Group members

2|Page
NO. NAME

1 Ms. Binal Shah (09)

2 Mr. Kalpesh Thakkar (19)

3 Mr. Krunal Joshi (20)

4 Mr. Rohit Chourey (40)

5 Mr. Vishwakarma Sable (43)

Acknowledgement

It is appropriate for my acknowledgement to start with

thanking for assigning us to the work in the projects
section, S.Y.M.M.S.

I thank our Prof. Mr. Rahul Dalvi for his careful

supervision and guidance.
I thank him for giving us the opportunity to work on this
project.
3|Page
I would sincerely like to thank him for this
invaluable support throughout project period. His
profound knowledge, critical suggestions and
 Contents

Sr No. Topic Pg No.

1 SAIL – Intro 04
2 History of SAIL 07
3 Vision & CREDO 09
4 Company Policies 1
5 Techniques of TQM 13
6 JIT(Just in Time) 13
7 Six Sigma 15
8 Achievements & Recent Developments 20

Steel Authority of India Limited (SAIL)

4|Page
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a
fully integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defense industries and for sale in
export markets. SAIL is also among the four Maharatnas of the country's Central Public Sector
Enterprises.
 
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled
sheets and coils, galvanised sheets, electrical sheets, structural’s, railway products, plates, bars
and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated
plants and three special steel plants, located principally in the eastern and central regions of
India and situated close to domestic sources of raw materials, including the Company's iron ore,
limestone and dolomite mines. The company has the distinction of being India’s second largest
producer of iron ore and of having the country’s second largest mines network. This gives SAIL
a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which
are inputs for steel making.

SAIL's wide range of long and flat steel products which are much in demand in the domestic as
well as the international market. This vital responsibility is carried out by SAIL's own Central
Marketing Organisation (CMO) that transacts business through its network of 37 Branch Sales
Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment
Agents and 27 Customer Contact Offices. CMO’s domestic marketing effort is supplemented
by its ever widening network of rural dealers who meet the demands of the smallest customers
in the remotest corners of the country. With the total number of dealers over 2000, SAIL's wide
marketing spread ensures availability of quality steel in virtually all the districts of the country.

SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel
industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are
under the control of the Raw Materials Division in Kolkata. The Environment Management
Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all
our plants and major units are ISO Certified.

5|Page
Major Units 

Integrated Steel Plants

 Bhilai Steel Plant (BSP) in Chhattisgarh
 Durgapur Steel Plant (DSP) in West Bengal
 Rourkela Steel Plant (RSP) in Orissa
 Bokaro Steel Plant (BSL) in Jharkhand
 IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

 Alloy Steels Plants (ASP) in West Bengal

 Salem Steel Plant (SSP) in Tamil Nadu
 Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiary
 Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

Joint  Ventures
 NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint venture between
Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd.
(NTPC Ltd.); manages the captive power plants at Rourkela, Durgapur and Bhilai with a
combined capacity of 814 megawatts (MW).
 Bokaro Power Supply Company Pvt. Limited (BPSCL): This 50:50 joint venture
between SAIL and the Damodar Valley Corporation is managing the 302-MW power
generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel
Plant.

 Mjunction Services Limited: A 50:50 joint venture between SAIL and Tata Steel
promotes e-commerce activities in steel and related areas. Its newly added services
include e-assets sales, events & conferences, coal sales & logistics, publications etc.

 SAIL-Bansal Service Center Limited: A joint venture with BMW industries Ltd. on
40:60 basis for a service centre at Bokaro with the objective of adding value to steel.

 Bhilai JP Cement Limited: A joint venture company with M/s Jaiprakash Associates Ltd

6|Page
 on a 26:74 basis to set up a 2.2 MT slag based cement plant at Bhilai.

 Bokaro JP Cement Limited: Another joint venture company with M/s Jaiprakash
Associates Ltd on a 26:74 basis to set up a 2.1 MT cement plant at Bokaro utilizing slag
from BSL.

