This free skill matrix template is easy to edit and easy to fill in. There are no macros and no automated features, you simply enter the values for Name and Skill and color in the matrix section as you like. It is formatted to 11 inches by 17 inches size paper for printing purposes. This accommodates a large number (thirty) of skills and competencies. You can format this sheet smaller or larger to suit your needs.
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Hopefully the more prominent positioning and titling of this free skill matrix template will make it easier for people to find, reducing the muda of searching. Other articles we have written about the skill matrix now also include a link to this free skill matrix template.
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based on actual 4Q score and desired 4Qscore identity the various trining to be imparted to each employee
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Preparation of quadrant chart for every employee working in operation section A Mechanical Department. B Electrical Department C Operation Department
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Objectives of a Research:
To gain familiarity with a phenomenon or to achieve new insights into it. To portray accurately the characteristics of a particular indivisual , situation or group.
To determine the frequently with which sometime occurs or with which it is associated with something else.
To test a hypothesis of a casual relationship between variables. Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology.
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For the survey I have taken the help of primary and secondary data.
Primary Data:
For primary data collection I have used the following methods: 1.Questinnaire in form of job modules: I have developed a questionnaire for section head and supervisor for job module evaluation of worker critical skill .The number of modules to successfully accomplish the jobs is same for similar designation or group of similar kind of jobs.
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The evaluation was done from zero to four quadrants. The specification of quadrant is as;
No of quadrents to be filled 0
Symbol
Definition
Has been given basic training on the subject. Has the working knowledge of the subject and can work under supervision. Has adequate knowledge of the subject and can work independently on the job. Is an expert of the subject and can give training to others.
2.Observation Method:
Observation and scaling (from 0 to 4) of critical skill on quadrant was given by the sectional head and supervisors of workers .The scale defines the competency of employee in particular job modules .For examples A.K.Tiwary ,Foreman of mechanical department ,G-Blast furnace got second quadrant scale in MS-Word ,MS Power point, SAP Module it means that he have working knowledge of this module ,but they cant work independently .they need supervision for working on this module
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Procedure: Given the names of all employees to be covered under Positional Training in column "B" under the heading "Names". Written the topics of all the "Training Modules / Topics" to be covered under Positional Training in row "9" under the heading "Training Modules / Topics". Selected the cell to be filled e.g. "H11" for 'PLC drives' for 'Ram'.
Decided the competency of the person (Ram) on the subject (PLC Drives). The above said matrix to be used for this.
Based on the above, click on the appropriate 'Quadrant Button' given on the top of the 'Data' sheet.
Secondary Data:
For secondary data I referred to the company profiles ,previous year report, literatures, journal, periodicals, internet, interanet, etc.
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Sample size:
Number of supervisors & workers surveyed in internal Number of supervisors &workers surveyed in external
= 15 = 26
This sample size consists of 100%of the total employees of pellet plant
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It is a table that shows skills of individuals in a team and any gaps between the skills of employees and the job roles they have. It is also known as a competency framework. If behind the maximum level, retrain and evaluate.
Critical skills are those minimum skills required to successfully accomplish the assigned work/job. If skill of worker or employees lies below the critical skill, then the productivity of workers is hampered and the organizational output will be affected.
During the study the researcher was directly in contact with the Operators and Supervisors and has got a remarkable practical experience in this period of 30 days
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INDUSTRY PROFILE
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a. Increase in blast furnace productivity b. Decrease in blast furnace fuel rate c. Decrease in hot metal quality d. Decrease in Slag Rate
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INPUT
iron ore fines Limestone Anthracite Coal Anthracite Coal Bentonite CO Gas BF Gas Coal Tar Power Process Water Grinding media
OUTPUT
product pellet pellet fines
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perameters
Iron Ore Fines Size coal/ coke size lime stone, pyroxinete agglomiration process product size,mm tumbler index( TI),% Reduction Degradation Index (RDI), % Reducibility Index (RI), % Swelling Index, %
pellet
80% < 0.045 mm 80% < 0.045 mm 80% < 0.045 mm Induration 6-16 mm >92 <12 65 <18
sinter
< 8-10 mm < 3.15 mm < 3.15 mm Sintering 6-40 mm 65mm 27-30 65
Spider chart shows only one employees skill level at a time, whereas four quadrant skill mapping shows the skill level of a group of employees of same profile.
The complexity regarding depiction of a spider chart is reduced in four quadrant skill mapping.
Evaluating and analyzing the progress of skill index of a group of employees of same profile becomes easier.
We can analyse the status of each module for a group through four quadrant skill mapping.
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Since it is a software based module updating it becomes simpler Four quadrant skill mapping is very useful tool for employees as job rotation is ensured
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Process flow:
PROCESS FLOW
FLUXES
SOLID FUEL
DRYING
IRON ORE FINES
BAG HOUSE
PELLET SCREENING
MIXING
INDURATION
INTERMIDEATE STORAGE
CUSTOMER : B.FCE
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Three process stages are involved to produce pellets from raw materials:
Successful pellet production calls for an optimum efficiency and harmony between all above three stages with preceding stage highly influencing the subsequent one.
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C. Drying Circuit
D. Grinding Circuit
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Green pellets have low mechanical strength hence need for hardening for further processes
Method for hardening pellets is Induration in which pellets are heated to 1300-1350C in controlled manner.
