Total Quality Management

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TOTAL QUALITY MANAGEMENT

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ACKNOWLEDGEMENT I sincerely thanks my guide XYZ

for providing necessary information and valuable

guidance which help me in compiling this project in a much better manner . I would like to thank PROF XYZ for being there whenever I need help and provided valuable guidance in this project . I most thankful to HR Manager XYZ and Assistant manager XYZ of TATA POWER COMPANY Borivali branch for devoting their precious times and shared information about TQM and how it is implement in the organization without which this project would not have complete . I have tried to cover all the aspects of the project and ever care has been taken to make the project faultless . I will be looking for such type of projects in near future and do my best . This project has been complied in simple and lucid language so as to enable every reader easy to understand . I am eagerly waiting for fruitful comments and constructive suggestions are most welcome to improve upon this project . Suggestions , if any , are most welcome . THANK YOU, XYZ .

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CERTIFICATE OF ORIGINALITY This is to certify that the project titled Total Quality Managementis an original work of Mr.XYZ and is being submitted in fulfillment for the award of Master Degree in Business Administration of XYZ University. This report or part of this report has not been used submitted earlier to this University or to any other University/Institution for the fulfillment of requirement of a course of study or published/ presented for any other purpose.

Signature of Student.

Signature of Guide.

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INDEX SR.NO 1. 2. 3. 4. i. ii. iii. iv. v. vi. vii. a. b. c. d. e. f. g. viii. a. b. c. d. e. f. g. h. i. J. 5. 6.

TOPIC INTRODUCTION OF TOTAL QUALITY MANAGEMENT ROLE OF TQM IMPLEMENTATION OF TQM TATA POWER COMPANY:INTRODUCTION TATA BUSINESS EXCELLENT MODEL ( TBEM ) QUALITY COST REPORT COSTS ASSOCIATED WITH INSPECTION AND TESTING BENEFIT THROUGH TQM TECHNIQUES USED FOR TOTAL QUALITY CONTROL TECHNIQUES BASED ON MALCOLM BALDRIGE REPORT

PAGE NO 1. 2. 3-4. 5-7. 8-9. 10-14. 15. 16. 17-18. 19-66

ASSESSMENT YEAR 2005-2006 :LEADERSHIP STRATEGIC PLANNING CUSTOMER AND MARKET FOCUS MEASUREMENT , ANALYSIS AND KNOWLEDGE MANAGEMENT

21-25. 26-27. 28-36. 37-42.

AND INFORMATION AND KNOWLEDGE MANAGEMENT HUMAN RESOURCES FOCUS PROCESS MANAGEMENT BUSINESS RESULT NEW QUALITY MANAGEMENT SYSTEM ISO 9001: 2000 :QUALITY MANAGEMENT SYSTEM MANAGEMENT RESPONSIBILTY RESOURCE MANAGEMENT PRODUCT REALISATION PLANNING OF PRODUCT REALISATION PRODUCT REALISATION CUSTOMER RELATED PROCESSES PRODUCT REALISATION DESIGN AND DEVELOPMENT PRODUCT REALISATION PURCHASING PRODUCT REALISATION PRODUCT AND SERVICE PROVISION PRODUCT REALISATION CONTROL OF MONITORING AND

43-44. 45-47. 48-66. 67-88. 68-69. 70. 71-72. 73. 74. 75-76. 77-78. 79-82. 83.

MEASURING DEVICES MEASUREMENT , ANALYSIS AND IMPROVEMENT EVALUATION OF TQM CONCLUSION

84-88. 89-90. 91-92.

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EXECUTIVE SUMMARY This project contain the information about the topic “ TOTAL QUALITY MANAGEMENT” . This project introduces Total Quality Management it mainly focus on Malcolm Baldrige Report and ISO 9001:2000 of “ TATA POWER COMPANY” and how it is implement in the organization and what are the strategy taken by them . Total Quality Management is a continuous process of improvement for individuals , groups of people and whole organizations . To improve the process , therefore, people must know what to do , how to do it , have the right method to do it , and be able to measure the improvement of the process and the current level of achievement .

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When put into practice, appropriate quality methods can rapidly give rise to quality improvement . Choosing the right methods for development of a TQM process is one of vital roles of management process is complex and the use of some of these methods requires careful consideration and clear understanding . TQM is blend of technologies focus on four concept i.e. defect prevention , continuous improvement , focusing on the customer and a philosophy that quality is not just a responsibility of an organization quality assurances department , but rather it is a responsibility shared by all TQM reserve our fixation on inspecting to defect and focuses on practice that identify potential defects to prevent them from occurring . TQM is still a philosophy emphasizing a continuous search for improvement and implementing actions to convert improvement opportunities to reality . TQM emphasizes knowing our customer both internal and external and focusing on satisfying their needs and expectation . The continuity , stability and growth of a business depends upon its customers. TQM as an sub serves the institution goals . Returns on investments , market expansion , high employee morale and delighted customers are some of the benefits of upgrading through TQM .

INTRODUCTION The word total stand for whole or gross . The term quality stands for degree of excellence and the word management stand for art of doing a particular work . Therefore , TQM is art of doing the whole work in order to achieve a degree of excellence . TQM in the organization by employee involvement or step to be taken by management to implementation TQM :i.)

Clarify the goal and objective of organization .

ii.)

Decide the philosophy of management . 6


iii.)

Follow decentralization and delegation of authorities.

iv.)

Determine the quality standard and make as a rule of the organization .

v.)

Involvement the worker in the system of achieving and maintaining the quality concept of kaizen , quality circle are useful in this area .

vi.)

Teach the worker the concept of house keeping .

vii.)

Import training to the worker to enhance their skill to maintain quality.

Benefits of TQM :i.)

Ability to be more competitive .

ii.)

Increased market share .

iii.)

Cost reduction .

iv.)

Increased flexibility and responsiveness .

v.)

Simplified processes.

vi.)

Improved communications .

vii.)

Less frustration and more satisfaction among the workforce .

THE ROLE OF TQM METHOD Total quality management can be implemented by putting into practice suitable TQM methods . However , adopting the right kind of method is one of the most important jobs of senior management and degree of success obtained will depend on their knowledge and understanding of these methods . TQM methods are unlikely to be useful not used properly . When TQM is implemented in an organization , it invariably starts with a simple procedure: the setting up of teams to solve particular problems. However , total quality management

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deals with quality culture , which is all about culture change based on desire to satisfy the customer and eliminate existing problems permanently . Education and training are key factors in total quality management , including the process of learning TQM method . If team start to look at quality management problem without proper training they will lose their way and become disheartened . If the quality problem is not identified accurately and the TQM method selected for solution based only on data analysis , then the problem will not be eliminated forever . In addition , the quality improvement process need to be managed by an effective leader to ensure that proper implementation is achieved . By applying TQM method properly and not fluctuating from one step to another before completion , the quality team will have a much greater chance of completing the task successfully . The basic role of TQM methods in problem-solving for quality improvement is to help to help to meet customer requirements . The methods also help to generate possible root causes and potential solutions, and to use data and information to select the best options for managing quality . To implement total quality management , it will be necessary to apply the method in ever aspect of business life .

IMPLEMENTATION OF TQM Total quality management process and implementation can be divided in three parts as follows :1) Total employee involvement ( TEI ) 2) Just in time ( JIT ) 3) Total quality control ( TQC ) 1.) Total employee involvement :- The basic thinking is the human should not be considered as robot or machine . They should be treated with respect and consideration . 8


An organization has number of people working for a purpose . Every person has important role to play . Organization will be the most effective if all employee work together and harmoniously , to achieve common goal . TEI is achieved in through following methods :a) House keeping :- Only where by the departmental manager who does not follow the principle of housing keeping can be convenience by clicking the photography of it department . Which is organized condition and display on the notice of the organization and once he improve again the photography will the organization department . To show the different which is apparent between the photography . The different will through the light on importance of house keeping in the organization . b) Kaizen :- Kaizen is derived from two word kai & Zen . Kai - mean small , Zen mean improvement i.e. bring small improvement where , when , why how “ A person who bring small improvement in himself is called as Kaizen” c) Quality circle :- “ A group people coming together and having a brainstorm over issues to come out with good conclusion of problem or issues” . Quality circle by name itself we can understand where is circle of quality people having a quality brainstorm and coming out with a quality conclusion .

