Tatasteel Report

INDUSTRY PROFILE

Coal is a rock that is made up mostly of carbon. Because it is combustible, it is used as a fuel that can provide light, heat, and power. Most coal was formed during the Carboniferous Period and the Permian Period, approximately 250-to 350-million years ago. Warm moist swampy areas became covered with vegetation that decomposed into peat, which in time and under pressure turned into different types of coal, depending on the exact conditions. There are four major grades of coal (from softest to hardest): lignite, sub bituminous, bituminous, and anthracite. Bituminous coal is the type most often produced in the United States.

The use of coal may trace back to China around 1000 b.c.. The Romans may have used coal in the fifth century a.d., and there references to the use of coal in medieval Europe. However, there was no widespread use of coal until the Englishman Abraham Darby began to burn it as fuel for his furnace. The invention of the steam engine provided another important use for this product.

By 1745 coal began to be commercially mined in North America, but it was not until the American Revolution (1775–83) brought a halt to the importation of coal from Europe that the American coal industry began to expand at a rapid pace. By the 1840s there were numerous small mining companies in the northeastern United States. The development of the steam locomotive in the second half of the nineteenth century improved transportation and distribution of coal over long distances. The Industrial Revolution also contributed greatly to the expansion of the coal mining industry in the United States.

By the 1920s the coal industry experienced a decline in coal processing, largely because of over-expansion. Many mines closed and as many as 150,000 coal mining related jobs were lost. As other fuels such as petroleum and natural gas became popular, coal continued to drop in price. An act of Congress called the Bituminous Coal Act (1937) attempted to improve the stability of the coal industry.

The 1940s saw the conversion of steam locomotives to diesel fuel, but the loss of this use of coal was replaced by greater use of coal in electric power plants. Throughout the rest of the twentieth century, electric power plants continued to be a major consumer of coal. More efficient methods of shipping coal by train that were introduced in the 1960s allowed greater quantities to be moved across the country. Oil shortages in 1973–74 also caused the demand for coal to increase. Several developments in the 1970s limited productivity and profits although they forced coal operators to become better corporate citizens. Among them were stricter federal regulations on safety, labor practices, and environmental pollution, all areas where coal companies had a questionable reputation. In addition, other fuel resources such as nuclear power came into use as alternatives to coal.

GARDEN CITY COLLEGE 1

Two very common ways to mine coal on the surface are strip mining and auger mining. However, the most hazardous method to mine coal is under-ground. Coal mining was always a dangerous under-taking and some of the early coal operators took advantage of mine workers. Dangers included mineshaft collapse, explosions, and exposure to coal dust, which could cause "black-lung disease." In 1890 miners banded together to found their own union, the United Mine Workers (UMW), to improve safety and working conditions. The union also improved wages; the UMW remained active through the end of the twentieth century. However, though automation and advancements in technology reduced the dangers, elements of risk would always be present.

The 1980s saw some profit increases for coal producing companies through advancements in technology that improved efficiency and productivity. In the 1990s growth in coal production remain slow but steady, although the numbers of people employed in the coal industry continued to drop. The major use of coal in the United States continued to be the production of electric power. In the 1990s coal resources in the United States were projected to last for another 250 years. According to these estimations, this natural resource would continue to be utilized as a means of power for generations to come.


COAL RESERVES IN INDIA


India has some of the largest reserves of coal in the world (approx. 267 billion tonnes). The

energy derived from coal in India is about twice that of energy derived from oil, whereas

worldwide, energy derived from coal is about 30% less than energy derived from oil. Orissa,

Chhattisgarh and Jharkhand are top coal producing states in India.

So far, estimates from geological studies have suggested that India had about 267 billion tonnes of coal, including 105 billion tonnes of proven reserves. Such estimates gave rise to expectations that reserves would last for more than a century, if not double that.


http://en.wikipedia.org/wiki/India

THE MAJOR COALFIELDS OF INDIA

About 88% of the total coal production in the country is produced by various subsidiaries (a total

of 390 mines) of Coal India Ltd. Which is the largest supplier of coal (and one of the largest

taxpayers) in the country. Although Coal India is currently State controlled, efforts are being

made to open the industry to Indian private investors. At present all private mines are allowed to

operate only if they are producing coal to supply a specific industry (e.g. Power station,

industry).

Coal India has seven coal producing subsidiary companies; viz. Central Coalfields, Eastern

Coalfields (Sanctoria), Bharat Coking Coal (Dhanbad), Northern Coalfields (Nagpur), Western

Coalfields, Southern Eastern Coalfields (Bilaspur), Mahanandi Coalfields (Sambalpur) and the

Central Mine Planning & Design Institute (CMPDI) at Ranchi Bihar, which is entrusted with the

job of providing total research and consultancy support to the industry. South Eastern Coalfields

are planning to increase production from two of its operations, the Gevra and Dipka mines that

supply coal to power stations.

The only other major producer outside of CIL,is the Singerani Collieries Company that is located

in Andhra Pradesh. Singerani has 37 underground and 13 opencast mines, and produced 40.6

million tonnes of coal in 2007.


COAL MINES IN INDIA


Sl.No. COAL MINES COMPANY

1 WEST BOKARO DIVISION TATASTEEL

2 SINGRAULI NCL

3 KARNPURA & BOKARO CCL

4 JHARIA BCCL

5 ASSAM & MEGHALAYA NEC

6 RANIGANJ ECL

7 IB & TALCHER MCL

8 CENTRAL INDIA SECL

9 PENCH & KANHAN WCL

10 CHANDRA & WARDHA WCL

11 GODAVRI VALLRY SCCL

12 LIGNITE NLC

13 LIGNITE, GUJRAT & RAJASTHAN NCL

COMPANY PROFILE


Backed by 100 glorious years of experience in steel making, Tata Steel is the world’s 6th largest steel company with an existing annual crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company.

Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is slated to increase to 10 MTPA by 2010. The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.

Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries. Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market.

Tata Steel’s vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship. Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management.

The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the most effective route to growth. Tata Steel has not limited its operations and

Businesses within India but has built an imposing presence around the globe as well. With the acquisition of Corus in 2007 leading to commencement of Tata Steel's European operations, the Company today, is among the top ten steel producers in the world with an existing annual crude steel production capacity of around 30 million tonnes per annum and employee strength of above 80,000 across five continents. The Group recorded a turnover of Rs.14, 329 Crores (US$ 28,962 million) in 2008 - 2009. The Company has always had significant impact on the economic development in India and now seeks to strengthen its position of pre-eminence in international domain by continuing to lead by example of responsibility and trust.

Tata Steel’s overseas ventures and investments in global companies have helped the Company create a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. The Group’s South East Asian operations comprise Tata Steel Thailand, in which it


has 67.1% equity and Nat Steel Holdings, which is one of the largest steel producers in the Asia Pacific with presence across seven countries.

Corus is Europe’s second largest steel producer. With main steelmaking operations in the UK and the Netherlands, Corus supplies steel and related services to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus comprises three operating Divisions, Strip Products, Long Products and Distribution & Building Systems and has a global network of sales offices and service centres, employing around 37,000 people worldwide.

Headquartered in Bangkok, Tata Steel Thailand is a major steel producer in Thailand and is the largest producer of long steel products with a manufacturing capacity of 1.7 mtpa.

NatSteel Holdings is headquartered in Singapore and is a leading supplier of premium steel products for the construction industry. It became a 100% subsidiary of Tata Steel in February 2004. NSH produces about 2 MT of steel products annually across its regional operations.

INTRODUCTION TO WEST BOKARO DIVISION


A small yet beautiful place with lots of greenery, owned by Tata’s. It has washeries, opencast and underground mines besides two very good schools (DAV n Holy Cross).People from entire country staying together and shows the correct sense of "unity in diversity".

Tata Steel also has collieries at West Bokaro, with a raw coal production capacity of 4 million tonnes per annum in a lease area of 4,299.84 acres. Mining at West Bokaro involves massive material-handling operations, removing 30,000 cubic meters of coal per day.

