rv report

ROURKELA STEEL PLANT INTERNSHIP REPORT “AN ORGANISATION STUDY” AT ROURKELA STEEL PLANT Submitted to Bangalore University in partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY HIMANSU SEKHAR M (REG. NO. 101GCMA043) UNDER THE GUIDANCE OF INTERNAL GUIDE: Mrs. ANITA D SILVA Prof., RVIM

EXTERNAL GUIDE: Mr. SUDHANSU S M Asst. Manager

RASHTREEYA SIKSHANA SAMITHI TRUST R.V.INSTITUTE OF MANAGEMENT CA 17, 36TH CROSS, 26TH MAIN, 4TH ‘T’ BLOCK, JAYANAGAR, BANGALORE-41

R.V. INSTITUTE OF MANAGEMENT, BANGALORE

ROURKELA STEEL PLANT

DECLARATION I, HIMANSU SEKHAR MOHAPATRA hereby declare that the internship project report titled “An Organization Study at ROUKELA STEEL PLANT, Rourkela” submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration (M.B.A) is my original work under the guidance and supervision of Mrs. ANITA D SILVA, Prof. RVIM and Mr. SUDHANSU S MOHAPATRA, Assistant Manager, ROURKELA STEEL PLANT, Rourkela. This internship project report has not been submitted to any other institution / university for the award of any degree or diploma or any other similar titles.

DATE:

HIMANSU SEKAHR MOHAPATRA REG. No 101GCMA043

PLACE: BANGALORE

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

CERTIFICATE This is to certify that Mr. HIMANSU SEKHAR MOHAPATRA bearing Register Number 101GCMA043, student of III semester MBA programme, has undertaken an internship study on the topic “An ORGANIZATION STUDY at RORKELA STEEL PLANT, Rourkela” under the guidance of Mrs. ANITA D SILVA, Prof. R.V.I.M. The report is being submitted in partial fulfillment of requirements for the award of the degree of Master of Business Administration. This internship report has not been submitted to any other institution for the award of any degree or diploma of any other universities.

Dr. R.K.GOPAL Professor & H.O.D M.B.A Department, R.V.I.M

R.V. INSTITUTE OF MANAGENENT, BANGALORE

Dr.T.V. RAJU Director R.V.I.M

ROURKELA STEEL PLANT

GUIDANCE CERTIFICATE

This is to certify that Mr. Himansu Sekhar Mohapatra bearing University Regd.no.101GCMA043 has successfully completed the project work entitled “An Organisation Study at Rourkela Steel Plant” in our organization for the partial fulfillment of degree of MBA program in R.V. Institute of Management, Bangalore under Bangalore University, Karnataka. No part of this work has been submitted anywhere for award, for any degree or otherwise to the best of my knowledge.

Signature of the Guide Mr.S.S.Mohapatra Assistant manager Personnel (PIS)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

GUIDE CERTIFICATE

This is to certify that Mr. HIMANSU SEKHAR MOHAPATRA bearing REG NO. 101GCMA043 student of III semester MBA programme has undertaken an internship on the topic “An ORGANIZATION STUDY at ROURKELA STEEL PLANT, Rourkela” under my guidance and supervision. The report is being submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration. This internship project has not been submitted to any other institution for the award of any degree or diploma for any other universities.

DATE: PLACE: BANGALORE

R.V. INSTITUTE OF MANAGENENT, BANGALORE

Mrs. ANITA D SILVA Prof. R.V.I.M

ROURKELA STEEL PLANT

ACKNOWLEDGEMENT The successful completion of any task would be incomplete without mentioning the people who made it possible and whose constant guidance secured as success. I express my deep gratitude to our Director Dr.T.V.RAJU, R.V. Institute of Management, Bangalore, for his support in the successful completion of the project and Dr.R.K.Gopal, HOD, MBA programme, for giving an opportunity to complete this study successfully. It is with humble sense and gratitude with heartfelt appreciation to my beloved Internal guide Mrs. ANITA D SILVA . whose estimable aid, keen surveillance, support, continued inspiration, valuable guidance and meticulous supervision throughout project and to bring this project to a successful completion. I express my immense gratitude to the External Guide Mr. SUDHANSU MOHAPATRTA, Asst. Manager (PL), R & PIS of the company for providing me continuous support, advice and encouragement to go about completing my project successfully. I owe my sincere gratitude to all the members and heads of various departments in ROURKELA STEEL PLANT. I extend my sincere thanks especially to all the members of Rourkela Steel Plant & especially HRD department who have made my stay in RSP most fruitful and a learning experience. I also thank members of non teaching staff of RVIM for their continuous support during my internship training. I am grateful to my parents, friends and well wishers who have encouraged and supported me throughout my internship programme at ROURKELA STEEL PLANT, ROURKELA.

DATE: R.V. INSTITUTE OF MANAGENENT, BANGALORE

HIMANSU SEKHAR M

ROURKELA STEEL PLANT

PLACE: BANGALORE CHAPTERS

INDEX

CHAPTER 1 INDUSTRIAL PROFILE  INTRODUCTION  DEMAND OF THE STEEL INDUSTRY  GLOBAL SCENARIO  MAJOR PLAYERS  STEEL AUTHORITY OF INDIA LTD (SAIL)  SAIL’SS CORPORATE PLAN- 2012  MANAGEMENT OF SAIL  SAIL INTO THE FUTURE CHAPTER 2 COMPANY PROFILE  ROURKELA STEEL PLANT  LOCATION  SPECIAL FEATURES OF RSP  VISION, MISSION, AND QUALITY POLICIES  PRODUCT PROFILE  PRODUCT MIX OF RSP  PRODUCT AND ITS APPLICATION  COMPETITORS  ORGANIZATION STRUCTURE  PRODUCTION PROCESS MODEL CHAPTER 3 FUNCTIONAL DEPARTMENTS CHAPTER 4 SWOT ANALYSIS CHAPTER 5 FINDINGS & SUGGESTIONS & CONCLUSION BIBILOGRAPHY ANNEXURE

R.V. INSTITUTE OF MANAGENENT, BANGALORE

PAGE NO 1-10

11 – 34

35 – 65 66 – 68 69 – 72 73 - 74 75 - 77

ROURKELA STEEL PLANT

CHAPATER 1 INDUSTRY PROFILE • INTRODUCTION • DEMAND OF THE STEEL INDUSTRY • GLOBAL SCENARIO • MAJOR PLAYERS •

STEEL AUTORITY OF INDIA LTD. (SAIL)

• SAIL’S CORPORATE PLAN- 2012 • MANAGEMENT OF SAIL • SAIL INTO THE FUTURE

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

INDUSTRY PROFILE INTRODUCTION: Steel Authority of India Limited (SAIL) only the name is sufficient gives a brief idea about the company. As we know Mr. Jameshdji Tata sowed the seeds of modern steel industry in 1907 when Tata Iron & Steel Company Ltd (TISCO) was established. In the year 1939 the production of steel started in another private steel company called the Indian Iron and Steel Company, now a subsidiary of the SAIL. After the independence SAIL became a major player of steel and iron and a major supplier to all the fields. After Globalization SAIL having big opportunity to expand their sales globally and became one of the major suppliers of steel and iron. As we know that what ever is made that must be for some purpose and that must be sold but the process may be different from one another. Growth: In the era of planned economy, iron and steel, a core and basic sector, received the full attention of the government. It became a key sector for public investment for the First Five Year Plan itself. The year 1953 saw the first agreement being signed with Germans to establish a 1 million tone plant at Rourkela in Orissa. Two more agreement for setting up steel plants at Bhilai with erstwhile USSR’s assistance and another at Durgapur with the help of U.K. was signed in1956. Successive capacity augmentations at Bhilai, Durgapur and Rourkela saw their capacity increase to 2.5, 1.6 & 1.8 million tones per annum respectively by the end of the 60’s

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT A new plant at Bokaro with a capacity of 2.5 million tones per annum went into production in 1973-74. The year 1978 witnessed a major restructuring of these steel making public sector units giving birth to the public sector giant, SAIL, having a “Navaratna” status today, with an aggregate capacity of over 10 million tones. The first shore-based public sector integrated plant, viz.The Rashtriya Ispat Nigam Limited of 3 million tones per annum capacity went into production in August, 1992. During First two decade of planned economic development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel production exceeded 8 percent. During 1970-80, this growth rate in steel production came down to 5.7% per annum and gathered up marginally to 6.4% per annum during 1980-90. Until the 1990’s the iron and steel sector was by and large the exclusive preserve of only public sector, the sole exception being TISCO. The new economic policy, substantial private investments flowed in with the consequent changes heralding a new beginning for the interplay of free market enterprise in this vital sector. Changes: A glance at the pre-and post 1991 era reveals some interesting and significant structural changes. At the consumer or demand end market for steel has been transformed from a seller to a buyer market. Control and regulation have been replaced by competition. Administered price have been replaced by supply and demand determined market prices. In the post liberalization era, the structure of steel industry is significantly and vastly different with the advent of major steel producers in the private sector which have come up with the world class technology and capacities. There has been clear shift towards the selection of the product mix. During the pre1991era, the private sector was mainly confined to the production of long products. The only producer of hot-rolled flat products was SAIL in the public sector. Now there are 5 additional

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT major producers of flat products of steel in the private sector was mainly confined to the production of long products. The only producer of hot rolled flat product was SAIL in the public sector. Now there are 5 additional major producers of flat products of steel in the private sector.

Presently, India can boast of new technology like Corex, Thin Slab Casting and Compact Strip Mill Technology, DC Electric Arc Furnaces. Twin Shells AC EAFs etc. in the steel industry. The industry has now to focus on customer satisfaction and outstanding quality of steel products in a competitive environment. Steel producers in the public and private sector have taken upon themselves with determination and commitment to overcome the new and arduous challenge to come up to thee Government’s expectations as also the people of our country in the most difficult and trying period for the last couple of years. Impact: The response of the private sector in particular has been quite encouraging in the post liberalization era. Many all India financial institutions also came forward to support these initiatives and had sanctioned financial assistance to 19 steel projects involving an investment of about Rs. 30,000 crore covering an additional capacity of 13 million tones per annum during the post liberalization era. Today, India is the tenth largest steel producers in the world. The industry represents over Rs.90,000 crore of capital and directly provides employment to over 0.5 million people. Production: The production of finished steel increased from 14.333 million tones in 1991-92 to 23.82 million tones in 1998-99. The private sector’s contribution in the availability of finished steel has constantly been increasing. From 51.4% in 1991-92 it increased to over 68% in 1998-99. This trend is likely to continue.

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ROURKELA STEEL PLANT Export: Although India started steel production as early as in 1911, steel exports began only in 1964. Exports in the first five years were mainly due to demand downturn in the domestic iron and steel market. Once domestic demand revived, exports declined India once again started exporting steel only on 1975, touching a figure of 1 million tonne of pig iron and 1.4 million tones of steel export in 1976-77. Therefore exports again fell rapidly to meet the challenges arising from increased domestic demand. There has been a substantial growth in export of steel during the post liberation period. It increased from 0.9 million tones valued at Rs.700 crore in 1992-93 to 3.4 million tones valued at Rs.2580 crore in 1997-98, even overtaking sectors like electronic goods and man-made fabrics. There has been a qualities change in the export of steel items. Earlier, export consisted mainly of plates, bars and rods and structural, whereas now semis, hot-rolled coils, cold rolled coils and galvanized sheets are also being exported. India’s Present per capita consumption of crude steel is only 24 kg. which is very low compared to the developed and developing countries- 422 kg. in USA, 417 kg. in Germany 109 kg, in Russia and 87 kg in China. Our consumption is less than one fifth of the world average (121 kg). Ministry Initiatives: The Government has been making all out efforts to help the domestic steel industry to overcome the problems faced by them. To boost the demand and assumption of steel, an Institution for Steel Development & Growth (INSDAG) was set up involving leading steel producers in the country. The Development Commissioner for Iron & Steel had launched a

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT National campaign for increasing the demand for steel in non traditional sectors, particularly in construction, rural and agro based industrial sectors. Other areas include reduction in power and railways tariffs, reduction in input costs, strengthening of antidumping mechanism, setting up a steel exporter’s forum and an empowered committee for research and development.

