TBEM 2008

0.0 Organizational Profile

P1 Organizational Description
P1(a) Organizational Environment
Tubes SBU, a Profit Centre of Tata Steel Limited since 1993, is one of the largest steel tube producers in India by
volume, growing at CAGR of 12%. Promoted in 1954 as The Indian Tube Company by Tata Steel in
collaboration with M/s. Stewarts and Lloyds of U.K., it is one of the pioneers of the tube industry in India. In
October, 1985 the Indian Tube Company was merged with Tata Steel.
% of Tata Steel Ltd. in FY-
Particulars FY-06 FY-07 FY-08 Plan FY09
08 E
Turnover 1195 1290 1450 6% 2100
Employee Strength Nos. 1540 1486 1295 4% 1100
The SBU has its own marketing setup (Marketing Head Office located in Kolkata), Sales Offices, and a network of
distributors and retailers, all over the country. It also has 27 consignment agents and 4 External Processing Agents
(EPAs) who augment product range. SBU caters to 3 key business segments indicated in table below:
Business Brand Key Segments Competitor Market Size MT Market Share %
Commercial Process, Irrigation, Jindal, Surya, Roshni,
Tube TATA Pipes Plumbing Zenith
13,03,000 20.20
Structural Construction & Appolo, Goodluck steel
Tube TATA Structura Engineering tubes
Precision TATA Precision TI, Bhushan, Arihant,
4,55,000 14
Tube Tube Automotive & Boiler KLT

a1. Customer groups, product segments, their requirements and delivery methods can be seen in Figure P-5. The
Order Generation and Fulfillment Process is enunciated in Figure P-1. Combination of SKUs is indicated in P-2

Fig. P-1 : Order Generation & Fulfillment Process Management

Classificatio
Geometry Surface Finish End Finish Draw Type Process
n
As SKU's in
Circula Galvani Varnishe Plain Screw & Welde Cold ER Different
Product r RHS SHS -zed Oiled d End Scoketed d Draw W CEW FM Nominal
Diameter
Commercial Length
Tube and
Wall
Structural Thicknes
Tube s

Precision
Tube
Fig: P-2: Classification of products ( Different SKU Combination)

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a2. The SBU has adopted the corporate Vision, Mission and imbibed/internalized its value system (fig. P-3). It
believes that its purpose is to improve the quality of life of people it serves. Its leadership has driven it to become a
vibrant, fast growing, and customer facing business (fig. P-3). While the companys Vision and Values are lived in
Tubes SBU, it has co-created its own Aspiration Statement (Figs. P-4, P-9, and P-13). This was essential given its
distinct market places, competitive environment intensity, products & processes.
The SBU engages its workforce through 5 engaging practices. (1) Performance management system (2) Team
based structure (3) Employee empowerment (4) Safe work environment (5) Knowledge, Improvement & Change
Management. It has adopted a robust Leadership System (fig. 1.1-3). It believes in vibrant mechanisms for two-
way communication, participative management through Joint Consultation (Figs. 1.1-13 and 1.1-14) and a high
commitment towards its social responsibilities (Figs. 7.6-22 to 29).
From To
Product Centric Customer Centric
Budget & Annual plan driven Strategy and Policy driven (Deming methodology)
Activity driven Process driven
Rules/Regulations driven Value driven/Professionalism
Common sense decision making approach Fact based decision-making
Survival mind set Grow and dominate the industry mind set
3-tier manning 2-tier manning
Price Driven Value Driven
Multi product Specilised influencer managed
Inventory reduction Cash to cash cycle time reduction
Maintain sufficient stocks Replenishment with very high availability
Fig. P-3 : Changing Culture at Tubes SBU
Vision We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship
We make the difference through:
Our PEOPLE, by fostering team work, nurturing talent, enhancing leadership capability and acting with pace,
pride and passion.
Our OFFER, by becoming the supplier of choice, delivering premium products and services and creating value
with our customers.
Our INNOVATIVE APPROACH, by developing leading edge solutions in technology, processes and products.
Our CONDUCT, by providing a safe working place, respecting the environment, caring for our communities and
demonstrating high ethical standards.
Mission Consistent with the vision and values of the founder Jamshetji Tata, Tata Steel strives to strengthen India's Industrial
base through the effective utilization of men and materials. The means envisaged to achieve this are high technology
and productivity, consistent with modern management practices.
Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and stable enterprise,
profitability provides the main spark for economic activity.
Overall the company seeks to scale heights of excellence in all that it does in an atmosphere free from fear, and one
which encourages innovativeness and creativity.
SBUs We shall offer value creating products and solutions to achieve a leading position in the tubes business continuously
Aspiration upholding Tata Values
Core Values Trusteeship, Integrity, Respect for the individual, Credibility, Excellence
Fig. P-4 : Our Vision, Mission, Aspiration and Values
a3. SBUs employee profile is given below:
Can
Master Finance& Post Sec/ Read
Category Avg. Engineer Graduates Diploma Total
Qualification Accounts Graduates HSC &
Age
Write
Officer 45 23 21 9 10 7 32 102
Supervisors 49.5 3 18 9 71 102 63 4 270
Workers 48 4 98 3 674 267 1046
Total 26 21 27 23 176 137 737 271 1418
Contract
Employee 42 8 62 210 280