Location

West Bokaro is located about 200 km north of Jamshedpur, in the Hazaribagh district of Jharkhand state. It is about 35 KMs SW of Hazaribag town and 26 KMs NE of Ramgarh town. Geographically, it is located west of Lugu Hill. There are several other Coal Mines, owned by M/S Central Coal Fields Ltd. around West Bokaro. The rain-fed Bokaro river flows through the property. Total area of the leasehold is 4300 acres and contains an estimated reserve of about 200 million tonnes of medium coking coal. The loading station, at Chainpur, is situated 4 kms to the south.

Organisation West Bokaro (WB) came into existence in 1948, as an independent coal company, managed by M/S Anderson Wright under the managing agency system. Tata Steel acquired the Company in 1956 to meet its requirement of metallurgical grade coal for Iron making. Subsequently, in 1976, West Bokaro was made a Division of Tata Steel. In 1974, when coal mines were nationalised, West Bokaro was exempted as it produced coal only for captive consumption of the Steel Works.

The coal industry in India is highly regulated with only a few private players allowed to produce coal for captive use in the area of steel, cement and power industry. The business objective of West Bokaro Division is to produce clean coal at optimum cost for captive use in the steel plant of Tata Steel at Jamshedpur. The surplus clean coal produced, if any, are sold in the market after getting due permission from the Ministry of Coal.


West Bokaro division is located in a remote socially backward area about 70 kms from Ranchi and 50 kms from Hazaribagh in Jharkand state. The remote location and the social pressure from the surrounding community compels the division to not only establish its own township, civil and healthcare facilities but also maintain good liaison with the district administration for exigencies.

THE LEASE MAP OF WEST BOKARO COLLIERIES

FEW MILESTONES


1947: In the year of independence, M/s Bokaro Ramgarh Ltd came into existence.

1948: Underground mines opened with Raw Coal production capacity of 0.3 MTPA

1951: Washery-1 commissioned as 1st Washery in India to produce Clean Coal at 18%

Ash.

1952: Become a owned subsidiary of TATA Steel

1972: Become a division of TATA Steel. Modernization Phase-1 to produce 0.4 MTPA

Clean Coal @ 18% ash.

1982: Modernization Phase-2. New facilities added: Washery-Ii, BC Ropeway Power

House.

1994: Modernization Phase-3 to produce 1.4 MTPA Clean Coal at 17% ash. Major

facilities added Washery-3, Quarry-E, Primary Crushing Plant, New 2 X 10 MW

Fluidized Bed Combustion Power Plant.

2003-04: inaugurated new Quarry-South Eastern Block. Start of producing Clean Coal at

16% ash. Clean Coal production increased to 1.8 MT.

2004-05: Clean Coal production at 15 % ash. New Coal handling Plant feeding Q-SEB

coal to W-5 commissioned started clean coal production at 13% ash from 1st Jan 06.

LEGILATION


TATA Steel Collieries are regulated by Coal Nationalization Act.

Under the coal Mines (nationalization) Act 1973 coal mining is exclusively

reserve for the Public Sector. By an amendment to act an exception to this policy was

introduced, which allowed captive mining by Private Companies engaged in production

of Iron Steel.

The CM (N) Act has been amended (in 1992) to allow private sector participation

in coal mining for generation of power, production of Iron , Steel, Cement and also for

washing of coal obtained from a mine.

As per statute, the captive mines can sell coal including by-products to core

sectors, like Steel, Cement and Power, only after approval from the Ministry of Coal. The

Ministry gives adhoc sanction for sale of accumulated stock only.

We have approached the ministry and started that products like Tailing/Rejects

are not suitable for above industries, so this should be allow to be sold to other actual

consumers, like brick kilns etc. After a lot of persuasion we manage to get the sanction

last year.

There is completed deregulation regarding pricing as well as distribution, for M/s.

Coal India Ltd. w.e.f.1-1-2000.

ORGANIZATION STRUCTURE OF WEST BOKARO


Vision 2010


The long journey of Tata Steel has seen the Company re-define its performance parameters in a

number of ways to become the global steel industry benchmark for value creation and corporate

citizenship. It ensures a total commitment to its ethical business practices and a people oriented

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 for 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 Jamsetji Tata, Tata Steel strives to

strengthen India’s industrial base through the effective utilization of staff 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 the essential ingredients of a strong

and stable enterprise, profitability provides the main spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does in an atmosphere

free from fear, and thereby reaffirms its faith in democratic values.


QUALITY POLICY

Consistent with the group purpose, Tata Steel constantly strives to improve the quality of life of

the communities it serves through excellence in all facets of its activities.

We are committed to create value for all our customers and key stakeholders by continually

standardizing, improving and innovating our offerings, systems and processes involving all our

employees.

This policy shall form the basis of establishing and reviewing the Business Objectives and

Strategies and shall be communicated across the organization. The policy will be reviewed to

align with business direction and to comply with all the requirements of TQM Principles.

Date:11st October 2009

HM Nerurkar ( Managing Director )


PRODUCT PROFILE

INTRODUCTION TO COAL

Coal is a readily combustible black or brownish-black sedimentary rock normally occurring in rock strata in layers or veins called coal beds. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure. Coal is composed primarily of carbon along with variable quantities of other elements, chiefly sulfur, hydrogen, oxygen and nitrogen.

Coal begins as layers of plant matter accumulate at the bottom of a body of water. For the process to continue the plant matter must be protected from biodegradation and oxidization, usually by mud or acidic water. The wide shallow seas of the Carboniferous period provided such conditions. This trapped atmospheric carbon in the ground in immense peat bogs that eventually were covered over and deeply buried by sediments under which they metamorphosed into coal. Over time, the chemical and physical properties of the plant remains (believed to mainly have been fern-like species antedating more modern plant and tree species) were changed by geological action to create a solid material.

Coal, a fossil fuel, is the largest source of energy for the generation of electricity worldwide, as well as one of the largest worldwide anthropogenic sources of carbon dioxide emissions. Gross carbon dioxide emissions from coal usage are slightly more than those from petroleum and about double the amount from natural gas. Coal is extracted from the ground by mining, either underground or in open pits.


COMPOSITION

ANTHRACITE COAL

Composition

Primary Carbon

Secondary

Sulfur,

Hydrogen,

Oxygen,

Nitrogen

Chemical composition of the coal is defined in terms of its proximate and ultimate (elemental) analyses. The parameters of proximate analysis are moisture, volatile matter, ash, and fixed carbon. Elemental or ultimate analysis encompasses the quantitative determination of carbon, hydrogen, nitrogen, sulfur and oxygen within the coal. Additionally, specific physical and mechanical properties of coal and particular carbonization properties are also determined.

The calorific value Q of coal is the heat liberated by its complete combustion with oxygen. Q is a complex function of the elemental composition of the coal. Q can be determined experimentally using calorimeters. Delong suggests the following approximate formula for Q when the oxygen content is less than 10%:

Q = 337C + 1442(H - O/8) + 93S,

Where C is the mass percent of carbon, H is the mass percent of hydrogen, O is the mass percent of oxygen, and S is the mass percent of sulfur in the coal. With these constants, Q is given in kilojoules per kilogram.


http://en.wikipedia.org/wiki/File:Coal_anthracite.jpg

TYPES OF COAL

Coal is classified into four main types, depending upon the amount of carbon, oxygen, and

hydrogen present. The higher the carbon content, the more energy the coal contains.

PEAT :-It is considered to be a precursor of coal, has industrial importance as a fuel in some

regions, for example, Ireland and Finland. In its dehydrated form, peat is a highly effective

absorbent for fuel and oil spills on land and water

LIGNITE :-It is also referred to as brown coal, is the lowest rank of coal and used almost

exclusively as fuel for electric power generation. Jet is a compact form of lignite that is

sometimes polished and has been used as an ornamental stone since the Age. It contains 25-35%

carbon.