DEMAND OF THE STEEL INDUSTRY: •

Global steel demand is rising on the back of accelerated infrastructure activity in China, CIS and India, housing boom in USA, and white goods resurgence in Europe. During the recent recessionary phase the industry has consolidated in terms of ownership as well as mothballing of inefficient capacities. Steel prices continue firming up.

•

For the first time in last 20 years, there is demand growth all over the world for steel.

•

In US, the demand is led by the booming housing industry. Additionally the auto industry is showing signs of recovery as auto sales hit their strongest levels for the year in July even as US postedba2.4% GDP growth.

•

In Europe, there is demand from a buoyant housing and white goods industry according to industry sources.

•

In India, China and other Asian countries the demand is led by emphatic investment activities in infrastructure.

•

Russia and other CIS nations are also witnessing strong internal demand.

•

Iraq re construction work is expected to fuel further demand for steel over the next three years.

•

China is consuming steel like never before for its infrastructure with investment such as Three Gorges project on Yangtze as well as part of its build up to the Beijing Olympics in 2008 and the Songhai Expo in 2010.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT The demand supply gap is expected to increase this will drive steel prices northwards, even as the global steel industry is not prepared for this demand onslaught.

GLOBAL SCENARIO: The Asian countries have their respective dominance in the production of the steel all over the world. India being one among the fastest growing economies of the world has been considered as one of the potential global steel hub internationally. Over the years, particularly after the adoption of the liberalization policies all over the world, the World steel industry is growing very fast. Steel Industry is a booming industry in the whole world. The increasing demand for it was mainly generated by the development projects that have been going on along the world, especially the infrastructural works and real estate projects that has been on the boom around the developing countries. Steel Industry was till recently dominated by the United Sates of America but this scenario is changing with a rapid pace with the Indian steel company on an acquisition spree. In the last one year, the world has seen two big M&A deals to take place:The Mittal Steel, listed in Holland, has acquired the world's largest steel company called Arcelor Steel to become the world's largest producer of Steel named Arcelor-Mittal. Tata Steel of India or TISCO (as listed in BSE) has acquired the world's fifth largest steel company, Corus, with the highest ever stock price.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT It has been observed that Steel Industry has grown tremendously in the last one and a half decade with a strong financial condition. The increasing needs of steel by the developing countries for its infrastructural projects have pushed the companies in this industry near their operative capacity. The most significant growth that can be seen in the Steel Industry has been observed during the period 1960 to 1974 when the consumption of steel around the whole world doubled. Between these years, the rate at which the Steel Industry grew has been recorded to be 5.5 %. This roaring market saw a phase of deceleration from the year 1975 which continued till 1982. After this period, the continuous fall slowed down and again started its upward movement from the early 1990s. Steel Industry is becoming more and more competitive with every passing day. During the period 1960s to late 1980s, the steel market used to be dominated by OECD (Organization for Economic Cooperation and Development) countries. But with the fast emergence of developing countries like China, India and South Korea in this sector has led to slipping market share of OECD countries. The balance of trade line is also tilting towards these countries. The following table gives a clear picture upon the major crude steel producers in the world as of the year 2004. Country Crude Steel Production (mtpa) China 272.5 Japan 112.7 United State 98.9 Russia 65.6 South Korea 47.5 F.R.Germany 46.4 Ukraine 38.7 Brazil 32.9

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ROURKELA STEEL PLANT India Italy

32.6 28.4

In the year 2004, the global steel production has made a record level by crossing the 1000 million tones. Among the top producers in the steel production, China ranked 1 in the world. Production of steel in the 25 European Union countries was at 16.3 mmt in January 2005. Production in Italy increased by 11.5 per cent in comparison to the same month in 2004. Italy produced 2.5 mmt of crude steel in January 2005. Austria produced 646,000 metric tones. In Russia it increased by 4.0 per cent to reach at 5.5 mmt in January. In case of the North America region particularly in it was 1.5 mmt of crude steel in January 2005, up by 8.0 per cent compared to the same month in 2004. Production in the United States was 8.3 mmt. Brazil had produced 2.6 mmt of crude steel in January 2005. In South America region it was 3.7 mmt for January 2005. According to rating made by the “World Steel Dynamics", Indian HR Products are categorized in the Tier II category quality of products. Both EU and Japan have ranked the top. USA and South Korea comes as like India.

MAJOR PLAYERS IN THE STEEL SECTOR: •

Steel Authority of India Ltd.

•

Tata Iron and steel Company

•

Jindal Steel and power Ltd.

•

Jindal Iron and Steel Ltd.

•

Jindal Vijayanagr Steel Ltd. Jindal Stainless Ltd.

•

Ispat Industries Ltd.

•

Kalyani Steel Ltd.

•

Rashtriya Ispat Nigam Ltd.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

Lloyds Steel Ltd.

•

Nippon dendro Ispat Ltd. Essar Steel Ltd.

STEEL AUTHORITY OF INDIA LIMITED (SAIL):

SAIL is among India's largest steel producing companies and tops among them. It is one of the companies which have been accorded the “Maharatna” status for greater autonomy in its management. With a production capacity of 13.9 million tonnes it is one of the top twenty steel producing companies in the world. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defense industries and for sale in export markets. The company has the distinction of being India’s second largest producer of iron ore and of having the country’s second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. It was initially established as Hindustan steel limited in the year 1954. The company initially as Hindustan Steel Limited was established to control the plant at Rourkela but later it took up the managing of other plants at Bhilai and Durgapur. SAIL was incorporated as a holding company in the year 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant to oversee iron and steel production. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been influential in establishing a sound infrastructure for the industrial development of the country. It also has immensely contributed to the development of technical and managerial expertise. It also has played an important role in secondary and tertiary growth of the country by providing for the consumer industry.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT SAIL’s wide range of steel products is much in demand in domestic as well as in the international market. This responsibility is carried out by SAIL’s own central marketing organization (CMO) and the international trade division. CMO consists of a wide network of 38 branch offices and 47 stockyards located at major cities and towns across India.

With technical expertise and know-how in steel making gained over four decades, SAIL Consultancy Division (SAILCON) at New Delhi provides services to clients worldwide. Sail has a well equipped research and development centre for iron and Steels (RDCIS) at Ranchi which helps to develop new technology for production of quality steel. SAIL also has its own in-house Centre for Engineering and Technology (CET), Management Trainee Institute (MTI) and SAIL Safety Organization (SSO), a Corporate Unit set up in 1988 at Ranchi, monitors and guides the safety Promotional, fire and Occupational Health Services activities undertaken at different steel Plants/Units/Mines/Stockyards. To accomplish the above mentioned functions, SSO formulates and prepares appropriate safety policies, procedures, systems, action plans, guidelines etc. and follows up for their implementation and thereby helps in providing accident free work environment. HISTORY OF SAIL: The Precursor SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialization of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India. Expanding Horizon (1959-1973) Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956 and ultimately to Ranchi in December 1959. A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73. Holding Company The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crores, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.

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ROURKELA STEEL PLANT SAIL Today SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise. Today, the accent in SAIL is continuously adapt to the competitive business environment and excel as a business organization, both within and outside India. SAIL’S SEVEN DIMENSIONS OF CUSTOMER SATISFACTION: •

Consistent Quality

•

Committed delivery

•

Customized product mix

•

Competitive price

•

Contemporary product

•

Complaint settlement

•

Culture of customer service

CORE VALUES OF SAIL: •

Customer satisfaction

•

Concern towards people

•

Commitment to excellence

•

Work culture

MAJOR UNITS: Sail has integrated steel plants i.e. from extraction of ore to production of steel is done in same plant. The five integrated steel plants of sail are:•

Bhilai Steel plant.

•

Rourkela steel plant

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

Bokaro steel plant

•

Durgapur steel plant

•

Burnpur steel plant

SPECIAL UNITS: •

Alloy Steels Plants (ASP), Durgapur, West Bengal

•

Salem Steel Plant (SSP), Tamil Nadu

•

Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka

CENTRAL UNITS: •

Centre for Engineering and Technology

•

Research and development centre for iron and steel

•

Management Training Institute

•

SAIL safety organization

•

Raw materials division

•

Central Marketing Organization

•

SAIL consultancy organization

JOINT VENTURES: •

NTPC SAIL Power Company Pvt. Ltd (NSPCL)

A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd. (NTPC Ltd.); manages the captive power plants of Rourkela and Bhilai Steel Plant •

Bokaro Power Supply Company Pvt. Limited (BPSCL)

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the steam generation in Bokaro Steel Plant. •

Mjunction Services Limited

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ROURKELA STEEL PLANT A 50:50 joint venture between SAIL and Tata Steel formed in 2001. This company promotes ecommerce activities in steel and related areas. Newly added services include e-Assets sales, Events & Conferences, Coal Sales & Logistics, and Publications etc. •

Bhilai JP Cement Ltd

SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at Bhilai by March'2010, •

Bokaro JP Cement Ltd

SAIL has incorporated another joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. The project implementation is under progress. •

SAIL&MOIL Ferro Alloys (Pvt.) Limited

SAIL has incorporated a joint venture company with M/s Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required for production of steel. •

S&T Mining Company Pvt. Ltd

SAIL has incorporated a joint venture company with TATA Steel for joint acquisition & development of coal blocks/mines. New indigenous opportunities for coking coal development are being explored by the Joint Venture Company for securing coking coal supplies. •

International Coal Ventures Private Limited

Towards achieving the target of making steel PSUs self reliant a joint venture company comprising of five central PSU companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited (CIL), NTPC Limited and National Mineral Development Corporation (NMDC) has been incorporated. The company is scouting for coal properties in Australia, Mozambique and other target countries.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

SAIL’S CORPORATE PLAN 2012: Sail announced its corporate plan in the year 2004 and set itself on a growth track making steady progress in launching several projects. The company has initially aimed at increasing its annual hot metal production capacity from 13 million tonnes to 20 million tonnes. But following the inclusion of IISCO in Feb. 2006 and firming up of growth plan for Sail’s specialty steel plants, it has been revised to 22.5 million tonnes The growth plant forces the company’s finished steel production of mild steel from its five integrated plants being raised to a level of 17.5 million tonnes per annum. The broad product portfolio of SAIL will consist of 30% market share in flat and 26% in long by 2011-12.Besides capacity enhancement, the growth plan addresses the need of the sail plants and other units toward eliminating tech gaps, interlinking product profile with the growth segments and focusing on customer centric business processes. The key technological up gradations undertaken during growth period that are expected to achieve: >State-of-the-art process control automation >State-of-the-art online testing and quality control facilities. >Gradual implementation of Enterprise Resource planning (ERP) across its plants.

MANAGEMENT OF THE SAIL: Steel Authority of India Limited is managed by an efficient and experienced board of directors aided by the chairman. Chairman of SAIL

: Shri Chandra Shekhar Verma

Director (Personnel)

: Shri B B Singh

Director (Finance)

: Shri Soiles Bhattacharya

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Director (Commercial)

ROURKELA STEEL PLANT : Shri S.S. Ahmed

Director (Technical)

: Shri V.K. Gulhati

MD of Rourkela Steel Plant

: Shri S.N Singh

MD of Bokaro Steel Plant, Bokaro

: Shri S.S. Mohanty

MD of Bokaro Steel Plant

: Shri Virendra Kumar Shrivastav

SAIL - INTO THE FUTURE : Modernization & Expansion: SAIL, is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. The objective is to achieve a production capacity of 26.2 MTPA of Hot Metal from the base level production of 14.6 MTPA (2006-07 – Actual).

