TOTAL QUALITY MANAGEMENT (TQM) IN VISHAKHAPATNAM STEEL PLANT

S.KALKI RUPINI (09259)

Project submitted in partial fulfillment for the award of Post Graduate Diploma in Management

VIGNANA JYOHI INSTITUTE IN MANAGEMENT BACHUPALLY, HYDERABAD

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DECLARATION

I hereby declare that this Project Report titled Total Quality Management (TQM) submitted by me is a bonafide work undertaken by me and it is not submitted to any other Institute or University for the award of any degree/ diploma certificate or published any time before.

S. KALKI RUPINI Name of the Student Signature of the Student

CERTIFICATE

This is to certify that the Project Report titled Total Quality Management (TQM) being submitted to Vignana Joythi Institute of Management is a bonafide work done by S.KALKI RUPINI, bearing roll no. 09259, under my guidance.

Date:

Signature of the Guide

Name: G. RAMA DEVI

ACKNOWLEDGEMENT

I convey my sincere gratitude to Dr. G Ramadevi, AGM (PPM), Visakhapatnam Steel Plant for her encouragement and kind concern about my work in Visakhapatnam Steel Plant. I am very much indebted to Sri Ramakrishna Yanamandra, Associate Professor (Operations), Vignana Jyothi Institute of Management Hyderabad for his invaluable guidance and encouragement throughout this project. I express my gratefulness to D.N RAO, DGM and all the officials of Visakhapatnam Steel Plant who encouraged me and cooperated in disclosing any valuable information that is very much required for this project. I am thankful to the TQM-ISO Cell of Visakhapatnam Steel Plant for helping me in the successful completion of the project. I take the opportunity to express my heartfelt thanks to all the faculty members who encouraged me in my work. Finally, I take the opportunity to express my gratitude to my parents, friends and well wishers for their constant encouragement.

S.KALKI RUPINI

SYNOPSIS
This project is to understand the implementation of Total Quality Management (TQM) in VSP. The key to an effective TQM program is its focus on the customer. An excellent place to start is by satisfying internal customers. The organization must listen to the voice of the customer and emphasize design quality and defects prevention.TQM is an organization-wide challenge that is everyones responsibility. The purpose of TQM is to provide a quality product or service to customers, which will, in turn, increase productivity and lower the cost. With a higher quality product and lower price, competitive position in the marketplace will be enhanced. In VSP ISO-9001, EMS-14001 and OHMS-18001 are bonded to comply with the requirements of the organization. This is very good practice in the sense that the work done by an agency (BVCI) based on an approved procedure conforms to a particular standard which takes care of quality, follows well defined sequence of operation, quality control and acceptance of norms which is driving the organization towards the continual improvement. Where as, Benchmarking enhances innovation by scanning the external environment and using the information obtained to improve the process. All personnel must be trained in TQM and other appropriate quality improvement skills so that they can effectively participate in project teams like Quality Circles (QC). The Five S concept which forms the basis of all activities being undertaken during daily operations in work place management had brought tremendous change in the organization culture. Based on the study, TQM will allow the organization to achieve the objectives of profits and growth with grater ease.

Contents
DECLARATION ......................................................................................................................................... 2 CERTIFICATE ............................................................................................................................................ 3 ACKNOWLEDGEMENT ............................................................................................................................. 4 SYNOPSIS ................................................................................................................................................. 5 1 2 3 4 INTRODUCTION ............................................................................................................................... 8 NEED OF THE STUDY ....................................................................................................................... 9 SCOPE OF THE STUDY...................................................................................................................... 9 LITERATURE SURVEY ....................................................................................................................... 9 4.1 PRINCIPLES OF VSP.................................................................................................................. 9 VISION ............................................................................................................................. 9 MISSION ........................................................................................................................ 10

4.1.1 4.1.2 4.2 4.3 4.4 5

EVOLUTION OF TQM IN VSP ................................................................................................. 10 CUSTOMER FOCUS IN VSP .................................................................................................... 11 MEMORANDUM OF UNDERSTANDING (MOU)..................................................................... 12

METHODOLOGIES ADOPTED ......................................................................................................... 14 5.1 ISO- QUALITY MANAGEMENT SYSTEMS (QMS) .................................................................... 14 INTRODUCTION ............................................................................................................. 14 TOP MANAGEMENT COMMITMENT: ............................................................................ 14 IMPLEMENTATION: ....................................................................................................... 15 MANAGEMENT REVIEW ................................................................................................ 19 DOCUMENTATION ........................................................................................................ 20 INTERNAL AUDITING ..................................................................................................... 20 EXTERNAL AUDITING..................................................................................................... 21

5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.2

ENVIRONMENTAL MANAGEMENT SYSTEM (ISO 14001:2004) ............................................. 21 INTRODUCTION ............................................................................................................. 21 TOP MANAGEMENT COMMITMENT ............................................................................. 22 EMS MODEL .................................................................................................................. 23 LEGAL AND OTHER REQUIREMENTS ............................................................................. 27 COMPETENCE, TRAINING AND AWARENESS ................................................................ 27 DOCUMENTATION: ....................................................................................................... 28 INTERNAL AUDIT: .......................................................................................................... 29 EXTERNAL AUDITING:.................................................................................................... 29

5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.3

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM (18001) ............................. 29 INTRODUCTION ............................................................................................................. 29 TRAINING ...................................................................................................................... 30 6

5.3.1 5.3.2

5.3.3 5.3.4 5.3.5 5.3.6 5.4

OHSMS MODEL IN VSP .................................................................................................. 30 DOCUMENTATION: ....................................................................................................... 34 INTERNAL AUIDTING ..................................................................................................... 35 EXTERNAL AUDITING:.................................................................................................... 36

BENCHMARKING ................................................................................................................... 36 DECIDE WHAT TO BENCHMARK .................................................................................... 36 UNDERSTAND CURRENT PERFORMANCE ..................................................................... 37 PLANNING ..................................................................................................................... 37 STUDY OTHERS .............................................................................................................. 37 LEARN FROM THE DATA ................................................................................................ 39 USE THE FINDINGS: ....................................................................................................... 40

5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6 5.5 5.6

QUALITY CIRCLES................................................................................................................... 40 5SCONCEPT ......................................................................................................................... 45 INTRODUCTION ............................................................................................................. 45 5S LEADERSHIP .............................................................................................................. 45 SEIRI............................................................................................................................... 47 SEITON........................................................................................................................... 49 SEISO ............................................................................................................................. 51 SEIKETSU ....................................................................................................................... 52 SHITSUKE ....................................................................................................................... 54

5.6.1 5.6.2 5.6.3 5.6.4 5.6.5 5.6.6 5.6.7 6 7 8 9

FINDINGS AND CONCLUSION ........................................................................................................ 57 RECCOMENDATIONS ..................................................................................................................... 59 REFERENCES: ................................................................................................................................. 60 BIBILOGRAPHY: ............................................................................................................................. 60

INTRODUCTION
In todays economic turbulence, with increasing globalization and highly competitive environment, just meeting customer requirements and complying with the international standards is insufficient. Some extra efforts have to be put in to enhance specific competencies of business and win over the competitors. The entry of private players and the lessening of government controls have opened new vistas in quality delivery of products/services to customers. To improve product and service acceptability, innovations through brain storming, involvement of employees, bench marking through success stories, building skillful and competent human resources through training and development as well as customer- benefit oriented activities. Indias economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. GDP growth is important for steel sector. And there is close relationship between GDP growth in steel consumption. Healthy growth in GDP will improve the demand for Steel. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilizers. India occupies a central position on the global steel map, with the establishment of new state-of-the-art steel mills, acquisition of global scale capacities by players, continuous modernization and up gradation of older plants, improving energy efficiency and backward integration into global raw material sources Steel is a cyclic industry. There is no business without risk. No risk.. No gain. We should encourage people to take risk. Differentiate between failure and negligence. No action to be taken for failures during the course of business in the best interest of an organization as long as they are not repeated. Learning through mistakes is the driver. We should gain knowledge from failures. Good managers are those who take more right decisions than wrong. Failure should not be punished and should be taken in the right perspective. Then the managers will have the willingness to risk taking. It does not so much happen in PSUs! Continuous improvement is an inherent part of TQM process. It transforms the drive towards quality into a never-ending journey. Every day, the firm must try to be better than it was a day before. Once benchmarks have been set and a plan has been developed to move companies towards best practices, the need for continuous improvement arises. This concept allows companies to accept modest beginning and make small incremental improvements towards best practices, the need for continuous in prevent arises. The continual improvement allows companies to accept modest beginning and make small incremental improvements towards excellence

NEED OF THE STUDY

Total Quality Management in Visakhapatnam Steel Plant is a pure Descriptive type project. The goal is to arrive at a clear description of the processes adopted towards Total Quality Management in VSP. The following factors are also analyzed as a part of this study. Competitive advantage gained by VSP by implementing TQM Various Quality Control initiatives / processes / formats / documents taken by them The challenges they have faced for implementation of TQM Quality Awareness for employees and training programs conducted towards it The various managerial levels at which the TQM is implemented and Initiatives taken at each level The various steps taken for TQM implementation at all departments and different levels

SCOPE OF THE STUDY

The scope of the study in VSP is limited to some of the departments like TQM-ISO cell, Environmental department, Suraksha Bhavan, MS (Management and Service) department and Shop Floors. I had interacted with the Managers, HODs and Officials of these departments and conducted one-one brainstorm, to know the detailed work procedure and Implementation of the TQM concepts. I observed the shop floors and interacted with executives in order to know how effectively the 5S procedures had been followed every day in the plant. Training and Developing Centre (TNDC), Library helped me a lot by providing required data which is used as support in preparing my record. Most of the analytical data is collected from TQM-ISO officials of VSP. I also interacted with blue collar workers about the 5S implementation in VSP.

LITERATURE SURVEY
1.1
1.1.1

PRINCIPLES OF VSP
VISION

The primary vision of VSP is to be a continuously growing world-class company.

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We shall Therefore: Harness our growth potential and sustain profitable growth. Deliver high quality and cost competitive products and be the first choice of the customer. Create an inspiring work environment to unleash the creative energy of people. Achieve excellence in enterprise management. Be a respected citizen, ensure clean and green environment and develop vibrant communities around us.
1.1.2 MISSION

To attain 10 million ton liquid steel capacity through technological up- gradation, operational efficiency, to produce steels of international standards of cost and quality to meet the aspirations of the stake holders.
OBJECTIVES

Expand plant capacity to 6.3Mt by 2011-12 with the mission to expand further in subsequent phases as per Corporate Plan Revamping existing Blast Furnaces to make them energy efficient to contemporary levels and in the process increase their capacity by 1 Mt, thus total hot metal capacity to 7.5 Mt Be amongst top five lowest cost liquid steel producers in the world Achieve higher levels of customer satisfaction Vibrant work culture in the organization
Be proactive in conserving environment, maintaining high levels of safety &

addressing social concerns

CORE-VALUES OF VSP

Commitment. Customer satisfaction. Continuous improvement. Concern for environment.