2.) Just in time :- It is a concept where time management is exercise for the entire process right from procuring the raw material from the vendors till the sale of finished products to the customer . 3.) Total quality control :- Total quality control is applicable to all the functions . Quality at work , service , information , process , divisional units, people , system and company has to be maintain at minimum cost . This process consist of evaluate actual quality performance , compare actual performance to quality goals , act on the differences. 7 QC Tools :i.)

Statistical data

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ii.)

Pareto diagram

iii.)

Cause and effect diagram

iv.)

Histogram

v.)

Scattered diagram

vi.)

Check sheet

vii.)

Control charts.

TATA POWER COMPANY INTRODUCTION Tata power was ranked for its continuous effort to transform the 90 years old power utility through a combination of cost reduction, steady growth and change in attitude into a more consumer-friendly place in a highly regulated environment. Tata power as been selected among the top 13 best managed companies in India by business today. While tata power fundamental have remained committed to quality and pursue of excellence now there is a definite thrust on ensuring power supply at competitive tariff to consumer of all sector

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for constant self-evaluation of its plants and performance tata power has adopted the tata business excellence model[T.B.E.M.] under the J.R.D. Quality values award which the tata group has instituted in the memory of MR. J.R.D. TATA incidentally j.b.e.m is modeled on the globally accepted MALCOLM BALDRIDGE national quality award administered by department of commerce u.s.a. Tata values The tata has always been a value driven organization these value continue to direct the groups growth and business. the five core tata value under the way they do their business

are: 1] Integrity: we must conduct our business fairly with honesty and transparency everything we do must stand the test of public scrutiny. 2] understanding: we must be caring show respect compassion and humanity for our collogues and customer around the world and always work for the benefit for the communities we serve. 3] Excellence: we must constantly strive to highest possible standard in our day to day work in quality of good and services we provide. 4] Unity: we must work cohesively with our collogues across the group and our customer and partners around the world to build strong relationship based on tolerance and mutual co-operation. 6] Responsibility:

we must continue to be responsible and sensitive to the

countries communities and the environment we work, always ensuring that what comes from the people goes back to the people many times over. Quality policy of the tata power transmission and distribution division we at transmission and distribution division of the tata power company limited are committed to: 1. provide reliable quality power at most competitive price

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2. constantly strive for exceeding customer expectation 3. ensure safe and healthy environment for employees equipment and community 4. we shall comply with requirement and continually improve the effectiveness of quality management system Quality objectives 1. maintain equipment availably higher than 99.75% 2. improve average restorations time to affect customers[C.A.I.D.I.] from 22 minute to 20 minute 3. reduce average duration of interruption per customer per year reliability index from 47 min to 35 min 4. maintain supply voltage within limits[variation of +/- 6%] 5. reduce T & D operation cost by 10% 6. continually upgrade employee skills to adapt the change 7. have concern [minimize inconvenience] for the community during execution of work 8. continually improve system to become an excellent organization The above objective shall be received half year the above target are at all T &D level Departmental quality objectives operation Functional quality objectives

Measures

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1. Monitoring & controlling of operation Logged value of parameter / logging of corrective measure taken .

parameters

2. Ensuring heal thinness of equipment by timely detection of abnormalities

Defect register entries / check list entries

3. Increasing availability of equipment Measure

taken

during

emergencies

to

by normalization during tripping of restore normal in minimum possible time of equipment lines and outage normalization.

4. Preparation

and

storing

of Availability of operational data

operational database

5. Ensure reliability and safety correct and safety operation

6. Continual improvement

Accident free operation no wrong operation safety practices Work instruction revisions

TATA BUSINESS EXCELLENCE MODEL [T.B.E.M.] T.B.E.M. purposes 1. To help improve organizational performance and business excellence practices , capabilities result . 2. To facilitate communication and sharing of best practices information among tata organizations of all types .

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3. To serve as working tool for understanding and managing performance and for providing guidance for planning and identification of opportunities for learning and improvement .

T.B.E.M. GOALS : 1. Delivery of ever improving value of customers , contributing to market place success 2. Improvement of overall organizational effectiveness capabilities , resulting in enhancing to all other stake other 3. Organizational and personal learning

visions of the quality 1. To be an excellent and efficient organization 2. To be a significant player in the national power sector 3. To participate in adjacent infrastructure business that provide opportunity for the growth 4. To be the best in the tata group mission of the quality Improving the quality of life value 1. Customer driver 2. Result oriented with professional work culture 3. Abide by tata code of conduct 4. Earn trust through fair business practices with all stake holder 5. Growth with environmental protection and enrichment

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6. Corporate citizenship

QUALITY COST REPORT SR. NO.

PERFORMANCE MEASUREMEANT

TARGET 2004-2005

ACTUAL 2004-2005

TARGET 2005-2006

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1.

DIAGNOSTING TESTING OF EQUIPMENTS

95%

70%

95%

DIAGNOSTING TESTING OF PROTECTION

95%

76%

95%

3.

DIAGNOSTING TESTING OF SYSTEM PROTECTION

100%

79%

95%

4.

COMMISION OF EQUIPMENT & PROTECTION SCHEMES

95%

95%

95%

F.D.R. AVILABILITY

100%

99%

100%

6.

TEST INSTRUMENT AVAILABLE

98%

97.2%

98%

7.

TRIPPING DUE TO HUMAN ERROR

NIL

NIL

NIL

2.

5.

COST OF POOR QUALITY [C.O.P.Q.] REPORT [C.O.P.Q.] company wide capturing format used for T.R.D . [C.O.P.Q.] to be captured under following two major head A. cost of non conformance B. cost of conformance

A. cost of non conformance 1.1] Internal failure cause related cost rework / repairs cost due to internal causes For example -

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a ] E.Q.A.G. relay improper co-ordination / relay maloperation b ] Non conformance to operating instructions c ] Non conformance to maintenance work instruction etc . d ] Non conformance due to inadequate specification in power operation by engineering department

1.2 ] External failure cause related cost - rework a ] O.E.M. poor quality / inadequate material , fabrication assembly , design , q.a. / q.c. Causing earlier failure b ] O.E.M. not informing product modifications incorporated . 1.3 ] Appraisal cost Testing / appraisal cost to attend failure / rework - example - O.E.M. engineer services etc B. COST OF CONFORMANCE 2.1 ] Preventive cost - cost incurred to prevent recurrence of failure / fault for that station and other stations for similar equipment . 2.2 ] Appraisal cost - cost incurred to test / appraise for case where failure not occurred

[ C.O.P.Q. ] cost due to interruption / forced outage

A

SR. NO.

Direct cost repair rework Man days to attend occurrence / forced outage / outage description

Man day Cost

Transport Cost

Total cost

causes

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1.

2.

3.

B.

110 kv bus fault zone -1 on 12/1/06

5

3000

Nil

15000

External

Tripping of 11 kv vasant utsav f1 feeder

2

600

Nil

1200

External

2

600

Nil

1200

External

Tripping of 11 kv vasant utsav f6

Sr no

OCCURRENCE /FORCED OUTAGE DESCRIPTION

LOAD MW SHUT DOWN

INTERUPTI ON

Mwh not Cost/loss supplied rate rs. 2p.u.

causes

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1.

2.

3.

110 kv bus fault zone 1 on 12 / 1 / 06

40

0.11

4.4

8800

External

Tripping of 11 kv vasant utsav f1 feeder

0.25

3

0.75

1500

External

Tripping of 11 kv vasant utsav

0.5

16.5

8.25

16500

External

QUALITY PLANNING AND QUALITY IMPROVEMENT

QUALITY IMPROVEMENT 1. Renew focus on growth in generation capacity

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2. Restructuring of business development & project function to new growth opportunities 3. Setting target in A.B.P. which are more stretch than M.E.R.C. requirements

QUALITY PLANNING 1. Centralized control room with remote operation 2. Distribution automation of customer substations 3.

Diversion of nallahs to increase hydro generation

4. Broad band on power line

COSTS ASSOCIATED WITH INSPECTION AND TESTING Vendors / contractor are selected through a well defined selection process with emphasis on quality management process at suppliers end . In cases of branded off the shelf type of items , vendors certified by O.E.M. [ original equipment manufactures 20


] through their vendor authorization programs , all selected . thus doing away with the need to expend resources on certification vendor quality . Vendor rating system has been introduced for tracking the performance of the vendors . cost of poor quality is being tracked analyze rework and defect and to minimize the cost.