Category Male Female Total Semi un-

Category Skilled Total
Officer 98 4 102
Skilled Skilled
Officer 102 102
Supervisors 265 5 270
Supervisors 273 273
Workers 1010 36 1046
Workers 536 290 115 941
Total 1373 45 1418
Total 911 290 115 1316
Contract Employee 235 45 280 Contract Employee 75 125 80 280

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Key
Category Key Benefits Health & Safety Requirement
Expectation
Officer Involvement in business planning Variable performance pay Mandatory Use of PPE
Job enrichment Cross functional assignments Executive health Plan
Job rotation Business exposure instead of Mandatory health checkup after (1-3 year)
Training & development association functional Must adopt safe work procedure
with team work Networking
Supervisors Ownership of process, involvement in Exposure to new management Use of PPE
business training & development technologies Regular health check up.
Reward & recognition for high Monthly variable performance pay Must adopt safe work procedures
performance Promotion schemes Making safety visit
Workers Skill development training Exposure to new management Use of PPE
Involvement in problem solving techniques Regular health check up.
Reward & recognition for high Monthly variable performance pay Must adopt safe work procedures
performance Promotion Making safety visit
On job safety training
Contract Health & safe work place Reward system Mandatory health check up before starting
Employee Timely payment of wages Job continuity Job.
Skill development Social security Must adopt safe work procedure (SWP)
Minimum wage On job safety training
Supervisors and Workers are organized into a single trade union with a democratically elected representatives
called Union Committee Members in all departments. The UCMs represent the interests of the employees through
the Tata Steel Workers Union. fig. P-11 shows the current organizational structure of the company.
Jobs are categorized as skilled, semi-skilled and unskilled. Plants and essential services are run for three shifts a
day. Workmen are grouped in clusters to provide better team work and work flexibility. Culture of associate has
been introduced in the new facilities to further enhance supervision less work system.
Contract labours are used in areas of non-regular jobs. Before deployment they have to undergo mandatory safety
& on job training. Working in Plant requires use of PPEs such as safety shoes, helmets, ear-plugs, hand gloves, etc.
and requisite training to handle certain equipments (e.g., Cranes, etc.). Round the clock workmen safety is given a
very high priority. Sections 5.3-1 and 2 deal in detail with the special safety requirements.
a4. Technologies, Equipment and Facilities: The Tubes SBU has recently established one of the most modern
tube making facilities in the country. Post ramp up of all new facilities & modernization of existing ones, we shall
have an in house capacity of 240,000 Mt of commercial tubes (Process, Irrigation & Plumbing tubes) and 86,000
Mt of precision tubes. Modernization has covered all our activities from information systems, tube production,
finishing , packing, warehousing & delivery. We would therefore have a total annualized in house capacity of
3,26,000 Mt of welded tubes including 25,000 Mt of Cold drawn tubes.
PLANT/ MILL/ EQUIPMENT/ TECHNOLOGY, PROCESS
FACILITY
1. ST Mills
6 HFIW and 3 HFIW Mills (High State of the art automated continuous tube mills with solid state welders and high speed
Frequency Induction Weld Mills) cold saws
Pickling and Galvanizing Fully automated pickling line followed by fully automated hot dip tube galvanizing lines
FM Mill (Fretz-Moon process) A hot finished fusion welding process unique in its product quality characteristics
Bundling and Packing On Line flexible packaging lines (Semi-automatic)
Threading and Socketing machines Fully automatic threading & socketing machining,
Testers Hydraulic testers
2. PT Mills
2, 3 and 4 Mills High frequency induction welding mills. (The 4 Mill is one of its kinds in India.
Modernization of the 2 and 3 also underway).
3 Normalizing furnaces Coke oven gas fired induction heating furnaces. Recently commissioned most marderm
6T/hr furnace for bright annealing.
Cold Drawing benches A semi-automatic 60 Mt capacity Cold draw line, integrated with on line CNC
straightner, cutting, end chamfering, on-line Eddy current testing and packaging. We
also run our old chain driven lines for low end products.
Finishing Facilities / Cutting On Line cutting and packaging line for the new cold draw line. In addition we have two
Machines packaging lines for our existing capacities, Manual Taylor cutting machines for sizing
tubes to exact lengths.
Testing Machines Hydraulic testers, Ultrasonic testing
Packing Arrangement Manual
3. Other Facilities
IT ERP (SAP), 12 Lotus Notes, Laptops, Desktops, Cell-phones, Internet, Intranet, VC
EPAs Standard and Precision Tube Mills and other down stream facilities
Test Labs Chemical, Metallurgical & Electronics labs
Machine Shop CNC M/c, Heat Treatment, Tool Room, Lathe M/cs, Roll Machining
Effluent Treatment Plant Facility to ensure environmental compliance
P-5: Technology. Equipment & facilities