Creativity and innovation

1.2

EVOLUTION OF TQM IN VSP

According to Mr. J Mehra, Director (Operations) who took over the charge of RINL/VSP as CMD in June 1993 there were three areas that needed most of the top managements time and attention.

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1. Need for changing the mindset of employees (which was rooted in the past) 2. Restructuring the companys finances (to offset the adverse impact of the heavy financial charges) 3. Need to achieve rated capacities quickly and reduce costs. Consequently, in order to make RINL/VSP visible, Mr. J Mehra adopted the following consolidation strategies. Mindset-change; Cost Management; and Financial Restructuring. The inordinate delay in commissioning the project, the massive cost overrun, all together had lowered the morale of RINLs 17,000-odd executives and workmen. An organization survey was commissioned by RINL/VSP in 1993 to study the attitude of employees. The survey report revealed the common perception among the work force were, RINL/VSP can never achieve its rated capacity. RINL/VSP has unusually low manpower. RINL/VSP can never make profits. In order to remove these mental blocks, Mr. Mehra sent teams of executives and workmen abroad to study technological process and work practices in world class steel plants in Korea, Japan and USA to make them understand how world class production standards could be achieved. These teams started presenting workshops internally on what they have learnt abroad. The process of mindset change was reinforced by the adoption of TQM system that introduced several changes in the form of employee involvement, inviting suggestions from employees, an innovative incentive and reward package that was designed to boast productivity levels, efficiency etc. Thus TQM tools were implemented in the company as a survival stratagem. The journey of TQM in RINL/VSP took off on 15 September, 1995 with the establishment of TQM Cell. At the foundation stage, TQM Cell was under control of works Department which comprised only three executives one Deputy Chief Manager and two Deputy Managers. The TQM movement in the works division has been given a major thrust with the formation of full time TQM Cell. To provide further impulsion to the program, CMD together with the other top managers took on a policy decision to institute a full-fledged TQM department in the company. As a result, the TQM-ISO Cell was born in January 1997. At present it comprises of 5 members, viz.., chief superintendent (TQM), Manager (TQM), Deputy Chief Manager (ISO), Manager (ISO) and Assistant General Manager (TQM-ISO). The AGM (TQM-ISO) heads the TQM-ISO cell and reports directly to the General Manager (Services), who in turn is accountable to the Executive Director (Works). 1.3 CUSTOMER FOCUS IN VSP

RINL/ VSP always follow the Voice of the customer in its quality management practices. This voice comes from both external and internal customers. In order to enhance customer satisfaction, it ensures that the requirements of customers, whether stated or not, but is necessary for the specified intended are fulfilled.
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In VSP the Regional Managers, Branch Managers and HODs are responsible to deal with external customers. Customer needs are periodically assessed so as to determine their actual requirements. Product requirements specified by the customers including the requirements for availability, delivery and support and not specified by customers, but necessary for intended or specified use as well as obligations related to the product including statutory and regulatory requirements are determined while finalizing enquiry specifications for a tender/contract/order. The enquiry specifications for a tender/contract/order are reviewed with the customer so as to ensure that the product requirements are adequately defined and documented before the acceptance of the contract/order. The contract with customer is finalized only after ensuring that the capabilities to meet the contractually requirements does exist in the company. In of any change in the product requirements by the customer, the contract is accordingly amended and the concerned personnel are made aware of the changed requirements. The marketing department monitors the fulfillment of customers orders and this is also reviewed in various management review meetings. Communication with the customer is always maintained with respect to product information, contracts, order handling including amendment in the orders, and to receive feedback and customer complaints. To improve and evaluate the alignment with the customers, VSP takes care of the six key points, viz., 1.4 Identification of customers Understanding customers needs Determining all quality elements Helping the customers Ensuring that customers expectations are consistent with the product it offers Ensuring that it can fulfill its customers expectations completely and concisely.

MEMORANDUM OF UNDERSTANDING (MOU)

A memorandum of understanding (MoU) is a document describing a bilateral or multilateral agreement between parties. It expresses convergences of will between the parties, indicating an intended common line of action. It most often is used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a gentlemans agreement. Many companies and government agencies use MoUs to define a relationship between departments, agencies or closely held companies, these branches of the organizations fall under similar control structures but need to ensure smooth operations where there are shared resources or workflows. Often these organizations are not legal persons and hence cannot enter into binding legal agreements. MoU include areas such as service level agreements (SLAs), intra-organization connectivity, intra-organization communications and intra-organization escalations and response patterns. Like commitments/purpose and sets out expectations for a series of pre-determined responses

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should certain criteria be met that shows that there is either intentional or intentional branch of the MoUs original commitments/purpose. RINL/VSP uses Memorandum of Understanding (MoU) in the place of Internal Customer Satisfaction (ICS) model. The MoUs are being monitored and coordinated by the TQM-ISO Cell.

I/p

Department1

O/p

I/p

Department 2

O/p

I/p

Department 3

O/p

C
MOU & MOU Review

MOU & MOU Review

FIGURE.1: INTERNAL CUSTOMER CONCEPT IN RNIL/VSP NOTE: I/p - Input, O/p - Output, C Customer, S - Supplier. In each financial year, all production departments finalized MoU with their customers/suppliers. While finalizing MoUs, the following action points are taken care. Each department (customer) identifies its supplier department. Each customer department will indicate the key parameters to all its suppliers, which it expects from then to fulfill to improve efficiency and cost reduction. While entering the MoU, all the MoUs points are to be graded as per their importance in a five point scale by the customer department. On receipt of requirements from the customer departments, the supplier department formulates the action plan to fulfill its customer needs and intimate the same to all the concerned personal in its departments up to Junior Office level. A customer department can enter into MoUs with many number of supplier departments. This is the sole responsibility of the concerned HODs. The customer department can also be a supplier to another department. A copy of the MoU thus entered and mutually signed has to be sent to the TQM-ISO Cell. During 2001-2002, 11 MoU were signed and for the year 2002-03, 22 MoU have been signed among various departments.
CUSTOMER-SUPPLIER MEETING

Customer Supplier meetings are held once in a month to monitor and review the progress made on the MoU entered. In these meetings, discussions are held regarding:
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Status of MoU fulfillment for the previous month; Comparative rating of the supplier by customer department for each month; Cost reduction effectiveness over commitments given; and Efforts made on reducing cycle time for the areas mentioned.

The monthly performance report of each customer department is sent to the TQM-ISO Cell in turn compiles all the reports and represents the same in the monthly management representative meeting. In these meetings, they discuss the progress and shortfall, if any, of the entered MoUs. If any problem arises with regard to the satisfaction level, the ED (works) interferes and asks for an explanation from the concerned HOD of the supplier department for the low performance and is asked to take corrective measures.

METHODOLOGIES ADOPTED
1.5
1.5.1

ISO- QUALITY MANAGEMENT SYSTEMS (QMS)

INTRODUCTION

Visakhapatnam Steel Plant (VSP) is the first integrated steel plant in the country to get: ISO 9001, ISO 14001 and OHSAS 18001. VSP for the first time got ISO certification for its products in October 1994. All the departments in Works division are certified in 1999. And on 26th November 2008 re-certification audit for awarding ISO 9001 2000 had been carried out by BVCI.
1.5.2 TOP MANAGEMENT COMMITMENT:

The VSP establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard. The commitments are to: Determine the processes needed for the quality management system and their application throughout the organization. Determine the sequence and interaction of these processes. Determine criteria and methods needed to ensure that both the operation and control of these processes are effective. Ensure the availability of resources and information necessary to support the operation and monitoring of these processes. Monitor, measure where applicable, and analyze these processes, and Implement actions necessary to achieve planned results and continual improvement of these processes. These processes are managed by the VSP in accordance with the requirements of this International Standards.
APPOINT THE MANAGEMENT REPRESENTATIVE: In VSP the top management appointed

members of the organizations who, irrespective of other responsibility and authority that includes: Ensuring that process needed for the quality management system are established, implemented and maintained.
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1.5.3

Reporting to top management on the performance of the quality management system and any need for improvement, and Ensuring the promotion of awareness of customer requirements throughout the VSP.
IMPLEMENTATION:

CUSTOMER REQUIREMENTS:

The organization shall determine and implement effective arrangements for communicating with customers in relation to 1. Product information 2. Enquires, contracts or order handling including amendments, and 3. Customer feedback, including customer complaints.

Continual improvement of the quality management system.

Management responsibility

Customer requirements Input

Customer satisfaction

Resource management

Measurement analysis and improvement

Product realization

Product Product

Output

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MODEL OF A PROCESS-BASED QUALITY MANAGEMENT SYSTEM IN VSP

MANAGEMENT RESONSIBILITIES:
RESOURCE MANAGEMENT

The VSP determine and provides the resources needed 1. To implement and maintain the quality management system and continually improve its effectiveness, and 2. To enhance customer satisfaction by meeting customer requirement. The adoption of a quality management system is a strategic decision of an organization. The design and implementation of VSP quality management system is influenced by Its organizational environment, changes in that environment, and the risks associated with that environment. Its varying needs. Its particular objectives. The products it provides. The processes it employs. Its size and organizational structure.

It is not the Intent of this International Standards to imply uniformity in the structure of quality management systems or uniformity of documentation.

PRODUCT REALIATION:
PLANNING OF PRODUCT REALIZATION

The Visakhapatnam Steel Plant (VSP) plan and develop the processes needed for product realization. Planning of product realization shall be consistent with the quality management system. In planning product realization, the organization shall determine the following, as appropriate: Quality objectives and requirements for the product The need to establish processes and documents, and to provide resources specific to the product. Required verification, validation, monitoring, measurement, inspection and test activities specific to the product and the criteria for product acceptance. Records needed to provide evidence that the realization processes and resulting product meet requirements
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CUSTOMER-RELATED PROCESSES DETERMINATION OF REQIREMENTS RELATED TO THE PRODUCT The organization shall determine 1. Requirements specified by the customer, including the requirements for delivery and post-delivery activities. 2. Requirements not stated by the customer but necessary for specified or intended use, where known, 3. Statutory and regulatory requirements applicable to the product and 4. Any additional requirements considered necessary by the organization. REVIEW OF REQUIREMENTS RELATED TO THE PRODUCT: The organization shall review the requirements related to the product. This review shall be conducted prior to the organizations commitment to supply a product to the customer (e.g submission of tenders, acceptance of contracts or order, acceptance of changes to contracts or orders) and shall ensure that, Product requirements are defined. Contract or order requirements differing form those previously expressed are resolved, and The organization has the ability to meet the defined requirements Records of the results of the results of the review and actions arising from the review shall be maintained. Where the customer provides no documented statement of requirement, the customer requirements shall be confirmed by the organization before acceptance. Where product requirements are changed, the organization shall ensure that relevant documents are amended and that relevant personnel are made aware of the changed requirements.