SUB-BITUMINOUS COAL :-whose properties ranges from those of lignite to those of

bituminous coal are used primarily as fuel for steam-electric power generation. Additionally, it is

an important source of light aromatic hydrocarbons for the chemical synthesis industry. It

contains 35-45% carbon.

BITUMINOUS COAL:-It is dense mineral, black but sometimes dark brown, often with well-

defined bands of bright and dull material, used primarily as fuel in steam-electric power

generation, with substantial quantities also used for heat and power applications in

manufacturing and to make coke. It contains 45-86% carbon.

STEAM COAL:-is a grade between bituminous coal and anthracite, once widely used as a fuel

for steam locomotives. In this specialized use it is sometimes known as sea-coal in the U.S.

Small steam coal (dry small steam nuts or DSSN) was used as a fuel for domestic water heating

ANTHRACITE :-the highest rank; a harder, glossy, black coal used primarily for residential

and commercial space heating. It may be divided further into metamorphic- ally altered

bituminous coal and petrified oil, as from the deposits in Pennsylvania. It contains 86-97%

carbon.


GRAPHITE :-technically the highest rank, but difficult to ignite and is not so commonly used as

fuel: it is mostly used in pencils and, when powdered, as a lubricant.

TYPES OF COAL PRODUCTS

COKING COAL

These are such coal which when heated in absence of air from coherent bead, free

volatiles, with strong and porus mass, called coke.

These have coking properties

Mainly used in steel and metallurgical industries.

Also used for hard coke manufacturing

SEMI COKING COAL

These are such coal which when heated in absence of air from coherent bead not

strong enough to be directly fed into blast furnace. Such coal are blended with

coking coal in adequate proportion for coke making.

These have comparatively less coking properties than cooking coal.

Mainly used as blend able coal in steel making, merchant coke manufacturing and

other metallurgical industries.

NON-COKING COAL

Such coals which do not have coking properties are non-coking coal.

Mainly used as thermal grade coal for power generation.

Also used for cement, fertilizer , glass , ceramic, paper, chemical, briks

manufacture and for other heating purpose.

HARD COKE

Hard coke is formed for coking/semi-coking coal through the process of

carbonization.

Mainly used in metallurgical industries.


Also used in industrial plants utilizing furnaces.

WASHED AND BENEFICIATED COAL

Washed and beneficiated coal are such coal which have undergone process of coal

washing or coal beneficiation causing value addition of coal by way of reduction

in ash %age.

Beneficiation coking coals find use in manufacturing of hard coke for steel

making.

Beneficiation washed non-coking coal find use mainly for power generation.

Beneficiation non-coking coal can be used by cement plants, sponge iron plants

and other industrial plants.

MIDDLING

Middling are by-product of three stage / coal washing / beneficiation process, as a

fraction of feed raw coal.

Middling can be used for power generation.

It can also be used by domestic fuel plants, brick manufacturing unit, cement

plant, industrial plants etc.

REJECTS

Rejects are the product of coal washing process after separation of cleans and/ or

middling, as a fraction of feed raw coal.

Rejects find use for fluidized bed combustion (fbc) boiler for power generation,

road repairs, briquette (domestic fuel) making, land filling purpose etc.

CIL-COKE / LTC COKE

Cil – coke / ltc coke is smokeless environment friendly product of Dankuni coal

complex , obtained through low temperature carbonization.

It finds use in furnace, kilns of industrial units.

It can also be used as domestic fuel by halwais, hotels etc.


COAL FINES / COKE FINES

These are the screened fraction of feed raw coal and screened fraction of ltc coke /

cil-coke respectively, obtained from Dankuni coal complex.

These are used in furnaces in industries as well as for domestic purposes.

TAR / HEAVY OIL/LIGHT OIL /SOFT PITCH

These are products from dankuni coal complex using low temperature

carbonization of non-coking coal in vertical reforts.

USES OF COAL


Coal has four major markets: electric utilities, industrial/retail uses, the steel industry and

exports.

Electric utilities use more than 86 percent of the coal produced in the United States. Upon close

examination, it is clear that price has been a major deciding factor in coal's increased use. More

than 57 percent of the electricity generated in the United States comes from coal.

In an electric power plant, coal, like oil and natural gas, is burned to produce heat. The heat is

used to change water into steam. The steam then turns the blades of a turbine, spinning the

generator, producing electricity. Before the coal is burned it is crushed and pulverized to the

consistency of face powder.

Coal's second largest market is industrial and retail users. Among the industries using coal, the

largest consumers are chemical manufacturers, users of stone, clay and glass, paper mills,

primary metal industries and the food industry. Industry uses coal as a chemical feedstock to

make dyes, insecticides, fertilizers, explosives, synthetic fibers, food preservatives, ammonia,

synthetic rubber, fingernail polish, medicines, etc.

The third largest market is the iron and steel industry, where coal is used to make into coke.

Coke is derived from bituminous coal through heating in airtight ovens. The lack of air prevents

the coal from burning and converts some of the solids to gases leaving coke.

The fourth market segment is exports. The top five foreign markets are Canada, Japan, Italy,

Netherlands and Brazil. U.S. coal distributed to foreign countries in 1988 totaled 95 million

short tons (76 million to overseas destinations and 19 million to Canada). Major reasons for the

decline in United State's coal exports from the all-time high of 112.5 million tons in 1981 are

stiff competition in the international marketplace and worldwide economic conditions.


SUITABILITY OF COAL

INDUSTRY TYPE OF COAL REQUIRED

Steel Making Coking and Semi Coking Direct Feed and Washed. Also

blenable coals and low ash % Assam And Ranigunj Coals.

Steel Making And For

Sponge Iron Industry

Non coking of high initial Deformation Temperature(IDT)

(>1200oC)

Cookeries/Coke Oven

Plants

Coking and Semi Coking

Briquette

Making/Domestic Fuel

Making

Semi Coking And Non-Coking, Middling And Rejects of

Washeries

Special Smokeless

Fuel(Ssf)

Semi Coking of Caking Index 8-10

Power Sector Non Coking And Middling of Coking Coal Washeries as well as

Washed Coal of Non Coking Coal Washeries.

Cement Sector Non Coking, Middling of Coking Coal Washeries.

Glass And Potteries Long Flame Non Coking

Cast Iron Castings Hard Coke

Steel Casting Industries Non Coking

Bricks Non Coking, Middling of Coking Coal Washeries

Old Boilers Superior Grades of Non Coking

Halwais,Domestic Use &

Hotels Etc.

Non Coking Coal and Cil Coke/Ltc Coke


MARKETING DEPARTMENT

KEY CUSTOMER GROUPS, MARKET SEGMENTS, KEY

PRODUCT/SERVICE REQUIREMENTS , DELIVERY MECHANISM

The expectations & modes of delivery of the clean coal and secondary products & customer

groups are given in figure 0.4. The Steel works consumes almost the entire quantity of the

clean coal produced. Only some surplus quantity of clean coal is sold to IISCO after getting the

government clearance. The Division takes care of the entire thermal coal (middlings)

requirement of the Company. Approx. 40% of the Middlings is sold to Tata Power by the

secondary products department. . Tailings, Deshaled Rejects & a small portion of the middlings

are disposed in the open market, primarily to brick kilns, through Secondary Products & Del

Credre Agents. The difference in the requirements and expectations of key customer groups and

market segments is dependent on the criticality of the usage. For e.g. the quality parameters for

clean coal are critical for coke quality and hot metal quality and hence the demand of the

customers is also more stringent. On the other hand, the tailings are used mainly in the brick

kilns where the quality parameters are not so stringent.


S No

Product Key Segment

Key Customers

Customer expectations

Delivery Method

ABP desp (LT)

Ash %

Other requirements

1 Clean Steel Coke Plant

19.5 15 Consistent quality (SD 0.17 of ash for Coke Plant & bonus / penalty clause for IISCO), Moisture 10.25%, Uniform spacing of rakes, Information sharing, Response to special req.