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a5. Tubes SBUs operations/businesses are governed by various regulations / standards as enumerated in the table
below. In January 2008 Precision Tubes Business of SBU has been recommended by IQRS for TS 16949 certification
Acts / Rules / Regulations / Industry Standards Frequency of Review Owner
Factories Act Monthly Head HR/IR
The Central and State Pollution Control Board Regulations Monthly Manager Safety &
Environment
Income Tax, Sales Tax, Central Excise regulations, Companys Act and Cost Daily, Monthly, Yearly Financial Controller
Audit Report Rules, Payment of Gratuity Act, Payment of Bonus Act,
Provident Fund Rules
IS-1239/IS-1161: Compulsory BIS certification as per QC order, GOI Yearly Head TS
QMS-9001 (first Tube Company in the country to obtain the certification), Quarterly Management Representative
EMS-14001, OHSAS 18001
Tata Code of Conduct (TCoC) Quarterly Divisional Ethics Counselor
P-5a: Regulatory Environment

P1(b). Organizational Relationships

b1. SBUs Organization Structure and Governance Structure are shown in figs. P-11 and P-13 respectively.
Organizational relationship between the board (at corporate level) and the senior leadership can also be seen in the
above two figures.
b2. The SBU operates in Indian steel tube markets by serving the segments such as Irrigation, Process,
Construction, Auto, etc. Key customer groups and market segments for the three businesses are depicted in fig.P-6.
Our brands have a large & diverse customer base. The key requirements of each segment are therefore diverse in
nature. In the exports market, Tubes SBU is in the process of acquiring knowledge to ascertain attractive markets
and geographies for a sustainable presence. Tubes SBU has plan to leverage its reach in India by marketing Corus
Tube Products.
Key Stakeholder Group includes Customers, Supplying Partners, Channel Partners, Employees,
Community, and the Upper Management of the company representing the expectations of the shareholders.
Key Customers/ Delivery A typical Buyer Key Product/Service
Business Segments Results
Customer Groups Method Profile Requirements
Plumbing Distribution / House owner for first Weld Quality, Galvanizing Quality, 7.1-9, 10,
Distributors,
Retail (Make to time use & Thread Quality, 11, 29,37,
Retailers, IHB,
Stock) replacement, builders, Order Compliance, 40, 41
Commercial Tubes