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Crushing Strength: 250 kg/pellet Tumble & Abrasion Index Tumble Index (TI) >92% for the fraction +6 3 mm Tumble Index (TI) >92% for the fraction +6.3 mm Abrasion Index (AI) <5% for the fraction -0.5 mm
Size Distribution +16 mm < 3 % +6 mm to -16 mm >90 % -6mm < 3 % Tests for metallurgical properties Reduction Degradation Index (RDI), <12 % for -3.15 mm fraction Reducibility Index (RI), >65 % Swelling Index (SI), <18 %
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COMPANY PROFILE
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(1839-1904)
Jamshetji Nusserwanji Tata ranks among the greatest visionaries of industrial enterprise of all time. Gifted with the most extraordinary imagination and prescience helaid the foundations of Indian industry, contributed to its consolidation and became a key figure in Indias industrial renaissance. Born on 3rd March 1839, in a family descended from Parsi priests in Navsari, a centre for age-old Parsi culture, he was educated in Elphinstone College, Bombay (now as Mumbai).
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Initiated early into the techniques of trade by his father, he traveled wide, gained a scientific outlook and first set up textile business in India, introducing new machinery that vastly improved the production of cotton yarn in the country. He however realized that Indias real freedom depend upon her self-sufficiency in scientific knowledge, power and steel and thus devoted the major parts of his life and fortune to three great enterprises- Indian Institute of Science at Bangalore, Hydroelectric schemes and the iron and steel work at Jamshedpur. Wealth to him was not the end, but the means to an end- the increased prosperity of India. His attitude to labour was remarkably ahead of his times, constantly reinforcing the norms that the success of the industry depended upon sound and straightforward business principles, the interest of the shareholders, the health and welfare of the employees. As early as 1892, he established J.N. Tata endowment for higher education abroad of outstanding Indian students. A pioneer in town planning, he was mainly responsible for modernizing Bombay (now as Mumbai);he envisaged and conceived a steel town to the very last detail, the town that was later to be named Jamshedpur after him. The first stake for the steel plant was driven on a forest-covered plateau in Sakchi on 27th February 1908. The dream had come alive, but the dreamer himself was no more for. Jamshetji had died at Nauheim in Germany in 1904 after his successors to preserve the family name. His spirit continued to inspire his sons to carry their fathers dreams to fruition well after his death. He is one of the most widely traveled Indians of his time, said to possess knowledge that was encyclopedia. Not only did he have a great love for it, he also had a passion to impart it to others, for, as early as 1892, he established the J.N. Tata endowment for higher education abroad of outstanding Indian students.
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Jamshetji Tata won himself an enduring place in Indias history with his unique courage, commitment and vision.
TATA STEEL was established in 1907 by its founder JN Tata, Asias first and Indias largest integrated private sector steel company. The companys four- phase modernization programme has enabled it to acquire the most modern steel making facilities in the world. The highly productive blast furnaces along with the LD converters and its downstream continuous casting facilities provide a distinct edge that will enable Tata Steel to achieve its vision of becoming the worlds lowest cost producer of steel .The coke ovens with stamp
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charging technology have helped it to produce coke at the least cost in the world and drastically reduce wastage and also emission of pollutants.
As Tata Steel commissioned its 1.2 million tonne cold rolling mill complex at Global Speed and Cost in April 2000 it re-christened the future as Steelenniumreiterated its belief in- Steel is the essence of life. The tie-up with Nippon Steel Posdata, Flour Daniel etc. To establish the mill is a reaffirmation of the immense faiththat the international partners repose in Tata Steel. The fifth phase of the modernization programme launched recently seeks to leverage the intellectual capabilities of the employees. Thus Tata Steel by better knowledge management initiatives hopes to shift focus of its employees from creating new physical assets to utilizing them with ingenuity and a sturdy business sense.
As a web enabled enterprise, Tata Steel is rapidly linking up with its customers and suppliers. The implementation of SAP, an enterprise resource planning software package, has changed the process of conducting the business. It will ensure better customer order management and fulfilment .
At Tata Steel the internet is the opportunity to enhance productivity and improve business effectiveness. This is being done through robust B2B market places and has among others, created one for Steel, jointly with SAIL and Kalyani Steels.
The companys community based activities far exceed its business mandate. Its numerous socially responsible activities are aimed at those living in and around the vicinity of its area of operations, including the ore mines and collieries. The companys
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community development and social welfare, rural and tribal services, centre for family initiatives and sports departments run programmes, which are designed to improve the living conditions of the socially and economically under privileged. The initiatives taken by the company are self-sustaining and involve the maximum participation of the total population.
The balance between growth and sustainable development of the environment at the Tata Steel is manifest in ISO-14000 certification to the four critical units of the company- the Sukinda Chromite Mines, Noramundi and Joda Iron Ore Mines and West Bokaro Collieries and the steel works in division.
Envisioned by the great patriot, Jamshetji Nusserwanji Tata, founded in 1907, Tata Steel has played a pioneering role in integrating sound professional business practice with exemplary corporate citizenship programmes in India.