 SAIL & MOIL Ferro Alloys (Pvt.) Limited: A joint venture company with M/s
Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-
manganese required in production of steel.

 S&T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata Steel for
joint acquisition & development of mineral deposits; carrying out mining of minerals
including exploration, development, mining and beneficiation of identified coking coal
blocks.

 International Coal Ventures Private Limited: A joint venture company/ SPV promoted
by five central PSUs companies ie. SAIL, CIL, RINL, NMDC and NTPC (with 28.7%,
28.7%, 14.3%, 14.3% and 14.3% respective shareholding pattern) with aim to acquire
stake in coal mines/blocks/companies overseas for securing coking and thermal coal
supplies.

 SAIL SCI Shipping Pvt.  Limited: For provision of various shipping and related services
by JVC to SAIL for importing of coking coal and other bulk materials, and other
shipping related business.

 SAIL RITES Bengal Wagon Industry Pvt. Limited: To manufacture, sell, market,
distribute and export railway wagons including high end specialized wagons, wagon
prototypes, fabricated components/ parts of railway vehicles, rehabilitation of industrial
locomotives for the domestic market.

Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting control of the
Company. However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significant operational
and financial autonomy

7|Page
History of Steel Authority of India Ltd.

1954 - Hindustan Steel Ltd. was created to oversee the Rourkela Steel Plant

1960 - The Alloys steel plant was installed at Durgapur in W. Bengal with Japanese assistance.Special
steels were produced such as armour plate, grade steel & many special grade alloys to meet vital and
strategic needs of country in areas of nuclear energy, defence, space.

1968 - SAIL took over the management of Maharashtra Elektrosmelt Ltd. a small compact company,
at Chandrapur, Maharashtra for utilising some of its facilities for R&D works as well as maximising
its production of ferro manganese for use in SAIL plants. The unit produces several goods of special
steels. The Company proposed to diversify into manufacture of ferro alloys, low carbon pig iron etc.

1973 - Pursuant to a decision taken by Government of India in January the Steel Authority of India,
limited was formed on 24th January, as a holding Comp. for Steel & Associated input industries.

1974 - SAIL International Ltd., was incorporated to coordinate the export & import business.

1976 - Durgapur Mishra Ispat Ltd., Bhiali Ispat Ltd., an Rourkela Ispat Ltd., were formed as fully
owned subsidiaries of SAIL for taking over the running business of Alloy Steels Plants, Bhilai steel
Plant & Rourkela Steel Plant on tranfer from HSL.

1982 - The Salem Steel Plant was inagurated at Salem in Tamil Nadu in March. It represents the
dispersal of industries & balance regional development bringing the latest sophistication in cold
rolling. The products find application in major industries viz., nuclear, petroleum, chemicals,
fertilisers, food processing, Pharmaceuticals, dairy, household appliances, cutlery etc.

1988 - The Visvesvaraya Irons and Steel Co. limited became a subsidiary of SAIL with SAIL
acquiring 60% of shares of Company. The Bhilai Steel Plant set up a blast furnace bell-less top
charging system.

1993 - The Comp. undertook to float a joint venture Comp. in collaboration with USX Engineers and
Consultants Inc., Pittsburg, USA for development & execution of technology & system integration for
computer applications in basic industries such as those engaged in steel mining & metallurgy.

1995 - SAIL has ventured into setting up a power project at Bhilai in joint venture with M/s. Larsen
and Toubro & CEA, USA Inc.

8|Page
1999 - The Steel Authority of India Ltd [SAILs] has forged a marketing tieup with Tyazpromexport
[TPEs] of Russia to sell the entire range of castings & pig iron produced by Kulti Works, a division of
Indian Iron & Steel Comp. [Iiscos].

2000 - Private sector steel majors Tisco, Kalyani Steel & the public sector Steel Authority of India are
all set to form a three-way joint venture for undertaking e-commerce activities in the steel sector.