Builders/Contractors.
Influencers Complaint Redressal
Irrigation Distributors, Distribution / Farmers, Government, Weld Quality, Galvanizing Quality, 7.1-17, 18, 30,
Retailers, Farmers Retail (Make to Institutional Buyers Thread Quality, 34,37, 40, 41
Stock) Order Compliance,
Complaint Redressal
Process Distributors, Distribution / Purchase & Technical Weld Quality, Bendability 7.1-15, 16, 40,
Industries Retailers, Cold Retail (Make to Managers Order Compliance, 41, 34, 37
Storage, Institutional Stock), Direct Complaint Redressal
Buyers (Make to Order)
Architect Channel Partners, Direct, Thru Builders & Architects, Weld Quality, Yield Strength 7.1-12, 13, 14,
ural Fabricators, Direct BDPs Consultants Order Compliance, 32, 38
Customers (e.g., Complaint Redressal
malls / buildings)
Industrial Channel Partners, Direct, Thru Auto Manufacturer, Weld Quality, Yield Strength 7.1-12, 13, 14,
Fabricators, Direct BDPs Sugar and Fertiliser Order Compliance, 32, 38
Structural

Customers (e.g., Industries Complaint Redressal

industrial sheds)
General Channel Partners, Direct, Thru Furniture, Scaffolding Weld Quality, Yield Strength 7.1-12, 13, 14,
Engg. Fabricators, Direct BDPs Order Compliance, 32, 38
Customers (e.g., Complaint Redressal
L&T / Gammom)
Infrastruc Channel Partners, Direct, Thru Builder, Architect, Weld Quality, Yield Strength 7.1-12, 13, 14,
ture Fabricators, Direct BDPs Consultants, Order Compliance, 32, 38
Customers (e.g., Institutionals Buyer Complaint Redressal
Airports)
Auto TVS, Bajaj, Tata Direct (Make to Auto manufacturers, Mechanical Properties, Surface 7.1-1, 2, 3, 4
Motors Order), VMI for Ancillary units Finish, Weld Quality 7.1-19 to 20, 23
Precision Tubes

select customers Product Development Cycle, to 26

Order Compliance
Boilers Thermax, Alstom Direct (Make to Boiler manufacturers, Weld Strength, 7.1-5 to 8, 21,22
Project, Order) Sugar Industries, IBR Certification, 27,28
Walchandnagar Ind. Fertilizer Industries Order Compliance
General Hero, Ralson Direct (Make to Cycle, furniture Weld Quality, 7.1-4, 7.2-14
Engg. Order) manufacturers. Price
Fig. P-6 : Key Product/Service Requirement and Delivery Methods

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Key Suppliers Distributors Products and/or Supply Chain Role / support in Helping Organizational
Services
and Partners Provided Requirements Innovation

