Imported Raw Material Inventory Management at Tata Steel A TOC- TQM Approach, Impacting Business  

Oleh:

Gupta, Mahuya ; Gupta, P P ; Singh, Prakash ; Kishore, Bimal ; Singh, N Amarjit

Jenis: Article from Proceeding
Dalam koleksi: 12th ANQ Congress in Singapore, 5-8 Agustus 2014, page 1-8.
Topik: Theory of Constraints (TOC); Inbound supply chain; Inventory management; Buffer replenishment model; Total Quality Management (TQM); Daily Management (DM)
Fulltext: TQ2-2.3-P0340.pdf (849.54KB)

Isi artikel

In a typical integrated steel plant, production chain consists of raw material supply, iron making and steel making with mills at the end, which convert steel into finished products like skin panels and re-bars. In FY’12, Jamshedpur plant was expanding its production capacity by nearly 40% and many new facilities were coming up and getting commissioned which was expected to be continued in FY13 as well. Since the capacity expansion was going on inside the running plant, managing the supplies to the consuming departments and shrinking stocking space were major challenge in Fy13. Hence the need for maintaining low imported raw material inventory, yet ensure un interrupted raw material supply to customer departments was the major objective for Fy13. The tool identified to analyze the problem was Theory of Constraints. Implementation of TOC in inbound supply chain along with other TQM tools at Tata steel is first of its kind. There are multiple raw materials and multiple sources for raw material supplies. Data for all imported raw materials were stratified and analyzed at each grade level.. At the same time ‘risk management’ plans were also put into place to deal with global uncertainty for raw material availability. Risk mitigation plan w r t raw material supplies and ‘trigger points’ to put those plans into actions were designed. All these efforts resulted into all time lowest operating inventory for imported raw materials at Tata Steel. This paper explains, through a case study in Tata Steel, how the elements of two different improvement philosophies, namely Theory of Constraints and Daily Management methodology were used together to maximize the gains demonstrating an unified approach to solve problems

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