BENEFIT THROUGH TATA QUALITY MANAGEMENT

1. Improvement in C.A.I.D.I. 2. Improvement in reliability and quality of supply at customer end

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3. Reduction in failure , there by improving reliability 4. Reduction in cost of power to customer 5. Improvement in the availability to the customer , meeting customer expectation 6. Reduction in auxiliary power reduction from 12.66% to 10.98% 7. hunting load customers quires can be taken by T.P.C. there by reducing the dependence on the state grid and making the power withdrawal from K.P.T.C.L. to zero minimum impact of the outage to the customer

TECHNIQUES USED FOR TOTAL QUALITY CONTROL FISH BONE DIAGRAM

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ROUTE COST ANALYSIS

MEN

METHOD S COMPRESSOR EXCESSIVE RUNNING

MATERIAL

MACHINE

MEN A. Moisture from compressor is not regularly drained B. Lack of knowledge about overhaul method

MATERIAL Quality of material should be improved

MACHINES A. Frequent failure’s of control circuits of compressor starting and stopping 1. Failure of pressure switches for starting and stopping 2. Failure of contactors and single phasing of switches . 3. Dripping of setting of pressure switches

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B. Frequent leakages from loose pipes used for air inlets of air blast circuit breakers and defective non return valves of air blast circuit breakers

methods A. Existing maint practices not sufficient B. Conditioning monitoring is not adequate

ADVANTAGE OF FISH BONE DIAGRAM 1. Process is define systematically . 2. Simple to understand . 3. Several time ask the question “ why “ till they don’t get the answer 4. Use to find limitation

TECHINQUES BASED ON MALCOLM BALDRIGE REPORT

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ASSESSMENT YEAR 2005- 2006

REPORT ON MALCOLM BRIDGE FOLLOWED TATA POWER

SR.

LINE OF BUSSINESS

NO.

TURNOVER FY05 IN

PERCENTAGE 93.5%

1.

POWER BUSINESS

[RS CRORE] 3674

2.

STRATEGIC ELECTRONICS

62

1.6%

184.5

4.7%

DIVISION

3.

POWER SYSTEM DIVISION

The baldrige award examine the quality of an organization activities in several category

1. Leadership 25


2. strategic planning 3. customer and market focus 4. measurement analysis and knowledge management & information & knowledge management

5. human resources focus 6. process management 7. business result

1. LEADERSHIP Highlights leaders role in setting and communicating vision , value and focus on customer and accomplishing organization’s objective 26


A. SENIOR LEADERSHIP STAKE HOLDER

CUSTOMER

DEVELOPMENT

RECENT

RATIONAL

MECHANISM

IMPROVEMENT

IMPROVEMENT

1.Customer meets

Designing and implementation of customer portal

2.customer focus group

Visits of customer groups during major activities at TPC like 500 MW unit overhaul To proactively satisfy

3.Customer opinion

Inclusion of opinion leader

queries related to

leader’s meet

communication

reliability during customer meets and building

4.Level of customer contact plans

5.Customer value

relations Participation of senior leader in the customer meeting cascade

improvement program

SUPPLIER

Supplier meet

Supplier meet also at divisional

Communication regarding

level

TCOC ,TPC future plan and other area of common interest

Half yearly supplier survey Formation of complaints & together inputs on their grievances cell and vendor portal survey together inputs on as additional mechanism of

Speedy resolution of complaints

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Shareholder

their alias of concern

access and information

Half yearly and yearly

Half yearly result communication

Keeping shareholder

report

introduced

informed about TPC’S future plan

INVESTOR

Investor / forums seminars Initiated in fy05 , 2/3 meeting

Image building , support

/conference

for growth initiative

interaction annually

1. Continued focus on enhancing and improving the equipment , system and network reliability refuilishment and replace programs leveraging the new technology

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2.

Strategic plan for sustenance example generation capacity addition , coal block etc.

3. Focus on developing technical , managerial and leadership competencies 4. Participation by senior leaders in training program - M.D. as acted as faculty on tata group level workshop on project management 5. Participation by senior leaders in training program 6. Regular risk assessment and preparation of risk mitigation plans 7. Knowledge management 8. Environment management and C.S.R.

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PERODIC REVIEW OF PROTECTION SCHEMES TO ENSURE CONTINUED EFFECTIVENESS

ADVERSE IMPACT PUBLIC CONCERN

1. Reliability of power

MEASURES

KEY PRACTISES

A. Forecast demand growth and

supply

Generation plant availability 1%

address shortage B. Continues improvement in O&M practice to ensure high reliability C. Scheduling of plant / equipment / outages during low loads D. Built in redundancies ,T&D equipment E.

power purchase during shortage

Indices like CAIFI CAIDI SAIFI SAIDI Transmission line availability Loss of scale due to forces outages

2. Load shedding planned and power interruptions to partial consumer under low frequency conditions

A. Segmentation of on consumers based impact on business and

No. of under frequency load

public services

shedding operation

B. Design of graded load shedding scheme for minimizing power

No. of times critical consumer got

interruption to critical consumption

shut down No. of block outs saved / 30


3. Block out [ total interruption of power supply to all consumer ]

A. Islanding scheme to isolate Mumbai

systems block outs

customer from grid disturbances B. Stand by power arrangement with M.S.E.B. C. Periodic review of protection scheme

Time taken to restore supply after a block out .

to ensure continued effectiveness

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2.

STRATEGIC PLANNING

Strategy development has been rewritten to clearly address the key aspects of strategy developing , including ability to execute the strategic planning . [ In contrast , consumer of tata power continue to enjoy uninterrupted supply of quality power ] STRATEGIC OBJECTIVE STRATEGIC STAKE

KEY REQUIREMENT

OBJECTIVES

HOLDER 1. CUSTOMER

Reliable uninterrupted power supply at competitive rates

1. Low cost generation capacity 2. Peaking power availability 3. Enhancing value to customer

2. INVESTOR AND

Optimum returns

1. Growth to capacity addition , entry into adjacent business

SHAREHOLDER

2.

3. EMPLOYEES

Employee growth and development

Organization transformation

Growth through capacity addition entry into adjacent business

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Challenging work environment

Organization transformation

4. SUPPLIER AND PATNER

Growth and prosperity

1. Growth through capacity addition entry into adjacent business

5. community Good corporate citizenship

1. C.S.R. initiative

3. CUSTOMER AND MARKET KNOWLEDGE / FOCUS 33


Focus on customer complaint data and organization process for minimizing customer dissatisfaction and less of repeat business . Customer and market knowledge has an enhanced focus on identifying current and potential customer for both existing and new products and services . TPC’S market development process , is and process in the customer value chain starting with market identification till developing new initiatives . The market department has reviewed and refine to take care of new emerging market as SEBS , traders open access customers and distribution circle .

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Process no

Name of

improvement

process

1. MDP2

Segment market and Criteria for market attractiveness and internal customer base

capabilities are clearly defined , growth potential of segment also included in the analysis .

2. MDP4

3. MDP5

4. MDP7

Develop business

Reduce tariff to direct customer of TPC , new

plans

ht residential tariff .

New customer

Targets are taken monthly and reviewed

acquisition

quarterly.

Manage customer

Customer contact plan, monthly customer

a/c

coordination meeting, sharing of complaint, coverage of wider cross section of employees in customer coordination, focus group/ key a/c manager meeting (KAM) , customer value improvement program

5.MDP8

Complaint

Complaint escalation, % of time TPC meets

management

customer services standards added in bad measures, complaint analysis shared with other division , about 30% of sustains covered under distribution automation to reduce restoration time, new web based system for complaint management for call centre.

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SEGEMENT MARKET AND CUSTOMER BASE

i)

36


START

Market information and industry trend from MDP1 classify customer and market

Customer detail from MDP5

Analyses competitors market segment tariff comparison

1.List segment 2.Segment characteristics

Analyses geographical area to understand existing distribution network customer density Revised marketing segment

ii) STRATEGIC

MDP1 Develop market outlook and scenarios

TACTICAL

MDP2 Segment marketing and customer

MDP4 Develop business plan

MDP3 Formulate actionable strategies and propose investment

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OPERATIONAL

MDP5 New customer acquisition

MDP7 Manage customer a/c

MDP8 Complaint management

MDP6 Implementation and internal logistics

MDP9 Formulate new initiatives

Customer relationship and satisfaction TPC user “ Manage customer account process” to built and strengthen relationship with customer. TPC interacts customer through many form in order to built relationship and to understand changing requirement future plans. TPC use multiple channels to provide access to customer to seeks information, conducts business and lodge complaints. All customer are well informed about contact central control room and fault duty / maintenance engineers. In addition REL and BEST have provide with microwaves communication facilities to contact any of receiving station LD\ CCR . Customer contact requirement and gathered through direct customer interaction by the divisional service staff and feedback received through various post CSS also specifically check for customer preference on various customer contact mechanisms some example of improvement in access mechanisms are provision of additional mobile phone to O&M engineer and web based complaint management system . Effectiveness of the call centre and all other access mechanisms in assessed through the happy call survey and CSS .

