PRODUCTION

Production is defined as the act of manufacturing, mining or growing a commodity usually in bulk for sale. Production is a term also used in connection with plays, movies, radio or television programmes. A person who produces something is known as a producer.

A product is the result of the producer's efforts and ability to pool in resources to create a final commodity. Production is the output of a commodity created over a specified period of time. Production is also the act of creating wealth from the activities or processes involved in the manufacturing of goods and services.        

The way that businesses create products and services is known as the production process. There are three main parts to the production process as can be seen in the diagram below:

A firm must purchase all the necessary inputs and then transform them into the product (outputs) that it wishes to sell. For example a football shirt manufacturer must buy the fabric, pay someone for a design, invest in machinery, rent a factory and employ workers in order for the football shirts to be made and then sold.

How well-organised a firm is at undertaking this transformation process will determine its success. This is known as the productive efficiency of a firm and it will want to be as efficient as possible in transforming its inputs into outputs (i.e. using the minimum number of inputs as possible to achieve a set amount of output). This will reduce the cost per unit of production and allow the firm to sell at a lower price.

Ultimately, the objective of the production process is to create goods and services that meet the needs and wants of customers. The needs and wants of customers will be met if a business can produce the correct number of products, in the shortest possible time, to the best quality and all at a competitive price.

PRODUCTION MANAGEMENT

Planning, implementation, and control of industrial production processes to ensure smooth and efficient operation. Production management techniques are used in both manufacturing and service industries. Production management responsibilities include the traditional “five M's”: men and women, machines, methods, materials, and money. Managers are expected to maintain an efficient production process with a workforce that can readily adapt to new equipment and schedules. They may use industrial engineering methods, such as time-and-motion studies, to design efficient work methods. They are responsible for managing both physical (raw) materials and information materials (paperwork or electronic documentation). Of their duties involving money, inventory control is the most important. This involves tracking all component parts, work in process, finished goods, packaging materials, and general supplies. The production cycle requires that sales, financial, engineering, and planning departments exchange information—such as sales forecasts, inventory levels, and budgets—until detailed production orders are dispatched by a production-control division. Managers must also monitor operations to ensure that planned output levels, cost levels, and quality objectives are met.

Effective production management considerate the characteristics of various types of production systems, identification of the different phases of the management process, to realize the impending of different analytical tools, learning the nuances of the implementation of these tools, visualizing the impact of various uncertain situations and developing the ability to react under various scenarios to achieve consistently excellent business results.

Steps for Production Management:

i.    Understanding of production/operation functions

ii.    Manufacturing planning & control

iii.    Materials (supply chain ) Management

iv.    Project Management

v.    Maintenance Management

vi.    Quality Management

MATERIAL MANAGEMENT

Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.

Material Management is concerned with control of materials in such a manner which ensures maximum return on working control material management is concerned with the location & purchase of needed their storage & movement. it also arranges to keep on account for them .it is also responsible for planning their movement through manufacturing processes, store rooms and distribution channels .

Planning and control of the functions supporting the complete cycle (flow) of materials, and the associated flow of information. These functions include (1) identification, (2) cataloging, (3) standardization, (4) need determination, (5) scheduling, (6) procurement, (7) inspection, (8) quality control, (9) packaging, (10) storage, (11) inventory control, (12) distribution, and (13) disposal. Also called materials planning.

Primary Objective of materials management

1. Low prices- to be lowest - includes transportation: enhances profit2. High inventory Turnover- value of inventories to be low in relation to sales. Reduces storage

costs3. Low cost acquisition and possession- reduced handling and storage costs.4. Continuity of supply- alternative sources, , captive suppliers, flexible suppliers5. Low payroll costs- Low operating costs of material management personnel6. Favorable supplier relations- supplier development

Secondary objectives of Materials management

1. New materials and products- working closely with Design and research departments for development of new materials and products

2. Economic make-buy- Coordinating and assisting other departments in Make-Buy decisions3. Standardization- coordinating with Design departments in reducing no. of items.4. Product improvement- Contribution towards product improvement by giving appropriate inputs

and assisting Design department.5. Interdepartmental Harmony- Success of materials management department depends on the

success of other departments . hence relations are to be harmonious6. Forecasts- Forecasts in terms of prices, availability and general market conditions are to be

regularly monitored towards taking important business decisions.

