The right chemistry
April 2006
Tata Chemicals
(TCL) realises that you can't do today's job with yesterday's
methods and be in business tomorrow. To achieve and sustain
global standards, the company has made continuous improvement
its focus, and business excellence its daily endeavour.
Operating India's largest and most integrated inorganic chemicals
complex at Mithapur, as well as the country's most energy-efficient
fertiliser complex at Babrala, TCL is the market leader in
two of its key products soda ash and branded salt.
The company has seen a steep 17-per cent growth in sales this
year.
Before it is a far more challenging goal, the JRD QV Award.
"Our focus is not just on a number," says Vivek
Talwar, corporate quality head, Tata Chemicals, "but
on processes that make continuous improvement." Crossing
the coveted 600 mark, he feels, would be a reality check that
the company is moving in the right direction.
Aware that a chain is no stronger than its weakest link,
TCL has taken a conscious decision to apply for the Tata Business
Excellence Model (TBEM) as an enterprise and not as separate
strategic business units (SBUs). "Applying for TBEM as
a single enterprise requires a strong alignment and integration
across our various units, and would create a stronger organisation,"
explains Talwar. "This would enable us to rapidly replicate
pockets of excellence," he feels.
The phosphates business is a new entity, a result of the
merger of Hind Lever Chemicals Limited last year. Tata Chemicals
plans to bring the business on board the common TBEM application
soon. "Over the last three to four years," says
Talwar, "we have been doing frequent and honest diagnoses
of our work. I feel that quite often we are over-critical
of ourselves, but that's a good thing since it makes people
seek improvements." Talwar wants the company to do better
in terms of benchmarking. "Babrala is a world-class fertiliser
plant. We need to benchmark ourselves with other world class
fertiliser plants on many more aspects than we do at present,"
he believes.
The foundation of excellence is built on processes. The TCL
management aims to have a structured enterprise-wide process
model, which would involve mapping its 1,000 or so processes.
Talwar believes that when departments take ownership for their
own processes, it moves the organisation away from being person-specific
and towards being systems oriented. "We are now working
on improvements to this process, as a result of our learning
over last year," he says.
The company is deploying high-end quality tools to help it
respond to business challenges faster. The 'quality function
deployment' or QFD tool helps identify and cater to the needs
of customers across all segments, as well as track performance
vis-à-vis competitors. Talwar feels that this should
result in higher customer satisfaction and loyalty.
A more structured learning process is also in the making.
TCL launched an IT-enabled knowledge management (KM) process
last year. It has developed an interesting and unique methodology,
encouraging its employees to share 'stories' that can build
a repository of tacit knowledge. Tata Chemicals believes that
its KM system is a Group benchmark in the making.
The company regularly taps into the knowledge and best practices
of other Tata Group companies. A compilation of knowledge
on best practices that can be implemented by the company is
being worked on by the quality systems people and the company's
external assessors.
These assessors play a vital role in benchmarking. Talwar
wants many more of them, "even though the percentage
of external assessors to the total management cadre at Tata
Chemicals is already about the same as the best in the Group".
He plans to ramp up their number in the next two years.
The company's in-house business excellence training programme
has a carefully selected aspirational acronym, BEST (Business
Excellence Stewardship Training). It utilises the latest TBEM
application of the company as a case study. The module looks
at the participants and the organisation as customers and,
in the best traditions of process design, has provided features
that address their needs. "What is heartening is that
a number of non-management cadres are also clearing BEST,
which means TBEM is permeating through the entire organisation,"
says Talwar proudly.
The company has deployed several innovative initiatives.
Unnati, a total employee involvement programme focussed primarily
on the non-management cadre, empowers workers on the shop
floor to take ownership of their areas and work on continuous
improvement. Manthan, is a cost-reduction programme with a
bottom-up approach that uses the creativity and energy of
employees and stakeholders, to address four critical areas
- purchasing, manufacturing, micro-marketing and the supply
chain.
Umang uses theatre to create awareness, commitment and organisational
transformation. It communicates the message in an energising,
emotional, participative and 'fun' manner, and has been used
to spread the message of KM, TBEM, code of conduct and cultural
pillars across the enterprise.
Over the last three or four years, TCL has made tremendous
progress, in its performance, financials, processes and customer
focus. "We have simultaneously taken up a very large
number of initiatives. Organisational transformation is the
most significant sentiment that we encounter across the enterprise,"
Talwar declares. But Tata Chemicals has already raised the
bar higher; it's got its sights on the JRD QV Award and on
becoming a world-class chemicals conglomerate.

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