A new unit coming up at ISP Orders for all major packages of ISP & SSP and part packages of BSL, BSP, RSP & DSP Expansion have been placed and these packages are in various stages of implementation

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT Objective of Expansion Plan 100% production of steel through Basic Oxygen Furnace (BOF) route 100% processing of steel through continuous casting Value addition by reduction of semi-finished steel Auxiliary fuel injection system in all the Blast Furnaces State-of-art process control computerization / automation State-of-art online testing and quality control Energy saving schemes Secondary refining Adherence to environment norms

Production Target: The production target of hot metal, crude steel and saleable steel after Expansion is indicated below: (Million tonne per annum) Base Case Item

(2006-07)

After Expansion

Hot Metal Crude Steel Saleable Steel

Actual 14.6 13.5 12.6

26.2 (23.5) 24.6 (21.4) 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing phase of modernization and expansion to be completed by 2012-2013. Capital Expenditure: Amount spent on Expansion Plan and other Capital Schemes of SAIL (incl. subsidiary) during last 3 years are as follows: Year

Total (Rs./Crore)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT 2007-08 2008-09 2009-10

2181 5233 10606

PRODUCT MIX OF SAIL: PRODUCT WISE Semis Long Products Flat Products

Blooms, Billets & Slabs Structurals, Crane Rails, Bars, Rods & Rebars, Wire Rods HR Coils, Sheets & Skelp, Plates, CR Coils & Sheets,

Tubular Products Railway Products

GC Sheets\ GP Sheets and Coils, Tinplates, Electrical Steel Pipes Rails, Wheels, Axles, Wheel Sets

PLANT WISE Bhilai Steel Plant

Blooms, Billets & Slabs Beams, Channels, Angles, Crane Rails Plates, Rails, Pig Iron, Chemicals & Fertilizers

Bokaro Steel Plant Durgapur Steel Plant

HR Coils & Sheets, Plates, CR Coils & Sheets, GP Sheets & Coils/ GC Sheets, Pig Iron, Chemicals & Fertilizers Blooms, Billets & Slabs, Joists, Channels, Angles, Bars, Rods & Rebars, Skelp, Wheels, Axles, Wheel Sets, Pig Iron, Chemicals &

Rourkela Steel Plant

Fertilizers Plates, CR Coils & Sheets, GP Sheets/ GC Sheets, Tinplates,

Salem Steel Plant

Electrical Steel, Pipes, Pig Iron, Chemicals & Fertilizers Stainless Steel

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

CHAPTER 2 COMPANY PROFILE •

ROURKELA STEEL PLANT (RSP)

• LOCATION • SPECIAL FEATURES OF RSP • VISION, MISSION AND QUALITY POLICIES • PRODUCT PROFILE • PRODUCT MIX OF RSP • PRODUCT AND ITS APPLICATION •

COMPETITORS

• ORGANISATIONAL STRUCTURE • PRODUCTION PROCESS MODEL

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

ORGANISATION PROFILE: ROURKELA STEEL PLANT: INTRODUCTION & INCEPTION: Rourkela Steel Plant (RSP) is one of the most important units of the Steel Authority of India Ltd (SAIL). Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes. It presently has achieved a capacity of 2.27 million tonnes of hot metal and 2.13 million tonnes of crude steel. RSP surpassed the two-million tonnes mark in hot metal production for the fourth consecutive year and in crude steel production for the third consecutive year. It went into operation in the year 1959 and was the first integrated steel plant established by the Government of India. RSP was the first plant in India to incorporate LD technology of steel making. It is also the first steel plant in SAIL and the only one presently where 100% of slabs are produced through the cost-effective and quality-centric continuous casting route. The initial thrust for establishment of the plant was provided by the appointment of a team to survey the possibility for setting up a steel plant by the Govt of India in 1948. The plant was started in the year in 1956 with the technical and financial assistance of Messers Fried Krupps Essen and Messres Demang A.G. Duisburg, the leading steel makers from Federal republic of Germany. It was designed to produce flat product. The plant recently has been modernised with state of art facilities and most of the old units have been revamped and which has lead to the substantial improvement of the quality of products, reduction in cost and also ensuring cleaner environment. Developed infrastructures of support systems like captive power plants, brick manufacturing units, railway transport system etc facilitate the smooth operation of the plant. Other services

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ROURKELA STEEL PLANT like electrical shops, air conditioning which is maintained by centralized services has brought about a great change in the quality of products. In- house R&D projects undertaken with RDCIS (Research and Development centre for Iron and Steel), Ranchi lead to the enhanced productivity and efficiency while conserving energy. Quality control is ensured through state- of- the art computerization. Through computerization control in all production units, there is continuous data analysis, monitoring, network coverage, data management and document handling. Total quality management has been implemented since 1992 and awareness on total quality and to employee involvement in quality involvement projects through interactive participation also undertaken.

GEOGRAPHICAL LOCATION: Rourkela Steel Plant is located in the north western tip of Orissa and at the heart of a rich mineral belt. Being situated on the Howrah-Mumbai mainline, Rourkela is very well connected with most of the important cities of India. The nearby airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413KM). Rourkela also has an Airstrip maintained by Rourkela Steel Plant. One of the largest steel plants of the Steel Authority of India Limited is situated here. It is surrounded by a range of hills and encircled by rivers. It is situated in an area with the richest deposit of mineral wealth in Orissa. It came into prominence in 1955, with the establishment of the Rourkela Steel Plant. The city's name is derived from the famous 'Ruhr' iron & steel belt of Germany, with whose collaboration the Rourkela Steel Plant was setup. The plant which is one of the major contributors to render Rourkela a place in the national diary.

SPECIAL FEATURES OF ROURKELA STEEL PLANT: •

It is the first Plant in Asia to adopt LD process of steel making.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

1st public sector integrated plant to be set up in the country.

•

It is the only Plant producing large diameters ERW/SW Pipes confirming to most rigid standards of API.

•

It is the first steel Plant in India to adopt external desulphurization of hot metal by calcium carbide injection process.

•

It is the only steel Plant in SAIL producing Cold Rolled Oriented (CRNO) Steel sheets for use in the electrical industries with installed capacity of 73000 Ton/yr

•

Rourkela is the first in vacuum degassing metallurgy. This system has been adopted primarily for production of silicon steel for the cold rolled non-oriented sheets. This system consists of vacuum arc refining and vacuum oxygen refining units and degassing facility.

•

It is the first integrated Steel Plant of SAIL which adopted the cost effective and quality centered continuous casting route to process 100% of steel produced.

•

All the major production departments and some service departments and some service departments certified to ISO 9001:2000 QMS.

•

Silicon Steel Mill, Environmental Engineering Department and Sinter Plant-II certified to ISO 14001:2004 EMS.

•

It has got an electrical sheet mill capable of producing both dynamo and transformer grade electric sheet.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

It has a special plate plant where special alloy steel plates are shaped to different shapes as per requirement in the defense sector.

•

RSP has the distinction of being the unique steel plant in India with an integrated Fertilizer Complex.

•

It has two captive power plants (CPP) with a generation capacity of around 120 mw.

GUIDING PRINCIPLES OF RSP: VISION: “To achieve market leadership and prosper in business through satisfaction of customer needs by continual improvement in quality. Cost of delivery of products and services.” MISSION: “The future of our steel plant lies in our own hands. It is our individual and collective responsibility to rebuild our plant into a profitable, harmonious and vibrant organization. We will do whatever things are necessary which are good for our plant. We shall never do anything that hurts our plant’. QUALITY POLICY: “We have to create and sustain a peaceful work environment where every employee can contribute to the plant in assigned area of work with full freedom and dignity and without fear.”

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

PRODUCT PROFILE: As far as RSP’s products are concerned, there are two types of products of RSP•

Primary Products

•

Secondary products

PRODUCT RANGE OF RSP: Primary Products: I. Pet Products:1. Pipes a. ERW Pipes b. Spiral Wield pipes 2. Electrical Steel Sheets a. Cold Rolled Non Oriented Steel Sheets (CRNO) b. Cold Rolled Grain Oriented Steel sheets(CRGO) c. HRD Sheets 3. Electrolytic Tin Plates II. Non-Pet Products:

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ROURKELA STEEL PLANT a. Plates b. Hot Rolled Coils c. Hot Rolled Sheets d. Prime Slab e. Cold Rolled Sheets f. Galvanized Plane Sheets g. Pipe Plant Return (PPR) Coils Secondary Products: I. Iron and Steel a. Cast iron skull scrap b. Cast iron U/R ingot steel c. MS turning and Burning O.S scrap d. Tundish Steel skull e. Steel skull trimming scrap f. Iron and steel BF fines scrap g. BF dumps iron h. Used/rejected CI bottom plates scrap i. Used/rejected CI mould scrap j. Cast iron scrap II. Re-Rollable Scrap a. Steel plates cutting scrap b. Steel plates shearing scrap c. Steel crop ends scrap d. Concast steel short length slab e. Comcast steel slab crop end.

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ROURKELA STEEL PLANT f. CI Skull scrap g. URIN/IS h. Steel skull scrap GR-I i. Side trimming j. BF drums iron k. BF fines l. Steel skull scraps III. Steel Melting Scrap a. Steel skull scrap b. Scrap bales (Bundle scrap from rail lines press) c. MS turning and boring d. Side trimming e. Scrap slab IV. Industrial Scrap a. CR steel cutting scraps b. CR steel coils end scraps c. CR steel cut flat end scrap d. CR steel bas cut scraps e. HR steel- cutting scraps f. Sticker coils g. Semi Rolled steel plates h. Steel test piece scraps V. Defectives •

Defective HR Coils (2.0mm)

•

Defective HR Coils (2.3mm)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

Defective HR Coils (2.5mm)

•

Defective HR Coils (2.8mm)

•

Defective HR Coils (3.15mm)

•

Defective HR Coils (above 3.15 & up to 5 mm)

•

Defective HR Coils (above 5mm)

•

HR U/T Coils from CRM (below 3.15mm)

•

HR U/T Coils from CRM (3.15mm & above)

•

Defective HR Coils (Pickled) (2.0mm)

•

Defective HR Coils (Pickled) (2.3mm)

•

Defective HR Coils (Pickled) (2.5mm)

•

Defective HR Coils (Pickled) (2.8mm)

•

Defective HR Coils (Pickled) (3.15mm)

•

Defective HR Coils (Pickled) (above 3.15 & Up to 5mm)

•

Defective HR Coils (Pickled)(above 5mm)

•

Defective CR Coils (0.4mm)

•

Defective CR Coils (0.5mm)

•

Defective CR Coils (0.63mm)

•

Defective CR Coils (0.8mm)

•

Defective CR Coils (1.0mm)

•

Defective CR Coils (1.25mm)

•

Defective CR Coils (1.6/1.8mm)

•

Defective CR Coils (2.0mm)

•

Defective CR Sheets (0.4mm)

•

Defective CR Sheets (0.5mm)

•

Defective CR Sheets (0.63mm)

•

Defective CR Sheets (0.8mm)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

Defective CR Sheets (1.0mm)

•

Defective CR Sheets (1.25mm)

•

Defective CR Sheets (1.6/1.8mm)

•

Defective GP Sheets (0.35mm)

•

Defective GP Sheets (0.4mm)

•

Defective GP Sheets (0.5mm)

•

Defective GP Sheets (0.63mm)

•

Defective GP Sheets (0.8mm)

•

Defective GP Sheets (1.0mm)

•

Defective GP Sheets (1.25mm)

•

Defective GP Sheets (1.6mm)

•

Defective Chequered plates (5-10mm)

•

Defective HR plates

•

Defective plates (6-20mm)

•

Defective plates (above 20mm)

•

Defective Under sized plates (length 400-610)

•

Defective Electrolytic Tin plates

•

Defective CRNO Sheets

VI. Semis a. MS ingot (Non – Silicon) b.Pig iron VII. BF Slag BF granulated slag (NLT) VIII. Coke Fraction

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT a. Hard coke b. Mixed coke Nut coke c. Mixed breezed coke

PRODUCTS OF RSP: BY NAMES Minerals RSP Corporation’s family of minerals, sorted by their names, all with Silica as their major constituent, including Quartz, Feldspar, Silica and Clays. Refractories Acidic and basic Refractories, including the most popular and highest exported VINRAM® Acidic Ramming mass, suitable for Induction furnace lining. Chemicals Lime and Sodium based chemicals for the leather, color and other related industries. BY USER INDUSTRIES Engineered stone RS Glassy White Quartz for Engineered Stone Industry of Breton technology, making Quartz countertops, in filler, grits, also crushed mirror. Ceramics

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ROURKELA STEEL PLANT Silica based minerals, from Clays to Silica, from Quartz to Potassium Feldspar, in all grits, flours, fillers, particle size distribution, for industrial and other ceramic tiles, sanitary ware etc. Glass Silica based minerals, from Feldspar to Silica. Highest purity Quartz to lead crystal and high purity glass manufacturers. Very strong in Potassium Feldspar and Quartz.