The companys steel works, located in Jamshedpur is Asias first and the largest integrated private sector steel plant in the country. Set up with an initial capacity of 200-tonne blast furnaces, four 4- tonne steam driven blooming mills and a rail and structural mill, it is now a state-of-the-art plant with a rated capacity of 3 million tones of crude steel. At present it produces steel mainly in the form of flats, wire rods and bars. In addition to steel, the company is in the business of diverse products, such as bearings, capital steel plant equipment and spares, cement, tubes etc. The captive mines and collieries located mainly in Bihar and Orissa, supply the finest grades of feedstock to the steel plant. Customer satisfaction of Tata Steel begins with raw material
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preparations and is meticulously interlinked by a quality chain at every stage of its operations. The on going fourth phase of modernization programme and the 1.2 million tonne world class cold rolling mill project, scheduled to be completed by June 2000 will add value to the present product mix, strengthen market leadership and enable it to penetrate new markets by constantly upgrading, improving and fine tuning its marketing, sales global network, Tata Steel strives to meet its customer requirements and expectations, in the country and overseas. Its sales of product and services stood at Rs.64, 334.9 million in 1997-98. The total export turnover, in spite of the financial crisis in South East Asia and sluggish demand in national as well as international market, at Rs.7, 220 million was higher by 9%than the previous year. For a company fully mindful of its social responsibilities the universe of stakeholders extends beyond the realm of customers, shareholders and employees.
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Backed by 100 glorious years of experience in steel making, Tata Steel is among the top ten steel producers in the world with an existing annual crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven into the soil of Sakchi. His vision helped Tata Steel overcome several periods of adversity and strive to improve against all odds. Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010. The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.
Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing
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network in Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining. Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata Steel. Tata Steels vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship. Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality management.
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In tune with the vision of its founder, Tata Steel is a role model in fulfilling corporate social responsibilities. Tata Steel is also committed to sustainable development and recognizes the need to pursue progressive environment management policies to preserve ecological balance a biodiversity in areas in the vicinity of its operations. A recent and unique initiative in this direction was the launch of the green millennium countdown programme, which seeks to ensure that a million healthy new trees survive in the next millennium by planting 1000 trees each for the next 1000 days. The quest for scaling new heights of excellence in the area of its key business responsibilities has yielded rich dividends for Tata Steel. The National Energy Conservation Award from the ministry of Steel, CSI National Award for best usage of information technology, SAIL Gold Medal, Coal India Productivity Award. The Economic Times outstanding corporate citizen, etc point in this direction. Over the years the company has transited seamlessly as a globally competitive enterprise by a constantly benchmarking against the best operating practices, adopting cutting-edge technologies and implementing modern and innovative management practices. More recently Tata Steel has sought to accelerate the pace of transformation through the TOP (Total Operating Programme) which recognizes and addresses the attributes of judicious anticipation of rapid adaptability to market forces in the emerging connected economy
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Mission
Consistent with the vision and values of the founder Jamshetji Tata, Tata Steel strives to strengthen Indias industrial base through the effective utilization of men and matters. The means envisaged to achieve this are high technology and productivity consistent with modern management practices. Tata Steel recognizes that while honesty and integrity are the essential ingredients of a strong and stable enterprise and profitability provides the main spark for economic activity. Overall, the company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear and thereby reaffirms its faith in democratic values
Values
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the Tata Group of companies in present day India. Tata Steel is one of the ventures of the Tata Group but it has many successful companies under one umbrella. Some of the other notable Tata concerns and their lines of businesses are shown below.
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COMPETITION Tata Steel is undoubtedly the best steelmaker in the wrold. It produces the cheapest and best quality of steel in the world. In the last seven years the position of Tata Steel has reduced drastically because of Corus acquisition. The results of the acquistion will be profitable after 2010.
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MANAGEMENT EFFICIENCY:
The structure of the Board was recently modified in 2007 post the acquisition of Corus acquisition to suitable incorporate changes which will lead to the adequate realization of synergies from the deal within the given stipulated time frame to
reap the benefits from the much talked about and criticized deal. BOARD OF DIRECTORS 14 Board of Directors
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LEGAL ENVIRONMENT
Global operations require compliance with multiple and complex laws and regulations. In countries where the political systems are still evolving, frequent changes in economic policy are common, investment guarantees and property rights are secured, any unforeseen changes can expose the Groups businesses to uncertainties. The Group operations are primarily in countries where investment flows are freer and where there are established political, business and legal frameworks in place. There is an established due process to independently evaluate country risk exposures for investments in emerging economies
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Financing and Liquidity Strategy of the Tata Steel Group in response to the global economic crisis:
They have responded by increasing production post commissioning of the 1.8 mtpa programme and focusing on performance improvement to neutralise the effect of reduced realizations, whereas in South East Asia, the focus is on working capital management and cost reduction. In Europe we have cut production by idling blast furnaces at three sites in order to align production with demand as a part of the Weathering the Storm initiative which resulted in cash savings of 712 million (US$1.02 billion) in the second half of the financial year 2008-09. Further, these efforts have been supplemented by a strategic restructuring initiative launched as Fit for Future programme which when completed, will result in improvement of the operating profit of around 200 million annually. In all sites across the Group, the journey of Continuous Improvement stays on course Recognizing the uncertain financing environment and the fragile state of the global banking industry, they focussed on both internal and external levers. Internally as an organisation, the company placed primary importance on conserving liquidity through reduced spend management and sharp reduction in working capital levels. They also focussed on improvement in the productivity levels and reduction in overheads. On capital expenditure, they have re-prioritised on the most value creating and critical projects and reworked the capital planning strategy. On the external front, the company raised long term capital which acted as a liquidity buffer in the current circumstance and would be deployed in value creating long term
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assets. The above actions ensured that the Tata Steel Group had adequate liquidity and also financial flexibility for growth and exigencies. The liquidity position of the Group at the year end was approximately US$1.9 billion of cash and cash equivalents and undrawn lines.
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Indian steel production has increased by 5 million tones every year. The economic reforms initiated by the government since 1991 have added new dimensions to industrial growth in general and steel industry in particular. Steel industry has been removed from the list of industries reserved for the public sector. Automatic approval of foreign equity investment up to 100% is now available. Price and distribution controls have been removed from January 1992, with a view to make the steel industry efficient and competitive.