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ACCESS MECHANISM STATION LICENSES AREA L.D. M.C.R. ENGINEERING DIVISIONAL

AVAILABILITY LANDLINE MOBILE FAX

E-

VSAT

√ √ √ √

MAIL √ √ √ √

TIME 24 HRS OFFICE HRS OFFICE HRS 24 HRS

√ √ √ √

CONTROL

24 HRS

ROOM CALL

24 HRS

CENTRE YEL FAULT DUTY

24 HRS 24 HRS

√ √

√ √

ENGINEER CONSUMER

OFFICE HRS

ENGG . DEPT PLANT LEAD

24 HRS

√ √

WEBSITE

MAINTENCE CENTRAL

√ √

Complaint management process TPC user “Complaint management process” is to ensure prompt and effective resolution of customer complaint. While the call centre is available round the clock , bulk customer prefer to contact , respective CCR nodes , divisional control rooms or duty engineer directly due to long term relationship some customer like railway and licenses lodge written complaint as well as . All complaint whether received directly or through control room are collected at call centre for analysis . In CPP\ IPP all complaint are received by control room . Each control room maintenance a complaint register and complaint are immediately recorded and to concerned authorities to takes prompt and suitable action . The existing software at call centre has been replaced

39


recent by a web based software which is accessible to all in the customer service response chain , with restricted access . This will enable on –line monitoring of complaint status . The complaint data is reviewed in monthly meeting with departmental heads and suitable to avoid recurrence . customer complaint management process Call centre phone inform field duty engineer

CCR nodes\ control room of receiving station

CR cell (written interact with concerned department) Action by respective department

In case of critical complaint higher level also informed

Attend complaint and inform complaint attended by

CR cell

D\E and informed call centre If not call centre escalates

If not CRR escalates, if not 2nd

complaint, upto 4 level of

escalation

escalation . Complaint attended by D\E

Complaint attended

and informed call centre Customer informed and confirm

Inform customer

to be satisfied Call centre updates record and

CR cell updates record and generates

generates MIS

MIS.

Review report and analyses

Review report and analyses complaint 40


complaint Feedback to all concerned to

Feedback to all concerned to avoid

avoid recurrence

recurrence

Review in CCM and action plan prepared

Input to HR

Input to engineering for design review

To EQA for system reliability studies.

Customer satisfaction determination

Customer satisfaction and dissatisfaction survey are conducted , on various attributes of product and services quality . Process use for survey is broadly same for different segment . However questionnaires are designed to reflect difference importance of various attributes with respect to different segment . Survey is designed to capture information on customer satisfaction and dissatisfaction . TPC has this year changed the model from org’s EQ model to Metric model . This model help to find out the satisfying and delighting attributes separately for each customer segment . Customer satisfaction relative to competitors Mumbai Area: CSS cover customer to all major competitors and main utilities i.e; REL, BEST, and MSEB . TPC also conduct win/loss analysis feedback from opinion leaders also help to identify area of improvement findings of these surveys are converted in action plan for implementation benchmarks / comparison of best utilities. Customer satisfaction survey process

Qualitative discover phase (Customer requirement survey)

Attribute wise questionnaires development

Customer interviews 41


Analysis of data

Relative importance of each factor

Satisfaction/ dissatisfaction level of TPC and competition an each factor.

an d de pl oy m en t

pr ep ar ati on

pl an

TATA POWER MARKET SEGMENTS A T A P O W E R M A R K E T S E G M E N T S

T

cti on

A

Relative rating of TPC V/S Competitor on each factor

42


Distributors (75% of power demand) Long term buyers

Consumer

Short term buyers

High volume (21% of power demand)

SEBS L I C E N S E E

Public utilities REL

TPTC Captives Industry (TATA STEEL)

BEST MSEB

Low volume (4% of power demand)

TRADERS (NEW segment)

Low tension / industries, commercial

Lager (Industry commercial users)

KPTCL DVC

Exclusively service by TPC

Residential

Service by TPC and others Change over open access. OPINION MAKERS

ARCHITECTS

CONSULTANT

BUILDERS

43


4. MEASUREMENT , ANALYSIS AND KNOWLEDGE MANAGEMENT AND INFORMATION AND KNOWLEDGE MANAGEMENT

It added emphasis on the purpose and use of the result of analyses and review including strategic decision for organization . Information and knowledge management : It is a new area to address on data , Information and knowledge quality in recognition of challenges all organization face in this area . This item also now addresses the availability of data and information in the event of an emergency . Measurement , analysis and review of organizational performance :

Organization

performance is tracked through OPMS (ORGANISATION PERFORMANCE MEASURE PROCESS) . The measure for which are derived from strategic objective . Operation data , information is aggregated and made available to senior management through “ Daily operation and statistics report”. ORGANISATIONAL PERFORMANCE MONITORING Sr.no Performance parameters 1.

area Finance

Sources /Methods

Organization

Improvement

Rationale behind the

Collection

performance KPM

carried out in

improvement

Departmental /

reviewed Business area

FY 06 Business

To monitor business area

SAP report

wise sales

area wise

wise performance for

average tariff

drill down for better control and timely

operation profit ,

sales.

cost of capital. 2.

Customer

action plans to achieve competiveness in financial performance To identify dissatisfied and

Through various

Customer

Customer

report in sap,

satisfaction index

dissatisfaction Reduce complaint

customer surveys,

Dissatisfaction

complaint

index, Complaint

management

index.

And complaint index added As KPM.

resolution cycle time and no. of complaint

44


3.

Internal

system Control room logs,

Availability index,

Preserving

To accelerates capex job

SAP report

control

asset base

and to strengthen the

departmental

effectiveness

capex and

governances system and

reviews

index , 3SCR

reduce risk

proactive approach for

targets coal

control

statutory comp lances .

consumption ,

effectiveness

O&M cost , fuel

index added

cost CRS 4.

5.

Growth ,

Review at

assurances . Status /milestone

globalization

leadership level ,

achieves for

performance

efforts on substances and

And

fibers regulators

generation and

parameters

Expansion activities .

regulator

order and

transmission

added.

management

communication

capacity addition

Learning

Employee

captive coal . Employees

Taken

For leadership

and growth

engagement

engagement index

management

development.

survey ,TBEM

talent

PPM for

assessment MBE

management PPM

future leader.

survey .

For future leader

New

To focus organization

MBE assurances TBEM score

Analysis to support performance review and validation of conclusion

45


Analysis data and information based on KPMS , is carried out using different methods like variance analysis cause effect , waterfall diagram , cost benefits. These analysis are presented during organizational performance review to senior leaders , departmental head as mention in next page table. The developed action plans with result analysis and communicated to relevant division , department , working groups through leadership to enable decision making result of analysis , regulatory charges , new opportunity action plans etc are shared to suppliers and partners during customer / vendor meets and regular interaction for effective performance from them in future transaction . Analysis to support performance review and validation of conclusion

KPMS

Method

Strategic

Analysis

used for

objectives method

Action

Example of improvement Result

Result related

plan

made based on review

achievement

related to

obtaining

supporting finding

achieveme

information

objective

nt of strategic

1. fuel Report from Reinforce

Variance

Sourcing

With continuous rise in

plans Reliable

cost

fuel dept.

current

and

cheaper

fuel cost in international

and reduce alternate

[belga

supplier

business

cause

reliable

market search of

cost of

supplier who is

m]

interaction

low cost

effect

fuel

alternative reliable fuel

fuel

reliable and

generatio

monthly

suppliers reduced

cheaper

n

review

transportation cost

compared to

Able to source

international 2. fuel Report from Reinforce

Variance

Sourcing

In view of falling trends

Availability

market Fuel made

cost

, trend

reliable

from local refinery

of fuel for

available

fuel dept.

current

46


[tromb

supplier

business

analysis

fuel

imports initiated

generation

through

ay]

interaction

low cost

/

alternate

generatio

monthly

source

n

divs. O&M and strategy

Reinforce

review Cause

Ensure

Work on new coal berth Will reduce Reduce cost

of fuel from fuel

current

effect

reliability

started at trombay

[for

business

monthly

and

e on other

tromb

low cost

review

reduced

contractor

ay]

generatio

fuel cost

in coal

Consu

Monthly

n Reinforce

Variance

Reduction

supply Improve in

mer

marketing

current

/ causes of

CAIDI from duration of

interru

information

business

effect

consumer

28.50 min

interruption to

ption

system

enhance

analysis

interruptio

in FY05 to

consumers

duratio [MIS]

value to

monthly

n

25.95 min

n and

customer

review

frequency

in FY06

reliabil

and

and

ity

improve

reliability

reliability

index from

Cost

Report dept.

report

Network modification on

dependenc

of fuel

Minimum

42.47 in FY06 to 42.99 min in FY04 Information and knowledge management Data and information is made available and accessible on need to know basis to various stakeholder .

