The HR intervention at Rourkela Steel Plant aimed to improve efficiency and reduce costs through quality improvement and employee participation. CEO directly engaged with employees to motivate them. Quality improvement teams identified issues like steam diversion and fan tripping causing losses and worked with employees to implement solutions. A monitoring system tracked progress. This approach resulted in cost reductions, quality improvements, and culture change. The strategy can be replicated at other loss-making public sector enterprises to improve performance through engaging employees.
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The HR intervention at Rourkela Steel Plant aimed to improve efficiency and reduce costs through quality improvement and employee participation. CEO directly engaged with employees to motivate them. Quality improvement teams identified issues like steam diversion and fan tripping causing losses and worked with employees to implement solutions. A monitoring system tracked progress. This approach resulted in cost reductions, quality improvements, and culture change. The strategy can be replicated at other loss-making public sector enterprises to improve performance through engaging employees.
The HR intervention at Rourkela Steel Plant aimed to improve efficiency and reduce costs through quality improvement and employee participation. CEO directly engaged with employees to motivate them. Quality improvement teams identified issues like steam diversion and fan tripping causing losses and worked with employees to implement solutions. A monitoring system tracked progress. This approach resulted in cost reductions, quality improvements, and culture change. The strategy can be replicated at other loss-making public sector enterprises to improve performance through engaging employees.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
The HR intervention at Rourkela Steel Plant aimed to improve efficiency and reduce costs through quality improvement and employee participation. CEO directly engaged with employees to motivate them. Quality improvement teams identified issues like steam diversion and fan tripping causing losses and worked with employees to implement solutions. A monitoring system tracked progress. This approach resulted in cost reductions, quality improvements, and culture change. The strategy can be replicated at other loss-making public sector enterprises to improve performance through engaging employees.
Copyright:
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The HR Intervention at
Rourkela Steel Plant
Rourkela Steel Plant • Its an integrated steel plant of SAIL in the state of Orissa • No. of Employees:-24000 • Production Capacity:-1.67 million tones per year • It is a major producer of a diversified range of sophisticated steel products (plates, coils, sheets, pipes etc) Basic Problem Losses due to- • Market slum • Stiff competition • High input cost • Interest burden on investment Solution • In order to improve the efficiency CEO of the plant involve employees by directly interacting with them. • Motivating employees by communication exercises • Quality improvement Process through active Participation of employees Importance Aspect • Continuous Improvement in Quality –in work culture and in productive related areas of performance. • Zero defect. • Adopted the Quality Assurance system under ISO 9001 Certification. Aim • Culture change • Reducing cost • Improving business process • Building strategic management system Implementation • Quality improvement Process were organized for the key managers, supervisors and employees • Training to work as effective teams with continuous improvement • Identify and improve quality deviating areas. • Build a quality culture and inculcating the right belief in the minds of employees 3 tier monitoring setup
A sense of commitment with 3 tier monitoring setup including:-
1.Quality improvement teams in different work areas • Every department is having Quality management teams • Solutions are through discussions • Quality improvement projects are launched in problem areas of high non- conformance cost.
2.Committee at the level of the Work Head
• The committee chaired by the Work Head and zonal-level in-charges as members met every fortnight for reviewing departmental performance.
3. Apex Steering Committee at the CEO’s level
• They meet every month to Identify roadblocks and extended support to the teams, and monitored return on investment in the whole process. • IIIustrate with suitable example how HR strategy of the judicious involvement of workers in the turnaround of Rourkela Steel Plant worked wonders. Wonders Illustration1:-The quality improvement team identified that in the captive power plant of the company, the diversion of high pressure steam generated as energy source was high and resulted in a heavy loss of Rs.11.6 million per year . They identify the root causes (e.g., coal jamming, leakage of boilers etc.), explored and implemented the corrective actions/modifications in the equipment concerned.
Result– This Improvement brought down the steam diversion to almost NIL. • Illustration 2:- The team at the steel producing shop identified that the frequent tripping of industrial fans was causing considerable production delay and diagnosed the root causes. And Implement corrective actions such as regular cleaning, using improved quality flux and reducing its retention in bunkers to avoid dust accumulation.
Result- This had a direct, conspicuous impact on the reduction of production
delay on account of fan tripping. • Do you think this kind of strategy can be replicated in the cases of other loss making public sector enterprises? • YES. This kind of structure can be used in other public sector enterprises as well. Because it:- 1. Engage support, understanding, commitment and contribution 2. Helps in adopting new skills, attitude and experience 3. Improve efficiency and fasten processes 4. Increase profits and reduce cost of production Linkages within High Performance Work Systems
Expanded Improved HR Practices and employee operating systems company potential and designed and increased performance ‘bundled’ to enhance discretionary • Ability effort • Motivation • Opportunity
Improved Improved systemic worker response to outcomes employee effort
Supportive company, industry and societal context Thank you