Rail

Coal IISCO 0.6 17

2 Middlings

Power Tata Power

5.6 <39 Ash 37-40% & Size –3.2 mm, Dispatch through composite rakes (Power Engg.), spacing of rakes, Response to revisions in target / special requirements

Rail

BCEP 1.2 <38.5

Steel Works

7.8 <40 Road

Sec. Prod.

1.2

3 Tailings

Brick Kilns

Sec. Prod. / Del Credre Agents

9.91 40 Truck turn over time, ash around 40%

Road

4 Washery Rejects

Power Captive 2.4 >60 Ash <67 % Direct

Feed


OBJECTIVES

To study the current scenario of coal business environment.

To study the characteristic of existing customer.

To find out new market for selling by-products other than existing ones.

To study the sale’s strategy followed by the company and suggest new measure to

increase sale.

To study about the competitor’s marketing strategies and compare them with that

of West Bokaro.

To study about the future production and sale target and suggest ways to fulfill

them.

To find out new ways to increase customer satisfaction level and convert

customer’s satisfaction into customer delight.

To prepare customers database this could be its future customer.


OBSERVATION

The company has got a limited variety of COAL BY PRODUCTS. They generally sale

tailings, middlings, and washery rejects to the customers. The company has five key

agents also known as DCAs (del credre agents) who buy tailings and rejects from the

company and sale them to the different places to different brick manufacturers, power

houses, bangle bhatta, etc. They perform the task of middleman. These agents are

appointed by the Managing Director. They are responsible to handle with the Tata

customers and do the job of billing as well. All the marketing and selling activities are

carried out by these agents who are finally supervised by the marketing division of the

company. They also go in the field and organize camp to encourage the customers to buy

tailings from West Bokaro. The transportation of tailings and rejects is mainly done by

trucks. The are mainly situated in Bihar, Jharkhand, west Bengal.

The DCAs appointed for these by-products are:

M/S Naresh Kumar & Co.

M/S TYCOON’S Industries

M/S Goel Agents

Chandra enterprise

M/S GS Atwal & Co(Eng)

Middlings is a great source of electricity generation(about 65.7%) is used thermal power

stations. In addition other industries like steel, cement, fertilizers, chemical, paper and

thousands of medium and small scale industries are dependent on coal for their process

and energy requirements. The ministry of coal (Government Of India) is the regulatory

body that regulates the sales of coal by different companies.


The major customers of middling for WEST BOKARO are:

TATA POWER CO.LTD

BOKARO POWER SUPPLY CO. LTD

HINDALCO

HCL

The company sales some part of its middlings to other industries such as paper mills,

cement, sponge iron Ltd, coke industries, etc. These industries are mainly located in Uttar

Pradesh, Jharkhand, Uttaranchal, Madhya Pradesh, Orissa, Andhra Pradesh, West Bengal,

Haryana, Rajasthan, Etc. The transportation of middlings is done by the rails.


LOGISTICS DEPARTMENT

ROPEWAY TRANSPORT


LOGISTICS CHAIN

The West Bokaro division has a tramway for supply of raw coal to beneficiating plants (coal washery). Raw coal is despatched from PCP1 to Washery II bunker by EF Ropeway having capacity of 500 TPH by covering a distance of 4.02 km

The beneficiating plant prepares four products (Clean coal, Middlings, Tailings & Rejects). The prime product clean coal and secondary product middlings are dispatched from our Washeries to Chainpur Railway Siding by BC and Monocable Ropeway and the coal is loaded in wagons by Moving Loaders at QLC Chainpur.

From the product stockpiles of the Washeries, clean coal and middlings are despatched, 4 KMs away, to the railhead, at Chainpur, through the BC Ropeway having capacity of 450 TPH and Monocable Ropeway having capacity of 250 TPH. The Monocable Ropeway transports only Middlings. The BC Ropeway transports both Clean Coal and Middlings.

Chainpur has 2 modern moving loaders of 1000 TPH capacity each, which load clean coal & middlings into railway wagons, at the Quick Loading Complex for dispatch to the Steel Works. A part of the middlings, is sold to Tata Power, Bokaro Power Supply Company limited and Hindalco. The remaining middlings, tailings and rejects are sold through the Secondary Products Department by trucks.

ROPEWAYS & QUICK LOADING COMPLEX


MONO CABLE ROPE WAY PREAMBLE

Mono cable Rope Way established to transport Middling coal from Washery to Chainpur middling stock yard. The Rope way Established in Year ------- by M/S Damodar Ropeways Construction Company (Kolkata), the supplier was experienced in cheapest mean of transport. The designed capacity is 250 TPH. It has Loading point at Washeries and Drive station/ Unloading Point at Chainpur. The distance between Loading point and Unloading Point is connected with 4.6 km length of Rope way which consists 43 no of Towers. The total length of Mono cable Rope Way facilitated with land 50Mtrs X 2 (Side) and maintain 150 FT distance from any permanent structure. The speed of the Rope is maximum 4 m/sec. It has 140 Buckets with capacity 1200kg. The rope continuously in running, in Loading Point the Buckets fill with Coal then the loaded Buckets move on fixed rail and move on to rope with gravitational force and rest on the rope with help of provided groove in grip. The bucket will move along with rope and reaches Unloading Point at Chainpur. The loaded bucket catch arm opens by hit with striker, after the loaded coal fall down again it gets lock by catch arm with gravity while moving along with rope. The empty buckets will return to loading point again.


COAL BENEFICIATION DEPARTMENT

Beneficiation in washeries and segregation into different value added productsLoading in railways wagons and dispatch to steel works, Jamshedpur


Drilling of hole

Charging with explosive

Blasting

Removal of overburden

Raw coal mining and dispatch to crushing plants

Crushing and conveying to washeries

INTRODUCTION OF THE DEPARTMENT

The Department Beneficiate Run of Mine Coal as per the requirement of the customer at Jamshedpur (Coke-Oven) as cascaded down through MOU with Head (LOG).

Activities in various sections are as described below:

OPTIMIZATION OF PROCESS:

Wash ability test of particular batch (9000 ton) of individual seam is carried out by Head (NRD) before feeding to washeries to obtain predicted clean coal yield

Within the quality standards.

Similarly to get the predicted flotation yield, froth flotation test is carried out by Head (NRD) on different raw coal seams

Head (NRD) shall maintain shift wise results of ash and moisture of feed, product and tailings to identify trends to enable corrective actions as required.

OPERATION

Dense media cyclone

a) After the plant has been started in sequence, the shift-in charge shall check and ensure that operating tank levels and specific gravities are as per norms and shall start the raw coal feed to the plant. b) The shift-In charge shall then monitor the on-line ash readings from Gamma Matrix and

shall take corrective actions of SG set point change, etc. as required. c) The Shift-In charge (in case of Washery-2,) shall check to ensure that media flows to cyclones through the mixer boxes are adequate.d) In case of Washery-3 , cyclone feed pressure to be monitored as per requirement (Both for Primary & Secondary Circuit) so that the umbrella formation at the apex of individual cyclone is uniform. e) Senior Manager Opn. will arrange to measure the cyclone underflow nozzle diameter once in a month and will maintain a record of measurements and corrective actions taken (e.g. Changing of nozzle/cyclone, etc)


ORGANISATION STRUCTURE, WEST BOKARO DIVISION

COAL BENEFICIATION GROUP


Chief(CB)

IL2

S.Mgr (Oprn)

S.Mgr (PCP2&OLC

)

Mgr (Oprn)

IL5

Mgr (Oprn)

IL5

S.Mgr (RW)

IL4

S.Mgr (Disp)

Mgr (Oprn)

IL5

Asst.Mgr (RW)

Mgr (Desp)

IL5

S.Mgr (Crushing)

S.Mgr (EEI)

Mgr (Crushing)

Asst.Mgr (Crushing)

Mgr (EEI)

IL5

Asst.Mgr (EEI)

Sr.SE(CB)

Head (Log)

IL3

Head (M)

IL3

Head (W3)

IL3

S.Mgr (Oprn)

Mgr (Oprn)

Asst.Mgr. (Crushing)

Head (W2)

IL3

INVENTORY SYSTEM IN TATA Steel, WEST BOKARO DIVISION

TYPES OF INVENTORIES

Basically there are two departments in TATA Steel, West Bokaro Division, for maintaining inventory. These are:

Store Department Purchase Department

STORE DEPARTMENT

The main functions of store department are as follows:

To study the requirement of each item of inventory by considering annual consumption, opening stock, lead time consumption (required stock or consumed stock during lead time; i.e. consumption during period between issue of purchase order and receive delivery of that item), average stock, maximum stock, and minimum stock.

