Aspire Tools

ASPIRE includes improvement tools like Suggestion Management, VE, TOP, Six Sigma,
TPM, Knowledge Management, TOC and some others. The broad improvement processes
relate to TQM principles of Daily Management, Policy Management, Problem solving and
Task achieving under the Aspire model.

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 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 breakdowns and promotes autonom
ous 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-Analyse-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-Analyse-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 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.
 ASPIRE T3: ASPIRE T3 Launched in November, 2006 this initiative focuses on
implementation of Theory of Constraints (TOC), Total Quality Management (TQM)
and Technology. This will help the company to become more competitive and a
global leader by achieving excellence in product & service quality. TQM &
Technology will help to achieve superior product quality through process
consistency, process capability and technological capability, whereas service
quality is being focused through TOC implementation.
 J. N. Tata / S. Vishwanathan Total Quality Assurance Process: Tata Steel has
instituted J N Tata / S Vishwanathan Total Quality Assurance process. This
process is developed in line with Tata Business Excellence Model (TBEM) which
is based on US Govt. Malcolm Baldridge Model.
 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.

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 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.

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
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 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.

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

A Customer Centric Approach

With the Company’s better understanding of TQM and the Theory of Constraints (TOC) on the Deming Application
Prize journey, its customer focus and market orientation have undergone a sea-change.

Tata Steel has initiated a culture of value creation with customers and suppliers. Specific approaches focus on the
'needs' of the customer as opposed to 'wants'. Programmes include those on Customer Value Management, Retail
Value Management, Solution for Sales and Supplier Value Management. The Company emphasises effective daily
work management practices, a clean and safe work environment and consistency and stability of processes as
important factors in sustaining development and growth.

Tata Steel in Europe seeks to create a single, global and strategic marketing team with a goal to become the "best
supplier to best customer" and deliver profitable growth. To this end, around 100 people across the sales & marketing
teams worked on the first phase, which was completed in February 2010. Subsequent phases are now in progress,
which include developing three to five year plans for each of eleven industry-focused sectors, identifying initiatives for
executing these plans, identifying quick wins and developing a customer satisfaction tool. Product catalogues have
been developed and high-level metrics have been defined.

 
 The activities included:

 Categorising customers to ensure the right level of focus and developing account plans for the highest
opportunity customers.
 Creating group-wide key performance indicators for marketing & sales, implementing a customer satisfaction
programme and developing a single products and services catalogue.

The Improvement Philosophy

Keeping up pace with the different changes in the global business arena, Tata Steel believes that to be prepared for
the future it needs to ‘plan’ improvements with three main areas of focus.

 Increasing the pace of standardisation to strengthen the base.

 Improve quickly on existing operations.
 Innovate continuously in order to be differentiated from others.

Tata Steel’s TQM journey has encompassed in its fold all the people down the line, so that process and performance
improvement becomes a way of life. Ensuring value creation for the system as a whole is the only means of achieving
success in the long run.

In the face of high raw materials price volatility and an overall trend of rapidly increasing prices, in 2009-2010 the
Procurement Division of Tata Steel India focused its efforts on keeping these trends in check by leveraging long-term
contracts and relationships, and on minimising risk by hedging and through various other strategic sourcing tools,
including innovations and improvement initiatives using Total Quality Management precepts.

Performance Improvement Initiatives

Performance Improvement Teams

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.

Considerable progress has been made in strengthening the work of the Performance Improvement Teams (PITs),
charged with improving manufacturing processes. At the moment, 17 of these teams are operating across the Tata
Steel Group and initial estimates indicate the value of PIT-facilitated projects being undertaken in FY 11 to be more
than £ 110 million.

Change in Performance Culture

The Performance Improvement journey has resulted in some positive changes in the performance culture.

KPI Comparisons -

KPI comparisons across groups have led to identification of performance gaps within the Company enabling the
initiation of improvement projects in the area of concern.

Bottom Line Orientation -

Most projects are being conceptualised with an expected financial benefit to consider.

People Involvement

The People Involvement team meetings have had a positive influence on having more people participate actively in
different performance improvement initiatives.

Quality Policy

 At STEEL HUT each and every bar of steel is sold along with the BIS Test Certificates issued by TATA STEEL
 We sell TMT bars on per piece basis and not weight basis thus totally eliminating any chance of manipulation in
weight.
 We clean the rebars with a hard brush prior to weighment to avoid mud etc. along with the consignment which
can cause difference in weighment.
 We can provide technical help to consumers through our principals – TATA STEEL.
 We strictly follow the Recommended Consumer Price (RCP) fixed by TATA STEEL and do not overcharge or
undercharge our esteemed customers.
 We strictly follow the Code of Conduct prescribed by TATA STEEL and observe high standards of moral integrity
and business ethics in our operations.