Induction furnaces VINRAM Acidic Ramming Mass, with premixed Boric Acid, Silica sand and Bentonite for Ductile and other foundries with induction furnace. Construction chemicals Various minerals such as Silica, Quartz and various chemicals like Hydrated Lime etc. to the construction chemical industries, with foreign collaborations and in all specifications.

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ROURKELA STEEL PLANT Oil well drilling Strong thrust on oil drilling industry with franc sand, Silica, Quartz, Bentonite, Sodium Silicate, exporting to Middle East, as per API (American petroleum institute) specifications.

Foundry Casting Crystalline silica has a higher melting point than iron, copper and aluminum. This enables castings to be produced by pouring molten metal into moulds made out of silica sand and a binder. Castings form the basis of the engineering and manufacturing industries. Quartz and cristobalite flours are the main components in investment casting (also called precision casting) for the production of specialist products such as jewellery, dental bridges, aviation turbines and golf clubs. Blasting Silica is used for sand blasting purposes, as micro blaster, for micro graving, for filter sand, as glass beads for sand blasting, as paint stripping blasting sand.

PRODUCT MIX OF RSP: PRODUCT-MIX Plate Mill Plates HR Plates HR Coils ERW Pipes SW Pipes CR Sheets & Coils Galvanized Sheets (GP& GC) Electrolytic Tin-Plates Silicon Steel Sheets

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TONNES/ANNUM 2,99,000 92,500 3,98,000 75,000 55,000 4,33,000 1,60,000 85,000 73,500

ROURKELA STEEL PLANT 16,71,000

Total Saleable Steel

PRODUCTS AND ITS APPLICATIONS:Products

Applications

HR Coils

LPG Cylinders, automobile, railway wagon chasis and all types of high strength needs.

Plates

Pressure vessels, ship building and engineering structures

Chequered Plates

Flooring & staircases in the industrial sectors and railway platforms etc.

CR Sheets & Coils

Steel furniture, white goods like refrigerators, washing machines, automobile bodies, railway coach paneling, drums, barrels, deep drawing and extra deep drawing

Galvanized Sheets

etc. Roofing, paneling, industrial sheeting, air conditioner ducting and structural

Electrolytic Tin Plates

Containers for packaging of various products including edible oils, vegetables and confectionary items

Silicon Steel sheets & Coils

Small generators, stators for high efficiency rotating equipment and relays etc.

Spiral Weld pipes

High pressure transportation of crude oil, natural gas and slurry transportation, water supply, sewage disposals, grain silos, civil engineering pilings etc.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT High pressure transportation of oil and water, sewage

ERW Pipes

disposal, tube wells etc.

Plates and Sheets

Coils

COMPETITORS OF SAIL: A) Tata Iron & Steel Company •

Sales turnover Rs.132, 110 crores.

•

With an annual crude steel capacity of 31 million tones.

•

Product mix changing.

•

7TH largest steel company in the world.

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ROURKELA STEEL PLANT B) RINL •

Sales turnover Rs.9202 crores.

•

With an annual crude steel capacity of 3.6 million tones.

C) ISPAT GROUP •

Started in 1976 by setting up a multicrore ISP in Indonesia & going ahead as one of the fastest growing companies in the world.

•

Sales turnover Rs.10, 000 crore.

•

With the acquisition of Turkish steel company Izmir Demir Celik, its capacity will go up to 15 million tones.

D) Lioyd Steel Industries Ltd. E) Jindal Strips Ltd. F) Essar Steel Ltd. G) Malvika Steel Ltd. H) Bhusan Steel.

ORGANIZATIONAL STRUCTURE: The most important asset from which RSP derive its true competitive strength is its committed and talented workforce. The employees of RSP range from unskilled labourers to senior management officials. In RSP the manpower planning is done on yearly basis. The employees of the steel plant range from unskilled Khalasi to supervisor and charges man. The employees at the steel plant are basically divided into two group; those who take part in the production process are known as workers whereas those who provide associate services are the non-workers. These two groups of employees can be each further classified into categories of Executives (EXE) and Non-Executives (N-EXE). R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

The following diagram shows the organizational structure of Rourkela Steel Plant:

MANAGING DIRECTOR

ED(WORKS)

ED(MM)

ED (PROJ)

ED (FINANCE)

DGM OD

ED(MED)

ED(P&A)

GM(P&A)

DGM I/C (PL) W

DGM (PL)NW

DGM (PL) W

AGM

AGM

UPE

AGM WELFARE

AGM IR,RULES

AGM RECRUITMENT

AGM

CENTAL FUNCTION OF PERSONNEL DEPARTMENT

UPE

UPE

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

PRODUCTION PROCESS MODEL:

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ROURKELA STEEL PLANT

CHAPTER-3 FUNCTIONAL DEPARTMENTS R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

• PRODUCTION DEPARTMENT • PERSONNEL DEPARTMENT • MARKETING DEPARTMENT • FINANCIAL DEPARTMENT • PUBLIC RELATION DEPARTMENT • QUALITIY CONTROL SYSTEM

FUNCTIONAL DEPARTMENTS

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT The organization structure of RSP can be classified under two broad heads. Such as•

Works

•

Non-works

The work area is the process related area, where as the non-works area is the non processed area. Works area: The works area deals with the process of bringing of raw materials to the making of finished goods. The work area directly refers to the all major units which come under production department. The SAIL has its own mines, which procures raw material and produces steel from it. Iron ore, one of the ingredients to produce steel is not purchased from outside. But coal is purchased, generally imported from foreign countries. Therefore work area constitutes following departments:OBBP- Ore Bedding and Blending Plant SP-Sintering Plant BF-Blast Furnace SMSI &II-Steel Melting Shops CCM-Continuous Casting Machine HSM-Hot Strip Mill CRM-Cold Rolling Mill PLATE MILL PIPE PLANTS

The production flow is depicted below. The first step is to bring raw material from the mines to OBBP, then it comes to sinter and then to blast furnace. After that it reach to SMS I and SMS II

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ROURKELA STEEL PLANT and take the form of liquid steel and then becomes solid. Then it comes to CCM, then to HSM and finally gives the final output in the form of plates or pipes

MINES OBB P

SP

BF

SMS I & II

CRM SSM PLATE

HSM

PIP E

(PROCESS FLOW-CHART OF WORK AREA) R.V. INSTITUTE OF MANAGENENT, BANGALORE

CCM

ROURKELA STEEL PLANT Non-works Area: Works area deals with the process of raw material to finished goods where as the non-works area consists of several non process area departments such as:•

PERSONNEL

•

MARKETING

•

FINANCE

•

PURCHASE

•

STORE

•

PBLIC RELATION

•

HOSPITALITY All these six departments or areas come under the non-works area. Besides these, RSP

has two special departments which comes under non-works area as well. They are:•

HOSPITAL &

•

TOWNSHIP

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ROURKELA STEEL PLANT These two facilities do not come under the necessary obligation of RSP rather these are non-statuary obligations. The idea of having medical allowance and House Rent allowance is ruled out. Because of the task of providing rental accommodations to 20000 employees is enormous. And so is the case of providing well equipped hospital. The total number of employees of Rourkela Steel Plant as on 01.09.2010 is 19220, among whom 2187 are executives and 17033 are non-executives.

PRODUCTION DEPARTMENT Major production units of RSP:1. Ore Bedding and Blending plant 2. Coke oven 3. Sintering plants 4. Blast furnace 5. Steel melting shop (SMS-I & SMS-II) 6. Continuous casting mill (cmc-i) 7. Plate mills 8. Hot strip mills 9. Electrolytic tinning line 10. Galvanizing lines 11. Silicon steel mills 12. Pipe plants 13. Traffic & Raw material 14. Environment Management 15. Computerization R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT 16. HRD centre 17. CPTI Ore Bedding and Blending Plant

RSP’s Ore Bedding & Blending Plant (OBBP) has a base

mix preparation system with on-ground bedding, blending and conveying facilities. Set up under the earlier modernization programme to provide pre-mix feedstock to Sinter Plant-I & -II, the plant has an annual dispatch capacity of 500,000 tonnes of material. The facilities in OBBP include major installations like wagon unloading (tipplers & track hoppers), iron ore crushing and screening system, raw material storage yard, rod mills and roll

crushers for flux and coke crushing, proportioning bins and elaborate conveying systems. Coke Oven RSP has five 4.5-metre-tall coke oven batteries (COBs) that produce coke as the input for blast furnaces. The coke ovens are equipped with wagon tipplers, automatic handling and conveying facilities, coal blending provisions, coke wharf age crushing together with screening and conveying systems. Sintering Plant RSP’S two sinter plants feed sinter to the blast furnaces with a combined capacity of 3.07 MT per annum. Sinter Plant-II is operating at more than its rated capacity since the year 2000. This has facilitated the increased usage of sinter in blast furnace burden. Blast furnaces The four blast furnaces of RSP, with a combined capacity of 2 MT, produce hot molten metal for steel production.

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ROURKELA STEEL PLANT Steel Melting Shops SMS-I Apart from a computerized LD process which has enhanced shop capability, the LA Vacuum Metallurgy Technique has been also adopted for secondary refining of steel. This facilitates production of special steels for application in electrical machines, pipe making, tin plate, boilers and auto chassis members. The shop was originally designed to produce ingots for conversion to slabs through the Slabbing Mill route. However, after the discontinuation of the ingot route, SMS-I produces slabs through casting machines. SMS-II Provided with the latest steel making, secondary refining (ladle furnace and argon rinsing) facilities and two single-strand slab casters to produce 1,355,000 tonnes of steel slabs annually, the shop is equipped with automation through three levels of computerized control, LD gas cleaning and recovery, power distribution system, water and utility services. Plate Mill RSP’s 3.1 meter wide, 4 high reversing mill is equipped with online thickness measurement facilities. Provision for inspection by customer’s nominees, online ultrasonic testing and checking ensure dispatch of superior quality plates to customers. The Plate Mill also has a walking beam-type furnace with a capacity of 100 tonnes/hour for slab heating. The mill has a production capacity of 299,000 tonnes per annum. Hot Strip Mill The facilities of the 1.44 MT per annum mill has: • Two new walking beam type reheating furnace (225 TPH) • Roughing/sizing stand RoVo with automation • Automated coil box • Quick roll change system in Roughing Stand-1 and finishing mills • Coil marking, sampling and conveying systems.

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ROURKELA STEEL PLANT Cold Rolling Mill Produces about 678,000 tonne of cold rolled sheets per annum, RSP’s Cold Rolling Mill has a modern 5-stand tandem mill and a 4-high 1700-mm reversing mill. The tandem mill is equipped with automatic gauge control, x-ray gauge, data logging and thyristorisation. Electrolytic Tinning Line The continuous electrolytic tinning line produces a shining tin-coated surface in a variety of coating thicknesses. The tinplate shearing lines are equipped with sensitive pinhole detectors and an automatic sorting system.

Galvanizing Lines Two continuous hot-dip galvanizing lines are equipped with jet-coating facilities. There are 2 multi-roller-corrugating machines as well which produce corrugated sheets. Silicon Steel Mills This unit produces steel for the electrical industry through various operations carried out in sophisticated, continuous/semi-continuous processing lines and a 4-high reduction mill. Advanced process control and product testing facilities ensure product quality. Pipe Plants A highly sophisticated Spiral Welded (SW) Pipe Plant is equipped with submerged arc welding process and produces large diameter pipes. Hydrostatic pressure testing, ultrasonic testing and eddy current testing are some of the features which ensure quality control. The Electric Resistance Weld (ERW) Pipe Plant caters to the smaller diameter pipe consumers.

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ROURKELA STEEL PLANT This plant has been recently upgraded to enable it to produce API grade pipes. Traffic & Raw Material The Traffic & Raw Material Department deals with procurement and supply of raw materials to various user departments, internal movement of in-process and other material from one unit to another and dispatch of finished products in railway wagons to outside parties or SAIL warehouses. The department maintains 350 wagons, 40 locomotives and a network of 240 kms rail tracks across the plant. Environment Management RSP has provided air pollution control equipment like ESPs, Bag Houses, Dry Fog Dust Suppression systems & Wet Scrubbers in different units. RSP has also provided dedicated Waste Water Treatment Units in different plant units for treatment of wastewater. The treated wastewater is recycled back to the process and blow down water is discharged only into drains for final treatment at Lagoon before discharging into river. RSP has established a full-fledged Environmental Engg. Department way back in 1989, along with Environment Laboratory which is certified with IS/ISO14001. RSP has adopted 4R (Reduce, Reuse, Recover & Recycle) strategy for enhancing the utilization of wastes. With the dedicated efforts of RSP collective the pollutant levels have shown drastic reduction. The pollutant levels monitored during Apr.June,’10 & for 2009-10 are; SN.