MEASUREMENT ANALYSIS AND IMPROVEMENT:

MONITORING AND MESUREMENT OF PROCESSES

The organization VSP applies suitable methods for monitoring and where applicable, measurement of the quality management system processes. These methods shall demonstrate the ability of the processes to achieve planned results. When planned results are not achieved, correction and corrective action shall be taken as appropriate.
MONITERING AND MEASUREMENT OF PRODUCT

The VSP monitor and measure the characteristics of the product requirement have been met. This shall be carried out at appropriate stages of the product realization process in accordance with the planned arrangements. Evidence of conformity with the acceptance criteria shall be maintained.
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Records indicate the persons authorizing release of product for delivery to the customer. The release of product and delivery of service to the customer shall not proceed until the planned arrangements have been satisfactorily completed, unless otherwise approved by a relevant authority and where applicable by the customer.

CONTROL OF NONCONFORMITING PRODUCT

The organization shall ensure that product which does not conform to product requirements is identified and controlled to prevent its unintended use or delivery. A documented procedure shall be established to define the controls and related responsibilities and authorities for dealing with nonconforming product. Where applicable, the organization shall deal with nonconforming product by one or of the following ways. more

By taking action to eliminate the detected nonconformity; By authorizing its use, release or acceptance under concession by a relevant authority and, where applicable by the customer. By taking action to preclude its original intended use or application; By taking action appropriate to the effects, or potential effects, of the nonconformity when nonconforming product is detected after delivery or use has stated.

When nonconforming product is corrected it shall be subject to re-verification to demonstrate conformity to the requirements. Records of the nature of nonconformities and any subsequent actions taken, including concessions, obtained, shall be maintained. ANALYSIS OF DATA: The organization shall determine, collect and analyze appropriate data to demonstrate the suitability and effectiveness of the quality management system and to evaluate where continual improvement of the effectiveness of the quality management system can be made. This shall include data generated as a result of monitoring and measurement and form other relevant sources: The analysis of data shall provide information relating to 1. Customer satisfaction 2. Conformity to product requirements characteristics and trends of processes and products, including opportunities for preventive action. 3. Suppliers. CUSTOMER SATISFACTION: The organization shall determine and implement effective arrangements for communicating with customers in relation to 1. Product information
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2. Enquires, contracts or order handling including amendments, and 3. Customer feedback, including customer complaints. CONTINUAL IMPROVEMENT The VSP is continually improving the effectiveness of the quality with the use of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and management review. CORRECTIVE ACTION The VSP is taking action to eliminate the causes of nonconformities in order to prevent recurrence. Corrective actions shall be appropriate to the effects of the nonconformities encountered. A documented procedure is established to define requirements for Reviewing nonconformities (including customer complaints) Determining the causes of nonconformities. Evaluating the need for action to ensure that non conformities do not recur, Determining and implementing action needed. Records of the results of action taken and Reviewing the effectiveness of the corrective action taken.

Preventive action: The VSP is determining action to eliminate the causes of potential nonconformities in order to prevent their occurrence. Preventive actions shall be appropriate to the effects of the potential problems. A documented procedure is established to determine requirements for 1. Determining the potential Nonconformities and their causes. 2. Evaluating the need for action to prevent occurrence of nonconformities 3. Determining and implementing action needed. 4. Records of results of action taken. 5. And reviewing the effectiveness of the preventive action taken.
1.5.4 MANAGEMENT REVIEW

Top management shall review the VSPs quality management system, at planned intervals (for every 3 months), to ensure its continuing suitability, adequacy and effectiveness. This review shall include assessing opportunities for improvement and the need for changes to the quality management system, including the quality policy and quality objectives. Records from management reviews are maintained.
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REVIEW INPUT

The input to management review includes information on 1. 2. 3. 4. 5. Results of audits. Customer feedback Process performance and product conformity. Status of preventive and corrective actions Follow-up actions from previous management reviews.

6. Changes that could affect the quality management system and 7. Recommendations for improvement.
REVIEW OUTPUT

The output from management review includes any decisions and actions related to 1. Improvement of the effectiveness of the quality management system and its processes. 2. Improvements of product related to customer requirements, and 3. Resource needs.
1.5.5 DOCUMENTATION

A documented procedure is established to define the responsibilities and requirements for planning and conducting audits, establishing records and reporting results. The quality management system documentation is prepared in VSP which includes:

1. Documented statements of a quality policy and quality objectives, 2. A quality manual. 3. Documented procedures and records required by the International standard, and The organization shall establish a documented procedure to define the controls needed for the identification, storage, protection, retrieval, retention and disposition of records.
1.5.6 INTERNAL AUDITING

The organization shall conduct internal audits at planned intervals to determine whether the quality measurement system Conforms to the planned arrangements to the requirements of this international Standards and to the quality management system requirements established by the organization, and Is effectively implemented and maintained. An audit programme shall be planned, taking into consideration the status and importance of the processes and areas to be audited. As well as the results of previous audits. The audit criteria, scope, frequency and methods shall be defined. The selection of auditors and conduct
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of audits shall ensure objectively and impartiality of the audit process. Auditors shall not audit their own work. The organization shall establish a documented procedure to define the controls needed for the identification, storage, protection, retrieval, retention and disposition of records. If the auditors found any deviations in the quality of the products they will declare those documents as No-conformity (NC). Then the respected department should take care of those errors. Records of the audits and their results shall be maintained. The management responsible for the area being audited shall ensure that any necessary corrections and corrective actions are taken without undue delay to eliminate detected nonconformities and their causes. Follow-up activities shall include the verification of the actions taken and the reporting of verification results.
1.5.7 EXTERNAL AUDITING

External Auditing is done the BVCI. 1.6

1.6.1

ENVIRONMENTAL MANAGEMENT SYSTEM (ISO 14001:2004)

INTRODUCTION

The VSP was certified to ISO 14001:1996 on 18th May 2001 and recertified on 16th Dec 2004. However, after the standard was upgraded to ISO 14001:2004, VSP put in accelerated efforts to comply with the upgraded standard. The surveillance and up gradation audit was carried out by BVCI from 6th to 8th of March 2006 and since VSP complied fully with the upgraded standard, BVCI have therefore, certified VSPs EMS to ISO 1400:2004. Some of the major provisions in the upgraded standard with which VSP has complied are: 1. Defining the scope of its activities. 2. Incorporating all legal and other requirements applicable to VSP. 3. Agreeing to communicate its Significant aspects to external parties through an Annual report each year. 4. Providing training to all contractors workers (before starting any work) and giving them a copy of the policy on safety, health & Environment in 3 languages. 5. Stipulating the essential environmental requirements in the General conditions of contract for compliance by all suppliers of equipment/ services to VSP. 6. The EMS covers 47 departments viz. operations, maintenance & service departments including the CISF (Central Industrial Security Force) fire wing, training & development centre and material management department.

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1.6.2

TOP MANAGEMENT COMMITMENT

To maintain a safe and healthy work environment in steel complex and comply with all statutory norms, in respect of ambient air, sound, effluents, fugitive emission, stack emission and hazardous wastes. To maintain an enabling environment to encourage active involvement of all employees for the continual improvement of the work-environment. To conserve natural resources like water, energy and raw material. To fix measurable environmental objectives at the organization-level and departmental level for systematic elimination of all sources of population. To install 4 nos. continual ambient air quality monitoring stations and 10 nos. continuous on-line stack monitoring system by March, 2006 so as to facilitate accurate monitoring of relevant parameters. To install dry fly ash collection storage and delivery system by March 2006 so as to facilitate manufacture fly ash-based products. Demonstrate conformity with the International Standards by a) Making a self-demonstration and self-declaration, or b) Seeking conformation of its conformance by parties having an interest in the organization, such as customers or c) Seeking conformation of its self-declaration by a party external to the organization, or d) Seeking certification/registration of its environmental management system by an external organization.

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1.6.3

EMS MODEL

Environmental Policy

Planning

Management Review

Continual Improvement

Implementation

Checking and Corrective Action

ENVIRONMENTAL MANAGEMENT SYSTEM MODEL IN VSP ENVIRONMENTAL POLICY:

Top management shall define the organizations environmental policy and ensure that, within the defined scope of its environmental management system, it a) Is appropriate to the nature, scale and environmental impacts of its activities, products and services, b) Includes a commitment to continual improvement and prevention of pollution c) Includes a commitment to comply with applicable legal requirements and with other requirements to which the organization subscribes which relate to its environmental aspects. d) Provides the framework for setting and reviewing environmental objectives and targets. e) Is documented, implemented and maintained. f) Is communicated to all persons working for or on behalf of the origination, and g) Is available to the public.
PLANNING ENVIRONMENTAL ASPECTS: 23

The VSP established, implemented and maintained a procedure: To identify the environmental aspects of its activities, products and services within the defined scope of the environmental management system that it can control and those that it can influence taking into account planned or new departments, or new or modified activities , products and services, and To determine those aspects that have or can have significant impacts on the environment (i.e. significant environmental aspects). The organization shall ensure that the significant environmental aspects are taken into account in establishing, implementing and maintaining its environmental management system.

IMPLEMENTATION AND OPERATION:

Resources, roles, responsibility and authority Management shall ensure the availability of resources essential to establish, implement, maintain and improve the environmental management system. Resources include human resources and specialized skills, organizational infrastructure, technology and financial resources. Roles, responsibilities and authorities shall be defined, documented and communicated in order to facilitate effective environmental management. The organizations top management shall appoint specific management representatives who, irrespective of other responsibilities, shall have defined roles, responsibilities and authority for Ensuring that an environmental management system is established, implemented and maintained in accordance with the requirements of this International Standard, Reporting to top management on the performance of the environmental management system. For review, including recommendations for improvement CHECKING: The organization shall establish, implement and maintain a procedure to monitor and measure, on regular basics, the key characteristics of its operations that can have a significant environment impact. The procedure shall include the documenting of information to monitor performance, applicable operational controls and conformity with the organizations environmental objectives and targets. The organization shall ensure that calibrated or verified monitoring and measurement equipment is used and maintained and shall retain associated records.