47


Data and information availability for stakeholders. TRANSCATION TRANSCATION

Supplier

Data and information

Gathering

Needed

requirement Customer co-

Complaints, billing ,

ordination

Payment quires

Transactional

Customer portal, call, seminar , customer visit

Supplier meets

Order information ,

Transactional/

Meets, SAP. E-MAIL,

And interaction

Forecast

Strategic

telephone , fax Communication, Vendor , portal,

TRANSCATION

Personal visits, Supplier meets. Employees

Open dialogues

Functional and

Functional

SAP, people

Focus groups,

administrative

Transaction

Power, new

strategic

letters,

meeting. Investor

Investors

Financial result, growth

Operational

Quarterly result ,

meets, AGM,

plans , queries

and strategic.

Annual report,

Investors visit.

websites

Interaction

Transactional/

feedbacks. Web-sites , call

Strategic

centre ,

Function

meetings/reviews, Interaction SAP.

Improvements carried out this are pay slips are now available in electronic format with intimation through E-MAIL. 48

TRANSCATION

Partner

transmission line.

TRANSCATION

TRANSCATION

Available through

meeting

Committee

TRANSCATION

Types

TRANSCATION

TRANSCATION

Customer

Process of

TRANSCATION

Stakeholder


5.HUMAN RESOURCE FOCUS The item in this category have an added focus on how work system and employee learning reinforce accomplishment of organization action plans and retention of critical organization knowledge. TPC has undertaken several initiative to promote high performance work culture . Some of include :-

49


a. Setting goal and expectation . b. Introduce PPM process to identify and groom talent . c. Introduction of scientific tools to assess potential and aptitude at entry level and aptitude at entry level and ascertain job fit. d. Restructured performance reward policy . e. To promote improvement through team activity. f.

Reward and recognition.

WORK SYSTEM:TPC has adopted

following initiative in its work system to promote co-operative ,

empowerment agility and innovation are :Migration towards a team based cultures - Cross functional team are formed at two level i.e. Corporate level to address organizational level problems . These teams are empowered to suggest and drive change in work processes. Innovation is primarily driven through the 3SCR Initiative . Suggestion schemes and small group activities quality circle are other are mean to encourage innovation and team work. Job Rotation- Job Rotation addresses objectives such as leadership development, meeting organizational needs an opportunity to individual to manage their own careers. In meeting these their own careers . In meeting these objectives , job Rotation is linked with the PPM process and an online job posting mechanism has been introduce to encourage people from within to manage their career paths. Work systems to capitalize on diverse ideas:- TPC is an equal opportunity employer and as such the recruitment polices are directed in which organization operates . Suggestion scheme ,CFTS, SGAS, Quality circle , Knowledge sharing session etc. Issues impacting work system are identified during structured meets, feedbacks and focus group discussion . Various training delivery options

Delivery Method Lecture Case studies

Training program All training programme with class room set-up. Finances for senior manager , basic of finance.

50


Role plays Hands on training

Presentation skills, Develop your own potential. Techniques, Breaker maintenance workshops , OEM training , welding Technique.

Simulation

Business simulation games , Simulator training , PS awareness,

On the job Project based

MS offices. Control room training , Deputation to outage job. Project management , CFT/SGA on specific project.

learning Distance learning Seminars and

K HUB, Knowledge portal. Nominations to vital seminars and conferences conducted by reputed

conference Outbound training Video session Mentoring Group Discussion

Organizations and institutes . Outbound team building Industrial safety, Base level awareness session. Induction / system for new entrants (Guide for every individual) Team Building ,Develop Management potential.

6.PROCESS MANAGEMENT

It has new area to address on operational planning . This area focus on financial planning, resources , as well as process for continuity of operation in case of an emergency. Design of value creation processes Design

of value creation processes translates into expansion , refurbishments ,

modernization and improvement and to O&M process and meeting customer requirement in these areas while designing the value creation processes efficiency and effectiveness factor such as cost cycle times, consideration for new technology.

51


Inputs from markets, customer, statutory, strategy planning ABP

Translating deliverables in location plans and review then feedback mechanism

Performance measures viz. cycle time , cost v/s target.

Track measures and changing requirements review and feedback mechanisms

Cycle time , Productivity and cost control O&M processes are constantly Monitoring cycle time of various sub processes such as overhaul time, quantity of coal receipt etc. To identity opportunity for improvement. Process/ performance improvement have been achieved through benchmarking . Due to this capital overhaul and startup periods have been steadily reduced and luster capital overhaul period 22 days for 500MW coal fired. This was facilitated by various improvements in outage management and safety compliance. Example Improved productivity use in average coal receipt by critically reviewing and modifying system by the O&M team . Adoptions of condition based maintenance approach as compared to periodic , preventive maintenances work has resulted in optimum resource utilisation and reduced equipment down time . T&D :i) Process of preventive maintain of 22kv Action plan identified Improved preparation before breaker is to taken out for maintenance Reduction in inspection and general cleaning time Considering the system of safety taken Benefits Cycle time reduction from 150 minutes to 120 minutes

52


ii) Process of replacing and transformer to reduce down time Action plan identified Storage of spare and transformers of these more location in tested communication of status to all. Round the clock accessibility of spares and review of test to minimized time . Standard of transformer and relay setting Benefits Cycle times reduction to 16hrs from 36hrs. iii.) Cycle times to attend HT (high tension/ cable to fault to increase reliability) Action plan identified Increased working hrs Resident cable ENGG at receiving station and material storage at 3 more receiving station. Benefits Target reduction in cycle times from 7 days presently to 3 days.

HYDRO i.) Process of daily performances review Action plan identified Improvement in aggregation and reporting mechanism for daily performance Benefits Better performance on key parameters due to renewed focus and internal competition. ii.) Forced outage Action plan identified Semi annual technical audit of division Benefits Improved availability of the units.

53


iii.) Unit start up Action plan identified Unit start up time reduced from 330 sec to 125 sec. Benefits Improved response to real time load requirement.

7.BUISNESS RESULT i.) Product and service outcome It has been given a value of 100% to indicate the importance of product and service performance result to customer satisfaction , loyalty , and long term business success. ii.) Leadership and social responsibility result It addresses all governance, senior leadership and social responsibility results. The item places in one location the evidence of accomplishing organization strategy , ethical behavior , fiscal accountability , legal compliance and organization citizenship. 1. Product and service outcome 54


a.) Commercial

Complaint Index

Survey and customer interaction have

highlighted billing and bill payment as concern for customer in Mumbai area.

percentage ( % )

3.5 3

3 2.28

2.5 1.92

2

1.83

1.5 1

0.48

0.5 0 1 year 2002

d.) SAIDI INDEX MINUTES.

2003

2004

2005

2006

System average interruption frequency in frequency

index in average interruption in minutes for customer served during the year has been shown improvement in SAIDI trend. This is achieved through installation of line fault locators, automation of critical networks etc.