Environmental Indicator

Description

• • •

PM10 Suspended Particulate Matter Sulphur dioxide Oxides of Nitrogen Ammonia

•

Lead

•

Cumulative dust load

• •

Ambient air quality (Average 1. levels monitored at 6 stations) Units : mg/m3

2. Specific Dust Load on

R.V. INSTITUTE OF MANAGENENT, BANGALORE

Apr – 2009Norm June,’10 10 76 – 99 90.2 100 289 – 487 283.8 -37 – 68 24 – 63 12.8 – 58.6 0.02 – 0.09 1.29

49.5 80 32.0 80 28.2 400 0.04 1.0 --

ROURKELA STEEL PLANT coming from different stacks (kg/TCS)

Environment

Quality of finally treated 3. effluent discharged from Lagoon into river Brahmani

4. Solid Waste Utilisation

• • • • •

PH Suspended Solids Oil & Grease BOD3 COD

(All units are in ppm except pH) • %

1.09 7.22 6 – 7.3 – 7.4 47.8 8.5 83.5 – 88 2.17 100 2–4 8.4 10 13 – 16 35.8 30 44 – 92 250 79.1

75.9

--

Computerization Rourkela Steel Plant’s online Production Planning & Control (PPC) system, developed and executed in house, connects various functional departments of RSP into a single network.

Human Resource Development Centre (HRDC) The Human Resources Development Centre (HRDC) of Rourkela Steel Plant was set up in the late 1950s. It consists of a Management Development Programme wing, auditoriums, wellequipped workshops, skill up gradation shops, lecture halls for apprentices and a well-equipped library on a plethora of technical and managerial subjects. The HRDC has received ISO 9001:2000 QMS certification. Central Power Training Institute (CPTI) RSP’s Central Power Training Institute (CPTI) is a CEA-certified category-1 institute that meets the statutory training needs of power engineers of SAIL. Certified with ISO 9001:2000 QMS, CPTI conducts training largely for operation and maintenance personnel of SAIL’s captive power plants and Power Distribution Network departments.

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ROURKELA STEEL PLANT

PERSONNEL DEPARTMENT: INTRODUCTION: The overall growth of the organization depends on the Human Resource Development. It is the foundation for any successful organization. Personnel management is a profession on transaction and in any organization which looks toward to a positive and dynamic management philosophy. Purpose of human resource in RSP is to increased production, productivity, sophisticated technology and automation that depend on human endeavor. Personnel department is responsible for following activities:1. Takes care of growth, deployment, grievance redressal etc. of employees 2. Manages employees services functions 3. Manages Industrial relation with respect to the plant. 4. Recruits quality manpower. 5. Takes out circular to streamline the effective functioning of plant.

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ROURKELA STEEL PLANT 6. Regulates Contract labour deployment inside the plant. Personnel department is headed by Executive Director(ED) (Personnel & Administration). Under him is the GM who reports to the ED. GM (P&A) is the head of personnel-works and Personnel-Non-works unit. Under the GM are the DGM’s of the works and non-works areas. In turn AGM comes under the hierarchy. The AGMs of works area manages the unit personnel executives(UPE) of the different personnel units and the AGMs of the Non-works area manages central functions of Personnel department such as the recruitment, welfare and the Contract Labour, Rules , Industrial relation sections. All the executives of RSP are managed by personnel (OD) and all non-executives are managed by Unit Personnel Executives. The above organizational structure is prevalent for all plants in SAIL. The hierarchy is given below in flow diagram

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ROURKELA STEEL PLANT

MANPOWER POSITION:

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT The total number of employees working in Rourkela Steel Plant as on February 2011 is 18,000. The employees are broadly categorized into •

Executives

•

Non-Executives

May 2011

June 2011

July 2011

Executives

2282

2308

2297

Non-Executives

16472

16414

16378

Total

18754

18722

18655

HUMAN RESOURCE MANAGEMENT IN RSP: The Human Resource Management is a integral part of the personnel department as well as the personnel organization. It is classified into three heads(i) Personnel Function (ii) Industrial Function (iii) Welfare Function (i) PERSONNEL FUNCTION: •

Recruitment

•

Induction and Placement

•

Training

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

Promotion

•

Transfer

•

Incentive and reward

(ii) INDUSTRIAL FUNCTIONS •

collective bargaining

•

conciliation arbitration and adjudication

•

Joint consultation and participation

•

Discipline and its maintenance.

(iii) WELFARE FUNCTIONS •

Maintaining working schedule

•

Giving leave facilities like, L.T.C., L.L.T.C.

•

Scholarship schemes for children of RSP employees

•

Medical treatment facilities

•

Various types awards like- Nehru Vishist Award - Jawahar Rojgar Award -Creativity Award -Srujani Award etc.

TRAINING AND DEVELOPMENT ACTIVITIES: The training and development is a vital part of the organization. The training activities carried out by plant itself namely Central Power Training Institute (CPTI) at Rourkela Types of training: (i)Technical (ii)Mechanical R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT (iii)Technical & Mechanical Objective of training: (i) De-Criticalise/key/critical skills (ii) Prepare individuals for higher responsibilities (iii)Develop ability in employees to run and maintain new units as per standard operating parameters. HR PLANNING OF RSP: It is the process by which the guiding members of an organization manages and leads the people who will be responsible for analysis, forecasting, planning and implementing the strategies necessary to fulfill its mission and reach its vision. Therefore, it is necessary for every organization to make a HR plan. Similarly, Rourkela steel plant has also its human resource plan. The human resources deployed in RSP are of various cadres i.e. the executive and the non-executive. Again, these two cadres are sub divided into various grades Non – Executive Selection: The non-executive includes 11 different grades as given below. 1. S1 2. S2 3. S3 4. S4 5. S5 6. S6 7. S7 8. S8 9. S9

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ROURKELA STEEL PLANT 10. S10 11. S11 Note-Here ‘S’ denotes Scale. S1 is the lowest grade in which employees are to be employed. With the help of the promotions the employees go up the higher level and according to the better performance performed. Employees may be recruited in different grades directly. They are given below. •

S1 – Lowest level-Earlier KHALASI are recruited in this cadre. They are the minimum qualification required for the workers, (matric holders)

•

S3 – Next higher level of recruitment are the Diploma holders with or without graduates (B.Sc ) (Nurse, paramedical, etc.)

•

S6- In this grade also recruitment is made. Earlier Diploma engg. were recruited in this grade.

•

S10 – The recruitment is made to them who fulfills the eligibility criteria of the engineers and comes under compassionate ground.

Executive selection: Like the non-executive cadre, in the executive section E1 is the base level. In E1 cadre MTT for engg and MTA (for MBAs).Doctors and other professionals like law graduates and finance graduates are also recruited. Once recruited in this cadre they can be promoted. The hierarchy is given below. E1-junior manager E2-Assistant manager E3-Deputy manager E4-Manager

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ROURKELA STEEL PLANT E5-Senior Manager E6-AGM E7-DGM E8-GM E9-Executive Director Managing Director Moreover there is one more level called E0 but no recruitment is made in this level. This grade is for the executive who gets promoted from Non-executive level. Executive promotion up to E5 is done at unit level by organization Development section known as OD. The OD unit takes the care of the promotion process of E1 toE5 level where as from E6 to E8 that is AGM onwards, promotion is handled by Corporate Office of SAIL at New Delhi and ED and MD posting is done by the Board of Directors. MANPOWER PLANNING OF RSP: Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: •

Analyzing the current manpower inventory

•

Making future manpower forecasts

•

Developing employment programs

•

Design training programs

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programs. Manpower Planning is advantageous to firm in following manner:

R.V. INSTITUTE OF MANAGENENT, BANGALORE

•

ROURKELA STEEL PLANT Shortages and surpluses can be identified so that quick action can be taken wherever required.

•

All the recruitment and selection programs are based on manpower planning.

•

It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided.

•

It also helps to identify the available talents in a concern and accordingly training programs can be chalked out to develop those talents.

•

It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.

•

It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

COMPONENTS OF MAN POWER PLANNING: At the outset viz. at the start of the financial year a detail of man power planning is being made. This constitutes forecasting separation for the year, the first of every month there is a calculation of the total man power. Basing on that recruitment requirement is prepared. This constitutes recruitment against retirement and against expansion. And thus man power at the end of the year is predicted. That means the personnel department has to prepare a report of the total employees working in the organization. The man power calculation is done on monthly, quarterly, half yearly and annual basis i.e. How many of them are executives and how many are non-executives. The simple formula for calculation manpower for man power planning is Manpower planning=Opening Manpower – Separation + Recruitment =Closing manpower

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ROURKELA STEEL PLANT The above formula elucidates that if we add the total recruited person with the opening number of employees and less the separated employees; we will get the closing man power i.e. the total number of employees present in the organisation. It should be noted that the de facto norm of the company is closing amount should always be less than the opening manpower for annum. Labour productivity can be measured for a firm, a process or a country. Separation: Separation is a process whereby the employees are separated from the organisation. It involves 3 modes. 1. Retirement 2. VRS 3. Others (Death, medical unfit, dismissal/resignation etc.) 1. RETIREMENT:(i) In retirement scheme, separation is done taking into consideration the age factor. That means any person attending the age of 52 will automatically be separated from the organisation .It is a continual process. This is also known as natural separation. (ii) A person born on any date except 01st will retire at the end of month. (iii) A person born on 01st of a month will retire at end of previous month. . 2. VRS (VOLUNTARY RETIREMENT SCHEME):In case of VRS mode of separation, this is done as and when required. Reason for VR scheme is 1-Reduce excessive manpower- In other words, when the organisation feels the necessity of separating excessive employees from the organisation VRS is implemented. 2-More important reason is by implementing VR scheme the age-mix of the company is maintained. The average age of the company gets reduced appreciably by introduction of VRS.

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ROURKELA STEEL PLANT The benefits will be in line with what is described below. However it changes from time to time as per requirement at that instance BENEFITS: The following monetary benefits would be available to employees seeking retirement under these rules. a) Lump sum Compensation: An employee whose request for Voluntary Retirement has been accepted would be entitled to a Lump sum compensation equivalent to 25 days basic pay plus fixed dearness allowance plus dearness allowance and DP, if applicable, for each completed year of service or the basic pay plus fixed dearness allowance plus DP, if applicable, at the time of voluntary retirement multiplied by the balance months of service left before normal date of retirement whichever is less. (Ref. OO No.11 dated 10.12.2003. further modified vide OO No.21 dated 7.12.2004.) b) Gratuity: Gratuity will be paid only for the served period as per rules. c) Encashment of leave: In addition to the encashment of Earned Leave under the existing rules, such employee will be entitled for encashment of Medical Leave also on half pay as is due to them on the date of Voluntary Retirement. However, in case of those employees who seek voluntary retirement on attaining the age of 55 years and above, the admissibility of benefit shall be as under:(i) 75% of the Medical Leave, due, can be encased if the voluntary retirement is sought, on attaining the age of 55 years; (ii) 50% of the Medical Leave due can be encased if the voluntary retirement is sought on attaining the age of 56 years; (iii) 25% of the Medical Leave due can be encased if the voluntary retirement is sought on attaining the age of 57 years.

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ROURKELA STEEL PLANT D) Provident Fund: Full employer's contribution to Provident Fund. E) Retirement TA: Full retirement TA as applicable to the employee on superannuation.

3. OTHER MODE OF SEPARATION includes:• Death • Removal/Dismissal • Medical unfit • Resignation •

Removal/Dismissal: -The only difference between the two is that in the case of dismissal the employee is disqualified from future employment while in the case of removal he is not debarred from getting future employment. Therefore, dismissal has more serious consequence in comparison to removal.

Removal An employee can be removed from the roll of the company . -Habitual absence on duty -Crimes -Imprisonment Dismissal An employee can be dismissed from the organization because of many factors. These includes:-Impersonation -Fraud -Forgery -bribery A person once dismissed cannot be employees anywhere else.