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Company :
The year 2008-09 was a historical one epitomised by the acute global financial imbalance which initially appeared to have spared India only to impact the markets adversely as the year rolled on. The global economic slowdown has impacted the steel sector as well. Amidst the turmoil in the global marketplace, Jamshedpur Works performed remarkably creating many records on the way. Indian operations witnessed a less pronounced drop in demand of 11% in the third quarter, reflecting the reduced activity in infrastructure and commercial vehicles. Steel is required by various industries as an important raw material constituent. Tata Steel has taken aggressive steps to meet the challenges of these difficult times through major initiatives in cost reduction, process improvement and production rationalisation. The highest priority is being given to expanding steel producing capacity in Jamshedpur, and ensuring raw material security for the European operations which do not have captive iron ore and coal resources. The Tata Steel Group has developed a pipeline of high quality projects, which will be executed, though we will re-phase the sequence. Projects like the 3 million tone expansion in Jamshedpur, the proposed steel plant in Orissa and raw material projects in Mozambique, South Africa and Canada are key drivers of our future value creation.
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Capital budgeting
The ratio required to calculate capital budgeting is mainly DebtEquity ratio. Tata steel has increasing debts. So the company has gone in for debt financing and thus, the company is having a comparatively higher borrowing from the market. Basically the
0.3 0.8 0.7 0.6 0.5 0.4
Tata Steel
0.9
Debt-Equity ratio has to be as high as possible so that the company has lower borrowings and has to pay less interest. Tata steel has increasing debts. So the company has gone in for debt financing and thus, the company is having a comparatively higher borrowing from the market. Basically the Debt-Equity ratio has to be as low as possible so that the company has lower borrowings and has to pay less interest.
0.2 0.1 0 Tata Steel
2006-07 0.26
2007-08 0.69
2008- 09 0.81
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INVESTMENTS:
It can be seen that investments in the last year has increased drastically from negative cash flows to positive cash flows in investment. This was result of investing subsidiary companies especially Tata Steel Holdings PTE. It made an investment of about Rs 35,633 crores against Rs 72 lakhs. This has lead to increase in investments.
45000 40000 35000 30000 25000 20000 15000 10000 5000 0 -5000 Tata Steel
Tata Steel
2005-06 1637
2006-07 2036.22
2007-08 -2002
2008- 09 38269
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Cash management:
This requires cash ratio, which includes cash and cash equivalent / current liabilities. Over years this company has managed to keep up their cash management at par with other companies. In recent times this company has raised their cash ratio as compared to previous years.
0.3 0.25 0.2 0.15 0.1 0.05 0 Tata Steel
Tata Steel
2006-07 0.21
2007-08 0.12
2008- 09 0.26
Debtors Management:
Tata Steel
40 35 30 25 20 15 10 5 0 Tata Steel 2006-07 26.99 2007-08 29.81 2008- 09 33.45
This requires Debtors turnover ratio which is calculated by, Debtors/Sales. This ratio has to be as low as possible so as to gain maximum liquidity for the company. This means that the debtors will return money in these many days.
Tata steel took over Corus in recent past and had taken a loan for that purpose and due to this loan their Debtors turnover ratio just shot up from 29.81 to 33.45.
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Inventory Management:
Tata Steel
We get inventory turnover ratio by, Cost of Goods Sold/Average or Current Period Inventory. High turnover ratio is usually beneficial for any company as products tend to deteriorate as they are kept in a warehouse.
12 10 8 6 4 2 0 Tata Steel 2006-07 7.08 2007-08 7.69 2008- 09 10.84
Tata steel has managed to keep their inventory management very efficient during these years as we can see below that it keeps on increasing and that is what every company needs, a very efficient inventory management system.
LIABILITIES:
1.SHARE CAPITAL EQUITY CAPITAL
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In the current year the company issues equity capital of Rs 4881 cr as against 1393 crores, this led to the sharp increase in equity capital. The company has a mix of debt and equity for fund raising. In last four years company raised money through right s and debentures but this year they preferred equity capital.
PREFERNCE CAPITAL
In 2007-08 the company issued preference shares of Rs 5472 crores and issued 60, 00,000 2% Cumulative Convertible Preference Shares. Also, 2,85,00,000 shares of face value of Rs. 10 per share allotted to Tata Sons Limited on a preferential basis during the year 2007-08.
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RESERVES AND SURPLUS There was a steep increase in reserves in 2008-09 due to increase in foreign currency translation reserve, but in 2008-09, the company gained Rs 40 crores in foreign exchange fluctuation reserve. On the other side the company faced losses of Rs 5496 crores as actual loss.
20000
15000
10000
5000
0 Series1
2004 4146.68
2005 6506.25
2006 9201.63
2007 13368.42
2008 21097.43
Over the years the company has been increasing its income in share premium account, through conversion of warrants and preference shares. SECURED LOANS Debentures Tata Steel placed Non-Convertible Debentures totaling upto Rs. 2,000 crore in May 2008 comprising of 3 series having phased maturities. The Company further raised a 2-year term loan of Rs. 2,000 crore in May 2008. In November 2008, the
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Company raised Rs. 1,250 crore through Non-Convertible Debentures privately placed with the Life Insurance Corporation of India, repayable in equal installments at the end of the 6th, 7th and 8th years.