CORRECTIVE ACTION AND PREVENTIVE ACTION: The organization shall establish, implement and maintain a procedure foe dealing with actual and potential nonconformity and for taking corrective action and preventive action, the procedure shall define requirements for
24

1. Identifying and correcting nonconformity and taking actions to mitigate their environmental impacts, 2. Investigating nonconformity, determining their causes and taking actions designed to avoid the occurrence, 3. Recording the results of corrective action and preventive action taken and 4. Reviewing the effectiveness of corrective actions and preventive actions taken Actions taken shall be appropriate to the magnitude of the problems and the environmental impacts encountered. CONCERN FOR ENVIRONMENT: Water Consumption in Cum/Lts Years 2005-2006 2006-2007 2007-2008 Water consumption 2.56 2.29 2.35

WATER CONSUMPTION
Water consumption 2.56

2.29

2.35

2005-2006

2006-2007

2007-2008

Ambient Air Quantity-Emission in Micro gram/N Cum GASES RSPM SPM SO2 NOX NORM 100 200 80 80 ACTUAL 45 93.8 5.8 7.75

25

AMBIENT AIR QUANTITY

NORM ACTUAL

200

100 45

93.8

80

80

5.8 RSPM SPM SO2

7.75 NOX

The organization shall ensure that any necessary changes are made to environmental management system documentation. CONTORL OF RECORDS: The organization shall establish and maintain records as necessary to demonstrate conformity to the requirements of its environmental management system and of this International Standard, and the results achieved. The organization shall establish, implement and maintain a procedure for the identification, storage, protection, retrieval, retention and disposal of records. Records shall be and remain legible, identifiable and traceable. MANAGEMENT REVIEW: Top management shall review the organizations environmental management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness. Reviews shall include assessing opportunities for improvement and the need for changes to the environmental management system, including the environmental policy and environmental objectives and targets. Records of the management reviews shall be retained. Input to management reviews shall include: Results of internal audits and evaluations of compliance with legal requirements and with other requirements to which the organization subscribes, Communication from external interested parties, including complaints, The environmental performance of the organization, The extent to which objectives and targets have been met, Status of corrective and preventive actions, Follows-up actions from previous management reviews, Changing circumstances, including developments in legal and other requirements related to its environmental aspects, and
26

 Recommendations for improvement. The output from management reviews shall include any decisions and actions related to possible changes to environmental policy, objectives, targets and other elements of the environmental management system, consistent with the commitment to continual improvement. Although there is no single approach for identifying environmental aspects, the approach selected could for example consider: Emissions to air, Release to water, Release to land, Use of raw materials and natural resources, Use of energy, Energy emitted, e.g. heat, radiation, validation, Waste and by-products, and Physical attributes, e.g. size, shape, color, appearance.

CONTINUAL IMPROVEMENT: The VSP is continually improving the effectiveness of the quality with the use of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and management review.
1.6.4 LEGAL AND OTHER REQUIREMENTS

The VSP established, implemented and maintained a procedure To identify and have access to the applicable legal requirements and other requirements to which the organization subscribes related to its environmental aspects, and To determine how these requirements apply to its environmental aspects. The VSP is ensuring that these applicable legal requirements and other requirements to which the organization subscribes are taken into account in establishing, implementing and maintaining its environmental management system.
1.6.5 COMPETENCE, TRAINING AND AWARENESS

The organization shall ensure that any persons performing tasks for it on its behalf that have the potential to cause a significant environmental impacts identified by the organization is competent on the basis of appropriate education, training or experience, and shall retain associated records. The organization shall identify training needs associated with its environmental aspects and its environmental management system. It shall provide training or take other action to meet these needs, and shall retain associated records. The organization shall establish, implement and maintain a procedure to make persons working for it or on its behalf aware of
27

1. The importance of conformity with the environmental policy and procedures and with the requirements of the environmental management system, 2. The significant environmental aspects and related actual or potential impacts associated with their work, and the environmental benefits of improved personal performance, 3. Their roles and responsibilities in achieving conformity with the requirements of the environmental management system, and 4. The potential consequence of departure from specified procedures. COMMUNICATION: With regard to its environmental aspects and environmental management system, the organization shall establish, implement and maintain a procedure for a. Internal communication among the various levels and functions of the organization, b. Receiving, documentation and responding to relevant communication from external interested parties. The organization shall decide whether to communicate externally about its significant environmental aspects, and shall document its decision. If the decision is to communicate, the organization shall establish and implement a method for this external communication.
1.6.6 DOCUMENTATION:

The environmental management system documentation shall include: The environmental policy, objectives and targets, Description of the main elements of the environmental management system, Description of the main elements of the environmental management system and their interaction, and reference to related documents, Documents, including records, determined by the organization to be necessary to ensure the effective planning, operation and control of processes that relate to its significant environmental aspects.

CONTROL OF DOCUMENTS: Documents required by the environmental management system and by this International Standard shall be controlled. Records are a special type of document and shall be controlled in accordance with the requirements given, The organization shall establish, implement and maintain procedures to 1. 2. 3. 4. 5. 6. Approve documents for adequacy prior to issue, Review and update as necessary and re-approve documents. Ensure that charges and current revision status of documents are identified Ensure that relevant version of applicable documents are available at points of use, Ensure that documents remain legible and readily identifiable, Ensure that documents of external origin determined by the organization to be necessary for the planning and operation of the environmental management system are identified and their distribution controlled, and
28

7. Prevent the unintended use of absolute documents and apply suitable identification to them they are retained for any purpose
1.6.7 INTERNAL AUDIT:

The organization shall ensure that internal audits of the environmental management system are conducted at planned intervals to a) Determine whether the environmental management system 1. Conforms to planned arrangements for environmental management including the requirements of this International Standard, and 2. Has been properly implemented and is maintained, and b) Provide information on the results of audits to management Audit program shall be planned, established, implemented and maintained by the organization, taking into consideration the environmental importance of the operation concerned and the results of previous audits. Audit procedure shall be established, implemented and maintained that address. The responsibilities and requirements for planning and conducting audits, reporting results and retaining associated records, The determination of audit criteria, scope, frequency and methods. Selection of auditors and conduct of audits shall ensure objectivity and the impartiality of the audit process.
1.6.8 EXTERNAL AUDITING:

External Auditing is done the BVCI. 1.7

1.7.1

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM (18001)

INTRODUCTION

VSP got certified in OHSAS for the first time in January 2002. The Advantages that VSP got by adopting OHSAS are: Creates a structured and scientific approach towards risk management. Eliminates or minimizes risk to employees and other interested parties. Increases morale and confidence in workforce. Elevates companys image. Timely regulatory compliance. Increases productivity. Reduces pains & sufferings to the victims.

Methodology of implementation: Creating awareness and training

29

OHS policy. Setting objectives, targets and action programmes. Documentation. Implementation & Review. Internal audit/ certification and Regular review & continual improvement.

OBJECTIVES: Objectives for the year for improvements in OH&S were taken by the departments considering the following: 1. 2. 3. 4. Legal and other requirements. Hazards and risks. Feasibility. Finances.

The objectives were in consistent with policy, continual improvement and commitment. Management Programs: Management programmes were made to achieve the objectives. This includes responsibility, time frame and resources requirements. All Management Programs are reviewed regularly.
1.7.2 TRAINING

Intensive training sessions were conducted to cover all the employees (16,681 numbers) .All the senior executives were imparted awareness on OHSAS specification by the certifying agency M/s BVQI. Internal Auditors were also trained by M/s BVQI. All the executives of the department were internally trained by training and development centre of VSP. Who in turn trained all the other employees in the departments.
1.7.3 OHSMS MODEL IN VSP

Continual improvement

OH&S policy Management review.

Planning 30

Checking & corrective action

Implementation & operation

Occupational health and safety (OH&S) management system model adopted in VSP.
INTRODUCTION:

THE OHSMS is derived from OHSAS (18001:1999) specification. The VSP got certified for the first time in January 2002 by BVCI. After enforcement of OHSMS there was not a single fatal accident took place inside the plant. The OHSAS has a special squad which checks up health of every employee and takes necessary steps to suite the individuals health to his work environment. For example an employee who is working in a gas emitting environment, his lungs condition is checked whether it suits him to work there and so on.
OH&S POLICY:

Occupational Health and Safety policy was issued by the chairman-cum Managing Director, higher authority of organization. The salient features are: Complying with relevant statutes. Instituting effective management systems ensuring every employee meets OHS obligations. Training and involving employees and contract workman to enhance OHS performance. Commitment to continual improvement. Is appropriate to the nature and scale of the organizations OH&S risks. 1. Includes a commitment to preventive of injury and ill health and continual improvement in OH&S management and OH&S performance. 2. Includes a commitment to at least comply with applicable legal requirements and with other requirements to which the organization subscribes that relate to its OH&S objectives. 3. Is documented, implemented, and maintained. 4. Is communicated to all persons working under the control of the organization with the intent that they are made aware of their individual OH&S obligations. 5. Is available to interested parties and 6. Is reviewed periodically to ensure that it remains relevant and appropriate to the organization
PLANNING:

Hazard identification, risk assessment and determining controls

31

The organization shall establish, implement and maintain a procedures for the ongoing hazard identification, risk assessment, and determination of necessary controls. The procedures for hazard identification and risk assessment shall take into account. a. b. c. d. Routine and non-routine activities. Activities of all persons having access to the workplace. Human behavior, capabilities and other human factors. Identified hazards originating outside the workplace capable of adversely affecting the health and safety of persons under the control of the organization within the workplace. Hazards created in the vicinity of the workplace by work-related activities under the control of the organization. Infrastructure, equipment and material at workplace, whether provided by the organization or others. Changes or proposed changes in the organization, its activities, or materials. Modification to the OH&S management system, including temporary changes, and their impacts on operations, process, and acitvites. Any applicable legal obligations relating to risk assessment and implementation of necessary controls. The design of work areas, processes, installations, machinery, operating procedures and works organization, including their adaption to human capabilities.

e. f. g. h. i. j.

The VSP follows methodology for hazard identification and risk assessment shall: 1. Be defined with respect to its scope, nature and timing to ensure it is proactive rather than reactive and 2. Provide for the identification, prioritization and documentation of risks, and the application of controls, as appropriate. For the management of change, the organization shall identify the OH&S hazards the OH&S risks associated with changes in the organization, the OH&S management system, or its activities, prior to the introduction of such changes.
IMPLEMENTATION AND OPERATIONS:
IMPLEMENTATION:

A detailed study of the safety system was carried by head of departments. Action plans were prepared. 51 departments were brought under the system. 3 numbers of audits were conducted initially by Internal Auditors. A precertification audit was carried out by certifying agency and all the NCRs were closed. All the NCRs were taken as global and all the departments reviewed their systems and corrected if required. Extensive mock-drills were conducted to test the employees response on emergency preparedness. Resources, roles, responsibility, accountability and authority: Top management shall take ultimate responsibility for OH&S and the OH&S management system VSP demonstrate its commitment by,
32

Ensuring the availability of resources essential to establish, implement, maintain and improve the OH&S management system. Defining roles, allocating responsibilities and accountabilities, and authorities shall be documented and communicated.
OPERATIONAL CONTROL:

The organization shall determine those operations and activities that are associated that are associated with the identified hazards were the implementation of controls is necessary to manage the OH&S risks. This shall include the management of change. For those operations and activities, the organization shall implement and maintain: Operational controls, as applicable to the organization and its activities. The organization shall integrate those operational controls into its overall OH&S management system. Control related to purchased goods, equipment and services. Control related to contractors and other visitors to the workplace. Documented procedures to cover situations where their absence could lead to deviations from the OH&S policy and the objectives. Stipulated operating criteria where their absence could lead to deviations from the OH&S policy and objectives.