After studying the requirements if department feel that there is need of any particular item, then it prepares material requisition form and send to purchase department to purchase that item.


INVENTORY

FINISHED GOOD INVENTORY RAW MATERIALS

CLEAN COAL BY-PRODUCTS

MIDDLINGS TAILING REJECTS

ROPEWAY CABLES

CONVEYER BELTS

SPARE PARTS

After purchasing from purchase department, the concerned party delivers that item to store and receive and make a enquiry from point of view of quantity and quality. After being satisfied, it prepares the goods receipt note from the quantity received.

After issuing goods receipt number, it transfers the received items to concerned godown for carrying purpose.

When departments (Quarries, Washeries, PCP, Dispatch section etc.) demand for any item through material issue requisition.

Store department maintains average stock, and maximum stock to avoid excessive carrying cost and to facilitate production process by supplying material and other inventory item continuously.

STORE AND STORE KEEPING/MANAGEMENT

INTRODUCTION

Store keeping is the function of receiving, storing and issuing of materials. It involves supervision of clearance of incoming supplies, to ensure that they are maintained in good condition, safety and readiness for use when required while they are in storage and issuing them against authorized requisitions.

STORE ORGANISATION IN WEST BOKARO

For proper storage of the inventory or the raw materials, there is one warehouse in the organization known as the CENTRAL STORE.

FEATURES OF CENTRAL STORE

a) Spread in large area.b) Adequate space.c) Proper utilization of space.d) Use of safety appliances, like helmet, shoes, gloves etc.e) Proper ventilation.

STORING AND STORAGE FACILITIES

Storing means placing materials in their proper places according to established methods. Commonly used equipments for materials in the store are:a) Open type racks,b) Box pallet,c) Bins,d) Godrej Various material handling equipments available are:


a) Self trolleyb) Two wheel hand truckc) Mobile crane Specialized technique of identification is there.

TAGGING or LABELING: Identification tags must be there at time of receiving of goods.

CODING: Coding is done for the items by using the UMC number.

Proper location identity is there with bin number or rack number which is also there in bin card.


ORGANISATION OF STORE

The organization of store department is shown below:


HEAD (purchase & store)

SENIOR MANAGER (purchase & store)

MATERIAL MANAGER

SENIOR STORE KEEPER

ASSISTANT STORE KEEPER

CLERK

WORKER

DIFFERENT SECTION OF CENTRAL STORE

a) RECEIPT SECTIONb) GENERAL SECTIONc) LEDGER SECTIONd) EME SECTIONe) OLD STORES

FUNCTION OF RECEIPT SECTION

The function of receipt section can be depicted from diagram as follow:


RECEIPT OF MATERIAL

RECEIPT OF CHALLAN

VERIFICATION

INSPECTION

PREPARATION OF GRN

TO RESPECTIVE GO DOWNS

ENTRY IS MADE

WORKING OF RECEIPT SECTION

Receipt of materials starts when the supplier or party sends the goods. The party comes with the copies of challan. One is used for the gate pass the rest two are handover to the party.

Each material received is properly tagged with the quantity in it, which is further used for identification of good.

The goods are received with the use of descriptive code in the respective software.

As soon as the material is received in the industry, it must be subjected to proper verification and inspection. Inspection is carried out before goods are stored in the stores. When a supplier sends the goods, he may also send a delivery note or invoice.

The material is received by various means like door delivery, bank documents.

On the receipt of materials, the store keeper checks whether the conditions of the orders have been compiled with or not. After due verification of goods by the store keeper, it is sent for inspection, if required of certain materials. The inspector inspects the material in the presence of the store keeper. If the material is found in the order according to the specifications in the challan, it is taken or charge by the store keeper and Goods Receipt Number (GRN), is prepared for the accepted materials and the entry is made for them by using descriptive code in the respective software. Defective goods are never taken on stores charge but returned to the suppliers for replacement as per agreed terms and conditions.

The last step in the function of receipt is transfer of goods to the respective stores.

USE OF BIN CARD IN THE STORES

On the receipt of goods in the stores, a bin card is prepared for every received item.

BIN CARD: It is a card that is the representative of a particular type of item, which is specific to a particular work, where the material is placed.

It shows all the records of materials entering or leaving the stores.

As soon as the material is received, it is entered in bin card and it is issued, then again entry is made. These cards are maintained by the store keeper to ascertain the quantity of any material in stock.

It also reminds the store keeper about minimum stock so that he can inform the purchase section for purchase of another lot of material, when the level comes down to ordering quantity.


A bin card must furnish the following information:

Description of materials – UMC number and Rack number. Location. Receipt information – Date, Quality and Rack number. Issue information – Date, Quality and Rack number. Balance. Signature of the store officer.

FORMAT OF BIN CARD

DATE GRN/Regn.No. CH No.

RECEIVE ISSUE BALANCE IP RATE INITIAL

FUNCTIONS OF GENERAL SECTION

General section is for the storage of general materials. Some of the general materials stored here are:

Electrodes, Welding Spare, Pipe Spares, Pins, V Belts, Gland packing, Electrical switch, Fans, Stationary items, Other small items and light fittings, etc.

All the items are identified with their UMC number (Unit Measure Code).


ISSUE OF STORES

The store keeper issues the material on receipt of requisition slip. This is called the Material Requisition Form which is an authority issued to the store keeper by the operating department to issue the material.

Before issue of materials, the store keeper checks that it has been signed by proper authority.

A requisition must furnish the following details:

Description of the items required. Quantity of items required. Work order number and chargeable head. Dated initials of the person receiving material. Section requiring the material.

FUNCTION OF LEDGER SECTION

The major functions of ledger section are as follows:

Identifying and Costing Procurement of stock for different sections. Making of purchase requisition in the respective software. Determination of quantity to be ordered.

This is done by taking into account the GB (Ground Balance), LYC (Last Year Consumption), YBL (Year Before Last).

It does the future planning, determination of reorder level and maintaining safety stock. Keeping the record of stock in the different section of stores. It also follows up with the party and preparation of the pending list. Preparation of delivery schedule.

FUNCTION OF EME SECTION

EME Section stores the earth moving equipments, called the spare section. It stores the heavy equipments, which are used for mining activities. It stores costlier items, bearings, spare parts required for heavy vehicles like trucks etc. Automatic batteries are also stored.


There is a section for obsolete and dead stock also which are kept for displaying the parties.

OLD STORES

In the old stores the material of the respective departments are stored.

DDI SECTION

It is direct department inventory section. It does not keep the stock as such and give direct delivery to the concerned department. It prepares the purchase requisition for its material itself.

PROVISION FOR QUALITY INSPECTION

Quality inspection is concerned with quality of received, stored, issued, and sold. Quality control inspection is to ensure the conformance of products to the specification of the organization.

Inspection is carried out for the materials in the ware house premises at the time of the receipt from the authorized person. There arise two possibilities, the item is accepted without any inspection, this depends upon whether item has been inspected earlier or is a quality marked or from a reliable supplier, or the inspection is done on the basis of sampling inspection and then acceptance/rejection/rectification criteria can be done.


INVENTORY VERIFICATION AND AUDIT

The stores controller has the physical custody of the materials and is responsible for their safe upkeep.

