Post on 08-Apr-2018
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DURGA STEEL
LTD.
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INTRODUCTION
Durgapur Steel Plant was built in 1950s and commissioned in 1959
It is in Durgapur, West Bengal
DSP is one of the six plant under the holding of SAIL
One of the two loss making plant under SAIL
It is under the balance sheet SAIL
DSP had 29224 employees, 26724 workers and 2500 executives
The blue collar employees of DSP are from local areas of West Bengal while the
supervisors and managers were from different parts of the country
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PROBLEM IDENTIFICATION
Poor product quality
High production cost
Inadequate development of infrastructure
Under utilization of capacity and consequent low production
High energy consumption
High level of pollution
High manning ratios relative to its output
Militancy of the unions
Inter union rivalry supported by the state government
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SPECIAL ATTENTION
Change in work attitude
Intervention needed to develop positive relation
Excess manpower would have to be released
Work methods need to be rationalized
No drift in administration
Growth and development of the organization as well as the employee
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PROBLEM GRAPH
Managementapproaches
Workmensparticipation
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WHAT WAS THE SOLUTION ????
Managementapproaches
Workmensparticipation
A logical and rationalattitude from the
employees and workers
Formation joint counciland shop councils
Collaborativeapproaches by thethree trade unions
Suggestion from alldirections and strict
guidelines to follow it
Investment inmachineries to increase
the yield
Decentralizing theorganizational structure
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MANAGEMENT APPROACHES
Towards technological changes:-
Preparation of the degradation report by MECON
Invitation to the expertise from outside INDIA to advice on the current scenario and
technological up gradation
An investment of Rs. 40000 million for technological changes
Replacement of some machinery plants and equipments like LD convertor replaced with
open hearth(OHF) process, concast casting with ignot casting and TNT & Slit rolling
technology in the merchant mill
Greater automation and application of electronic instruments in the computer
controlled processes
Recovery of the by products
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Identification ofproblems
Investment forpurchase andmaintenance around
Rs 40000 million
Adding capacity
Replacing somemachinery, plantsand equipments
Introducing newtechnology
aintenance amountand structure for the
newer machines
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Evaluation:-
A supporting hand from the mother plant SAIL as well as the state government
Well planned process of the operation
Good mingling between foreign purchase and local purchase of the machinery
Proper and exact manpower planning and subsequent planning for their growth and
training
Good utilization of inflows in purchasing the new and second hand machineries
Excellent co-ordination between the management and the plant engineers
No intervention of any third parties
Good adaptation of computer and electronics adopted systems
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The long awaited outcomes:-
Technological aspects
Improvement in the cost and the quality of production in the preparatory stages
Improvement of yields from liquid steel to finished steel by 8%-10%
Reduction in energy requirements
Improvements in hot metal productivity as well as labour productivity
Attainment of higher level of production
Reduction of environmental pollution by possible conversion of waste materials into
meaningful byproducts , lesser emission and reduced level of effluents
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0
200
400
600
800
1000
1200
1960-1969 1970-1979 1980-1989 1990-1993
Crude Steel
Saleable Steel
Pig Steel
Hot steel
BEFORE TECHNOLOGY
ADAPTATION
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BENEFITS FROM TECHNOLOGICAL
CHANGES IN DSP
0
100
200
300
400
500
600
700
800
900
1993 1994 1995
Crude steel
Saleable steel
Pig steel
Hot steel
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The average saleable steel price had increased from Rs. 6843 to Rs. 6551
Labour productivity had increased from 46 TCS/man/year to 96 TCS/man
/Year
Energy consumption had also increased
The by products recovery process were made more faster and efficient
The product mix became more beautiful
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Other aspects : -
A vibrant changes in relation with the trade unions
Gained confidence in handling critical problems
Improvement in work culture
Urge of success in future
Training programme had boosted the confidence of the existence employees and the
workers
Trade unions had subdivided themselves into co-operatives
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Contributing Factors:-
Support from mother plant SAIL
Co-ordination between higher, middle and lower managements
Even the supervisors and the executives played a helping hands
The three unions felt the need of the plant and contributed equally in economic
development of the plant and co-operated with the management by logical reasoning
rather than collective bargaining
An unparalleled contribution from the employees and workers in understanding the
basic needs of up gradation and current economic, political and social scenario
Arrangement of regular workshops, seminars and training programmes
regularly, attained by all classes
Regular meeting sessions between managements and operation team
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ROLE OF TRADE UNIONS
Played a typical role
Sort out the problems analytically rather than thinking politically
Hold meetings with management regarding the transfer, Voluntary retirement schemes
and payment of wages on behalf of the workers
Sort out the critical issues in manpower placing
All the three unions acted and participated equally and collaboratively
Managed to gather confidence from the employees and workers individually by their
good works
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Communication Consultation
Joint decision making Participation
Role of the three
Trade unions toevolve out from thecrisis situation of DSP
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All workingcollaborativelyfor the success
HIGHER
MANAGEMENT
MID- LEVELMANAGEMENT
ANDSUPERVISORS
EMPLOYEESAND
WORKERS
TRADEUNIONS
THE
SUCCESS
STORY
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Replenishment ofinfrastructure, equ
ipments, inflowsand investment innew machineries
that boost up sales
ncoura ed theunions and theemplo ees tothin for the
futuredevelopment ofthe or anization
Increasedjob
satisfaction
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Improved work
culture
Managersmaintainedsympathetic
but firmrelationships
Three tierconsultativesystem andemployee
workshops
Strengtheningbonds amongunions and
management
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THE BEST PART
The were handled with no third party interference i.e. no involvement
of arbitrator, adjudicator and conciliator
The mother plant SAIL had extended their helping hand
MECON had played the advisory role
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OTHER ISSUES
Stabilization of the emerging social system
Matching the requirements, production along with the modernization procedures
Hiring fresh manpower to possibly eliminate the hurdle of overtime and shift sessions
To capitulate upon the future changes in the political scenario of West Bengal
Matching economic situations in deciding the wage and salary structures
Time constraint to overcome the huge loss and run in profit
Future requirement in higher quality and quantity production level to match the
capacities of the plants
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RECOMMENDATION
Reduction of intended and unintended consequences
May have a profit sharing approach along with shorter working days / week to enhance
employee satisfaction
Role of trade union in implementation as well as installation
Career progression of the employees as well as the workers to be highlighted by proper
training facilities and job transfer
A proper and scheduled categorization must be there between temporary and
permanent department for the workers
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Informationsharing
Consultation
Managementcommitment
Works skillstraining andup gradation
Measuringworkers
health andsafety
Sharinggains withemployees
Trade unionparticipation
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To continue with the current performance standards the bonding between the
unions and the management need to be much more stronger.
It is better to maintain the equipments rather than purchasing new one as per
requirements will only solve the production problems . Lastly employees and
workers to be kept satisfied by greater compensation packages and benefits to
keep healthy work culture and increase the production simultaneously.
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THANK
YOU