CHECKING: PERFORMANCE MEASUREMENT AND MONITORING:

The organization shall establish, implement and maintain procedures to monitor and measure OH&S performance on regular basics. These procedures shall provide for 1. 2. 3. 4. Both qualitative and quantitative measures, appropriate to the needs of VSP monitoring of the extent to which the VSP OH&S objectives are met, monitoring of the effectiveness of controls (for health as well as for safety) , proactive measures of performance that monitor conformance with the OH&S programs, controls and operational criteria, 5. reactive measures of performance that monitor in health, in incidents (including accidents, near-misses etc.) and other historical of deficient OH&S performance, 6. Recording of data results of monitoring and measurement sufficient to facilitate subsequent corrective action and preventive action analysis.
MANAGEMENT REVIEW:

The management shall review the organizations OH&S management system, at planned intervals; ensure its continuing suitability, adequacy and effectiveness. Reviews shall include assigning opportunities for improvement and the need for changes to the OH&S management system, including the OH&S policy and OH&S objectives. Records of the management reviews shall be retained. Input to management reviews shall include, Results of internal audits and evaluation of compliance with applicable legal requirements and with other requirements to which the organization subscribes.
33

The results of participation and consultation. Relevant communications from external interested parties, including complaints. The OH&S performance of the organization, The extent to which objectives have been met. Status of incident investigations, corrective actions and preventive actions. Follow-up actions from previous management reviews. Changing circumstances including developments in legal and other requirements related to OH&S, and Recommendations for the improvement. The outputs from management reviews shall be consistent with the organizations commitment to continual improvement and shall include any discussions and actions related to possible changes to OH&S performance, OH&S policy and objectives Resources and Other elements of the OH&S management system. Relevant outputs from management review shall be made available for communication and calculations.
1.7.4 DOCUMENTATION:

An apex manual was prepared as per various clauses of the OHSAS specification. The implementations of the clauses were elaborated. Cross reference was provided in case of procedures or records of QMS and EMS are referred. A legal manual was prepared highlighting extracts of important sections and rules from various acts and rules made by central government and Andhra State government related to the subjects on occupational health and safety. The sections and rules were given in brief text so that they can be understood by all concerned employees. Wherever more clarify is required the Acts and Rules are required to be referred in original form. The following Acts/rules were covered: 1. The Factories Act. 2. The Indian Electricity rules. 3. The static and mobile pressure vessels (Unified) rules. 4. The gas cylinder rules. 5. The calcium carbide rules 6. The petroleum Act & Rules. 7. The Indian Boilers Act, regulation and rules. 8. The motor vehicle act and central moving vehicles Rule. 9. The atomic energy Act. 10. Radiation protection rules. Guide lines were prepared by management representative/ appropriate secretariat on preparation and control of documents and data, records management, internal audits, hazard identification, risk assessment and risk control measures, emergency preparedness and response, objectives and management programmes. Over and above procedures wherever common activities are there, certain generic procedures, HIRAS (Hazard Identification and Risk assment system) were prepared by management requirement system and circulated to all
34

departments for preparing procedures or HIRAS. All the departments prepared work procedures and HIRAS record control was listed out.

BENEFITS DUE TO CERTIFICATION:

1.7.5

Awareness on health and safety amongst employees increased. Added credibility of the organization. Identified safety and health objectives and achieving through OHS management programmes. Hazards and control measures are well-known to working personnel of concerned activity. Frequent audits of the OHS systems are helping the department in continual improvement in OHS angle. Incidents and near misses are captured and analyzed for implementation of preventive actions. Non- conformity in the particular department and are viewed globally.
INTERNAL AUIDTING

A team of auditors were identified (52 persons) and were trained in OHSMA systems and method of auditing. They were examined and selected. Three audits were conducted by internal auditors. Initial audit was carried out by certification body for 5 mandays. The audits findings were discussed amongst HODS and suitable corrective and preventive actions were taken for closing the non-conformities. Final certification audit was conducted by certification body for 16 mandays. All the non-conformities were cleared during the audit period. The auditors look for effective implementation of OHSAS. The organization ensures that internal audits of the OH&S management system are conducted at planned intervals to 1. Determine whether the OH&S management system: Conforms to planned arrangements for OH&S management. Including the requirements of the OHSAS Standard. And Has been properly implemented and is maintained, and Is efficient in meeting the organizations policy and objectives, 2. Provide information on the results of audits to management. Audit procedures shall be planned established, implemented and maintained by the organization, based on the results of risk assessments of the organizations activities, and the results of previous audits. Audit procedures shall be established, implemented and maintained that address. o This responsibilities competencies and requirements for learning and conducting audits, reporting results and retaining associated records and o The determination of audit criteria, scope, frequency and methods.

35

1.7.6

EXTERNAL AUDITING:

External Auditing is done the BVCI. QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH & SAFETY POLICY: Visakhapatnam steel plant is committed: To meet the needs and expectations of customers and other interested parties. To prevent injury and ill health of all persons working under our control, and To prevent pollution.

To accomplish above, VSP will 1. Supply quality goods and services to customers delight. 2. Document, implement, maintain & periodically review the management systems including the policy, objectives and targets. 3. Use natural resources and energy efficiently with concern for the environment. 4. Comply with all relevant legal, regulatory and other requirements applicable to products, activities and processes in respect of quality, Environment, Occupational health & safety and also ensure the same by contractors. 5. Continually improve quality, Environment, Occupational health and safety performance. 6. Encourage development and involvement of employees. 7. Maintain high level of Quality, Environment, Occupational health and safety consciousness amongst employees and contract workers by imparting education and training. This policy is communicated to all persons working under our control and is made available to interested parties on request. 1.8 BENCHMARKING

Benchmarking is a method of measuring our organization against those of the recognized best performances in a certain industry, organization, function, system, or process. The purpose of benchmarking is to provide target for improving the performance of the organization. The benchmark targets improvement of the process outputs or the performing of the actual process. Benchmarking brings a focus on customer-driven project management improvement efforts for emphasizing desired outcomes. It also nurtures whole some competition by creating the desire to be the best. Benchmarking provides a common focus to hold the organization together by measuring critical areas against the best. This targeting of the best reinforces continuous improvement by keeping every aiming at the long term objective or mission of the organization.
1.8.1 DECIDE WHAT TO BENCHMARK

The benchmarking process begins as a result of strategic planning. A complete Understanding is needed of all the areas to meet total customer satisfaction. The mission outcome of strategic planning provides the focal point for benchmarks in VSP.
36

1.8.2

UNDERSTAND CURRENT PERFORMANCE

Since the benchmarking information becomes the largest, getting the right benchmarking information is the most important aspect of benchmarking. The sources of information for process performance measurements are numerous. Some sources of benchmarking data include the following: 1. 2. 3. 4. 5. 6. Computer databases Industry publications Company annual reports and publications Professional society publications. Conferences, seminars, and workshops. Site visits.

VSPS IMPRESSIVE PERFORMANCE: NOTE: (THIS DATA IS TAKEN FROM THE JOURNAL, STEEL AND METALLURGY VOLUME 12, ISSUENO.5, MARCH 2010, PP-57). Despite Lower Net Market sales realizations VSPs sales turnover for the year 2009-2010 up to February 2010 crossed Rs. 9000 cores. It registered a MoU target fulfillment of about 105%. A significant aspect has been that the sales volume of saleable steel achieved during 2009-10 (up to Feb 10) is about 2.67 million tons surpassing the total saleable steel quantity of 2.62 million tons sold in the entire year of 2008-09. It registered a growth of 20% over the corresponding period. The thrust has been on value added steel and during the 11 months of 2009-10 VSP sold 19.98 lakh tons of value added steel compared to 16.70 lakh tons sold in the corresponding period in 2008-09. Even in value added steel sales, it surpassed last years quantity sold by February. For the entire year of 2008-09 the quantity of the value added steel sold was 19.81 lakh tons. There was also significant reduction of Inventory of Saleable Steel at the end of the month as compared to beginning of the month.
1.8.3 PLANNING

Once internal processes are understood and documented, it is possible to make decisions about how to conduct the study. If not already selected, a benchmarking team should be chosen. The team should decide what type of benchmarking to perform, what type of data are to be collected, and the method of collection. Organizations that are candidates to serve as the benchmarking to perform, what type of data are to be collected, and the method of collection. Organizations that are candidates to serve as the benchmark need to be identified. Finally, timetables should be agreed upon for each of the benchmarking tasks and the desired output from the study.
1.8.4 STUDY OTHERS

In this step we will try to find out the competitors. As VSP compares its performance with that of its competitors like Steel Authority of India (SAIL) and TATA steels.
GROSS MARGIN AS % OF GROSS SALES:

37

STEEL PLANTS RINL SAIL TATA

(2005-06) 28 22 35

(2006-07) 29 25 35

(2007-08) 34 28 42

GROSS MARGIN AS % OF GROSS SALES

45 40 35 30 25 20 15 10 5 0 (2005-06) RINL (2006-07) SAIL TATA (2007-08)

In VSP once the sources of information are determined; the data is collected and analyzed by the officials. They will check whether the data collected for benchmarking is the right information and that information fits the organization requirement for benchmarking. Then they will analyze the information to check its accuracy. CRU (Commodity Research Unit) London made long product cost study in 2004 in 50 steel plants worldwide. The outcome of that research is:

CRU International Report:

Steel Plant Nizhny Tagil (Russia) Acominas (Brazil) Tata (India) Krivorozhstal (Ukraine) RNIL (India) Raw material cost 78 72 86 89 105 Other Cost 96 112 102 101 87

38

CRU International Report

Raw material cost 112 96 78 86 72 102 89 101 Other Cost 105 87

Nizhny Tagil (Russia)

Acominas (Brazil)

Tata (India)

Krivorozhstal (Ukraine)

RNIL (India)

In the costs up to liquid steel shown above, RNIL was in World Top 5 lowest cost producers of the world. With out captive raw-material source. RNIL would not be in top five now. RNIL was lowest in costs of 87 US$/ton excluding raw-material. Delegation to RNIL to invest in mines could alleviate the impact of raw material price rise. As per internal data in 2007-08 RNIL had produces 264 US$/tons of raw-material cost and 92 US$/tons of other cost.
1.8.5 LEARN FROM THE DATA:

NOTE: (THIS IS BEING IDENTIFIED FROM IN HOUSE BI-MONTHLY NEWS LETTER, RASTRIYA ISPAT NIGAM LIMITED, VISAKHAPATNAM STEEL PLANT (VSP), VOLUME 7, ISSUE NO -5, JAN-FEB 2010, PP-3). 2010 is going to be a challenging year for VSP in view of the commissioning activities of expansion and modernization initiatives and production ganging great momentum. The discipline and commitment are essential to sustain these achievements. The only way to be competitive and profits is to increase capacity and VSP should grow steadily from its current target of 6.3 million tons in near future and subsequently to 16 million ton by 2020. Against the backdrop of worldwide recession and global meltdown VSP recorded a sales turnover of Rs. 7524 cores during the period April-Dec, 2009. The inventory which was about 7.5 lakh tons has been brought down to 2.2 lakh tons. The progress of expansion to 6.3 Million tons has also been very encouraging. During the calendar year 2009 about 3.3 lakh cum of civil works, 91582 tons of structural erection and 68432 tons of equipment erection were executed. Record performance is structural erection (15000T in Sep 09) and equipment erection (10000T in Dec2009) were registered which are reported to be the best achieved in the steel industry.