TATA STEEL

Tata Steel, formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth largest steel company, with an annual crude steel capacity of 31 million tonnes. It is the second largest private sector steel company in India in terms of domestic production. Ranked 315th on Fortune Global 500, 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 Rs 1,32,110 crore and net profit of over Rs 12,350 crore during the year ended March 31, 2008. Established by Indian Parsi businessman Jamshetji Nusserwanji Tata in 1907.

Its main plant is located in Jamshedpur, Jharkhand, has a crude steel production capacity of 6.8 MTPA, 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 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

Tata Steel annually produces 18 million tonnes of steel in India and 52.32 million tonnes overseas, making it the fifth largest steel producer in the world. It produced a record-breaking 10.32 million tonnes of salable steel in its Jamshedpur works in 2009-10. The company's gross revenue in that financial reporting year was Rs. 20196.24 crores. Its PBT was Rs.621261.65 crores and PAT was Rs.422212.15 crores in the same year.

Location

Located in the East Singhbhum district of Jharkhand on the Chota Nagpur plateau, it is the district headquarters and is surrounded by the beautiful Dalma Hills. The rivers Subarnarekha and Kharkai border the North and West of the city, respectively. The areas surrounding Jamshedpur are rich in minerals, including iron ore, coal, manganese bauxite and lime. The Tata Steel is situated almost at the center of the city

Raw Material

Tata Steel Limited has two collieries in West Bokaro and Jharia, in the state of Jharkhand. While West Bokaro unit is an open cast mine, the Jharia unit is underground. The coal mines are about 150 kms from the steel plant at Jamshedpur and produce superior grades of clean coal. Tata Steel's collieries use 'Surpac', a state-of-the-art mine planning software that estimates the volume of coal in every seam. This software is coupled with qualitative detailing that focuses on output consistency. To maximize productivity and utilization, a voice and data equipped Global Positioning System is used, which helps to supervise mining activity for machine movement and engine status. The collieries division is equipped with in-house washeries, which use the beneficiation process to separate coal from impurities. The Dense Media Cyclone process utilized over here refines coal particles smaller than 13mm while Froth Floatation Cells processes coal below 0.5 mm.

Iron ore Mining is an integral part of steel making in Tata Steel Limited. The iron ore units are located in Noamundi, Joda and Katamandi in the states of Jharkhand and Orissa. Tata Steel Limited also has a manganese mines and dolomite quarries in Orissa. These mines are located at an approximate distance of 150 kms from Jamshedpur, home to the steel company's manufacturing facility. The Steel Company's iron ore units produce 9 million tons per annum of various grades of high quality iron ore including rich blue dust ore. The mineral ore is crushed, right-sized and washed in-house at the site and transported to the steel works in Jamshedpur and to other customers.

As a truly adventurous enterprise, Tata Steel Limited was a pioneer in discovering the rich mineral wealth of the Jharkhand and Orissa region nearly a 100 years ago. It has also been a leader in introducing modern mining techniques. Tata Steel Limited has several decades of experience in scientific and sustainable mining, mine planning, development and research. The raw materials division of the steel company raises over 14 million tones of ores from its captive collieries, iron ore mines and quarries spread over the states of Jharkhand and Orissa. Coal, iron ore, manganese ore, chrome and dolomite are produced at various mines and quarries. The Company's steel plant in Jamshedpur and its customers consume the high-grade raw materials from these units.

Tata Steel Limited is fully committed to preserve nature's balance for posterity and is awakened to the dangers of reckless mining, which may lead to ecological devastation. The entire mining operation of the Company is safe guarded against accident occurrence. Proactive measures are undertaken to ensure the employee's health and productivity through ergonomically designed work stations and by protecting them from occupational hazards. All its mines are ISO-14001 - Environmental Management System Certified.