55


60

54.29

MINUTES

50

41.76

40.99

39.63

40 30 20 10 0 1 year 2003

2004

2005

2006

2. Customer focused results TPC has been conducting annual customer satisfaction survey since the year 2001 through an external agency . TPC has an external agency . TPC has further refined its method by including customer requirement inputs as a part of the CSS . TPC from ORG’S EQ model to metric’s moster model . Results are presented as per the customer segmentation revised in 2005-2006.

percentage (%)

a.) CSI ( Customer satisfaction index ) Overall based on ORG’S model. 89.5 89 88.5 88 87.5 87 86.5 86 85.5 85 84.5

89

86

86

1 year

b.) CSI- LT

2004

2005

2006

Industrial

56


percentage(%)

89.5

89

89

89 88.5

88

88 87.5 1 year 2003--2004

2005-2006

CSI- Residential

percentage(%)

c.)

2004-2005

92 90

90 88

88

86

86 84 1 year 2003-2004

2004-2005

2005-2006

percentage(%)

d.) CSI- LT Commercial

92 90 88 86 84 82 80 78 76 74

90 88

80

1 year 2003-2004

2004-2005

2005-2006

57


It is seen that CSI has improved for the residential , but has reduced for the LT commercial segment . This is also seen by the increase in dissatisfaction for this segment . OPINION

YEAR 03-04 04-05 05-06

LEADER

CUSTOMER SATISFACTION INDEX TPC REL 89 71 84 75 89 NA

BEST 87 76 NA

03-

CUSTOMER DISSATISFACTION INDEX TPC REL 0405-06 03-04 04-05 05-06 03-04

BEST 04-05

05-06

04 14

05 9

5

41

20

19

22

27

9

ind/Commercial Public utility 12 Long term 16

6 10

9 0

10 NAPP

34 NAPP

34 NAPP

13 NAPP

9 NAPP

9 NAPP

Buyer LT Industrial LT Commercial Residential

6 6 6

4 10 5

9 10 10

11 10 10

44 38 19

5 7 8

10 7 8

17 15 2

Larger

6 6 9

(Note:- NA is not available and NAPP is not applicable.)

3.) Human resource result a.) Team engaged in improvement ( CFT’S + SGA + QC ) CFT’S ( Cross functional team )

58


237

250

Number

200

179

150 100

96 61

50 0 1 year 2003

2004

2005

2006

b.) Number of knowledge sharing section 400

359

350

Number

300 250

213

183

200 150 100 50

30

0 1 year 2003

2004

2005

2006

c.) Employee productivity

59


No's per employee

8

7.1

7 6 5

4.2

4 3 2 1 0 1 year 2005

2006

d.) Training coverage percentage employees receiving training. 92

90

percentage(%)

90 88 86 84 82

81.9

81

80 78 76 1 year 2004

2005

2006

e.) Training effectiveness

60


82

81

percentage (%)

81 80 79

78

78

77

77 76 75

1 year 2004

2005

2006

f.) Absenteeism rate 0.28

0.3

percentage(%)

0.25

0.24

0.2 0.15

0.11 0.08

0.1 0.05

0.02

0 1 year 2002

2003

2004

2005

2006

g.) Training effectiveness segmented

61


85

86 83

percentage (%)

84 82

Finance

80

79

80

Customer Leadership

78

76

76

MDP

76

75

3SGA Team building

74

Technical

72 70 1 Segment

h.) ETD Intervention in strategic area 1800

Fin

1581

1600

Value engg

Manday's

1400

QTY CIRCLE

1200 1000 800 600

7QC TOOL

931

OEM Project management

591

501

492

400 200

87

26

121100

59 107

200

EMBA TBEM Power trading DRUM

0 1 Intervation in strategic area

Team bldg PMS

4.) Organizational Effectiveness Result

62


percentage(%)

a.) Thermal plant availability (%)

98 97 96 95 94 93 92 91 90 89 88

96.9

96.8

94.4

94.05

93 91

1 year 2002

2003

2004

2005

2006

Target

b.) Hydro plant availability (%) 100

96.44

percentage(%)

95 89.77

90 85

93.43

92.72 88.5

83.58

80 75 1 year 2002

2003

2004

2005

2006

Target

63


c.) Generation Due to improved availability , TPC has been able to generate and meet the increasing demand of city of Mumbai and total generation increase by 2.4% over the production . 11500

11208 10965

ACTUAL

11000 10391

10500 10000

10374

9779

9500 9000 1 year 2002

2003

2004

2005

11500

11206

TARGET

11000

10708 10437

10500 10000

2006

10442

9740

9500 9000 1 YEAR 2002

2003

2004

2005

2006

64


5.) Marketing result i) Market share (Generation) TPC has maintained its leadership position in generation TPC has continue to be leader in the generation in licenses area contributes in volume from power business outsides MA (Mumbai area) ii) Market share (Distribution) Despite down trend in the HT industrial segment, TPC has maintain increasing trend in the business volume through growth in HT and LT Commercial segment business and sales to SEB directly . iii.) Sales to SEB

In order to increase volume of business in licensed area and

maximum utilization of assets , TPC continued to peruse sales to other SEBS directly. a.) Number of customers

Number of customer

25000

21442 22067

20000

17028

1999-2000 2000-2001 2001-2002

15000

2002-2003

9110

10000

2003-2004 2004-2005

5181 5000

23488

2005-2006

1886

0 1 year

b.) Sales and Revenue (New consumer)

65


SALES

SALES MILLION UNITS(MUS)

700

607

600

300 100

2001-2002

360

400 200

2000-2001

483

500

2002- 2003 2003-2004

237 100

156

2004-2005 2005-2006

0 1 year

REVENUE IN RS. CRORES

REVENUE 230

250 201 200 143

150

50

40

2001-2002 2002-2003

98.5

100

2000-2001

2003-2004

60

2004-2005 2005-2006

0 1 YEAR

C.) Market share generation in MUS

66


MILLION UNITS

TPC -POWER BUISNESS 16000 14000 12000 10000 8000 6000 4000 2000 0

12996

13746

13283

12912

9000

1 YEAR 2001

2002

2003

2004

2005

MILLION UNITS (MUS)

TPC-MUMBAI AREA (MA) 12000 10000

9000

10032

10469

10374

11086

11246

8000 6000 4000 2000 0 1 YEAR 2000

2001

2002

2003

2004

2005

d.) MARKET SHARE (MUS SOLD)

67


MILLION UNITS (MUS)

TPC-power business 16000 14000 12000 10000 8000 6000 4000 2000 0

9500

9500

11000

12194 12500 12663

13574

1 year 2000

2001

2002

2003

2004

2005

2006

MILLION UNIT (MUS)

TPC-MUMBAI AREA 12000 10000 8000

8000

8000

8500

9500

10000 10474

11066

6000 4000 2000 0 1 YEAR 2000

2001

2002

2003

2004

2005

2006

6.) Financial result TPC has a track record of consistent improving financial performance.

68


a.) Profit before tax 800 RS IN CRORES

700

700

600

700

650

700

759 659

500

500 400 300 200 100 0 1999

2000

2001

1 2002

2003

2004

2005

year

b.) Profit after tax It has shown consistent rise from RS 330 in 1998- 99 RS 551 crores in 2004-2005 CAGR 8.92% ( Compounded Annual Growth )

RS IN CRORES

600 469

500 400

508

520

1 2002

2003

509

551

390 330

300 200 100 0 1999

2000

2001

2004

2005 (DEC)

YEAR

c.) Earning per share TPC has shown a consistent/ steady rise in EPS

69


RS PER SHARE

30

25.68

26.27

25.69

28.11

25 20

18.78

19.66

15 10 5 0 1999

2000

2001

12002

2004

2005 DEC

YEAR

d.) Fixed asset There is an increase in gross fixed asset in power business from RS 4938 Crores in FY 2002 to RS 5426 in FY05 ( CAGR of 3.19 ) 6000

5842

RS IN CRORES

5800 5600 5305

5400 5200 5000

5426

5000

4936

4800 4600 4400 2001

2002

2003 1

2004

2005 DEC

YEAR

70


e.) Income from Power Business This is mainly due to reduction in average realized revenue caused by MERC ( Maharastra electricity regulatory commission) order revising the tariff downward by 9.2% and a lower FAC (Fuel adjustment chares ) resulting due to better

RS IN CRORES

fuel mix. 4230

4500 4000 3500 3000 2500

4043

3683 3216

2000 1500 1000 500 0 2002-2003

2003-20041 2004-2005

2004-2005 (dec)

year

7.) Governance and social responsibility result TPC participate in MBE ( Management of Business ethic ) assurances survey conducted by TQMS for obtaining feedback on the company ‘s status on implementation of various ethics policies survey for this year is being carried out. a.) Leadership effectiveness survey LEADERSHIP