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1.8.6

USE THE FINDINGS:

According to IMRB (Indian Market Research Bureau) international conducted study for ministry of steel government of India, covering all integrated steel plants in India, for the year 2006-2007, adjudged RINL-VSP as follows: RNIL continues to have highest overall customer satisfaction with 87%. RNIL continue to have a good base for word of mouth publicity with 93% RNIL Customer satisfaction of 91% with technical specification. Customer satisfaction with timely delivery, of all the plants has gone down except RINL. RNIL- Improved customer satisfaction of 85% in relation to Stock yard facilities. RNIL has been adjudged as best in terms of Quality of products, pricing, adherence to delivery schedules. From these findings we came to know that the performance of VSP has been improved when compared with the previous years. Finally, the benchmarking and improvement process is continuous. The VSP must establish a continuous improvement system to achieve the target. 1.9 QUALITY CIRCLES

Originating from Japan, Quality Circles (QC) is being practiced world over. In VSP, QC is born in April 1990.Since than it is growing at reasonable pace. The philosophy of QC is simple. It believes that every individual is inherently talented and conducive environment will bring best out of him. That every person wants to feel affiliated with a certain group, that people building is more important than people using. A man on the job knows more about its problem than anybody else. Quality Circles benefits to both an employee and the organization. An employee finds job satisfaction, recognition, a sense of participation and opportunity to improve competence. The organization gets participative culture, improved productivity, Quality and safety. Quality circles were the outcome of the implemented suggestions and also innovative or creative work performed to improve the process, procedures, product, service, customer satisfaction, safety, quality, savings etc; Management services group devised programs for motivating employees to actively participate in problem solving activities. Inter-departmental competitions were held to induce a sense of competitive spirit among the Quality Circle groups. The best groups were suitably rewarded and to encourage them even further by nominating a set of QCs to national and international convictions. Training sessions were conducted to include a sense about various uses and benefits of QC tools in arriving at the root cause through data analysis, developing appropriate solution, implementation and checking the effectiveness of implemented project (PDCA Cycle). The group has also developed oracle based software with the help of information technology department to enable employees to feed suggestions and quality circles online. Now at VSP the suggestions and quality circles are fed by the employees online and the status is maintained in the server.

40

During the year 1992-93, 225 Quality Circles were formed, thus registering a growth of 147% over previous year in VSP. Of these, 164 Quality Circles involving 1020 members have successfully implemented the solutions bringing financial benefits to the tune of Rs. 190 lakhs. The success of this movement in VSP is due to excellent support from management at all levels and dedicated efforts of the employees. The following steps are followed in VSP to follow Quality Circles. First a group of people should register in online that they are forming a group in order to solve the problems at the work place. Identification of problems: The problem may be small or big first the team members should identify the problems. A group of employees form VSP with minimum of 5 to maximum 7 people will form a group and try to study the problem. Selection of the problem: From a group of problems they will sort the problems like, which they can be solved without management involvement and with the help of management.

41

There are different categories of problems like A, B, C. A category problem- In which minimum involvement of other departments in solving the problems. B category problem- In this category of problem involvement of other department is a necessity. C category problem- Management sanction may be needed in implementing the solution. For this identification of problems they will follow a Milestone Chart for quality circle activity planning which gives details about how activity will go within a stipulated period of time. 1. Definition of the problem: After identification of problem, in a group every member may not thoroughly know what the problem is so they should be aware of it and discuss the details of the problem among themselves. 2. Analysis of the problem: the problem should be analyzed clearly like what are the effects of the problem and what are the losses they are facing because of that problem and how that problem had occurred etc. 3. Identification of causes: The team members should identify why that problem is caused. Then Each and every ones opinion should be collected from the team members. This can be done in 2 methods namely Slip method- In this method everyones opinion is collected through paper slips and also brain storming is conducted among the group members. Then they are analyzed for finalization. Cause and Effect diagram- The cause and effect diagram is used to find the meaningful relationship between an effect and its causes.

People

Material

Work methods

Quality Characteristic

Environment

Equipment

Measurement

CAUSE-EFFECT DIAGRAM And are used to investigate either a Bad effect and to take action to correct the causes or a good effect and to learn those causes that are reasonable. Causes are sometimes broken down into the major causes of work methods, materials, measurement, people, equipment, and the environment. Each major cause is further subdivided into numerous minor causes and try to find of their root cause of the problem.

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4. Findings of the root cause: Each group member should validate all the causes so that they can come to a solution with a root cause for the problem and each and every member of the team should participate in finding the root cause. 5. Data analysis: Suppose if there are 4 or 5 causes are there for a problem first identify which of these is more effective in this juncture/work for solving the problem. 6. Develop solution: Select some alternative solutions from the team members so that each solution should be validated, feasibility of the solution should be checked as if it would be reasonable form one end and may be bad when viewed from the other end. 7. Foreseeing probable resistance: once the solution is developed members should check it and get them understood. Repetition of the same problem has got to be avoided. It is ascertained that the group as a whole is given awareness of the reason of the problem and proper steps should be taken to avoid its repetition. This in the sense the problem can be totally avoided for the future. 8. Trail implementation and check performance: If there are 3 or 4 units are their in a plant they will implement the solution in 1 unit and check the performance of that solution. If the solution works out then they will implement in all the remaining units. 9. Regular implementation: The regular implementation of the solution in different departments is made so that they can come to a conclusion about its effectiveness. 10. Follow up reviews: The team members will follow up the reviews so that, Design and program had to incorporate the changes in the standardization of the solution. After the project is completed now they had to submit the report to the on-line registration number what they had registered earlier. Then that problem-solution will appear on the H.O.D department computer screen where the VSP is having intranet. H.O.D will see the solution and evaluate the solution according to different parameters specified like technology involved, knowledge applied from the team members, level of complication, applicability of machines, cost effectiveness. And also tangible and intangible benefits that VSP can get by implementing that solution.
For the years 2003-04 2004-05 2005-06 2006-07 2007-08 % Employee involvement 71 73 74.6 75 75.2

% EMPLOYEE INVOLVEMENT
76 75 74 73 72 71 70 69 68 2003-04 2004-05 2005-06 2006-07 2007-08

% Employee involvement

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FOR THE YEAR

SAVINGS (Rs.IN LAKHS)

2003-04 2004-05 2005-06 2006-07 2007-08

1100 1400 1725 1855 1900

SAVINGS (Rs.IN LAKHS)

2000 1800 1600 1400 1200 1000 800 600 400 200 0 2003-04 2004-05 2005-06 2006-07 2007-08 1100 SAVINGS (Rs.IN LAKHS) 1400 1725 1855 1900

QC Progress:
FOR THE YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 NO. OF PROJECTS 3838 3916 4131 4185 4207

QC PROGRESS
2007-08 2006-07 2005-06 2004-05 2003-04 3600 3700 3800 3900 4000 4100 4200 4300

No. of projects

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There are three levels of mementos for the best performance like: All employees who are involved in that project would be given type-1 memento. If any employee had involved in QC and had solved 1 to 6 problems they will get a memento of worth Rs.50. If they are involved in 6 to 10 number of problems they will get a memento worth Rs. 80 and if the members are involved in more than 10 projects they will get a memento of Rs. 175.
Second level: The MS-dept (Management and Services department) will ask the all

departments to select 1 or 2 best projects. MS department will conduct competition among them. Out of 130 projects they will select 25 best projects. The team participating in this competition will get Rs.175 each person. 25 teams which are selected as best teams in solving problems will be given dinner with top management persons like directors, chairpersons and H.O.Ds. these 25 teams are selected from Zonal Quality circle competition (ZQCC). From the Par-excellent, excellent distinguish and meritorious teams 2 teams will be sent to Confederation of Indian Industries (CII). Rest of teams will be sent to Andhra Pradesh productivity Council (APCC) in order to encourage the team members. International Convention of Quality Control Circle (ICQCC) which is conducted out side the India. The results of all problems will be compiled and deployed in the systems of VSP so that all the employees of VSP will be aware of solutions to the problems through intranet inside the plant. 1.10 5SCONCEPT
1.10.1 INTRODUCTION

VSP started implementing 5S in a phased manner in the year 2006. Each department will follow the manual, do & donts, standard practices etc; frequent audits, reviews were conducted to streamline the work place management system. Consultant from QCFI (Quality Control Federation of India) was engaged in training and helping VSP to implement 5S throughout the organization. VSP follows a series of steps for ensuring proper organization, Neatness, Cleanliness, Standardization, and discipline in work place for sustained housekeeping and management practices. They are:
1.10.2 5S LEADERSHIP

Leadership is about coping with change. Management Services (MS) Department in VSP is taking initiatives to perform core tasks like setting a direction, aligning people, motivating and inspiring employees to follow 5S. This MS department is also trying to implement Leadership culture in 5S to all officials and executives by training them and giving an opportunity to lead and facilitate change in entire Work force.
1.10.2.1 5S INCLUSION IN MONTHLY PROGRESS REVIEW

Evidence of discussions (Agenda, minutes, etc): The MS-department will prepare an agenda

about the 5S implementation for every department, which shall be discussed with all officials
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and executives of VSP. In this discussion a clear guide-lines are framed which in terms is called monthly progress review.
Evidence of monthly progress review: In VSP overall there are 52 departments and every

department is having a 5S-Corner. In this 5S-Corner, Entire following-up updates of department details are displayed.
1.10.2.2 5S SCORE BOARD SCORE Others Average

GROUP/ZONE NAME Leader: Members: 1. 2. 3. A 4. 5. PROBLEM S.No Problem Description 1. 2. 3. . D 4. Date

Self Jan Feb . . Dec

GRAPH

% Score C

Months

Segment A: Indicate details of the concerned 5S Group/ Zone and names of members. Segment B: One of the members to go round the area periodically, evaluate and put the score against self column. Members nominated by HOD to evaluate and put the score at others column. Average score is written. This is compared each month to indicate the status and improvement. Segment C: Any data represented by a picture or graph is better appreciated. The data in segment B is shown as graph. Segment D: Problems Identified in the concerned 5S-Zone area will be written with date of identification. This indicates problem type and period for which not attended. This will be erased as soon as it is rectified. In VSP overall there are 52 departments are there each and every department is having these 5S score boards. These 5S- score board consist of four parts like, Zone-Name, score, problem and score-graph. Score board creates great awareness through VISUAL DISLAY. Let us take Planning Production and Monitoring (PPM) department score board for example:
Zone Name: PPM. Leader Name: T.N Kumar. Members:

1. P.K Rath 2. G P. Kumar 3. GR. Rao

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Problems side heading mentioned under which S.No, Problem description with date.
MONTH Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 SELF 49.7 49.4 49.3 49.8 49.6 49.6 49.6 OTHERS 49.5 49.2 49.2 49.5 49.4 49.6 49.6 AVERAGE 49.6 49.3 49.3 49.7 49.5 49.6 49.6

5S SCORE GRAPH OF PPM DEPT IN VSP

49.8 49.7 49.6 49.5 49.4 49.3 49.2 49.1 Sep09 Oct09 Nov09 Dec09 Jan10 Feb10 Mar10 SCORE

This PPM department will have a head and the workforce of that department is under his supervision. With regards to follow-up system of 5s the head will award marks to the department. For a total of 50 marks is being awarded. The other members nominated by the HOD will also follow the same.
1.10.2.3 ORDERLINESS AND CLEANLINESS

Entrance area: Walk way maintenance: walk ways can be found with glance and are aligned

at right angles. The lines marking the walk ways are chipped off and not soiled. Nothing is placed on the walk ways and lines. Layouts of ways are appropriate.
Lobby area: Lobby areas are having nice ambience in Vishakhapatnam Steel plant. Each and

every department is having their own bus stopping shelters.