In April 2009, the Company further raised Rs. 2,000 crore from a term loan and in May 2009, it privately placed Rs. 2,150 crore of Non-Convertible Debentures repayable after 10 years. Thus the Company raised Rs. 9,400 crore in a year marked by tight liquidity. One important thing to note is that the interest on debentures is increasing every year even though the amount of debentures has reduced considerably.
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BORROWINGS
20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Total Borrowings Tata Steel
2009. It has $1.9 billion cash and cash equivalents in its books, and requires $1.2 billion for its capital expenditure during this fiscal.
The increase was primarily on account of raising of new loans to the tune of US$2.07 billion, during the year in Tata Steel India, to fund growth projects and to ensure an adequate liquidity buffer in the wake of global liquidity crisis.
During the year, the company repaid debts to the extent of US$ 1.66 billion including a prepayment of debt in Tata Steel Europe of around 150 m (US$215 million). The entire foreign currency term debt in Tata Steel India is hedged into rupees at acceptable levels.
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Therefore the company was unaffected by the volatile movement of the rupee on account of the above loans. The gross debt as on March 2009, showed an increase of US$830 million, which was primarily on account of revaluation, due to currency movements. Taking into account the liquid equivalents of US$1.9 billion, the net consolidated debt as at March 31, 2009 was US$9.9 billion.
15000
10000
5000
If the performance of previous years is compared it can be seen that the loans and advances reduced substantially as the advance against equity was converted into investments during the
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The Company entered into a loan agreement with the State Bank of India and other banks for Rs. 9,500 crores. In January 2008 Rs. 9,000 crores was repaid with proceeds from the Companys Rights Issue and Rs. 500 crores was repaid on 28th February, 2008. In November 2007, the Company made a rights issue offering to shareholders in India, (i) 1 ordinary share for every five ordinary shares at a price of Rs. 300 per share and (ii) 9 cumulative compulsorily convertible preference shares (CCPS) for every 10 ordinary shares at a price of Rs. 100 each.
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Unsecured Loans:
In the year 2008, Tata Steel raised $500 million equivalent seven-year senior unsecured bank loan facility in yen to fund production capacity expansion and also acquisitions.
Unsecured Loans
25000
20000
In crores
15000
10000
5000
0 Unsecured Loans
2008 23033
2007 14501
2006 5886
2005 324
2004 271
The Company issued USD 0.875 billion of 1% Foreign Currency Convertible Alternative Reference Securities (CARS). The CARS accrue interest on the outstanding principal amount at a rate equal to 1% per annum and are classified as unsecured debt on the balance sheet of the Company.
During the current fiscal year, the secured and unsecured loans increased by Rs. 8,924 crore as compared to the balances as on 31st March, 2008 mainly due to issue of privately placed non-convertible debentures, term loans taken from Banks and other short term borrowings.
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In 2007 the loans increased from Rs 324 crores to Rs 5562 crores due to new syndicate foreign currency loans drawn for funding the acquisition of Corus Group plc. The Company has drawn foreign currency syndicate loans of Rs. 7,225 crores (USD 1.65 billion) during the year as per details given below:
1. JPY Syndicated External Commercial Borrowings of USD 495 million equivalent: Rs. 2,162.66 crores (unsecured loan)
2. External Commercial Borrowings of USD 5 million equivalent: Rs. 21.77 crores (unsecured loan)
3. JPY Syndicated External Commercial Borrowings of USD 750 million equivalent: Rs. 3,298.88 crores (unsecured loan)
4. International Finance Corporation, Washington - A Loan USD 100 million equivalent: Rs. 435.35 crores (secured loan)
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CURRENT LIABILITIES:
CURRENT LIABILITIES
7000
6000
5000
In crores
4000
3000
2000
1000
0 Tata Steel
2008 6039
2007 3855
2006 3523
2005 2835
2004 2689
The current liabilities increased by Rs. 577 crores from a level of Rs. 3,523 crores as on 31st March, 2007 to Rs, 855 crores as on 31st March, 2008. The increase was mainly due to increase in the value of purchases/services on account of expansion projects.
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I.
50 45 40 35 30 25
Increase in Profits
49.74% 42.03%
16.95%
9.92%
Tata steel showed steady rate in profit. Its profit increased by 1012.31 to 4687.03 from 2003 to 2008 i.e. by Rs 3674.72 crores. From the above table TATA STEEL has given good profits in the year 2004 and 2005. Due to deal with CORUS and NATSTEEL companys profits declined sharply but after 2006 the profit rate increased gradually. Decline in profits in year 2007 to 2008 is because of Recession hit the market.
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8400 8200 8000 7800 7600 7400 7200 7000 6800 6600 6400
8289.01
7900.97
2008-09
2008-07
2007-06
The Gross Profit has increased over the period of 3 years however the change in Gross Profit from 2008-09 and 2007-08 was less as compared to 2006-07 and 2007-08. The Graph shows the increase in Gross Profit 2006-07 to 2008-09. Profit before Depreciation & Tax Year 2008-09 2008-07 7900.97 2007-06 7080.94
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The Profit before depreciation and Tax increased at a rate of 11.84% from 2006-07 to 2007-08 and 4.91% from 2007-08 to 2008-09. The fall in the PBDT was mainly due to the market crunch and global recession which left its a mark on the companys Financial Statements. However it was observed that the companys Profits after depreciation and tax followed a stable increase i.e. an average increase of 11%.
The GP Margin for 2006-07 was 7.58% followed by 39.79% in 2007-08 and 36.43% in 2008-09.
8400 8200 8000 7800 7600 7400 7200 7000 6800 6600 6400
8289.01
7900.97
2008-09
2008-07
2007-06
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Depreciation: Capital Assets whose ownership does not west in the company is depreciated over the estimated useful; life or five years whichever is less.