•

Resignation:-

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ROURKELA STEEL PLANT > A resignation is the formal act of giving up or quitting one's office or position. A resignation can occur when a person holding a position gained by election or appointment steps down, but leaving a position upon the expiration of a term is not considered resignation. When an employee chooses to leave a position it is considered a resignation, as opposed to termination, which occurs when the employee involuntarily loses a job. Whether an employee resigned or was terminated is sometimes a topic of dispute, because in many situations a terminated employee is eligible for severance pay and/or unemployment benefits, whereas one who voluntarily resigns may not be eligible. Abdication is the equivalent of resignation of a reigning monarch or pope, or other holder of a non-political, hereditary or similar position. > A resignation is a personal decision to exit a position. > No. of persons resigning in a year is known as attrition rate. The attrition rate in RSP is much less in comparison to others. Recruitment: Recruitment is an important part of an organization’s human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it. The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. There are various modes in the recruitment process. They are: •

Open recruitment

•

Other than open

•

Campus

•

Compassionate

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ROURKELA STEEL PLANT •

LDP (Local Displaced People)

•

Reappointment

•

OPEN RECRUITMENT: The open recruitment includes the written and the interview process, wherein the

candidates after clearing the written round, if get qualified, and then is selected for the interview round. The written round is considered as the rejection round and the interview round is considered as the selection round. Approx. in 1:5 ratio candidates are called for interview round. •

OTHER THAN OPEN: These types of recruitment involve only the interview round.

•

CAMPUS: The campus recruitment for which the company’s visit the colleges includes two rounds i.e.; the written as well as the interview round. It selects candidates and tests their potential accordance to the job.

•

COMPASSIONATE: RSP also gives job under compassionate ground.

Under compassionate ground jobs are provided in following categories:(i) Death due to accident while on work place. (ii) Death due to accident while coming to/doing out of duty. (iii) Death due to 3 major diseases (cancer, heart Stroke, Kidney failure) That means on the death of any employee due to the reason as mentioned above job is provided to the dependent of the employee first offer is made to the spouse of the employee. The spouse may further relinquish and request offer to be made to the one of the children. Moreover the grade at which offer is made as per the qualifications and as per the rules of the company. They are as follows.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT 1. S1- matric,+2 2. S2-Matric and ITI 3. S3-BSc/Diploma 4. S10-Graduate Engg. 5. E0-MBBS •

LDP (Local Displaced People): LDP is providing only for displaced person. Generally once established of the company there is required land. Company gives the offer of the people any one person gives the job or gives the land amount. The people accept of job offer, this offer is called “displaced”. This displaced process recruitment of the people.

Reservation in Recruitment: 1. There shall be a reservation of 15 per cent for the members of the Scheduled Castes, 7.5 per cent for the members of the Scheduled Tribes and 27 per cent for the members of the Other Backward Classes in the matter of appointment by direct recruitment on all India bases by open competition. 2. There shall be a reservation of 16.66 per cent for the members of the Scheduled Castes, 7.5 per cent for the members of the Scheduled Tribes and 25.84 percent for the members of the Other Backward Classes in the matter of appointment by direct recruitment on all India basis otherwise than by open competition. 3. Except in Delhi, reservation for the Scheduled Castes and Scheduled Tribes in case of direct recruitment to Group C and Group D posts normally attracting candidates from a locality or a region is generally fixed on the basis of proportion of their population in the respective States/UTs. Reservation for OBCs in such cases is fixed keeping in view the proportion of their population in the respective States/UTs and the fact that it is not more than7% and total reservation for SCs, STs and OBCs does not exceed 50%. Quantum of reservation fixed for SCs, STs and OBCs in such cases has also been indicated

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ROURKELA STEEL PLANT 4. Where recruitment is made for zones or circles or regions consisting of more than one State, the percentages of reservation for SCs and STs is generally fixed on the basis of the proportion of SCs and STs in the respective zones/circles/regions and reservation for OBCs is fixed keeping in view their proportion in the population of the respective zones/circles/regions and the fact that it is not more than 27% and total reservation for SCs, STs and OBCs does not exceed 50%. 5. The members of the Other Backward Classes who fall in creamy layer shall not get the benefit of reservation. Criterion for determining creamy layer status amongst Other Backward Classes is also prescribed. 6. Reservations also do not apply to: Temporary appointments of less than 45 days duration; those work-charged posts which are required for emergencies like flood relief work, accident restoration and relief etc.

25000 20000 15000 10000

East

5000 0

2003- 2004- 2005- 2006- 2007- 2008- 2009- Jun-10 04 05 06 07 08 09 10

MANPOWER TREND IN RSP

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ROURKELA STEEL PLANT

MARKETING DEPARTMENT

INTRODUCTION: The term Marketing is an all embracing term and includes activities starting with the motivation at customer sale of product and after sale services to satisfying the need wants of the customer at a profit from it., this purpose is achieved by selling it. Products can be sold easily by adopting proper marketing strategies. This aspect applies both consumer good industries and producer good industry has no exception. Marketing deptt. Of RSP was earlier called as the Order Department. It is only deal with the secondary product of RSP and the primary product of RSP is dealt by the Central Marketing Organization (CMO). Earlier till 1974 the Central Marketing Department (CMO) was in charge of the marketing of the scrap products. Marketing of the defective products was also handled by the CMO till 1998, and though they are also responsible for marketing of primary products of RSP, they had produced primary products blindly due to that there was huge increase in scrap and defective products. For that they have faced huge loss in end nineties. But later the individual plants were asked to handle the sale of secondary and the scrap product. During past few years the marketing dept. of RSP had a huge workforce of employees. But due to modernization and introduction of the computer technology the workforce have been reduce to less number of employees. Earlier the documents and important papers were kept in lockers and required 2or 3 employees to maintain, this process make the entire sales process time taken and unsecured. But today the documents are stored in soft copies in computer system that makes more reliable, easy to access and increase the efficiency of the organization. R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT After the implementation of “Single Window System” the work process is minimized. This system is new system and it has been introduced in 1st April 2004 and for last two years it has been running successfully. Present organization chart of marketing department is-

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

ED (MM)

G.M. (MM)

DGM (Mktg)

AGM (SSSY)

Sr. Manager (I & S)

Jr. Executive (Mktg.)

Sr.Manager, COC, Waste product

AGM (A & D)

Jr. Executive (Mktg.)

IDLE ASSETS Sr. Manager (Mktg.)

CDY Manager (Mktg.)

MARKETING OF RSP’S PRODUCT: As far as RSP’s products are concerned, there are two types of products of RSP•

Primary Products

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ROURKELA STEEL PLANT •

Secondary products

• All these products of RSP are heavy and huge in nature. As these products are producer goods, the customers for them are widespread in the country. So heavy strong marketing network is needed to market these products. The products of RSP are marketed under two authorities. The primary products of all plants of SAIL are marketed through Central Marketing Organization (CMO). Secondary products are marketed by individual plants. So the primary products of RSP are marketed through CMO, whereas the secondary products are marketed through the marketing department of RSP. Central Marketing Organization (CMO): The major functions of CMO are research, including assessment of demand and availability providing feed to commercial director on the same. It collects market intelligence and identifies new market and products required. The CMO has a network of sales officers and stockyard within the country for purpose of distributing of materials from the outlets. The other aspect controlled by CMO are planning customers services, transport AND SHIPPING Data AND information system etc. The distribution of iron and steel products is done by the CMO, through 45 branches and stockyard located in all important steel consuming centres, in the country. For administration purposes, the branches are grouped under 10 zones and 4 regions. They operate various schemes to see that movement of products is fast and customer is satisfied. PRODUCT RANGE OF RSP: Primary Products: R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT I. Pet Products:1. Pipes a. ERW Pipes b. Spiral Wield pipes 2. Electrical Steel Sheets a. Cold Rolled Non Oriented Steel Sheets (CRNO) b. Cold Rolled Grain Oriented Steel sheets(CRGO) c. HRD Sheets 3. Electrolytic Tin Plates II. Non-Pet Products: a. Plates b. Hot Rolled Coils c. Hot Rolled Sheets d. Prime Slab e. Cold Rolled Sheets f. Galvanized Plane Sheets g. Pipe Plant Return (PPR) Coils

Secondary Products: I. Iron and Steel: a. Cast iron skull scrap b. Cast iron U/R ingot steel R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT c. MS turning and Burning O.S scrap d. Tundish Steel skull e. Steel skull trimming scrap f. Iron and steel BF fines scrap g. BF dumps iron h. Used/rejected CI bottom plates scrap i. Used/rejected CI mould scrap j. Cast iron scrap II. Re-Rollable Scrap: a. Steel plates cutting scrap b. Steel plates shearing scrap c. Steel crop ends scrap d. Concast steel short length slab e. Concast steel slab crop end. f. CI Skull scrap g. URIN/IS h. Steel skull scrap GR-I i. Side trimming j. BF drums iron k. BF fines l. Steel skull scraps

III. Steel Melting Scrap: a. Steel skull scrap b. Scrap bales (Bundle scrap from rail lines press) c. MS turning and boring

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ROURKELA STEEL PLANT d. Side trimming e. Scrap slab IV. Industrial Scrap: a. CR steel cutting scraps b. CR steel coils end scraps c. CR steel cut flat end scrap d. CR steel bas cut scraps e. HR steel- cutting scraps f. Sticker coils g. Semi Rolled steel plates h. Steel test piece scraps V. Defectives: Defective HR Coils (2.0mm) Defective HR Coils (2.3mm) Defective HR Coils (2.5mm) Defective HR Coils (2.8mm) Defective HR Coils (3.15mm) Defective HR Coils (above 3.15 & up to 5 mm) Defective HR Coils (above 5mm) HR U/T Coils from CRM (below 3.15mm) HR U/T Coils from CRM (3.15mm & above) Defective HR Coils (Pickled) (2.0mm) Defective HR Coils (Pickled) (2.3mm) Defective HR Coils (Pickled) (2.5mm) Defective HR Coils (Pickled) (2.8mm) Defective HR Coils (Pickled) (3.15mm) Defective HR Coils (Pickled) (above 3.15 & Up to 5mm)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT Defective HR Coils (Pickled)(above 5mm) Defective CR Coils (0.4mm) Defective CR Coils (0.5mm) Defective CR Coils (0.63mm) Defective CR Coils (0.8mm) Defective CR Coils (1.0mm) Defective CR Coils (1.25mm) Defective CR Coils (1.6/1.8mm) Defective CR Coils (2.0mm) Defective CR Sheets (0.4mm) Defective CR Sheets (0.5mm) Defective CR Sheets (0.63mm) Defective CR Sheets (0.8mm) Defective CR Sheets (1.0mm) Defective CR Sheets (1.25mm) Defective CR Sheets (1.6/1.8mm) Defective GP Sheets (0.35mm) Defective GP Sheets (0.4mm) Defective GP Sheets (0.5mm) Defective GP Sheets (0.63mm) Defective GP Sheets (0.8mm) Defective GP Sheets (1.0mm) Defective GP Sheets (1.25mm) Defective GP Sheets (1.6mm) Defective Chequered plates (5-10mm) Defective HR plates Defective plates (6-20mm) Defective plates (above 20mm) Defective Under sized plates (length 400-610)

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ROURKELA STEEL PLANT Defective Electrolytic Tin plates Defective CRNO Sheets VI. Semis: a. MS ingot (Non – Silicon) b. Pig iron VII. BF Slag: BF granulated slag (NLT) VIII. Coke Fraction: -Hard coke -Mixed coke Nut coke -Mixed breezed coke

SALIENT FEATURES OF THE MARKETING POLICY OF SAIL: •

Customer contact officers of the producers will be regular touch with customers according to a well co-coordinated plant and will arrange for supply of steel for them.

•

Producer must bring greater co-relation then hitherto between supply and demand by working out suitable rolling programme.

•

Producers must ensure that large majority of customers are reasonably satisfied. Special attention tobe paid to the needs of public sector units, director Government demand and such priorities which Govt. may down from time to time.

•

Defense, Railways, Steel Plant SSICS will get their supplies direct, special qualities both from plate mill as well as Cold Rolling Mills will be dispatched direct. As the allocations for Hr coils are in bulk, the tube makers and wagon builders for plates in coil from will get their supplies through stockyards.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

•

ROURKELA STEEL PLANT In view of the important role to be played by stock yards producers must increase the number of stock yards and provides adequate handling facilities.