- Steel Authority of India Ltd., Tata Steel & Kalyani Steels limited entered into an agreement for
creation of an Internet-based global, independent B2B Steel Market place.

- Steel Authority of India Ltd & the National Thermal Power Corp. are set to begin for a joint venture
for three captive power plants & associated units of SAIL.

2003 - SAIL’s output surpasses ten MT of saleable steel.

2005 -GAIL ties up with SAIL

2008 -Steel Authority of India Ltd [SAILs] has informed that the Comp. on February 21, 2008 has
signed a Joint Venture Agreement with M/s. Jaiprakash Associates Limited [JALs] for formation of
Joint Venture Comp. [JVCs] to set up a cement plant for producing 2 million tonnes of Cement at
Bokaro [Jharkhands] by using slag generated at Bokaro Steel Plant of SAIL.

-Steel Authority of India Limited & Larsen & Toubro Limited [L&Ts] has signed a Memorandum of
Understanding [MoUs] to jointly set up, develop, manage & own captive/independent power plants at
suitable location/s to meet future power requirements of SAIL.

2009 - SAIL signed a Joint Venture Agreement with Coal India Ltd, Rashtriya Ispat Nigam Ltd,
NMDC Ltd and NTPC Ltd for setting up of a Special Purpose Vehicle i.e. International Coal Ventures
Pvt. Ltd (ICVL) for acquisition of coal mines/block overseas for securing coal supplies.

2010 – The Govt. Of India has accorded the status of “Maharatna”.

9|Page
Vision
To be a respected world class corporation and the leader in Indian Business in

 Quality,
 Productivity,
 Profitability &
 Customer Satisfaction.

CREDO
We attach highest value to human life. SAIL follows a well drawn policy to ensure safety of human
beings and equipment so as to ensure an accident free work environment.

 We build lasting relationships with customers based on trust and mutual benefit.
 We uphold highest ethical standards in conduct of our business.
 We create and nurture a culture that supports flexibility, learning and is proactive to change.
 We chart a challenging career for employees with opportunities for advancement and rewards.
 We value the opportunity and responsibility to make a meaningful difference in people's lives.

10 | P a g e
Company Policies
Quality Policy
“ We shall build and sustain a world class organization, where Quality is the hallmark of every
process and activity with the involvement and dedication of our human resource. We are committed to
achieve satisfaction of all our stakeholders, through innovation and continual improvement.”

Corporate Social Responsibility Policy

SAIL recognizes that its business activities have direct and indirect impact on the society. The
Company strives to integrate its business values and operations in an ethical and transparent manner to
demonstrate its commitment to sustainable development and to meet the interests of its stakeholders.
The Company is committed to continuously improving its social responsibilities, environment and
economic practices to make positive impact on the society.

Safety Policy

Safety of its employees and the people associated with it including those living in the neighbourhood
of its plants, mines and units.
Pursue safety efforts in a sustained and consistent way by establishing safety goals, demanding
accountability for safety performance and providing resources to make safety programmes work.

Corporate Environmental Policy

The steel authority of India Limited (SAIL), manufacture various products of iron and steel. The
company owns and operates five integrated steel plants at Bhilai, Durgapur, Rourkela, Bokaro and
Burnpur and three special steel plants at Salem, Durgapur and Bhadrawati along with captive mines
for iron ore, limestone, dolomite, and coal and has a subsidiary, MEL at Chandrapur. SAIL also have
an extensive marketing network spread across the length and breadth of the country.

SAIL reaffirms its commitment to contributing towards a clean and sustainable environment and
continually enhancing its environmental performance as an integral part of its business philosophy and
values.

11 | P a g e
Human Resource Policy

SAIL ensure competent and committed team engaged in building a culture of learning
to achieve excellence in performance and employee satisfaction through innovation and
continual improvement.

Techniques of TQM in SAIL

 JIT (Just In Time)
 6 Sigma
 The ISO 9001:2000 Quality Assurance System
 CSR

JIT (Just In Time):

Just-in-time is an inventory strategy that strives to improve a business’s return on investment by
reducing in process inventory and associated carrying cost.