In respect of other assets depreciation is provided on a straight line basis applying the rate specified in Schedule 14 to the Companies Act 1956 or based on estimated useful life whichever is higher. However, asset value up to Rs 25000 is fully depreciated in the year of acquisition. The details of estimated life of each category of assets are as under: Building 30 60 years. Plant & Machinery 6 21 years. Railway Sidings 21 years. Vehicles and Aircrafts 5 18 years. Furniture, Fixture & Office Equipments 5 years. Intangibles (computer software) 5 10 years. Development of property for development of mines and collieries are depreciated over the useful life of the mine or lease period whichever is less, subject to a maximum of 10 years. Blast furnace relining is depreciated over a period of 10 years (average expected Life). Total depreciation for the Financial Year 2006-07 accounted to Rs. 819.29 crs followed by Rs. 834.61 crs in 2007-08 and Rs. 973.40 crs in 2008-09.
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Net Sales 2009 2010 Total Income 2009 2010 Total Expenditure 2009 2010 15,510.79 15,948.12 25,289.30 26,093.79 24,348.52 24,940.85
RS. in Crores
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Rs. in Crores
8,289.01
2009 2010
4,981.50 4,421.95
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Total Shareholders Fund 2009 2010 Total Debt 2009 2010 Total Liabilities 57,122.44 62,201.00 30,176.26 36,961.80
Rs. in Crores
26,946.18 25,239.20
2009 2010
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Net Block 2009 2010 Total Current Assets 2009 2010 Total Current Liabilities 2009 2010
10,739.75 12,246.69
9,990.41 10,163.58
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Year Authorized Issued Subscribed CalledPaidUp Face Capital Up Value 2010 1750 888.13 887.41 887.21 10
Rs. In Crores
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II.
FINANCIAL RISK:
TAX AND INTEREST RATE ANYALSIS
From the above balance sheet Interest charged in 2008 is 41,493 (Rs mn) and in 2009 it decrease to 38,283 (Rs mn) i.e. Change of -8.4%. Tax charged in 2008 was 40,493 (Rs mn) and in 2009 it decrease to 39,751 (Rs mn) due to decrease in gross profit. Finance for the Corus acquisition was raised through bridge loans and later refinanced by Tata Steel which has led to a dramatic increase in the interest
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outflow; in the April-June quarter the interest outflow was Rs241.7 crore compared to Rs41.6 crore for the same quarter last year.
Dividend Policy:
Tata Steel has been continuously providing dividend to its shareholders to maximize its wealth. In the year 2008-09 the company paid a dividend of Rs 1168.95 crores. The payment of dividend is always fixed by the company irrespective of profits or losses. Tata Steel is giving a significant higher rate of dividend year after year in comparison to its nearest competitors. In 2006-07 the year the company completed 100 years a dividend of 25% was issued to the shareholders.
Tata Steel
180 160 140 120 100 80 60 40 20 0 Dividend 2003 80 2004 100 2005 130 2006 130 2007 150 2008 160
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Tata Steel was initially giving higher amount of dividend initially on its PAT. But over a period of time, it decided to change its strategy and putting back all its earnings on development of the company. Dividend
Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2002 2001 2000 1999 1998 1997
Month May May Jun Jun May May May May May May Apr May Mar May May May
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88
89
The company also announces dividends to the shareholders. Every year it gives dividends in the range of 100 to 160 %. This year they gave a dividend of 13 Rs per share, due to which the total outlay was Rs 5632 cr. The biggest contributor in Utilization of Funds was because of increase in working capital expenses. In early 2008, the unprecedented increase in the prices of input costs, particularly raw materials, substantially increased the working capital requirements. The change in working capital, during the financial year, was mainly due to increase in inventories on account of volumes and prices partly offset by an increase in creditors. The working capital during FY 09 reduced by Rs. 225 crore, mainly due to a reduction in Inventory (with reduction in finished and semi-finished inventory and increase in raw materials inventory) and Debtors.
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FINANCIAL RATIOS:
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Ratio Analysis:
Operating expenses are expected to increase marginally resulting in increase of EBITDA margin of 38.7%.But compared to previous year the EBITDA/Turnover has reduced because the profits were higher than last years. ROCE over the years has reduced because of slowdown as well as huge inventories of stock and new plants introduced in Jamshedpur. Asset Turnover is very good In last four years the assets were utilized to the fullest but in the last year due to less demand, it reduced by 1%, but in overall terms it is optimally used all resources. Debt Equity Ratio:
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Tata Steel over the years has been increasing its debt in order to finance the Corus deal. They took a loan of $ 8 Billion from the bank to acquire Corus.
Current Ratio:
Current Ratio
45 40 35 30 Tata Steel 25 20 15 10 5 0 Debt Equity Ratio
2004 42.43
2005 27.28
2006 15.34
2007 12.71
2008 11.43
The current ratio is a financial ratio that measures whether or not the firm has enough resources to pay its debts over the next 12 months. It compares a firms current assets to its current liabilities. Tata Steel has a high amount of unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has reduced
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drastically the company is having huge inventory and because of this the liquid ratio is low.
21.09% 19.96 % 1.22% 0.43% 41.29 1.34 2.97 66.80 1.12 % 0.40 % 46.58 0.68 9.36 56.37
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120
100
80
60
40
20
The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less number of days shows faster movement of goods in the market.