In addition to conducting massive tree plantation campaigns, locations specific, environmental management initiatives have been taken. To mention a few:

Collieries: Close circuit effluent management, Auto dust suppression, Centrifuges to check the ore fines in waters, Recycling washery rejects in power plants, Electro static precipitators, transformation of subsided area into natural landscapes, utilization of fly ash to land field, A forestation and waste land development.

Mines: First slime dam in the country, Check dams to arrest rain runoff, Environment laboratory, Botanical park, Back filling etc.

EMPLOYMENT AT TATA STEEL

As on 31.03.2006, Tata Steel had a total permanent workforce of 38,182. The breakup of workforce is furnished in the Table In addition, there were approximately 5,631 contractor’s employees in works & non- works area.

Location Officers Non-Officers Total

Jamshedpur 2769 18139 20908

Noamundi (Iron Mines) 201 1787 1988

Jamadoba (Collieries) 187 6871 7058

West Bokaro (Collieries) 181 3436 3617

Kolkata (M&S) 128 234 362

Mumbai (Head Office) 28 31 59

Adityapur Complex 104 528 632

CRC West & Wire Division 230 1202 1432

CRM Sisodra 51 242 293

Kharagpur 62 568 630

FAMD 152 1033 1185

CRE Offices- Delhi, Bhubaneshwar, Ranchi & Raipur

13 5 18

TOTAL 4106 34076 38182

 

The benefits given to employees beyond those legally mandated are summarized below and also presented in Table

Facilities Diverse work groups

Preferential house allotment Working couples

Free water and medical services, subsidized electricity

All employees

Metro allowance Metro employees

Monetary incentives Employees acquiring higher education in related field

Work allowance / Night shift allowance Graduate Trainees / People working in shift

 

The steel company has spent a sum of Rs.381,366,444.47 on medical services in the year 05-06 as against Rs 344,649,299.19 in 04-05 and Rs. 102,047,596.13 in 05-06 as against Rs. 83,570,769.81 in 04-05 on Educational facilities for the employees and their families at Jamshedpur.

Early Separation Scheme: a monthly pension of 1 time /1.20 times of an employee’s salary depending upon his age and length of service, till the time the employee would have attained the age of 60 is given on separation.

Family Benefit Scheme: in case of fatality in the Works, a monthly pension equal to the amount of the last drawn salary of the deceased is given to the legal heir until the time the deceased would have attained the age of 60.

 

Special leave to Women: leave is given to women executives, with children of less than 5 years of age to take care of their children, in case of sickness.

 

Basic Plant training: 18 months training with stipend to employees’ wards to enhance their employability.

Iron ore

FluxesCoal

Blast Furnace

LD2

LD1

SlabsCold Mill

Hot Mill

Iron Processer

Steel Processer

Production Process

Iron ore fines are not suitable for use in the Bast Furnace. Hence, the ironore fines are agglomerated into larger porus lumps, which is suitable for use in the Blast Furnace. A green mix of carefully proportioned ironore fines, fluxes and coke breeze is prepared in granular form in Mixers. Heat generated through combustion within the mass itself produces large lumps of hot Sinter. This Sinter is cooled, sized and stored for use in the blast furnace.

Ironore fines are recycled to make sinter, to help produce hot metal of predictable and standard quality in the Blast Furnace.

Naturally found coal contains Fixed carbon(FC), Volatile matter (VM), Ash, Moisture and other impurities. Its poor crushing strength and the volatile matter content makes it unsuitable for use in Blast Furnace. Hence, naturally found coal is converted into coke in the coke oven for use in Blast Furnaces.

Heating coal in the absence of air carbonising it to form a hard porous mass, devoid of volatile matter produces coke. Coal after carbonisation, which gives blast furnace quality coke is called metallurgical coal. Coal is graded as prime, medium and blendable, based on its coking properties. Blending of different grades of coal is necessary in order to conserve metallurgical coal, yet ensure uniform coking properties. Currently, there are 6 batteries of coke oven supplying coke to the blast furnaces.

The coke plant blends coal from different sources, converts coal to coke and cuts to the correct size for use in the blast furnace.