JIT can dramatically improve a manufacturing organization’s return on investment, quality and
efficiency.

The major competitive dimensions that form the competitive position of a company include the
following.

Cost – “Make it cheap” Within every industry, there is usually a segment of the market that buys
solely on the basis of low cost. To successfully compete in this niche, a firm must be the low cost
producer, but even doing this does not always guarantee profitability and success.

Product quality and reliability – “Make it good”. Quality can be divided into two categories:
product quality and process quality. The level of quality in a product’s design will vary with the
market segment at which it is aimed. Process quality is critical because it relates directly to the
reliability of the product.

Delivery speed—“Make it fast.” In some markets, a company’s ability to delivery more quickly than
its competitors may be critical.

Delivery reliability—“Deliver it when promised.” This dimension relates to the ability of the firm to
supply the product or service on or before a promised delivery due date.

Coping with changes in demand – “Change its volume.” In many markets, a company’s ability to
respond to increases and a decrease in demand is an important factor in its ability to compete. It is well
known that a company with increasing demand can do little wrong. When demand is strong and

12 | P a g e
increasing, costs are continuously reduced due to economics of scale, and investments in new
technologies can be easily justified. But scaling back when demand decreases may require many
difficult decisions relating to laying off employees and related reductions in assets. The ability to
effectively deal with dynamic market demand over the loan term is an essential element of operations
strategies.

Flexibility and new product introduction speed—“Change it”. Flexibility, from a strategic
perspective refers to the ability of a company to offer a wide variety of products to its customers. An
important element of this ability to offer different products is the time required for a company to
develop a new product and to convert its processes to offer the new product.

According to a report published in Times of India (2007) SAIL had received ‘excellent’ rating for
achieving targets set in the MOU with the Government for the year 2005-06. Considering the
sustained growth demonstrated by the company during 2006-07, a similar rating is expected this year
as well. During 2005-06, while maintaining capacity utilisation at 104%, the company focused on the
production of finished steel, lower energy consumption and reduction in coke rate, increased
production through the continuous cast (CC) route and improved the product mix during 2006-07.

Effective strategies of SAIL to attain competitive advantage

Techno-economic parameters

Cost Effectiveness

Economic Times states that the thrust on improving efficiency of cost management launched by SAIL
during the year 2005. New schemes were identified and existing schemes reviewed and revised to
offset the impact of the sharp rise in input prices, particularly in the case of coking coal, Ferro alloys,
etc., during the year, resulting in savings of about Rs. 130 crore. SAIL’s cost management endeavors
once again received recognition at the national level. The Institute of Cost & Works Accountants of
India adjudged SAIL as being the second best company in the public sector in India during 2005 in
this parameter and presented the company its National Award for Excellence in Cost Management.

Human Resource Management

SAIL’s total manpower at the end of the year thus stood at around 127,000, showing a reduction of
about 48,000 since 1998. The company’s labour productivity grew by 4% to 142 tones/man/year in
2006-07. To equip employees with higher technical skills, SAIL has signed an agreement with Tata-
Corus/UK and CAI/Austria for provision of specialised training.

Research & Development

13 | P a g e
The development measures at SAIL projects at SAIL focus on process improvement, cost
competitiveness, product quality, product development and basic research for improvement in techno-
economic parameters to increase capacity utilization.

Environment Management

SAIL is committed to providing a healthy environment in and around its steel plants. Over 2 lakhs
trees planted added further substance to the company’s efforts in this direction. Around 13 million
trees have been planted so far by SAIL at different plant/unit/mine locations. The SAIL plants/units
maintained their thrust on controlling pollution during the year. Some of them even received awards
for excellence in pollution control measures.