EBITDA/TURNOVER RATIO
The EBITDA for the Group at Rs. 18,495 crores (US$ 3,636 mn) for the financial year 2008-09 was1% higher than the EBITDA of Rs.18, 287 Crores (US$ 3,595 mn) recorded during the financial year 2007-08.
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EPS RATIO EPS is the reported profit over the number of shareholders in the company. In the last 5 years EPS has doubled from 31 to 66 and it is expected to reach 104 in FY10. P/E RATIO
P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years.
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Future Prospects:
The Company has embarked upon setting up three green field steel plants in eastern India: 12 MTPA* plant in Jharkhand 6 MTPA plant in Orissa 5 MTPA plant in Chhattisgarh Jamshedpur Steel Works will become a 10 MTPA unit by 2010. *MTPA = million tonnes per annum Solution for Sales (SFS) offers based on the Theory of Constraints (TOC) concept saw stabilisation in the steel division. The replenishment module was extended to cover 100% of the retail channel of TATA TISCON, achieved 90% coverage in TATA SHAKTEE and 60% in TATA Steelium. This resulted in a reduction of stock outs in retail shops and more significantly, a reduction in channel stocks. Reliability solutions were extended to direct customers in the Steelium distribution. For the Construction Projects segment, an S-DBR (Simplified Drum Buff er Rope) mechanism was implemented under the Theory of strains supply chain improvement initiative which
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improved the availability of rebars at the warehouses, thereby reducing instances of delays and loss of orders.
The term focus is on the implementation of the Fit for Future restructuring in Europe, to continue with the 3 mtpa expansion project in Jamshedpur and overseas raw material projects, to increase production volume in India and optimise working capital management across the Group to preserve liquidity
Looking towards the future, the steel industrys main contribution to the reduction of CO2 emissions should be to further develop the use of by-products and to work with its customers to help design well, long lasting, more energy and material efficient products. Additionally, improvements in areas other than primary steel production may offer further opportunities for CO2 reduction
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Shareholding:
Holding in% : Indian Promoters Banks Fin. Inst. and Insurance FII's Private Corporate Bodies NRI's/OCB's/ForeignOthers Govt others General public 31 20.69 18.97 3.40 0.17 0.01 0.59 20.81
Total
100
99
Allotted of 150 lakh ordinary shares and 120 lakh Warrants at Tata Sons. a price of Rs. 594 per share/warrant to
100
101
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There are 47 employees in the Operation Section of pellet plant structure with different designations. The HR department has identified different modules or critical skills for each designation. The designations and the respective number of modules are given below:
DESIGNATION
NO. OF EMPLOYEES
NO.OF MODULES
4 02 27 18 23
3 10 6 3 10
According to the above data we have analyzed the skills of the employees of the Operation Section by Four Quadrant Model which are given in the following tables. We have mapped the critical skills of the employees according to modules identified by the HR Department. These data, when analyzed, provide clearly the skill levels of the employees, the modules in which they are lacking or they are good in.
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104
4.5
3.5
1.5
0.5
0 leadership gas safety awareness program problem solving positive isolation ms word/excel
105
Series 1
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 gas safety awereness ms positive shut down green operation program word/excel isolation operation pelletising of operatin conveying Series 1
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Series 1
5
4.5
3.5
2.5 Series 1 2
1.5
0.5
0 gas safety awereness prog. shutdown positive isola. green pelletising ms word/excel
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FOR EEI
PELLET PLANT
0.634
65.9% 75.0% 65.9% 84.1% 68.2% 56.8% 70.5% 61.4% 40.9% 47.7% 61.4%
1 2 3 4 5 6 7 8 9 10 11
S. Ghosh B. N. Oraon S. K. Ghosh P. K. Thakur D.Kumar S. Sannat K. D. Singh K V. C. Jha R. M. N. Tiwary M. K. Singh S. K. Mandal
NAMES
Sl. No
77.3% 3 54.5% 3 79.5% 3 52.3% 2 61.4% 3 70.5% 3 43.2% 2 68.2% 3 65.9% 3 65.9% 2 59.1% 2 3 2 3 2 2 3 2 2 2 3 3 3 3 3 2 3 3 2 2 3 3 3 3 3 2 3 3 2 2 2 3 3 4 2 2 3 3 2 2 3 3 2 3 2 1 2 2 0 0 2 3 3 4 3 3 3 3 2 2 2 3 3 2 3 2 3 3 0 2 3 3 2 4 2 2 2 2 0 2 2 3 3 4 3 3 3 2 4 4 3 3 2 3 3 3 3 2 0 0 2 3 3 4 4 3 3 2 4 3 2
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FINDINGS
1.The critical skill mapping study reveals the various skills of workers in which they are expert or they are lacking. 2.. We have found from our study that HR executive operators are lacking in positive isolation and gas safety process and shut down operation process 3.There should be no provision for sending the operators outside the company for training program 4. the prior information about the technology change and should provide prior information 5.advance technical program for personnel should be conducted.
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CONCLUSION
Tata Iron & Steel Co. Ltd., today stands proud as a modern integrated steel producing company. It is more than a company; it is an institution concerned with the interest of its all stakeholders as well as its employees.
The future of an organization largely depends upon its productivity; productivity depends upon its employees. Thus employees should be trained in best possible way to increase the productivity. For this purpose, Tata Steel possesses an effective training center that takes the responsibility of training the employees. The responsibility of a training organization does not end at imparting training but also it is extended to the evaluation of the training program, which is most neglected factor in every organization. So every organization should conduct the training effectiveness survey like critical skill mapping each time.