LEADERSHIP EFFECTIVENESS SURVEY RESULT 2004 2005

2006

EFFECTIVENESS INDEX HIGHER THE

73.3%

73.5%

75%

BETTER

b.) Results of Investor Survey 71


PARAMETERS 2003

PERCENTAGE (%) FAVOURABLE RESPONSE 2004 2005

2006

Dissemination of INFO :a.) Through news item in

NA

NA

93%

94%

98%

98%

98%

98%

NA

95%

94%

95%

97%

96%

95%

98%

89%

97%

94%

96%

paper /journal b.) Through annual report c.) Through cross web sites Arrangement and presentation Last AGM (Annual general Meeting) Timeliness , accuracy and

Quality C.) CRS SURVEY RESULT 2004 ( Corporate social responsibility ) Perspective Leadership commitment Manage structure CRS strategy Review mechanism Communication and awareness Training and development

2004 score 84.2% 69.8% 75.6% 71.5% 64.1% 76.7%

d.) CRS survey result 2005 CRS SURVEY REPORT Awareness

TATA POWER

TATA AVG

BEST IN

99%

GROUP 90%

GROUP 100

72


CRS environment index Leadership committee Communication Relevance System process and support Personal committee

44% 57% 37% 38% 44% 91%

37% 49% 43% 36% 38% 86%

59% 75% 71% 59% 66% 98%

e.) TPC is pioneer in breeding and distributing medicine show result provided to village. TPC Medicine to

2002 3.79

2003 9.40

2004 7.54

2005 8.17

2006 27

village in lakh (RS) f.) Tree plantation is a major activity in hydro catchments area It may be that TPC has cumulative planted more than 10 MILLION Trees. No. of tree planted. Hydro Jojobera Belgaum

2002 615000 19000 _

2003 654000 5200 3000

2004 72000 1850 4000

ISO - REPORT 9001:2000 (New

2005 924000 1600 3500

2006 990000 1550 2000

Quality Management

system) The Quality manual is the essence of the quality management system and it provides organizational directions in meeting the ISO 9001:2000 requirements , which are utilized to improve overall performance of the organization . The quality manual is approved by the management representation and it is mandatory for all to follow , as applicable .

73


The quality policy and broad based quality objectives are established and communication to all employees . All efforts are made to see that these are understood and implemented by all. As customer driven organization , it is necessary that the consumer requirement are determined and met with to enhance the consumer satisfaction. We ensured that the applicable statutory and are met with and all efforts are made to go beyond these on our own as a special responsibility. We are confident that all our employees will adopt this standard ISO 9001: 2000 of the quality management system in letter and in sprit for sustainable development. ISO 9001: 2000 IS IMPLEMENT IN THE AREA ARE AS FOLLOW:1.) Quality management system 2.) Management Responsibility 3.) Resource Management 4.) Product realization planning of product realization 5.) Product realization customer related processes 6.) Product realization design and development 7.) Product realization purchasing 8.) Product realization product and service provision 9.) Product realization control of monitoring and measuring devices.

1.) QUALITY MANAGEMENT SYSTEM

The Organization has:1.) Identified the processes needed for quality management system and their application throughout T,D&S division.

74


2.) Determined the sequence and interaction of these processes .( Activity flow charts and given in quality management system procedures ). 3.) Developed effective methods for operation and control of these processes . 4.) Ensured the availability of resources and information required to support and monitor these processes . Necessary manpower, infrastructure, transmission and distribution network have been provided . Technical literature to run the processes is available . 5.) Ensured monitoring measuring and analysis of these processes. 6.) Implemented actions necessary to achieve planned results and continual improvement of these processes. Quality management system ISO 9001: 2000

ISO 9001:2000 Quality policy ( Intention of organization ) Quality manual Quality procedures manual Work instruction

( what is being done ) ( Why , how it is being done) ( How in detail )

Format, records ( proof of work done)

Control of documents The organization has established and maintained procedures to control all documents and data that affect the quality of product . It is ensures that all documents are prepared, reviewed and modified for their adequacy, approved and distributed to the persons concerned.

75


All the software used in organization are controlled with password at appropriate level depending on requirement of the control EXAMPLE :-

SAP systems are operated with unique identify for each division with a

specific password ; e-mail are operated with individual profile and password ; SCADA system is operated with individual login name and password. Regular updating of revised software packages and anti-virus protection is being carried out by it department (support service) Control record The organization has identified and maintained the records required for effective implementation of the quality management system. Details of procedure required for storage , protection , retrieval, retention and disposal of quality records are given in quality procedure manual.

2. MANAGEMENT RESPONBILITY The top management quality objective are smart ( specific , measurable , achievable, realistic and time bound ) . a.) Maintain leadership position in customer satisfaction . b.) Maintain power supply reliability index higher than 99.50%. 76


c.) Achieve average restoration time of 20 minutes to affected customers. d.) Maintain supply voltage within limits ( variation of + - 6% ) e.) Adhere to standard of performance for power supply connections. f.) Control ATC loss below 12% . g.)

Reduce average cost per unit ( T,D& S) by 5%.

h.) Ensure accident free working by adhering to safety policy. i.) Continually upgrade employee skills to adapt to change. j.) Minimize inconvenience to the community during exestuations of work . Review input i.)

Confirmation / follow up of previous management review.

ii.)

Result of quality management system audit report.

iii.)

Feedback on customer satisfaction survey customer meet and customer complaints.

iv.)

Status of corrective actions and preventive actions takes.

v.)

Recommendations for improvements from all divisions.

vi.)

Review of quality objectives.

Review output Discussions and decision are recorded in MOM (Minutes of meeting ) which includes some of the following point :i.)

Improvement of the effectiveness of quality management system and its processes .

ii.)

Improvement in service to consumer.

iii.)

Resources required.

iv.)

Action plan and agenda for next meeting.

3. RESOURCE MANAGEMENT Resources required for implementing and maintaining effective quality management system and enchaining customer satisfaction are identified and provided. EXAMPLE:-

Manpower

, Material, services , Infrastructure, work environment,

information system , finance etc. 77


a.) Infrastructure The infrastructure required to achieve conformity to product / service requirement , has been determined , provided and maintained. b.) Preventive maintenance This is planned as per the maintenance schedule carried out and records maintained . Spare are maintenance , annual maintenances contracts are entered in to for support equipment. c.) Breakdown maintenance Information regarding is given to the concerned maintenance department. The repair work is carried

and records are maintained . Details of the equipment regarding

manufactures data of purchase and installation , Specification , drawing and major repairs done , are maintained . Breakdown van is available for emergency round the clock. d.) Work space / office Suitable workspace and officers furniture are provided for officers and staff . Adequate computer with necessary software and peripherals have been provided . e.) Computer maintenance ( Hardware and software ) Computer have been provided in departments for data storage , communication , data processing and to speed up work functions. Official software package viz. windows , SAP, Outlook , Novell etc have been load in the computer for various applications. Anti-virus protection have been provided . All the software used in organization controlled with passwords and login names at appropriates levels. Backup facility is provided as centre serve. f.) Transportation Bus transport is provided to employees . Vehicles are provided for various sites activities maintenances and repairs vehicles are carried out regularly. g.) Communication

Telephone to individual and department having intercom and

direct dial facilities are provided . Microwaves, carries, fiber optic telephone communication system have been provided for operation staff and senior officers . Mobile phones have been provide to senior officers and O &M Engineers. Fax machine, Internal memos are used for written communication.

78


h.) Work environment Management has determined and ensured that adequate provision are available for health and safe working environment . Clean rooms, proper lighting , ventilation and air conditioners are provided to control temperature and humidity . Fire extinguisher and first aids boxes are provided as a safety measures. In order to maintain the temperature, air quality , air conditioners, ventilation have been provided . Proper lighting arrangement at work places have been made . I.) House keeping Cleaning of the station premises is carried out . Material in stores are stocked neatly on the racks. Space provided for them . Files are kept in filing cabinets. drawings are kept in drawings are kept in drawing cabinets . Regular pest control is carried out in the premises. j.) Food Canteen facility has been provided at certain locations given breakfast lunch , snacks , tea , coffee to the employees at subsidized rates. k.) Recreation Rest room is provided to the work force. Games rooms having gymnasium , carom and table tennis facilities are provide . Library facilities are available with technical books and periodicals so as to keep the employee in touch with the latest development. Various sports meets are arranged by TPC for spotting of talent and exceptional sportspersons are encourage to participate in tournament at various level.