1.10.3 SEIRI

The meaning of SERI is distinguishing, organizing or re-organizing, sorting, segregation between wanted and unwanted items in a work place and removal of the unwanted. It can be understood as discard unnecessary things i.e., to get rid of waste and put things in such a way as to have quick access to the required things.
SEIRI- (SORTING): 1.10.3.1 OUTSIDE AREA

Garden area free of clutter: In VSP gardens within the premises are free from waste materials

like dry leaves and branches, waste papers, polythene covers, used containers etc., and waste is being taken out to a specially specified dump area. The VSP gardens are having nice lawns.

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1.10.3.2

FLOOR AREA OF BUILDINGS

All floors cleared: Tools, previously used items, papers, documents and large items are

carefully moved so that they should not clash with the work-in-process items. Materials wanted for work-in-process are clearly demarcated.
WIP demarcated: Warning signal boards with clear demarcations are planted in a visible

order. In case it happens that the work which is to be executed at the centre of passage, the signals are displayed from the circles on the either ends of deviation to avoid embarrassment.
Organizing of shelves and desks: All shelves and desks are divided and labeled so that it is

clear where things are and where they should be returned. There are no unused files or documents on top of the desks. Drawers in desks are systematically organized and always kept in closed position.
1.10.3.3 ITEMS STORAGE ACCORDING TO FREQUENCY OF USE

Organizing inventory and stores documents- Inventory and documents are stores so that they are easy to use and to retrieve. Each group of stored inventory or documents has identification, storage period and name of the responsible person is indicated on it.
Arrangement of tools: Commonly used jigs and tools are stored and displayed rationally.

Tools and inputs are located convenient to machines, equipment and work- benches so that work can be done by a single person.
1.10.3.4 NOTICE BOARDS

Display board- No outdated, torn or soiled announcements are displayed. Papers are straight and neat. No torn corners or tape marks left over from old displays.
1.10.3.5 RULES FOR DISPOSAL (HABITUAL SERI)

Non moving stocks are identified and are adhered to

Red labeling being done: Unwanted scrap and waste are being tied up with red tag which

would be taken by steering committee before disposal. The steering committee will decide accordingly.
Regular removal of garbage and waste bins: The garbage and waste bins are kept at

sufficiently remote places with in the premises and finally moved to a place acceptable to local civic authorities.
1.10.3.6 CLUTTER FREE APPEARANCE

SHOP FLOOR: To

maintain clutter free appearance in the machine floor

Unnecessary/ unuseful tools are removed from the work-place. All the tools are kept systematically in their respected places. By following 5S every employee is cooperating with other employee as a habit of keeping the tools orderly.

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Table tops and work table top: All shelves and desks are divided and labeled so that it is clear where things are and where things should be returned. There are no unused files or documents on the desks. Drawers in the desks are kept closed.
OFFICE AREAS:

1.10.4 SEITON

The meaning close to SEITON is systematic arrangement, suitable place, for things, properly arranging things etc., i.e. arranging things in the right way. While SEIRI helps us to decide whether the items are needed, SEITON helps to decide where the needed things are to be placed, making our working smooth. SEITON involves safety and productivity. The main concept is that everything should have a place and they should be kept in that place first time and all the time. Place for Everything and Everything in its Place (PEEP). Make sure that items can be clearly identified by labeling them.
SEITON (ORDERLINESS): 1.10.4.1 DIRECTION INDICATIONS

In VSP at the main entrance, impressive display of the companys name board with suitable structural gates, gateways, roads, with beautiful gardens and parking lobbies are available. The gate is manned with well able and efficient security personnel. The plant layout display with clear demarcations of the interior structures is existing in VSP. The path ways with clear sign boards planted to make any layman to reach his destination.

1.10.4.2

IDENTIFICATION LABELS

In VSP all the machines have identification numbers in a clearly visible manner. Also the electrical switches are marked as to which point to be operated to run a specific machines.To all facilities, toilets, etc: A clear symbolic guidelines are made to reach the toilets which are neatly maintained.
1.10.4.3 NUMBERING OR NAMING

All departments, units, rooms etc., are marked and numbered for easy approach identification and distinguished accordingly. In All departments the administrative executives and their associates are well maintained with their names. Toilets, canteens, etc. marked: Even toilets and ancillary equipments pertaining to these are numbered properly. Also all the canteen equipment like utensils, cupboards, furnitures, gas equipments etc., is numbered.
1.10.4.4 FILE INDEX

All equipment/files etc. are arranged according to the can see can take out and can return principle. The tool rooms file bins, equipment stores are clearly demarcated, displayed to understand effectively. All equipments and files are tied with special tags like Can see, Can take out and Can return principle. The inventory records are clearly maintained with file indexes.

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1.10.4.5

VISUAL CONTROL METHODS FOR DEFECTS

Timely inspection system is there in VSP to avoid faulty tools/material to go into their work processes and to prevent mix-up. In this system item is clearly marked Rejected and to make pool proof less that the right material is entering for their utility.
1.10.4.6 CLEAR MARKING OF GANGWAY AREAS

At the gate, number of gates are distinctly marked for the purposes like personal Passageways without any materials (In and Out separately), finished goods to be taken out and for material transportation by stores department.
1.10.4.7 CLEAR MARKING OF PARKING AREAS

Parking areas are specified for different types of vehicles like Scooters, Cars, Bus, Dumpers, and Tractor-Trailers etc. Each and every department has separate neatly marked parking areas. For example, IT (Information and Technology) department in VSP, the following is painted in front of the department. 2 wheelers parking For I.T personal only. Park your vehicles on center stand only. Park your vehicles within the slot provided. 4 wheeler parking Space reserved for IT department. Car No (AP XXXX). Parking for visitors. Platforms in straight line: In order to avoid accidents pedestrians are given a platform to walk comfortable. Similarly roads marked differently for four wheelers and two wheelers differently. Bus Buy is clearly marked on the roads for halting purposes. A notice board is placed mentioning Park your vehicles on the stand only and also Park your vehicles with in the slot provided. In the same manner heavy vehicular passages are marked for safety with caution signals and arrows for indication of direction.
1.10.4.8 DEMARCATION FOR GARBAGE/REJECTS WASTE

Remote corners of the garden are marked for the garbage dump, which in turn is shifted to a local place allotted by the local civic authorities (Municipality, corporation etc).
1.10.4.9 SWITCHES, FAN REGULATORS, CONTROLS ETC LABELED

Electrical circuits are neatly done with color codes of the current carriers and each Also this is notified at the switches as to which it is point it is meant for. Besides there is a request notice boards are pasted inside the rooms alerting the people not to forget switching off the systems before leaving their chambers.
1.10.4.10 ALL CABLES, WIRES, PIPES, ETC ARE NEAT:

Extra care is taken with all the Over- lapping circuits are specially insulated. Appropriate wire gauges are used to carry the lead of current loads.

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1.10.4.11 THERE IS GENERAL APPEARANCE OF ORDERLINESS

CORDEX SYSTEM is clearly maintained to read status of the material/document without any

delay so that all the documents are placed orderly. BINCARD SYSTEM is followed in inventory which is located nearer to the work spot in order to avoid delay for the transshipment of the materials so that the waste of time is minimized.
1.10.5 SEISO

The literal meaning of SEISO is cleaning; shining, sparkling, etc. in 5S practice, cleaning is looked upon as an activity wherein each and every employee has a role. It is observed that dust, dirt, foreign matters etc., are prime causes for unexpected failures of equipment especially electric items. They also may cause unhygienic environment and even accidents.
SEITON (CLEANLINESS):

The essence of cleaning is not just making things or place clean. Cleaning will also help us to quickly check or see defects with our eyes or inspection. Abnormal sound can be heard and vibration & temperature can be felt. So by observation, by Looking, Listening and Feeling (LLF) at the time of cleaning can identify abnormalities. These are like foul smell, decolorization, loose parts, and knocking, abnormal sounds, overheating, leaks and dispersion, vibration and shaking, misses and skipping, irregular movement, abrasion, trash and dirt, damage etc. these can be quickly looked into and rectified. Hence, we can say SEISO is to reveal potential defects and to take remedial measures.
1.10.5.1 WASTE BIN STRATEGY

Dust bins are placed in appropriate places with a re-mark DUST BIN clearly visible. The same is getting emptied periodically. Also the dust bins are labeled and signed about the date and the time by the concerned inspectors. The so called waste is being carried to a far-off place meant for it without interfering or polluting nearby places.
1.10.5.2 HEALTH CARE TOWARDS DRINKING WATER

All the drinking water outlets are connected to specifically purified tanks which are cleaned routinely and inspected by the special squad of supervisors who signs and date it about their periodical handling.
1.10.5.3 CLEANLINESS OF FLOORS, WALLS, WINDOW

No garbage, dirt or oil on the floor. No danger of slipping. No trash on the floor like cigarettes butts, scrap of paper, used hand gloves, cotton waste etc. Glass in the windows is regularly polished. Nothing leans against the walls, pillars or equipment. Nothing is placed on top of machines or cabinets.
1.10.5.4 USE OF ADEQUATE CLEANING TOOLS

Each and every department in VSP is having at least two store rooms and many cleaning tools (example brooms, brushes, mops etc.,) are placed inside.
1.10.5.5 STORAGE OF CLEANING TOOLS

Appropriate tools are used for cleaning purpose which they are meant for. Such of these tools have got specific rooms to be maintained but not seen or thrown any were abruptly. Also
51

these tools are used with-in their utility shape but not worn outs. Utility limitations are very well guided.
1.10.5.6 CLEANLINESS OF MACHINES, EQUIPMENT, TOOLS

A check list is displayed in every 5S corner of the department. For example the checklist Procedure contains cleaning schedules as follows. Room cleaning Corridors Dust bins White washing Daily Every alternate day Daily Once in 3 years

And the cleaning schedules are checked and signed periodically by the superiors concerned.
1.10.5.7 DAILY SELF CLEANING

On a daily basis, a specific limited time is separately allotted for cleaning the tools/orderly keeping purposes, say 5 min after completion of their work/ before leaving the premises.
1.10.5.8 CLEANING RESPONSIBILITY MAPS

* Cleaning responsibility maps are displayed: even for these cleaning proper maps are displayed near the work place which does not damage or throw out of gear. All these procedures are followed with high quality morale and improve efficiency. The clearing schedules are maintained and check-list is daily filled by the steering committee.
1.10.5.9 GENERAL APPEARANCE OF CLEANLINESS

As such they are not allowing any stone unturned for the best satisfaction to impart cleanliness.
1.10.6 SEIKETSU