Critical skill mapping helps to indicate the image of management in the mind of employees as well as their capabilities and attitudes. As it has been found out from the survey and its analysis that the training programme in this department is effective, still some weaknesses have been discovered for which some suggestions have been given. But most of the employees demand that they should be given more technical training, which can be applied in a more practical way in their work. They also demand training programmes from national and international companies. So step should be taken towards it fulfilment .
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One of the reasons for our project was to discover the skills possessed by the employees. The evaluation of these data would help the company to critically analyze the skills in their employees and recognize the need of training. Research into all these factors would provide clues to improve the quality of work.
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SUGGESTIONS
After critical skill mapping of the employees of operation section of the TATA STEEL Ltd. department, the following are our recommendations to this department:
1.The critical skill mapping study reveals the various skills of workers in which they are expert or they are lacking. Special training program should be arranged for those employees who are lacking in their respective modules.
2.. We have found from our study that HR executive operators are lacking in positive isolation and gas safety process and shut down operation process. Thus special attention must be given in this process training.
3 The mapping is done by the supervision of the department.HR .senior executive manager. Thus it should be shared with all the operators so that they come to know about their skill level and try to improve it.
4.There should be no provision for sending the operators outside the company for training program because tata steel is a big organization and can provide such training with in the premises of working by appointing some expert.
5. All training modules should be evaluated at proper time and this activity should be carried out regularly.
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6. Training should be as per work requirement and should be given at the right time.
7.The prior information for the training programs should be given to the workers. So care must be taken in this matter and prior notice that is before 2-3 days should be given to all the operators for training.
8.There should be transparency in organizing training program and should be arranged for operators according to the work requirement.
10.The selection criteria for training should be suitable. It should match with the qualification of the employees. For example if he is less qualified and sent to higher technical training program, it will prove ineffective. Hence, training should be provided by taking into account the platform and background of the employee.
11.Many a times workers are given training on a particular module; later on they are transferred to other job, which does not have any relation to the training attended by them. They dont even get a chance to perform what they have learnt from previous training program.
14.The concerned faculty should come and understand the working condition and
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Personnel bias can one of the limitation of study because manager or supervisor can provide a wrong profile of employee due to some bias
The section-heads and supervisors are uncomfortable in assessing skill level of some employees. Problem in skill mapping of worker arises due to inter-departmental transfer of
workers
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APPENDICES
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Questionnaires
A training questionnaire is a written document created by organisations or companies so as to analyse the progress made by a trainee during the training program. This type of a questionnaire deals with basic questions that are simple to answer and is aimed at getting a clear response from the trainee.
A training questionnaire should be framed with precision as it is important that the questions are clear and do not confuse the person answering the paper. Such a questionnaire must start with extracting basic information about the trainee such as the name and address. Proceed onto asking for the details of the job and department that the trainee has worked for. The last few questions must focus upon what the trainee has learnt so far and if he would like to continue or not.
A training questionnaire can be of multiple kinds depending upon the kind of training. The following are a few examples:
Marketing training questionnaire Clerical training questionnaire Media training questionnaire Etc
These questionnaires are basically the analysis of the persons training experience and are focussed at achieving an over view of the kind of training that is being provided by the various trainers. The language of these questionnaires must be kept easy and writing long questions should be avoided.
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Annexure:
Questionnaire
Objective
This is sent to you as a part of my MBA project I am undertaking in this organization on the topic
From the organizational point of view this questionnaire is a part of development exercise to know the strength and the areas needing improvements (possible blind spots) in terms of various competencies at various levels of the Manufacturing department, namely top level, managerial level, executive level, and staff level.
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No of quadrants Symbol Definition to be filled 0 1 Is not trained on the subject Has been given basic training on the subject. Has the working knowledge of the subject and 2 can work under supervision. Has adequate knowledge of the subject and can 3 work independently on the job. Is an expert of the subject and can give training 4 to others.
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120
reciveing storage and supply of coal tar operation of compressor TPM horizon workshop inspection/checking in process plan gas safety ms word/excel maintainence of contrifugal pump burner operation operation of padle feeder operation of dryer cogas/coal tal filter changing safe working maintenance of air pump
5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1
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- Tata Steel Group has announced a new organization structure effective from January 01, 2008 as follows:
Tata Steel Group comprises of two entities, namely, Tata Steel (including Tata Steel Thailand and NatSteel Asia) and Corus Group Ltd. In order to realise this ambition, a new organisation is announced on November 28, 2007, which is effective from January 01, 2008.
* The Chairman of Tata Steel, Mr. Ratan Tata will continue to chair the Strategy and Integration Committee. Mr. Jim Leng, Mr. B Muthuraman, Mr. Philippe Varin, Dr. Tridibesh Mukherjee, Mr. Rauke Henstra, Mr. Hemant Nerurkar, Mr. Koushik Chatterjee and Mr. Jean-Sebastien Jacques are members of this Committee.
* A Group Centre is created for functions that are to be performed with a common approach across the Tata Steel Group. These functions are Technology & Integration, Finance, Strategy, Corporate Relations & Communications and Global Minerals. The executives responsible for these functions will report to the MD of Tata Steel and the CEO of Corus:
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* Both Tata Steel and Corus entities will have Executive Committees chaired by the MD, Mr. B Muthuraman and the CEO, Mr. Philippe Varin respectively.
* A Joint Executive Committee for Tata Steel Group will meet quarterly to review overall performance against the Group ambition. This committee will be co-chaired by the MD of Tata Steel and the CEO of Corus.
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BIBLIOGRAPHY
www.tatasteel.com
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