There can be any major discrepancy in the stock figure. To guard against such possibility, there must be constant review and stocks update the accounts and reconcile the physical and book balance. The magnitude of this problem will increase as the number of transactions increase because errors can be committed in each transaction and this can accumulate to major discrepancies.

Stock verification can be defined as the process of counting, weighing or measuring the stock of materials that is held and making a record of these figures. The primary purpose of this physical verification is an assurance that the inputs, outputs and the stock on hand have been accounted for accurately. The procedure also helps to identify slow moving items.

In the organization there is provision for internal audit which does the annual reviews of the stock.

PURCHASE DEPARTMENT


The main function of purchase department is purchasing. The indenting or ledger section of store department sends the material purchase requisition to purchase department for purchasing any item and purchase department has to purchase it.

The main steps involved in the functioning of store department are:

Enquiry Quotation Negotiation Order placing

SECTIONS IN PURCHASE DEPARTMENT

General item group: The items which are of general nature, the purchase of such items is handled by general item group.

Civil group: The items which are used in construction process like cement, bricks, rod, sand etc. purchased by civil group.

Excavation group or EME space: The items which are used in machines and heavy vehicles like different types of spares of machines and heavy vehicles like different types of spares of machines and vehicles itself are purchased by excavation group.

PURCHASING SYSTEM


NO

YES

EXPLAINATION OF PURCHASING SYSTEM


MATERIAL REQUIREMENT TO DEPARTMENT

CALLING OF QUOTATIONS

INITIATION OF PURCHASE REQUISITION BILL OF MATERIALS FROM DIFFERENT DEPARTMENTS

VERIFICATION OF STORE DEPARTMENTS

SELECTING THE REPUTED VENDORS

VERIFICATION OF GOODS AND INVOICES

RECEIVING OF GOODS ALONG WITH CHALLAN

PLACING THE ORDER

KEEPING THE MATERIAL IN STORE

PREPARATION OF GRN

INSPECTION OF MATERIALS

GOODS AVAILABLE?

Purchasing of items start with the material requirement to the departments. They initiate a purchase requisition detailing the material requirement to the store department. If the required material is available in the store, then it is issued after proper verification of the material requisition form by the store department i.e. it should be authorized and signature should be there. Entry is made in both in the bin card and in the respective software.

When goods required are available in the stores, then order is placed after certain essential steps.

Reputed vendors or suppliers are selected and are called for the quotation. They give their quotations which are studied to select the most appropriate one. Order is placed by issuing purchase order.

Receiving the order, the concerned party delivers the goods to the store department with the copies of challan. The goods are verified and inspected. Goods receipt number is prepared after receiving them and then sent to the concerned go-down. And then requirements of the department are fulfilled by issuing them the goods.

ORDERING SYSTEM

THE PROCESS

The ordering system, for the materials operates in a systematic way as follows:

The ledger section of the central stores does the periodic review for the materials to be ordered, i.e. determines the reorder level and point (time and quantity to be ordered)

In this periodic review, the parameters that are taken into account are: GB (Ground Balance) LYC (Last Year Consumption) YBC (Year Before Consumption)

On the basic of the above three order already given, ledger section estimates an average quantity to be ordered.

A purchase requisition is prepared.


Purchase requisition is the internal communication document, Which contains the details of requirement of materials.

A PURCHASE REQUISITION HAS THE FOLLOWIN IMPORTANT DETAILS IN IT:

PR Number Department Run Date Request date Requisitioner Description of the materials

Material groups Class of material Quantity

Delivery date General Instruction to vendor Creation date Created by: (Personal No.) Release status – Approved/Not–Approved Release date Approved by: (personal no.)

The purchase requisition, then goes to the senior manager (store and purchase), for approval.

The senior manager checks it and finding it appropriate approves it for release. The senior manager is authorized for the order estimate up to the certain amount, the approval of head (purchase and store) is required, and then only it can be released.

After the approval, the department goes for Party enquiry (calling the reputed vendors, for their quotation)

This is done in the system, which automatically gets communicated to the various parties (vendors), to which the department has line up, as soon as the RFQ gets released. And thus they are invited for quotation.

Format of RFQ is shown below


Purchase deptt. (RFQ)

CODE 3466 RFQ This is not an order………………..

RFQ No. ………………………………….

RFQ Date ………………………………


CODE 34666 RFQThis is not an

order………………..

RFQ No. ………………………………….

RFQ Date ………………………………

RFQ Due …………………………………

Cont. ………………………………………..

Item no 3545236

The RFQ contains the following details:

RFQ NUMBER RFQ DATE CODE CONDITION FOR THE QUOTATION ITEM NUMBER BRIEF DESCRIPTION OF ITEMS DELIVERY SCHEDULE DELIVERY DATE

The different parties invited through RFQ, go for the quotations.

FORMAT OF THE QUOTATION FORM



CODE 3466 RFQ This is not an order………………..

RFQ No. ………………………………….

RFQ Date ………………………………

Quotation form

Reference No. 01.45.72854 Date ……………………… WBD …………………………

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

Dear sir, ………………………

Subject : ……………………………………………………………………………………………………………………………………………………

Ref; Your RFQ

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

ITEM NUMBER MATERIAL NUMBER PRICE……………………………….

…………………………………………..

…………………………………………..

Condition

Delivery date ………………………………

Payment term ……………………………………………………………………………………

Mode of payment ………………………………………………………


The quotations are carefully studied. A comparative statement is prepared in the form of table to compare the relative price and date. Normally, lowest rate is accepted if it conforms strictly to the specifications.

Finally, purchase order is placed, to the selected vendor and follows up action taken for timely supply of materials.

If the organization feels for still lower prices or and other terms and conditions, negotiation may be done with the supplier for the most advantageous terms of purchase. Party gives the final quotation with all the requisites. At last, a final purchase order is prepared and issued.


PERSONNEL DEPARTMENT

INSTITUTE OF PERSONNEL MANAGEMENT (U.K): DEFINES HRM AS:-

“Personnel management is an integral but distinctive part of management concerned with people

at work and their relationships within the enterprise. It seeks to bring together into an effective

organization the men and women who staff the enterprise enabling each to make his/her best

contribution to its success, both as a member of working group and as an individual. It seeks to

provide relationships within the enterprise that are conducive both to effective work and human

satisfaction”

Manpower is the main resource for any organization success in the market. And it is necessary

for a company to work efficiently for its success. The company management should maintain the

employees happy so that the functions of the company move on without any problems. For

keeping the employees happy there are several kits like allowances, welfare measures, incentives

etc. but in a current competitive scenario the manpower is substitutes by the machine to decrease

the manufacturing cost. But by removing the employees the company may lose its reputation and

it leads to decrease in the goodwill of the company. So the company should maintain the suitable

manpower. In order to keep the employees of the company happy MFHPL introduced several

measures and they have segregated the employees in various categories in order to serve them

better.


OBJECTIVES IN TATA STEEL

Attract, retain, develop, and remain effective and motivated human resources with the

required skills and competencies to meet organizational needs in tune with changing

business profiles and technological requirements.

Maintain positive industrial relations with high levels of employee participation,

productivity and quality responsibilities.

Moving towards the concept of ‘variable compensation’ would be effective by

developing and implementing new schemes for performance related pay, rewards, and

benefits in the line with comparable organizations and employee aspirations.

Support and nature an organizational culture and climate that encourages continuous

learning and enables the joint optimization of organizational goals and individual

potential.

Making the human resources function more effective and customer oriented using

information technology enabled systems.

Bring in cost effectiveness in all human resources related operation and become self-

sustaining in long run.

To propagate, support and implement the principles of “Global Compact” to United

Nations.

GENERAL TERMS AND CONDITIONS OF SERVICE

The following are the general terms and conditions of service apply to all the employees, besides

other rules and regulations that may be framed and notified by the company from time to time on

various other subjects.