The Blast Furnace is a ceramic refactory lined tall reactor, used for the production of liquid iron called Hot Metal. Iron oxide, present in the iron bearing raw materials, is reduced inside the reactor by coke and carbon monoxide.

Coke is used for combustion to attain the high temperatures required for reduction. Coke on combustion generates carbon monoxide , which acts as the reducing agent and converts the iron oxides into molten iron. Fluxes are used to make low melting slag and control the quality of Hot Metal.

Hot Metal and Slag are collected in the hearth and tapped periodically. Blast Furnaces A, B, C, D, E and F together produce 2.8 million tons of hot metal, annually. G-Blast Furnace produces 1.30 million tons of hot metal annually. Blast Furnace F has been rebuilt in 2002 to enlarge its capacity to 1 million tonnes.

Blast Furnaces are used for producing Hot Metal.

Hot Liquid Iron(commonly called Hot Metal in Tata Steel) is converted to Steel in the Steel Melting Shops. Hot Metal from the Blast Furnace is stored in Mixers in LD#1 shop. The Hot Metal is converted to Steel in the LD converters by removing its carbon, silicon, sulphur and phosphorous contents.

The liquid steel from the converter is converted to billets using Continuous Casting machine. A small portion of steel is teemed into ingots through Bogie Bottom Poring process using cast iron moulds. The liquid steel is treated in On line purging, Ladle Refining Furnace or Argon Rinsing station before

continuous casting. Special grades of steel, which are cast as ingots, are processed in On-line purging, followed by the Vacuum Arc degassing & Refining unit.

The Steel Melting Shop requires an Oxygen Plant to cater to the requirement of oxygen for steel making. The Lime Calcining Plant and the Tar Dolo Plant are auxiliary units required for the manufacture of Steel.

Hot metal is converted to Steel and cast into Billets.

The LD#2 Shop has three Converters of 140 tons capacity each, producing 2.6 million tons of crude steel per annum. Hot Metal is brought from A, D, E, F and G Blast Furnaces in Torpedo ladles. The metal from the Torpedo ladle is taken into the Hot Metal for Desulphurisation. It is then charged into the vessel.

Primary refining of steel is done in the Ladle Furnace(LF) and RH Degasser(RH) to make cleaner steel of different value added grades.

LD 2 makes superior & cleaner grades of steel required to process Flat products of world-class standards.

Products

Apart from the main steel division, Tata Steel's operations are grouped under strategic profit centres like tubes, growth shop (for its steel plant and material handling equipment), bearings, ferro alloys and minerals, rings, agrico and wires.

Tata Steel's products include hot and cold rolled coils and sheets, tubes, wire rods, construction bars, structurals, forging quality steel, rings and bearings. In an attempt to 'decommoditise' steel, the company has recently introduced brands like Tata Steelium (India's first branded cold rolled steel), Tata Shaktee (galvanised corrugated sheets), Tata Tiscon (re-rolled bars), Tata pipes, Tata bearings, Tata Wiron (galvanised wire products) and Tata Agrico (hand tools and implements).

Environment management Jamshedpur was India's first planned industrial township. In more recent times, Tata Steel has received ISO 14000 certification for environment management for most of its works, plants, mines and collieries.

Corporate social responsibility Tata Steel is one of the few Indian companies to be invited to join the UN-sponsored Global Compact. It has also been conferred the prestigious Global Business Coalition Award (GBC) for Business Excellence in the Community in view of its outstanding work in the field of HIV / AIDS awareness.

Conclusion

The company is backward integrated with owned iron ore mines and collieries. With its competitive advantage in raw materials, efficient operations and the benefits of a recently-completed $2.3 billion programme of modernisation, Tata Steel is among the lowest cost steel producers in the world. 

The steel major has won the Prime Minister's Trophy four times. This award is instituted by the Indian ministry of steel and awarded to the country's best integrated steel plant. In 2000, it became the first Tata company to win the JRD Tata QV award, given to the company with 'world class' operations under the Group's Tata Business Excellence Model.