Public Relations

To reinforce employee morale, internal communication activities were further strengthened. A planned
approach yielded excellent results, with appreciative feedback from employees at all levels on the
initiatives taken and themes selected to motivate, inform and instill pride in the workforce. Wide and
focused communication through both print and electronic media strengthened the image of the
organisation amongst the company’s stakeholders and general public. Revival of the television ad
campaign There’s a little bit of SAIL in everybody’s life in the later part of the year, re-in forced the
company’s image as the industry leader in viewer’s minds due to its excellent recall value. Other
campaigns such as the one highlighting SAIL’s turnaround as the most impressive in Indian industry,
Steel Green and Steel in Need, SAIL in Deed were well received by the target audiences. A radio
jingle in Hindi, Safety pin se flyover..., also generated popular response.

Cost competitiveness

The following cost reduction measures are adopted in SAIL to gain competitive advantage:-

(a) Reduction in fixed cost through volume growth, reduction in manpower cost and financial
charges;

(b) Reduction in variable cost through technological interventions like elimination of ingot steel route,
100% Basic Oxygen Furnace and Continuous Casting, coke rate reduction via CDI/auxiliary fuel
injection, and higher levels of process control computerization/automation, leading to
enhancement of operating efficiency; and

(c) By business process improvements such as streamlining of supplies of key inputs of steel making
through higher utilisation of e-commerce, centralized procurement for select items, etc.

14 | P a g e
Quality competitiveness:

SAIL also emphasize on technology & input quality improvement across value chain; thrust on special
quality steel and new products; improvement in process consistency and metal treatment; advanced
online testing and quality control facilities; standardization/automation/process control & IT.
Corporate Plan-2012 has considered the market growth projections assuming overall steel
consumption at about 8% per annum. However, the growth trends and macro-economic indicators
could lead to higher growth potential. Therefore, depending on the market growth, strategies of
competitors, global economic scenario, government policies and resource availability, SAIL’s plans
may be revised from time to time, and further growth in terms of volume, products, etc., may be aimed
through Greenfield investments, acquisitions/mergers etc. The current plan provides the broad
direction for SAIL to move forward and would be reviewed periodically.

Market Development

SAIL has valued customers group in identifying their specific needs specific to that group thus
segmenting and developing market segment for our products. Major product modifications are done as
per their specific needs of the Market segment thereby creating product differentiation packages.

JIT Delivery

JIT Delivery means just in time delivery. SAIL is able to make delivery just in time because it works
in pre-planned manner; it takes order only after consulting the production units. So that the products
car be delivered in right time.

Production According To Market Needs

SAIL is always in touch in market and tries to produce according to market needs. SAIL tries to
produce quality products / new products which full fill the need of market.

Benefits of JIT
 Set up times are significantly reduced in the factory.

 The flow of goods from warehouse to shelves improves.

 Employees who possess multiple skills are used more efficiently.

 JIT provides better scheduling and work hour consistency.

 There is an increased emphasis on supplier relationship.

15 | P a g e
The ISO 9001:2000 Quality Assurance System:
Total Quality Management is an integral part of the day to day activities of the company. The ISO
9001:2000 Quality Assurance System is being maintained since its accreditation, which covers all the
sections of the plant.

Six Sigma
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of
defects and variability in manufacturing and business processes. Each Six Sigma project carried out
within an organization follows a defined sequence of steps and has quantified financial targets (cost
reduction or profit increase.

A six sigma process is one in which 99.99966% of the products manufactured are statistically
expected to be free of defects (3.4 defects per million).

Sigma level

Sigma Level DPMO %Defective %Yield

1 691,462 69% 31%

2 308,532 31%

3 66,807 6.7% 93.3%

4 6,210 0.62% 99.38%

5 233 0.023% 99.977%

6 3.4 0.00034% 99.99966%

7 0.019 0.0000019% 99.9999981%

The Six Sigma Methodology

The Six Sigma includes two key methodologies: DMAIC and DMADV. DMAIC is used for an
existing process. DMADV is used when creating a new product or process. Using DMADV for new
projects usually results in a more predictable process and ultimately higher quality product.