Flat Product Group (Steel Timely order, weekly Joint improvements in maximizing use of side slits,
Steel prime over run steels, steel planning, converting CR
Division) monitoring, regular lifting to HR.
Hindustan Zinc Ltd. Zinc Timely Delivery, Cost Strategic Sourcing, Slab size
Shared Services (Steel Electrical Power Regular availability Joint improvements for reduction in power
Division) consumption
Saroda, NSPF, MK Sockets Timely Delivery, Cost, Self inspection based supplies, Vendor Managed
Industries Quality Inventory
Shared Services (Steel CO Gas, Oxygen, Regular availability Joint improvements for reducing specific
Division), British Oxygen & Nitrogen consumption
Tata Refractories Refractories Timely Delivery, Cost Help in experimenting with different grade of
Refractories
TRL, BMW Slitting of wider Timely Delivery, Cost Joint improvements in improving planning and
steel coils reducing slit loss
Bansal, Sandhu Tubes, Conversion of
Srutech, Ottoman, Neepaz, Compliance, Quality, Cost Joint improvements for improving productivity
tubes
Bina Metals
ARC, ABC, Supersonic Transportation Timely delivery, Cost Implementing Express Order delivery, Incentive
based Transport lead time reduction
IBM-Global Computer Service Level, Up time Automation, Workflow based office management,
maintenance work simplification
South India Corporation Warehousing & Proper storage, Handling of Improvement in flow, storage practices
(SICAL), CSD Delivery Tubes
Kedia, SICAL, Shankara Distribution No stock outs, ROIC Implementing TOC value offers to increase sales
Pipes, Mandya Pipes and realisation
Fig. P-6a : Key Supplying Partners and Distributors
b3 Our supplier group includes suppliers of Steel (i.e., Flat Product Group of the company), slitters of Steel,
supplier of Zinc, supplier of CO gas & Power and suppliers of Equipment, Spares & Consumables.
Distributors/partners enable distribution of Commercial Tubes, Structural Tubes, and Precision Tubes. The Key
suppliers and partners are shown in Fig. P-6a.
Key customer relationship building methods are described in item 3.2. These include Tata Pipe Parivaar, Meets,
Socializing with the Channel and the Customers in various forums, etc. Initiatives like RVM, CVM, CPO and TOC
(SFS) have been undertaken to create further value for the customer and also to enhance relationship.
b4:The different form of communication with various types of customers & supplying partners are listed in Figs.
1.1-13 and 14.
P2 Organizational Challenges
a. Competitive environment
a1. Commercial Tubes: Tubes SBU stands no. 1 by volume in this business. Competitive intensity can be seen in
Fig. P-7. This industry is highly fragmented with more than 100 manufacturing units. With an aggregate capacity
of over 21 lakh MT, this industry is characterized by huge over capacities (~60% capacity utilization). 50% of the
supplies emanate from the small manufacturers, most of them having strong regional presence. There is also a
severe threat of substitution from PVC Pipes primarily in Plumbing and Irrigation segments.
Structural Tubes : Tubes SBU, with its brand of TATA STRUCTURA stands no 1 in the business of Steel
Hollow sections in India, with a market share of over 80% in this segment. The industry of steel hollow sections
comprises of 2 organized players and the balance un-organised. The conventional sections are being converted to
Steel Hollow sections through better, efficient and elegant designs.
Sales Capacity Market
Capacity
Region Name of the Unit Location FY07 Utilization FY07 Share FY07
(Mt/Yr)
(Mt) (%) (%)
East Tubes SBU (In-house Jamshedpur 2,80,000 2,60,000 93 20.2
only)
Jindal Pipes Howrah 72,000 35,000 49 2.69
North Jindal Pipes Ghaziabad 1,90,000 1,35,000 71 10.38
Surya Roshini Ltd. Bahadurgarh 1,70,000 98,000 58 7.54
Jindal Industries Hissar 1,50,000 120,000 80 9.23
West Zenith Tubes Mumbai 1,22,000 45,000 38 3.46
Others Various Units Dispersed 12,20,000 6,10,000 50 47
Total All India 22,02,000 13,03,000 59 100
Source: IDS report & Field report by RSM and the branch officers. (*including structural)
Fig. P-7 : Competitive Intensity - Commercial & Structural Tubes Business