CLASSIFICATION OF EMPLOYEES

The employees shall generally be classified as under

Permanent

Temporary

Contract

Probationer, Apprentice/Trainee

Permanent employee is an employee who has been engaged in a vacancy on the regular

establishment of the company and who has satisfactorily completed his probationary period of

service and whose employment in regular service has been confirmed in writing.

Temporary employee is an employee who has been engaged on a temporary basis for work,

which is essentially of a temporary nature and likely to be completed within a stipulated period.

No appointment is given to them.

Contract employee is an employee whose employment will be for a period of one year, which

can be extended by the company based on its requirements. The Contractors will provide these

employees and no appointment is given to them.

Probationer is an employee who is provisionally employed with a view to being considered for

appointment on the regular establishment of the company. Usually the probation period is six

months.

Trainee is a learner who is paid stipend or placed a grade as may be decide by the management,

during the period of apprenticeship.

EMPLOYEE BENEFITS


Leave and holidays

Encashment of earned leave.

Encashment of half pay leave

Group saving linked insurance schemes.

ESI facilities

For the employees whose gross salary is above 10,000(ten thousands) ESI facility is not given

for others who do not fall in this category can avail ESI facility in the company.

The TATA group saving linked insurance scheme effect from 2005-2008 with TTK and from

2008 onwards TATA STEEL merged with Life Insurance Company for the benefit of its

employees, which provides an insurance cover for all employee and promotes saving to provide

financial assistance to the employee/beneficiaries at the time of retirement or insurance cover in

the event of death while in service.

PAY STRUCTURE

In TATA Steel, the employee/workers are paid on the following basis: -

Salary

Dearness Allowance

House Rent Allowance

City Compensation Allowance

Reimbursement of Medical Expenses

Traveling and Daily Allowances Rule

The organization motivates the employees by means of involving them while decision-making

that is TATA Steel has adopted the method of Management by Objective.

GUIDELINES AND PRINCIPLES


Promotion from one group/cadre to another group/cadre.

Promotion with in a group/cadre

Fast tract promotion

Security

DISCHARGE AND TERMINATION OF SERVICES

Expect as may be specifically provided in the contract of service or in the standing

orders, the management may at any time discharge an employee from service by giving notice.

Similarly, the employee will be required to give the same notice in the event of his intention to

leave the service of the company. The company on the following grounds, among others, may

also terminate the services of an employee:

Irregularities and absenteeism

Misconduct in the company premises

On abolition of the post

On being declared unfit for further service on medical ground.

Conviction by court of law for criminal offence amounting to moral turpitude.

Employee engaging himself in other employment without the written permission of the

management or if he is found to have been working elsewhere during the period of leave

or off duty.

Absence by an employee on grounds of sickness for a continuous period of more than 18

months if suffering from tuberculosis, leprosy, mental or malignant diseases or fracture of

lower/upper extremity and six month or more if suffering from any other disorder on the

basis of the opinion of the medical board.

Fraud, misrepresentation and in case the employee has become insane.

RECRUITMENT POLICY


Recruitment means searching for prospective employees and stimulating them to apply

for jobs in the organization. Reservation was made available for physically challenged ex-

servicemen, schedule caste/tribes and other minorities.

WELFARE

Welfare includes anything done for the intellectual, physical, moral, economic betterment

of the workers. It is normally done by the organization, over and above what is laid down by the

law of what is normally expected. In TATA Steel lot of importance is given to the welfare of the

employees. Welfare facilities provided to the employees are:

Canteen facility to employees, apprentice/trainees.

Uniforms and masks are given to employees and apprentice/trainees.

Goggles, helmets, shoes are provided to employees and apprentice/trainees.

Transport facility

Medical facility

Overtime facility

The most important resource of TATA Steel is its employees. They are provided with safe

working condition, detailed training in technical aspects of their jobs and also imparted

knowledge in areas like first-aid, fire fighting etc. All workers are covered under Reliance

Insurance Policy. The company also organizes a number of programs in team building,

organizational development, productivity techniques and company information through a well-

equipped HRD center. Employees are provided with housing facility, a learning center

SWOT ANALYSIS


WHAT IS SWOT ANALYSIS?

SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for

the development of marketing plans. It accomplishes this by assessing an organizations strengths

(what an organization can do) and weaknesses (what an organization cannot do) in addition to

opportunities (potential favorable conditions to an organization) and threats (potential

unfavorable conditions to an organization). SWOT analysis is an important step in planning and

its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is

to take the information from the environmental analysis and separate it into internal issues

(strengths and weaknesses) and external issues (opportunities and threats).

STRENGTHS Strong brand name: TATA Steel West Bokaro division is a TATA group

company. TATA group has good brand mane in India, which creates a sense of

reliability in the mind of customer.

TATA Steel West Bokaro division is an ISO 14001 certified company, which has

good reputation in the market.

Service provided by TATA Steel is highly appreciated by its customers. This

gives a competitive edge over competitors.

TATA Steel has its marketing and sales office located in different places that help

in eliminating any kind of communication gap with its customers.

Special attention towards safety and employees welfare is taken on a regular

basis.

Consistency in product quality.

Effective grievance redressal and communication system-for customers.

Faster loading & invoicing-truck-in-truck out time at west bokaro is less than 3

hrs.

Better customer services/facilities.

Transparency in our dealings.

WEAKNESS


Sales mostly dependent on road as there is no dedicated railway siding for the

dispatch of by-products.

Undue interference in operation by political groups & local people.

Insufficient area for storing of material.

Not enough space for parking of unloaded/loaded truck during peak sale season

that is from November to June in Tata steel premises causing conjunction &

unsafe practices.

Unhealthy practices by competitors.

Illegal coal causing effect on sale as well as on prices.

Credit period of TATA Steel is less with respect to competitor.

No stock yard in any state.

OPPOURTUNITY

TATA Steel has tremendous scope in expanding its market share in UP, Delhi,

Haryana, Uttaranchal etc as these area has no coalfields.

Customer loyalty can be developed by introducing programs such as CVM, and

CRM.

By increasing the transportation by rakes, more areas can be approached.

THREAT

TATA Steel has strong competition from players such as CCL and BCCL.

By Products such as tailings are seasonally consumed.

There are influences from administrative and political fronts.

Government policy of restricting over loading has increased the transportation

cost.

The price of coal is rising tremendously.

Unfair business practices are carried out by the competitors that result in loss of

market shares.


Fall in demand of Bricks has resulted in less demand of tailings.

SUMMARY OF FINDINGS


GRAPH SHOWING PRODUCTION OF COAL BY-PRODUCTS

We observe that the production of middlings, tailings & rejects have gone down continuously. The reason is, earlier when coal was extracted and after it was washed the coal was classified into clean coal, middlings, tailings and rejects according to the percentage of ash in them. Earlier the coal containing 13% of ash was considered as clean coal and it was sent to Jamshedpur & the remaning coal was classified as the by-products. Therefore the quantity of coal by-products in previous year was more, but now the coal containing 15% ash is considered as clean coal, therefore the quantity of clean coal which is sent to Jamshedpur is much higher and the left by-products are less in quantity.

GRAPH SHOWING SALES REALISATION OF COAL BY-PRODUCTS


In spite of the fact that sometimes the volume of sales have been less however the net realization has shown an increased trend due to frequent price hike. But the sales of the by-products have increased over the past years, therefore the net realization have also increased.

GRAPH SHOWING YEAR WISE SALES OF COAL BY-PRODUCTS


The sales of the by-products totally depend on the production. The sales have gradually increased because the ministry of coal has allowed the company to sell the byproducts in open market. The sales in the 2009 and 2010 have gradually decreased as the productions of the by-products ratio have also decreased.

GRAPH SHOWING YEAR WISE SALES OF MIDDLINGS


The sales in the previous year were much higher because the productions of middling have also increased. but gradually it has decreased in the year 2009-2010 because the production of the same has also decreased.

GRAPH SHOWING YEAR WISE SALES OF TAILINGS


The sales of tailings have been increased in the year 2009 & 2010 because the ministry of coal has allowed to sale the tailings in the open market along with the institutional buyers.