16 | P a g e
DMAIC

There are 5 important steps included in DMAIC. They are:

 D – Define goals to improve the overall process between the company’s strategy and the
customer’s demands (can also refer to the group or individuals being supported)
 M – Measure the current processes. Collect relevant data on the current processes and then use
this data as a baseline for future comparisons.
 A – Analyze your relationship within the process. It is important to understand the relationship
to determine factors that can ensure that the company’s strategy is in line with customer
demands.
 I – Improve the process. It is important to constantly improve and optimize the process with
analysis and other techniques. One technique that is often used is Design of Experiments. This
is a technique that uses acceptable experimental design to help test a hypothesis.
 C – Control. It is important to ensure that any variances can be controlled and corrected in
order to avoid possible costly defects and loss of quality. Pilot runs are often set up to study
process capability and production transition. These pilot runs can help fine tune or add
additional control mechanisms.

DMADV

There are 5 important steps included in DMADV. They are:

 D – Define goals that are consistent between the business strategy and customer demands.
 M – Measure CTOs (Critical To Qualities). CTOs consist of production process, capabilities
producing a product, a product’s capability, and any risk assessments.
 A – Analyze and evaluate many different designs and choose the best design for its overall
qualities.
 D – Design details. It is important not only to design a product, but to optimize the design
features. In order to fully optimize a design feature, it may be necessary to create multiple
designs or simulations.
 V – Verify the design. Important steps to verifying a design include setting up pilot runs and
running a short production. This step also requires that the design be handed over to process
owners

There are numerous benefits of six sigma as a way to address issues and problems. Among the
benefits of six sigma is the decrease in defects that are allowed to reach the customer. Other benefits
of six sigma include:

 Focus on customers.
 Improved customer loyalty.

17 | P a g e
 Reduced cycle time.
 Less waste.
 Data based decisions.
 Time management.
 Sustained gains and improvements.
 Systematic problem solving.
 Employee motivation.
 Data analysis before decision making.
 Faster to market.
 Team building.
 Improved customer relations.
 Assure strategic planning..
 Reductions of incidents.
 Measure value according to the customer.
 Better safety performance.
 Understanding of processes.
 Effective supply chain management.
 Design and redesign products/services.
 Knowledge of competition, competitors .
 Develop leadership skills.
 Breakdown barriers between departments and functions.
 Management training.
 Improve presentation skills.
 Integration of products, services and distribution.
 Use of standard operating procedures.
 Better decision making.
 Improving project management skills.
 Sustained improvements.
 Alignment with strategy vision, and values.
 Increased margins.
 Greater market share.
 Supervisor training.
 Lower costs to provide goods and services.
 Fewer customer complaints.

18 | P a g e
Achievements
 SAIL was featured in the 2010 list of Forbes Global 2000 companies at position 582.

 National Institute of Personnel Management conferred the National Award on SAIL for Best
HR Practices 2008.

 SAIL was adjudged as the top Indian company under the Iron & Steel Sector for the Dun &
Bradstreet – Rolta Corporate Awards 2008.

 Golden Peacock Award for Combating Climate Change – 2008 for BSP,

 Occupational Health & Safety – 2008 for BSL.

 The highest number of Vishwakarma Award 2007 among both public and private sectors has
been bagged by SAIL employees: out of 28 awards, 15 awards went to the SAIL employees
(54%).

 52 SAIL employees have received the Prime Minister's Shram Awards 2010.

Recent developments of SAIL

 The merger between Maharashtra Elektrosmelt Limited (MEL) and Steel Authority of India
Limited (SAIL) is to take six more months. All the formalities are slated to be completed by
then.
 Steel Authority of India (SAIL) has achieved a step forward in the deadlock over Chiria iron
ore mines. In the last few years, Jharkhand government's refusal for renewing the mining
leases, had thrown the race for Chiria open to global steel majors including ArcelorMittal.

19 | P a g e