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Precision Tubes: Tubes SBU is ranked 3rd by volume in this business. Competitive intensity in this business can
be seen in Fig. P-7. This industry comprises ~25 units with production capacity of around 7 lakh mt per year and
characterized by co-existence of medium, large and small-scale industry. Tubes SBU has the best capacity
utilization of 100% (excluding new mill which is under stabilization), compared to the Industry average of around
67%. It commands a market share of 13%. The SBU along with TI has a predominant presence in the value-added
segments of Boiler and Cold Drawn Tubes (Fig. 7.3-23 to 26).
Exports have an increasingly important role for the SBU.
Name of the Capacity Sales Capacity Utilization Market Share
Unit Location (Mt/Yr) FY07 (Mt) FY07 (%) FY07 (%)
Tata Steel Jamshedpur (36,000 tones of new capacity 104,000 62,802 60 14
Tubes added.)
Tube Chennai/ Pune/ Chandigarh 1,30,000 98,000 75 22
Investments
Atlas Gurgaon 36,000 15,250 42 3
Bhushan Chandigarh/ Kolkata/ Khapoli 1,40,000 1,27,000 91 28
Arihant Pune 60,000 27,500 46 6
KLT Mumbai 64,000 27,800 43 6
Others All India 180,000 96,648 54 21
Total 7,14,000 4,55,000 64 100
Fig. P-7a : Competitive Intensity - Precision Tubes Business
Commercial Tube Precision Tube Structural Tube
Reach High Service Levels Availability of full range
Brand Image Product Quality and Range High Delivery Reliability
Availability Existing Relationships in other Steel Influencer Relationship Management
Low Cash to Cash Cycle Time Products (HR and CR)
Key Initiatives Key Initiatives Key Initiatives
RVM TOC - 95% DDP Technological up gradation
Brand Building - Marketing Technology Upgradation - Product TOC - 95% DDP
Initiatives Development (In House HR) Structura Directions, Profiles and
TOC - Replenishment SFS, CVM Updates
TOC - end to end Influencer oriented initiatives
Fig. P-8 : Factors for determining Competitive Position
a2. To retain market and industry leadership, Tubes SBU is focusing on factors given in Fig. P-8 to create
differentiation. The principal factors contributing to SBUs success relative to competitors are highly focused
supply chain, continuous improvement, commitment for excellence (i.e., TBEM), Brand Image, Value Creating
Partnerships, Customer Relationships, Product Quality and Enthused & Happy employees. Service and Product
differentiations are created by emphasis on customer driven strategies and brand equity. The SBU has always been
able to command a substantial Brand Premium in the Commercial Tubes Business (7.3-30) and retain customer
loyalty (7.2-24,25,26 & 28).
The key environment changes that could affect our competitive situation are:
Adverse Effect Favourable Effect
Emergence of new technologies India becoming an auto component hub
Regulatory changes Growing Demand in Construction where we have first mover
o Import Duty advantage
o VAT VAT
Emergence of new aggressive players in Precision Emergence of technologies with high entry barrier
Tubes Access to global technology
Threat from Chinese Imports Usage potential in automotive industries
Substitute from plastic
a3. Key available sources of comparative, competitive and benchmark data are enumerated in the table below. Please
also see figs. 4.1-3 and 3a.
Type of Key Available Sources Limitations On Obtaining Data
Data
Comparative/ CMIE Prowess, Published Reports, Internet, Non-availability of detailed cost analysis, financial information and
Competitive Visits to domestic / international renowned operational indices because the main tube manufacturers do not
Data from Tube Manufacturers, CAM reports necessarily present this information for their tube business
Within Industry separately, but consolidate with their main line of business (e.g.,
Surya, TI, Jindal, Zenith, etc.), Few listed companies
Comparative Published reports/papers, Journals, Internet, Un-willingness to share information, particularly the Results
Data For Visit to Tata/ Non-Tata Companies,
Analogous Interaction with Corporate Personalities,
Processes from Interaction with Experts, TBEM assessment,
outside Industry TBEM/JNT application of other applicants

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b. Strategic Challenges
Strategic Challenges facing the SBU are shown in fig. P-9. These are derived by STEP while discussing what can inhibit
accomplishment of Strategic Goals and key elements of Aspiration/Vision.
Aspiration Key Strategic Key Strategic
Challenge Description
Statement Goals Challenges
G1. Become 1 C1. Capability of C1. Phased modernization, up gradation of existing facilities and skill levels while adhering
million ton tube current facilities to quality and delivery norms is a challenge.
We shall offer value creating products and solutions to

player C2. Commodity nature C2. Larger part of the industry has a commodity mindset. Offering value added products and
G2. Double the of tube industry services is hence a challenge.
achieve a leading position in the tubes business