The meaning of SEIKETSU is to Standardize. The earlier 3 S i.e., SERI, SEITON & SEISO were more carrying out some kind of activities. SEIKETSU emphasizes on studying the system of carrying out those activities.
SEIKETSU (STANDARDISATION):

If we face any problem, our capabilities coupled with the system should be able to overcome the situation. It is equally important that along with work place management, personal cleanliness, maintaining clean & neat work clothes, safety shoes, aprons are also essential. Standardization is to systematize the activities and this can be done through visual management, position marking, initiatives at work place level etc. SEIKETSU mainly helps in synchronizing the activities of SEIRI, SEITON & SESIO.
1.10.6.1 ALL 5S PROCEDURES ARE STANDARDIZED

All the 5S procedures are displayed in every nook and corner of VSP in order to impose moral awareness imbedded in thinking among one and all.
The following standard practices are documented for effective maintenance of the 5S practices at VSP 52

 Locations for wanted and unwanted items/materials files are fixed and they are placed at pre-fixed locations. Unwanted items are segregated and disposed as and when they are generated. Unwanted materials that are shifted to Red Tag area are suitably tagged and neatly arranged in Red Tag area. Cleaning schedule are prepared and adhered to. Up keep of all visual aids like labels display boards is done. Responsibilities are fixed for individuals. Standard checklists are prepared for self audits and intra departmental audits. Self and Intra departmental audits are taken up once in a month respectively. Departmental steering committee reviews the progress and performance of 5S in the department once in a month. Activities taken up for improvement are recorded in 5S register and status is reviewed periodically.
1.10.6.2 REGULAR INSPECTION OF CHECKLISTS

Every department has its own checklists in the 5s corner and the steering committees will conduct inspections. In order to conform that how effectively they are following 5S.
1.10.6.3 STANDARDISATION OF ALL LABELS & NOTICES

In VSP all labels, notices are fixed in accordance to their standards.

1.10.6.4 STANDARD SIZE AND COLOR FOR ALL AISLES/GANGWAYS

All gateways have a standard size and they are color coded for identification.
1.10.6.5 STANDARD VISUAL MANAGEMENT

Danger zone marked: Danger zones are marked with NO Entry sign boards. Caution boards

are also placed in order to avoid dangers the boards like Work-in-progress, take diversion with sign showing the direction is maintained.
Open and shut directional labels: The open and shut directions are clearly marked for water

and gas pipe lines. And also the flow directions with arrow marks on the gas, water and air pipes are demarcated.
1.10.6.6 FIRE EXTINGUISHERS ARE CLEARLY MARKED & PLACED

There is clear access to the fire extinguishers and its hoses in VSP.
Visibility: The fire extinguishers have been located distinctly and feasibly kept to meet the

emergencies. All the employees have been thoroughly trained to use them effectively. Also the equipment is labeled and signed by the concerned supervisors. And some sign boards are placed inside the plant like, Know how to use gas extinguishers.
Regular Checks: The fire extinguishers are checked at regular intervals. The chemicals in the

fire extinguishers are changed and made ready at periodic intervals. Also check lists are properly maintained and displayed.

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1.10.6.7

STANDARD WARNING SIGNS

Prohibition Sign: Some prohibition signs boards are placed like Danger Deep excavations! Must Do Sign:

Sign boards are placed inside the plant like Do not feed the fire!, Remove the waste! Explosive fun can be dangerous Handle gas cylinders carefully. First aid for chemicals burns. Wash with more water.
Safeway Sign: Safe way signals are displayed by the road sides. 1.10.7 SHITSUKE

Literal meaning of SHITSUKE is Discipline, habit etc. Broadly speaking discipline a system which calls for changing our present way and adhering to set procedures. Systems function through working in orderly manner. It is a task of bringing changes as a team-work to be followed later. The main task of SHITSUKE is to make the task small or big but a habit with all the employees.
SHITSUKE (DISCIPLINE): 1.10.7.1 REGULAR TRAINING PROGRAMS

Evidence of training: The employees and all the officials have been trained in the Training and development centre (TNDC) regarding how to follow the 5S. Evidence of follow up: the steering committee will conduct surprise visits to all departments to

check whether they are following 5S or not.

1.10.7.2 REGULARLY REVIEW BY 5S PATROL TEAM

Teams names and used regularly: Each and every department has its own patrol teams whose names are displayed in the 5S corner. Apart from that steering committee will conduct

reviews of their follow-ups.

Results/Photos of inspections displayed: Each and every department is having a 5S Corner

boards in front of their departments. In that boards the clear photos of before and after adoption of 5S principles photos of offices, dust-bins, cable wires etc, is displayed.
1.10.7.3 5S POSTERS AND 5S POINT OF WORK REMAINDERS

Posters at workplaces:

Posters are displayed at workplaces like SAY YES TO 5S AND REDUCE Posters in the canteens are placed like NOSMOKING.
FANS

WORK STRESS, LET US MAKE OUR WORK PLACE CLEAN AND CONVENIENT.

Posters in the canteen:

Point of work remainders like SWITCH OFF LIGHTS, ACs, and before leaving the rooms these posters are placed inside the rooms.
Point of work reminders: 1.10.7.4 GOOD POINT & BAD POINT STICKERS

Strict discipline is followed in the VSP and there is no difference between higher officials and workers. Each and every one should carry their own identity cards before entering into the plant. Time management is strictly followed at the gate and they wont allow if they come late. And the gates are closed at the exact time specified. Each and every department
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including central library of VSP is following this Dos and Donts boards and 5S score boards with problems/descriptions if any.
1.10.7.5 DOS: DOS AND DONTS

Visit 5S corner every day and go through standard practices. Keep the 5S literature accessible in order to refer it in doubt. File the loose papers in respective files everyday in chronological order. Benchmark with best 5S practices must practice. Draw stationary and other items from store on 10th and 25th of every month. Update visual displays like desk-calendar, calendar etc., as required. Check for electrical defects once a week and lodge complaints for rectification. Check stock of audit stationary, policy posters and cards once a month. Clean dust bin before going home everyday.

DONTS:

1.10.7.6

Spill water, tea/coffee, food items, and waste papers in the path ways or office floors. Throw tea/coffee cups out of windows. Keep any paper or calendar below the glass on the table. Keep the fan and lights ON when out of seat/room. Leave the chairs disturbed after use. Paste any paper, poster, calendar on the walls, almirah or other surfaces. Keep loose papers in file. Keep anything on the almirah top.
SELF DISCIPLINE AMONGST WORKFORCE

The entire work workforce is maintaining self discipline by following rules and regulations of VSP i.e. wearing the uniforms, wearing shoes and helmets, following time management strictly without any lenience irrespective of their cadre.
1.10.7.7 UNIFORM

Dress code is strictly maintained in VSP. Men in the plant should wear light grey color shirt with dark gray color paint and women should wear light gray color sari with dark grey color blouse.
1.10.7.8 SAFETY SHOES AND HELMETS:

The employees must wear helmets and shoes before entering into the shop floor.
1.10.7.9 USAGE OF SAFETY GADGET

The VSP is using safety gadgets like Gas Masks, Corded ear plugs, Dust Masks and hand Gloves in order to protect the employees from abnormal risks like injuries, lung problems, protection from sound pollution etc.

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The marks give through my personal observation in VSP are tabulated below.
5S 5S LEADERSHIP SIRI SEITON SEISO SEIKETSU SHITSUKE

Marks (out of 10) 9 9 9 8.5 8.8 9.5

1.10.7.10 INTERPRETATION

It is observed that the Leaders are well able to control the subordinate. In other words the subordinates are quietly obeying their immediate next superiors without any deviation. Hence, I feel that the leadership in 5S process deserves 9 out of 10 marks. Through my observation the steering committee is very much satisfied with the way the work force is segregating things effectively. Hence I recommend SIRI with 9 out of 10 marks. With my keen observation in the shop-floor, offices and in other places the orderliness of the materials, tools, stationary etc are being maintained from time to time as per requirement hence I reward SEITON with 9 out of 10 marks. As I observed the cleanliness is not so through and it is missing in some parts of VSP. Whatever may be the reasons behind it, they deserve 8.5 marks out of 10. On an average, the above three (SIRI, SEITON and SEISO) standardization options I am satisfying in giving 8.8 out of 10. It is observed that entire workforce is follow discipline in all respects, so 9.5 out of 10 marks are awarded.

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FINDINGS AND CONCLUSION

It is noted that most of the players in steel industries are receding from investment in expanding capacities. VSP top management has also decided to expand its capacities to 7.5 million tons with additional 3rd converter and 4th caster by 2012. Taking the opportunity of ongoing recession period, VSP is in no mood to panic but to utilize the time for planning with total involvement and intense communication, looking for converting crisis into opportunities such as adding, modifying, replacing and utilize the lean period to reschedule the maintenance activities and take care of the aging equipment so that the re-energized machinery can reap the fruits for many more years to come. By implementing TQM in VSP the organization has got benefits like: Image of the organization has improved. Reduction in inventory. Shorter lead time in design, manufacturing, procurement service etc., Reduction in rejections and complaints. Customer satisfaction is achieved. Quality cost % to turnover reduction. Lower manufacturing cost. Reduction in deviation. Continuous improvement. Drastic reduction in defectives and number of defects. The findings of the study also indicate that the company adopts a multiple-stakeholder philosophy for successful execution of TQM that squarely values the customers, employees, and community. TQM is based on the strategic plans of the company and expectations of its stakeholders. The organization implements a number of TQM tools, and the entire production and service departments strive to implement these tools.
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 The mission, vision and policies of the organization are consistent with those of TQM. All the employees have accessibility to TQM training and the company has initiated a number of reward schemes to press forward the TQM implementation. The top management believes that TQM creates ample opportunities at times of managing the situation that is untraditional and unconventional. TQM group has already been in action to redefine the policy and objectives for speedy fulfillment of planned activities. The theme based auditing techniques is introduced with frequency of management reviews, apart from concentrating on corrective and preventive measures to bring about continual improvement in production process, maintenance processes etc. The maturity level of quality management system has grown such that it no longer persists on traditional way of thinking and traditional way of solving problems. VSP always refers to its core values at times of crisis and obtain the direction to stress more on the Innovative and creative ways and means to bring about solutions in the field of producing quality steel to the customers delight.

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RECCOMENDATIONS
The VSP should integrate the all ISOs into one system so that the duplication of records can be avoided. In VSP operating personal has enormous potential in coming out with the solutions for business process. The operational techniques need re-packing and re-marketing to keep abreast of the latest developments and needs of the organization. The VSP needs to look forward and to market the functioning properly. It can be emphasized that they should keep update developments and needs of the organization. selfs towards managerial business process.

In VSP operational personal have tremendous value and they may have to align them

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REFERENCES:
1. In house bi-monthly News letter, Rastriya Ispat Nigam Limited, Visakhapatnam Steel Plant (VSP), Volume 7, Issue No -5, Jan-Feb 2010, pp-3. 2. Steel and metallurgy journal volume 12, Issue No.5, March 2010, pp-57.

BIBILOGRAPHY:
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