GRAPH SHOWING YEAR WISE SALES OF WASHERY REJECTS


Sales of rejects have also increased likewise the other by products because of the better performance.


The sales realization of the byproducts have increased in the 2010, except middling’s.


CURRENT COAL BUSINESS ENVIRONMENT

Coal: Business Environment (FY10)

CURRENT SCENARIO OF WEST BOKARO BY-PRODUCTS

MIDDLINGS

Middlings are classified as thermal coal, thermal coal, thermal coal is required in the power industry. Power industry is growing in their rabbit rate. So, the demand of thermal coal will be very high. The production of thermal coal in India does not match to the demand of the power sector. Hence whatever middling is produced at west Bokaro, it can be supplied to the power industry. Even today we have four institutional customers like

Tata power Bokaro power supply Ltd Hindalco Hcl

The middling that is produced from west Bokaro is not sufficient to cater to the needs of these institutional buyers. Hence when it comes to middling’s Tata are in the seller’s market. Hence they can demand premium rates.


TAILINGS

The market growth of tailing is also very high. Today 92% to 95% of tailings produced at west Bokaro is used by brick manufacturers. process is going on to make it successful in the cement industry. Cement Industry are importing coal at a very high cost, experiments are going on with J.P industries to use tailings for making of clinkers. As tailings cannot be used directly as it is, it is blended with better coal.

If experiment is successful, there would be huge demand for tailings in cement industries.

REJECTS

Rejects were earlier used by the bangle bhatta, briquette, domestic use, etc. As it has very high ash content between 55% to 70%, rejects can only be used in fludizedbed boilers plants. There are very few fluidized bed boilers plants in India; hence the demand for rejects will be at lower side.

Experiments are going on to blend tailings with rejects at a certain ratio and use it in pulverized power boiler plants. if the experiments are successful the demand for rejects will be on positive side


PERFORMANCE REPORT (2009 – 10)

MONTH WISE SALES OF MIDDLINGS

MONTH WISE SALES OF TAILINGS


MONTH WISE SALES OF REJECTS

The sales in some cases could not match with the planned sales because of the administrative problems. Better sales are the result of better performance of the DCAs .

Things done well Sustained Zero LTIF Sustained EMS Standards Exceeded NR Target despite low volume sale of Middlings

Things not done well Supervisors safety visit logging Low supply of middling to key customers Frequent Tailings sale suspended.

OFIs


Institutional sale of Tailings during monsoon Identifying new markets for tailings Contingency plan for Tailings Ponds Management during monsoon Accuracy in loading of tailings as per loading advice

LEARNINGS

Proactive approach to tackle “parking space constraint” at Charhi No restriction on booking of tailings at Charhi office. Less dependence on road transportation of tailings, Justification of value of products through e-auction

New initiatives

Identification of Institutional customers for West Bokaro Rejects Board approved commissioning of tailings de-watering plant Substitution of water tanker sprinkler with pipe line sprinkler system Finalization of long term (12 years) contract for sale of bulk quantity Middling to Mithon Power Limited.

PRICES OF BY-PRODUCTS


Prices of coal in India are driven by Coal India Ltd. And on that tata can charge premium for their services rendered.

SUGGESTIONS & RECOMENDATION


INTRODUCTION TO DUAL PRICE FOR TAILINGS One for peak season from mid October to mid June and another for off season

from June to October This will have following benefits: It was observed that during peak seasons the sail of tailing is more than

expectation due high demand. The customer don’t mind paying high until their demand is fulfilled. But during off seasons they are in no hurry to get coal so they prefer to buy from other sources whose price is low. If Tata steel reduces its price to a level which matches to company cost and competitor price, this could result in capturing certain part of market in off seasons.

Opening of stock yard in nearby area This will have following benefits: It was observed that many customers prefer to buy from those sources which are

easily available. They are unable to contact to the company sales team and hence are unable to buy from Tata steel although they prefer to buy from it. Opening of stock yard in different places will result in rise in sale in that area and this could show similar effect in other areas.

Extension of credit This will have following benefits: Bhatta owners don’t have much money to invest in their business and hence are

dependent on suppliers as they provide tailing on credit. The type of coal sold depends on this supplier and it is observed that supplier is dumping ROM coal coming from CCL and BCCL as they are available at more commission. Extension of credit to these customers will allow then to use tailings of Tata steel.

Provide rakes facility at chainpur for dispatch of by-products by rail route. This can help in following ways: It is seen that if by products are transported by rakes, it will bring down the cost

of transportation as road rate of transportation is much higher than that of by rail. Also supply through rakes will bring down the landing cost which will help to capture market easily.

Introduction to e-auction E-auction at CCL and BCCL: in order to bring about some transparency in marketing of coal by the non-cover

sector consumers, an initiative was taken recently by Bharat coking coal ltd (BCCL), a subsidiary of coal India ltd (CIL), for sale of coal a/c. noncore sector consumers through e-auction on trail basis. Going by success of this trail, it is being considered to extent this scheme in other coal companies of CIL also, in a phased manner, to cover all the consumers of non-core sector, including non-consumers/traders.


It shall result in the following E-auction has following benefit observed when implemented in CCL and BCCL. 19.5 million tones of coal offered under E-auction sale during the year 2005-06 to

increased availability of coal to non-linked consumers. it has generated about 820 crores of additional revenue (over the notified price).

Elimination of differences between linked and non-linked consumers. This has resulted in opening of a large number of a large number of outlets for the small

consumers to draw their coal. Coal price are determined by the demand and supply situation rather than the current

system of price notification by coal India ltd. Genuine non-linked consumers who have no official sources of supply of coal and have

to solely depend upon black market have an official channel of supply of coal. Black marketing of coal has considerably reduced and premium now being cornered by

unscrupulous traders and bogus industries will accrue to coal companies, enhancing their profitability/viability.

Critism that coal companies and the government receive on account of malfunctioning of current marketing system will be substantially reduced.

E-AUCTION AT TATA STEELSeeing the effect of e-auction at CCL and BCCL, Tata steel can should introduce it on trail basis and if satisfactory result is obtained, it can be applied, it can be applied on a large basis.

Keep regular contact with customers.

This will help in following ways:

Fast disposal of customers complain will result in healthier relationship between company and its customers. It will also help in finding out the current situation of the market and future demand of coal. sales team should be formed to keep contact with customers and encourage new consumers to buy from Tata steel.

Introduction of online booking system.

This will have following impacts:

Online booking can result in increasing the customer reach. The deposit can be made through draft number can be submitted online while dispatch can be made after verifying the deposit details. It will provide safety to those carrying cash and also help in fast delivery of trucks. it will also reduce paper work.

IMPROVEMENTS


Dosing of flocculants and deformers in tailing ponds for faster setting of tailings and clear waste recirculation.

Concrete roads for tailing transportation route to prevent ground contamination.

Spillage arrestors fitted in all trucks.

Use of high frequency screen and solid bowl centrifuge for faster recovery of tailings.

Additional space for dumping tailing. This is needed to store the tailings produced during monsoon seasons.

Maintain road condition, lighting, parking area, etc from dump office to check post. Street light required from tailing pond to point of loading.

CONCLUSION


There is a limited resource of coal in India.

The existing customers of by-products from west bokaro division are bricks manufactures, hindalco, HCL, BPCL and Tata power.

New markets for sale as identified during research are power plants, cement industry, paper industry, sugar industry, pulverized bed boilers, fluidized bed boilers, ceramic industries, etc.

Although price is high, but due to better marketing and service rendered, the sales of it are very high with respect to competitor.

The customer’s satisfaction level found during research was very high.

Mostly middling is transported through rails, but tailings are generally transported through road.

The problem of logistics is there.

Tata are in the seller’s market when it comes to middlings.

BIBLIOGRAPHY


WEBSITES

www.google.com

www.tatasteel.com

TATA STEEL INTRANET


Tatasteel Report

Documents

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