Operating C3. Threat of C3. With increasing prices necessitated by huge increases in input Raw Material costs (Zn
Profit Margin Substitutes and Steel), we face a strong substitution threat from PVC especially in the Irrigation and
G3. Achieve C4. Low entry barrier Plumbing. Given the low buying power and product knowledge of most customers, it is a
Value Creating for tube-making and challenge to combat this threat.
continuously upholding Tata Values

Partnerships value chain expansion C4. Setting up low end tube mill facilities is inexpensive. Current players are expanding the
with Customers C5. High Cost Structure value chain (both, up and down streams) in an already over capacity industry. It is
/ Suppliers therefore a challenge to remain competitive.
C6. Volatility in Raw
G4. Build C5. Current total cost is higher than that of competition, largely due to higher labour cost. It
Material Prices
workforce for is a challenge to contain cost since the division still maintains some highly labour intensive
future C7. Upholding the
and out dated facilities.
ethical standards in
current environment and C6. Steel and Zinc prices are volatile. These form almost 80% of the cost of tube
succeed production.
C8. Knowledge of new C7. We can not go beyond Tata ways of doing transactions with suppliers, government
products / Segments in bodies, etc. It is a challenge to remain ethical and agile at the same time.
Tubes Business C8. We want to become a one million ton player. Knowledge on new products/segments is
inadequate. It is a challenge to acquire this knowledge quickly to realize our aspirations.
Strategic Challenges related to
Business C2, C3, C4, C6 and C7
Operational C1, C5 and C6
Human Resource C5, C8
Organizational sustainability C3, C4, C5, C7 and C8
Fig. P-9 : Strategic Goals and Challenges
Threats : Tubes division does have future threats in the precision tubes business from imports of finished
tubes/components from China. In addition to this few international players (like Caparo) are planning to set up /
buyout facilities in India in the above segment Some more Indian pipe manufacturers are planning extending their
boundaries beyond India (PSL, Welspun etc.). Some new export based precision tube capacities are also coming to
India. In the event of the above, Tubes Division does have a risk of its margins as well as market share coming
under pressure.
Opportunities: With India becoming a large component hub, there is a significant growth expected in precision
tubes in the country. A large number of Global Auto companies bring a huge opportunity for growth. Moreover,
this does require a technological shift and larger investments which may act as an entry barrier to other existing
tube manufacturers. We also see opportunity of technical tie ups with the best in the world to derive competitive
edge in the market place. It shall also provide the Indian industry with an opportunity to understand and deliver
against global quality and delivery standards.
c. (1) & (2) Performance Improvement System
Tubes SBU uses PDCA framework (Ref P-10) to bring in continuous improvement in its key work processes,
initiative like ASPIRE. Shikhar Vijay, TPM, QMS, CVM, RVM, CPO, has helped in engaging workforce in
continuous improvement.
Various cross functional platforms, performance review forums, KM system, Vendor Interactions, Customer
Meets, QMS audits, TBEM assessments, visits to tube makers in India/abroad, Learning from failures and Mass
Knowledge Manthan programmes create focus for organizational learning.
The Key Work Processes are subjected to continuous improvement through the processes mentioned above.
Process wise improvement plan is part of the annual business planning, which ensures that the processes are in
context with the challenges for the year. Process improvements are carried out to achieve the targets set in the ABP
and the 5-year SBP. Fig. 6.1-8 enlists key improvements in the Key work processes.

Mission Vision & Strategic Business

Values Plan Cycle times
Projects & Balance Score
Action Plans DEFINE Card/ Policy
Document
Improv

Performance
Measu
e

Team Improvement system Performance

re

Infrastructure summary sheet

Analyse
Daily Loss structure
Improvement Review Performance Reports Business
Meeting & Analysis Cycle times (TPM)
Process
Fig. P-10 : PDCA Cycle

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