•

In the stockyard, the producers must keep a range of products as their base stock to enable consumers to buy their requirements as and when they need it.

•

Demand and supply position will be reviewed in quarterly JPC meeting.

•

Producers should organize their sales to provide satisfaction to consumer both by increase in production and prompt customer services.

•

Producers should endeavor to keep up the delivery schedules by mutual agreements.

•

The customers need not have large organizational set up for procurement of steel. As far as R.S.P. products are concerned Electrical Steel Sheets, Tin Plates & Pipes don’t come under this system. The supplies of these items are arranged direct to customers.

MARKETING SECTION: Marketing section of RSP has four major sections•

Auction and Disposal

•

Secondary Steel Stockyard

•

Iron and Steel Secondary

•

Coal & Chemicals, Waste Products, SPP

•

AUCTION AND DISPOSAL:

The section is concerned with the auction and disposal of scrap and idle assets and also deals with the disposal of the secondary products. The secondary products are nothing the scraps those are generated in the process of steel making. A lot of scraps are generated by capital repair, periodical repair, and construction and changing of machineries and also due to technological

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ROURKELA STEEL PLANT obsolescence. These are to be disposed off either by utilizing it in plant or to be sold to avoid holding huge inventories as obsolete items. This auction and disposal deals with two sections. 1. Central Disposal Yard 2. Idle Assets •

SECONDARY STEEL STOCKYARD:

The Secondary Steel Stockyard (SSSY) of RSP has been constructed just at the outsight of the greel gate along the Bisra road with an initial investment of about Rs.1.5 crores in the year of 1991-92. It came into operation on 30.10.1991 and was formally inaugurated on 02.03.1992. Subsequently, the yard has been expanded suiting to their requirement and necessary. •

IRON AND STEEL SECONDARY:

Secondary steel products are generated during the process of primary products. It is generated at various pieces in the plants. More the production we do, more the secondary product we will get. These defective products cannot visible to the naked eyes, but they are defective products. The defective products are stored in the secondary steel stockyard and from there it is supplied to the different venders of RSP. This section deals with the marketing of IRON and STEEL secondary products generated in the process of steel making. •

COAL & CHEMICAL, WASTE PRODUCTS:

The waste products generated is liquid oxygen, liquid hydrogen, rejected fire clay bricks, blast furnace flue dust, cinder ash and LD slag. Ferrous sulphate is a waste product that is generated from the cold rolling mill. It is base material for print industry. It is also used as manure for opium plants. LD slag is another waste from SMS. It is the steel slag and its primary customer is south eastern railways. Flue dust is also a kind of waste generated from the blast furnace. It is a mixture of iron dust and coke dust used in small iron factories, coke briquette plants etc.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

FINANCE DEPARTMENT INTRODUCTION: The steel plays a crucial role in the industrialization of a country for sustaining the growth of an economy. Financial objective of RSP as an integral part of its business mission into earn a fair return on investment.

FUNCTIONS OF FINANCE DEPARTMENT: (i) Acceptance of cash and payment. (ii) Maintenance of books of account, completion of balance sheets and then audit. (iii) Preparation of capital and operation budgets. (iv) Evaluation of capital projects. (v) Cost accounting & cost control for each process/ product. (vi) Internal Auditing. (vii) Stock verification. (viii) Time keeping and Payments. (ix) Receiving verification and payments of bills to the contractors and supplier. (x) Preparation of bill/ Invoice for the sale of products.

Financial Position of the Organization: The company has financed its assets from external sources by equity share capital invested by the Govt. long term loans from Government and Steel development fund and working capital loan from banks, public deposits and inter-corporate deposits decide internal resources generated in the form of depreciation provision.

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ROURKELA STEEL PLANT

BANKERS OF SAIL: 1. State Bank of India 2. Bank of Baroda 3. Canara Bank 4. Punjab National Bank 5. United Bank of India 6. Syndicate Bank 7. Bank of India 8. Indian Overseas Bank 9. Oriental Bank of Commerce 10. Central Bank of India 11. UCO Bank 12. State Bank of Patiala 13. Punjab Sind Bank Ltd. 14. United Bank of India 15. Allahabad Bank 16. State Bank of Hyderabad 17. Jammu and Kashmir Bank 18. State bank of Sourastra 19. Bank of Maharashtra 20. State Bank of Indore 21. State Bank of Bikaner & Jaipur 22. State Bank of Mysore

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

IMPORTANT FINANCIAL DATA OF RSP:

SL. NO.

ITEMS

As at 31.03.06

As at 31.03.07

As at 31.03.08

As at 31.03.09

As at 31.03.10

Budget 31.03.11

1

Share Capital

49022

49022

49022

49022

49022

49022

2

Loan Funds

2.1

From Govt.

-

-

0

0

-

-

2.2

From S.D.F.

34331

3578

2934

2824

2109

2109

2.3

From Others

86958

75333

74404

142007

224036

224036

3.

CASH CREDIT

2127

11217

3694

0

3531

3531

4.

Reserve & Surplus

-

-

21808

122928

256907

369894

5.

FIXED ASSETS

5.1

Gross Block

632026

632024

651992

671907

701940

754023

5.2

Depreciation

308306

334199

363492

389113

418954

454155

5.3

Net Block

322020

297825

288500

282794

282986

299868

5.4

Capital Work in Progress

11457

18296

29624

120527

267812

415729

6.

Inventories

71811

87756

87013

122856

101669

112091

7.

Working Capital

49466

57749

28031

32857

53171

51865

8.

Capital Employed

371486

355574

316531

315651

336157

351733

9.

Gross Sales During the Yr.

463272

639501

738485

774174

709269

844279

10.

Net Profit(+)/Net Loss(-) 49651 During the Yr.

133640

140133

101120

133979

112987

11.

Cum. Loss(-)/Profit(+) Trf. to Bal. Sheet after appropriation

-118325

21808

122928

256907

369894

-251695

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

ED (F & A)

GM

ES

Payroll

FS

IGH

Estate Office

TA Loans & Advances MABC

OBA Stores Accounting

ARC

RMBA

PF

Claims & Freight

(Oraganisation Chart for finance Department)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

PUBLIC RELATIONS AT RSP Public Relations are the deliberate, planned and sustained effort to create mutual understanding between an organization and its stakeholders. The main functions of Public Relation are: •

Image building among stakeholders

•

Dissemination of information regarding the organization

•

Media relations – local & regional

•

Local advertising & publicity

•

Events

A pre-requisite of effective communication is a thorough understanding of the company, the nature of its stakeholders and the dynamics of the environment (business, political, social et al) in which it is operating.

TARGET AUDIENCE: Internal •

Employees

External •

Govt.,

•

Financial Institutions/Banks,

•

Customers,

•

Community Neighbors,

•

Policy Makers,Govt. Agencies,

•

Suppliers,

•

General Public,

•

Others, Stakeholders

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

OBJECTIVE: •

Reinforcing the image of Rourkela Steel Plant as a profitable, progressive and vibrant plant that cares for all its stakeholders.

•

Establishing RSP as a Socially Responsible Corporate Citizen.

•

To create a sense of pride among the stakeholders.

•

Corporate image building.

UNITS OF PUBLIC RELATIONS: •

COMMUNICATIONS

•

ROURKELA STEEL TELEVISION CENTRE

•

PHOTO UNIT

•

DOCUMENTATION CENTRE

•

ISPAT PRESS

•

COMMUNICATIONS:

1. Daily news for RSTV 2. Press Releases : a) regular b) paper specific c) special features 3. Media Liasioning 4. The House Magazine (Ispat Sahayog) in three languages. 5. Brochures, posters, hoardings etc 6. Inputs for SAIL news, website & corporate publications 7. Messages of MD, Speeches, Appeals Etc 8. Scripts and story boards of corporate films and promotional films. 9. Creating and Facilitating Advertisement Campaigns

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

Content of Communication:1. Priorities of the Plant 2. Future Challenges 3. Production and productivity 4. Achievements of employees/ family members 5. Safety 6. Quality 7. Cost Control •

ROURKELA STEEL TELEVISION CENTRE: 1. Daily News in Oriya, Hindi & English 2. Weekly News Round Up on Sundays 3. Yearly Round Up 4. Health File 5. Documentaries, reports 6. Live Recording/Telecast of important programmes 7. Interviews & Panel Discussions 8. Cultural Programmes, Quiz and other special programmes etc 9. Messages of important dignitaries

•

PHOTO UNIT (STILL & VIDEO PHOTOGRAPHY): 1. Glimpses for RSTV News 2. Presentation of albums to VVIPs 3. Special Purpose Still Photography : > Press releases > Ispat Sahayog > Statutory, Insurance, Factories Inspector, Police inquest etc

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT > Booklets & Brochures Exhibitions

•

DOCUMENTATION CENTRE: 1. Daily Press Clippings to MD and all EDs 2. 3. 4. 5.

•

Computerized data bank on clippings & different topics Media Analysis Record Keeping Library ISPAT PRESS:

1. Technical stationeries for Internal Use 2. Office Stationery, Medical Books, coupons, Park tickets 3. APP Booklet, Delegation of Power, Periodicals, Log books 4. Messages, speeches, appeals etc 5. Risograph of different communication materials

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

QUALITY CONTROL IN RSP INTRODUCTION: At Rourkela quality is way of life which begins at the mines follows meticulously at every step of processing and ends with inspection of the products. Quality control measures are inbuilt in the highly sophisticated equipment with continuous monitoring of essential data through computerized control in all the production units. The quality control team maintain history card for each coil, sheet, plate, or pipe the leaves Rourkela.

TQM @ RSP : It was the consistent belief in this business philosophy that led to the adoption of TQM by RSP since January 1992 and today forms the core of all our business strategies. No other strategy can be predictive of success in today’s competitive environment. We have been able to realize the “customer first” approach and percolate it down to the workmen level with associated changes in our attitude towards quality of our processes in general and quality of product in particular. Subsequently, the scope of TQM was enlarged to include implementation of various management systems for Quality, Environment, Occupational Health & Safety and Social Accountability as a mark of obligation towards all sections of stakeholders.

TOTAL QUALITY MANAGEMENT: In RSP, 36 departments consisting of all the production departments, all the Mechanical & Electrical Repair Shops, majority of the service departments, Personnel and Steel Township have been certified to ISO 9001: 2008 QMS. Quality Management System(QMS) for the various departments under Iron & Steel Zone, Rolling Mills and Shops & Services have subsequently been integrated to achieve single certificate for entire RSP (Works) in Jan’11. This integration of

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT QMS has resulted in considerable saving apart from reduction in documentation and processing time. To strengthen the system, Recertification Audit is conducted once in every three years and Surveillance Audit every year. Implementation of Quality Management System has brought following advantages: •

Better quality of product and high customer satisfaction

•

Implementation of Computerized Maintenance Management System and systematic maintenance practices.

•

Competency assessment of employees and need-based training.

•

Systematic monitoring and review of process performance.

ENVIRONMENT: Looking back, Silicon Steel Mill and Environmental Engineering Department were the first departments to be certified with ISO 14001 Environment Management System (EMS) in the year 2000. Subsequently, SP-II, HSM, PM, SWPP, ERWPP, SPP and Steel Township were certified to ISO 14001:2004 EMS. RSP’s Steel Township is the first Township of SAIL to be certified for both ISO 9001 QMS and ISO 14001 EMS. The implementation of EMS at important locations has brought in •

Regular monitoring for adherence of environmental parameters.

•

A clean and green environment and thus stakeholders’ delight

•

Compliance to legal and other requirements.

OCCUPATIONAL HEALTH & SAFETY: Entire RSP has been certified to internationally acclaimed Occupational Health & Safety Assessment Series (OHSAS 18001: 2007) in Apr’10. It is noteworthy that OHSAS (Occupational Health & Safety Assessment Series) standard covers the salient aspects of Health and safety of all regular and contract employees, visitors and any other person at the workplace. It facilitates identification of hazards and assessment of risks at different places and redressal of

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT the significant risks within a timeframe. This certification has helped RSP in the following aspects:

•

Systematic Hazard Identification and Risk Assessment (HIRA).

•

Significant reduction in accident rates and man-hour loss.

•

Higher employee motivation.

•

Systematic compliance to legal & other requirements.

SOCIAL ACCOUNTABILITY: Being a responsible corporate citizen, RSP has taken significant strides to respect and uphold the dignity of its stakeholders. This has become amply evident with the intention of our plant to implement and achieve certification of internationally acclaimed SA (Social Accountability) 8000 standard. The certification process of RSP is under progress. It is worth mentioning here that SA 8000 focuses on nine areas. Significant among them are •

Non-deployment of child labor,

•

Abolition of forced labor,

•

Right to join trade unions and

•

Fair wages

INTEGRATED MANAGEMENT SYSTEM: In order to have synergy and synchronization in implementation of various management systems, concept of Integrated Management System (IMS) has been initiated in RSP. An IMS Policy covering Quality, Environment, Occupational Health & Safety and Social Accountability of RSP has been introduced. The IMS Policy signifies commitment of RSP towards •

Production of defect free products and services

•

Prevention of environmental pollution, injury & ill health

R.V. INSTITUTE OF MANAGENENT, BANGALORE

•

ROURKELA STEEL PLANT Ensuring a socially accountable work culture and compliance to all legal and other requirements.

RSP has the distinction of the first SAIL unit to adopt the IMS policy.

REVIEW SYSTEM: To implement, document and maintain all these management systems, a Three Tier Management Review of IMS is held regularly by HODs, GMs and ED (Works)/ED (P&A). TQM Department facilitates the monitoring and reviewing of around 300 parameters concerning Quality, Environment and Occupational Health & Safety aspects of the certified departments. The necessary corrective and preventive actions are taken in case of deviations with respect to Process Parameters, Objectives & Targets, complaints and audit findings for effective implementation of management systems. •

The periodic review system has resulted improvement in

•

Production and productivity

•

Periodic preventive maintenance

•

Monitoring of Environmental parameters

•

Monitoring of occupational health and safety performance

•

Compliance with legal and other requirements

QUALITY MONTH CELEBRATION: A distinct feature in RSP is the celebration of month of November as the Quality Month and the 2nd Thursday of November as the Quality Day every year. To imbibe the sense of Quality consciousness among the employees, Essay, Debate & Quiz Competitions related to Quality are conducted and the Managing Director felicitates the successful employees on the Quality Day as well as the best departments from Iron & Steel zone and Rolling Mill zone for achieving best

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT Quality parameters. Eminent speakers are invited to Quality Day function to address the gathering of employees on recent advancements in the field of Quality.

DEPARTMENTS CERTIFIED UNDER ISO 9001 QMS:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Ore Bedding & Blending Plant Calcining Plant-II Sinter Plant-I Sinter Plant-II Blast Furnaces Coke Ovens Coal Chemicals Department Steel Melting Shop-I Tonnage Oxygen Plant-I Tonnage Oxygen Plant-II Steel Melting Shop-II Lime Dolomite Brick Plant Plate Mill Hot Strip Mill Special Plate Plant Silicon Steel Mill Cold Rolling Mill Spiral Weld Pipe Plant ERW Pipe Plant Captive Power Plant-I Traffic & Raw Materials Mechanical Shop Repair Shop (Mechanical) Fabrication & Structural Shop Roll Shop Field Machinery Maintenance Air Conditioning

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT 28. 29. 30. 31. 32. 33. 34. 35. 36.

Repair Shop (Electrical) Power Distribution Electrical & Electronics Services Foundries Instrumentation Repair & Construction (Mechanical) Steel Township Personnel HRDC

The following units of RSP have also been certified with ISO 14001: 2004 Environment Management System (EMS):

1. 2. 3. 4. 5.

Environmental Engineering Department Hot Strip Mill Plate Mill Silicon Steel Mill Sinter Plant-II

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

CHAPTER 4

SWOT ANALYSIS R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

SWOT ANALYSIS

STRENGTH: •

Established name in India & Abroad.

•

Large period of experience.

•

Availability of raw material and manpower.

•

Adopt modern management schemes such as Srujani award scheme and Creativity award scheme in order to encourage employees (especially non executive) that indirectly help in increasing labour productivity.

•

Total Quality awareness through training of executive and non-executive employees.

•

Established infrastructure like land, township, and medical.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

WEAKNESS: •

Absence of core competence

•

Limited understanding of positioning its product

•

Statutory & committed recruitment of unskilled, semiskilled personnel

•

High cost of production

•

Over manpower is the main weak point for RSP.

OPPORTUNITY: •

Ability to influence market share

•

Emergency of quality of steel

•

Large coverage of area

•

Government of India has introduced a new floor price of steel below which steel cannot be sold. This is a safeguard to native industry.

•

Total Quality Management Programme will open up ample opportunity towards profitability.

•

Full utilization of the vast work force.

THREAT: •

Less market share in Indian market.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

•

ROURKELA STEEL PLANT Import of Iron & Steel at abnormally low rate from Russia, Brazil, Iran, Japan etc. as a result of liberalized import policy and cut in custom duty.

•

Deli censing to encourage private investors giving chance to avoid complicated licensing procedure.

•

Stiff competition from other companies.

•

Slow in responding to modernization necessities.

•

Rising cost of coal.

CHAPTER 5

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT

FINDING, SUGGESTION & CONCLUSION

FINDINGS •

Managing a huge workforce of approx. 19,000 is a challenging job at any instance and at any place. It’s truly overwhelming to know the mammoth task be carried out so smoothly.

•

Most of the employees said that the training needs/development plans are identified during Performance Review Planning. Some of the employees said that Training needs/development are not identified during PRP.

•

When the respondents were asked to suggest any improvement in the present appraisal system of SAIL, a majority of them could not suggest anything. Few of the employees have suggested a few improvements. These suggestions are included in suggestions of report.

•

Maximum employees of the Rourkela Steel Plant are satisfied with RSP,s leadership and planning.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT •

80% employees abide by the corporate culture.

•

87% of employees believe there role are clear in RSP.

•

Maximum employees find the working environment as suitable.

SUGGESTION Considering all the facts I think there must be changes in policy of RSP. Some of the suggestions are as follows:•

The marketing strategy of RSP should crucially depend upon customer satisfaction, so improved.

•

The security deposit of 105% should be reduced to 102%-103%, as the variation in quantity of the allotted material during loading is minimum.

•

The practice of just-in-time delivery should be thoroughly internationalized to give RSP the strength to grow under the competitive scenario. The dispatch destination with the railways in this regard should be given priority.

•

Customer database to develop incorporating product wise/zone wise requriment.

•

RSP should plan to explain the possibility of diversifying the product mix so as to enlarge its customer’s base and also improve quality of product.

•

The appraisal system of SAIL is very good indicating that there is good degree of improvement desirable to the organization. The following are some of the points that have been born in my mind while attempting to study the Executives Performance Appraisal System of SAIL.

•

The appraisal system should be more focused to achieve all its required objectives.

•

Continuously stretch the boundaries of the current jobs: challenging people to reconceptualize their roles reorient their responsibilities.

R.V. INSTITUTE OF MANAGENENT, BANGALORE

•

ROURKELA STEEL PLANT The raw material prices for RSP have been increasing at a very fast rate which should be taken care off by efficient usage of raw materials and avoiding wastage at all levels of value addition.

•

Expense on employee remuneration and benefits from the second highest expenditure, this expense has also been increasing at a faster rate, so a check on this expense is necessary.

•

RSP should focus on operating at full capacity this is because it has missed many opportunities because of its not operating at full capacity.

•

It should look after the growth of ancillary industries, which depend on the secondary products.

•

Customer section should be done by choice not by chance.

•

The plants need to update with technology constantly, and also focus on the production of steel of that sector which will have high future demand.

CONCLUSION SAIL, RSP is a large public sector organization whose main concern is the manufacturing of steel. Since it’s a public sector organization their employees enjoy special benefits and also every possible care is taken by the organization towards their employees. There are a total of 1 lakh 17 thousand employees in SAIL, whereas 18,655 are in RSP itself. So it’s quite a huge task to take care of so many employees and the organisation trying to achieve it. RSP also pays attention to multi-facets of employee welfare. It tries to recognize and nurture potential of their employees. The plant is highly systematic disciplined and modernized.

Rourkela Steel Plant has completed four decades of existence and during this period there has been complete shift, moving from a monopolistic state to a totally competitive market R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT environment. Over the years many changes were initiated. I being the pioneer in the production of wide varieties of iron & steel also produce diversified varieties of secondary arising during the production process. RSP caters to a varied and wide spectrum of consumers. There is hardly any industry, which does not utilize its products either directly or indirectly. Total customer satisfaction in all aspects is therefore the key to success of any business organization. Hence RSP now aims at devoting it energies towards producing quality and crating values of customers. Every operation, however small, is carried out keeping the customer and his expectation in mind. RSP is taking a lot of steps in marketing quality steel. New players have entered into the steel market. Each player would like to gain in terms of market share. RSP gives priorities to various customer problems, its pricing and distribution policies. RSP now gives emphasis making market oriented and customer oriented strategies. “There is a little bit of SAIL in everybody’s life”- this is catchword for SAIL.

BIBLIOGRAPHY

http://www.citehr.com http://www.sail.co.in http://www.rsp.co.in SAIL News Sahayog- a magazine of RSP A panorama of Human Resource Development Centre, RSP

R.V. INSTITUTE OF MANAGENENT, BANGALORE

ROURKELA STEEL PLANT Samaskar- magazine of RSP SAIL Annual Reports RSP Manuals

ANNEXURES SAIL/ROURKELA STEEL PLANT Profit & Loss Account for the year ended 31st, 2011 Particulars

Year ended March’ 2011 (Rupees in crore)

R.V. INSTITUTE OF MANAGENENT, BANGALORE

Year ended March’ 2010 (Rupees in crore)

ROURKELA STEEL PLANT A. Income Sales Less: Excise Duty Policy Loss Interest Earned Other Revenues Provision no longer required Written back Stock transfer to the units

7452.19 696.32

Net Income

6755.87 0.00 15.08 107.01 5.16 206.62

6992.24 555.31

7089.74

6436.93 7.59 11.99 109.43 10.75 100.45 6677.14

B. Expenditure Accretion/Depletion to stocks Raw materials consumed Employee’s Remuneration & Benefits Stores & Spares Consumed Power & Fuel Repairs & Maintenance Freight Outward Other Expenses Share of expenditure over income - Corporate office - CMO - CCSO Interest & Finance charges Depreciation Total Less: Inter Account Adjustment Profit of the Year Adjustments pertaining to earlier years Net Profit

-289.39 3549.26 1182.79 492.01 482.66 65.03 107.67 185.81

137.08 2733.83 811.60 480.34 422.90 50.92 88.98 170.68

79.92 48.00 6.13 95.88 332.77 6338.54 112.52

62.48 42.00 5.49 103.32 310.68 5420.34 82.21

6226.02 863.72 8.17 871.89

5338.09 1339.05 0.74 1339.79

SAIL/ROURKELA STEEL PLANT Balance Sheet as at 31st March, 2011 ITEMS

As at 31st March, 2011

R.V. INSTITUTE OF MANAGENENT, BANGALORE

As at 31st March, 2010

ROURKELA STEEL PLANT (Rupees in (Rupees in crore) crore) SOURCES OF FUNDS Shareholders’ Fund Reserve & Surplus Loan Funds Secured Loans Inter Unit Current Accounts TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress Current Assets, Loans Advances Inventories Sundry Debtors Cash & Bank Balances Other Current Assets Loans & Advances Less: Current Liabilities & Provisions Current Liabilities Provisions

3440.96

3440.96

2.06

2569.07 75.37

10766.85 14209.87 7616.52 4506.61 3109.91 4560.80

7670.71

7019.40 4189.54 2829.86 2678.12

1362.61 15.92 25.77 1.06 371.12 1776.48

1016.69 32.31 24.00 1.26 267.33 1341.59

1423.08 1061.16 2484.24

1522.52 1070.30 2592.82

2569.07 75.37 8308.81 10953.25

5507.98

Net Current Assets Inter Unit Current Accounts

-707.76 7246.92

-1251.23 6696.50

TOTAL

14209.87

10953.25

R.V. INSTITUTE OF MANAGENENT, BANGALORE