4.)

PRODUCT REALIZATION PLANNING OF PRODUCT REALISATION

79


The network infrastructures is planned base on the long term network expansion plans and load . Application forms from the customers according to schemes for providing the schemes for providing power supply to the customer one finalized . The implementation schedule is discussed in the respective divisional co-ordination meeting . The time frame for each schedule is proportioned as per the ISLA ( Internal service level agreement ) with the respective support processes . Job quality in confirmed through third party inspection . i.)

These process are documented and provided to meet the requirement of product realization .

ii.)

The required verification , validation , monitoring , inspection and testing activities specific to the equipment have been determined and the criteria for acceptance is established by the organization .

iii.)

The records are maintained to determined to demonstrate that the product meets the requirement.

5. PRODUCT REALISATION CUSTOMER RELATES

PROCESSES Review of requirement related to the product :-

80


Review of the customer requirement is carried out jointly by engineering department T&D division CDD (Consumer development department ) . T&D division takes appropriate action for the implementation . EXAMPLE:-

Requirement of the customer for reduction in interruption of supply and

voltage fluctuation to them by providing under ground cables in place of overhead line, increase in the capacity of power supply requirement etc. The requirement are communicated to the concerned and contract review records are maintained . Customer communication :CCR , O&M engineers and the call centre are contacted by customer for and any help required . These centre receive complaints and immediately intimate working agencies who are available on telephones and monitor restoration of supply and resolving of complaint. The complaint data is complied and reviewed by concerned division for improvements. Customer feedback is obtained through customer meets , focus group , and customer satisfaction survey . T,D&S division participates in the customer meets , where customer related issues are discussed and feedback is received. Also T,D&S division receives the report on customer satisfaction surveys for necessary action . EXAMPLE:A customer contact plan is prepared, which indicates the frequency of meeting customer by various level of personnel .

6.) PRODUCT REALISATION DESIGN AND

DEVELOPMENT a.) Design and development planning

81


Planning and control of design and development of product / services are done to determines . i.) Design and development stages . ii.) Review , verification and validation as appropriates to design and development . iii.) Responsibility and authorities for design and development . iv.) The various division have interfaces to ensures clarity of responsibility and effective communication. b.) Design and development inputs i.) Input from customer standard design and engineering guidelines . ii.) The India electricity acts , 2003. iii.) Relevant India standards . iv.) Review of standard design schemes based on new technology , vendor input , site inspection and comments on similar design . v.) Inputs from user departments. vi.) Inputs from other organization and distribution licenses . vii.) Input from customer guidance . c.) Design and development output The outputs of design and development are verified against the corresponding inputs and checked prior to release , to meet requirement of the customer , organizational needs , site constraints, material procurement activity and cost estimate. The outputs of design are in the form of schemes , drawings , material specifications , product acceptances criteria , safety and it ‘s proper application. d.) Design development review At suitable stage, systematic design and development review are carried out to :i.) Evaluate the design outputs meet the requirements as defined in the design input stage. ii.) Identified any problems / deviation and proposed corresponding necessary action. The participants of design process are from CED ( consumer engineering department ) , civil , cable , customer division , EQAS and other as required . The records of the review and require action are maintained by CED. e.) Design and development verification

82


The design and development verification is carried out by inspection team at the manufacture work to ensures that the output meet the requirements given in defined at the planning stages. Sample approval , inspection and testing are carried out at manufacture premises to ensure that the output as per the design requirements . The test report copies are maintained by CED. f.) Design and development validation To ensure that the result product is capable of meeting required applications ; design and development validation are out by CED , user division and EQAG as specified in planning stages for schemes, drawings and material specifications, validation is carried out in any of the following ways as applicable:i.) Comparing with manufactures test certificates for the equipment . ii.) Conformance with performance with latest amendments under IE ACT rules ( Indian electricity act ) . iii.) Comparing with manufactures test certificates for the equipment . iv.) Comparing with performance / feedback / occurrences report for similar equipment from user department . g.) Control of design and development change Request for changes in design and development , whenever receive from customer development implementing agencies are incorporates after review . The changes made are reviewed , verified and validated . These are approved by CED before implementation.

7. PRODUCT REALISATION PURCHASING a.) Purchase process i.)

The requirement of the material is determined by concerned division and the

specification are forwarded to CSG ( Corporate sourcing group ) ENGG department 83


through purchase requisition in SAP system . However relates external correspondences is in manual modes . ii.) The purchase process and vendor evaluation procedure for spares and consumable are carried out by CSG . Purchase of items under late contract and purchase of low value items are done by T,D&S division . iii.) Engineering department carried out the purchase process for equipment . v.) Inspection and test are carried out at vendor premises at various stages of production as per the requirement mentioned in the purchase order . vi.) Purchase of services for services common to all divisions , list of approval vendors contractors , and the rates of services are forward by T,D&S , head office for requirements the division concerned carries out tender analysis before placing purchase orders. vii.) The CSG ( Corporate sourcing group ) and engineering department carry out vendor evaluation . The rating for service contracts is carried out by respective T,D&S division . Criteria have been identified for selection , evaluation and re-evaluation of suppliers who are selected on the basis of their ability to meet quality and other requirement . A list of approved suppliers is maintained by concerned external support departments ensure that purchased product conform to requirement specified in related indent. b.) Product Information i.) Specification of spares and consumables to be purchased are given in the purchase requisition to CSG by the T,D&S division . ii.) Requirement are discussed in site engineering co-ordination meeting and comments on technical specifications/ drawings of the equipment to be purchased by engineering department are given by respective T,D&S division . Purchase orders / documents contain data that clearly describe the product / services ordered . It may include where applicable . The type , class, style , grade , or other precise identification , the title , applicable specifications , process requirements , inspection instructions , relevant technical data , requirements for approval / qualification of products , procedures ,process equipment and personnel and QMS ( Quality management system ) . c.) Verification of purchase product i.) All spares and consumables are inspected at stores after receipt by concerned maintenances engineer / stores in charge to ensure that purchase specification are met.

84


Critical spares are also tested at suppliers works / stores for conformity to specifications product that are not meeting the specifications are rejected . Payments are made to suppliers only after acceptance of product / service . ii.) Inspection and testing of major equipment are carried out at supplier ‘s premises . Dispatch clearance is given by engineering department subsequent to department compliance of inspection report recommendation ( Inspection reports , factor test results ) The equipment is inspected at stores and again tested at sites prior to commissioning .

8. PRODUCT REALISATION PRODUCT AND SERVICES PROVISION a.) Control of production and services provision

85


i.) IT is ensured that the transmission and distribution of power is planned and carried out under controlled condition by providing alarms , annunciation and automatic isolation under uncontrolled conditions . Suitable equipment are used as per requirements and operated within their limits by continuous monitoring . Alarm system are installed on the equipment for intimation of any abnormality . Protection is provided for safe guarding and automatically isolating the equipment during fault . The voltage current and frequency are monitored and controlled round the clock with the help of suitable devices SCADA , under frequency load , capacity bank for under voltage control , overload protection for currents etc and recorded in log sheet , operation check list etc. ii.) Operation of electrical systems are carried out as per operation manual . iii.) Maintenance and testing of equipment are carried out as per maintenances and testing schedules with references to maintenance manual and EQAG guidelines . iv.) Suitable equipment are used for transmission , distribution and supply of power and providing service to customers .( Transmission lines of required capacity for transmission of power , transformers for achieving suitable voltage level for distribution and cable network of required capacity for distribution upto customers premises/ meters) . v.) Correction and improvements are carried out when any abnormalities are observed or when any customer complaint is received . vi.) Correction actions are taken to avoid recurrences of defect in the equipments . vii.) Prompt service is provided by the concerned O&M staff in case of break down or abnormalities reported by customer ( Restoration of supply , repairs to equipment etc). viii.) Document like quality procedures , work instruction , and formats define the way in which these services are provided . ix.) Inspection / test reports of equipment ordered are obtained to conform to specifications. x.) Review of drawing pertaining to customer sub-station is done . xi.) Monthly report serve as a control processes. b.) Validation of processes for production and service production and services provision 1. Test changing of high voltage and EHV ( Extra high voltage equipment) . 2. EHV cable jointing. i.) Criteria and approval of the processes :-

86


The validation of services worthiness of high voltage and extra high voltage equipment , is carried out by test charging it at rate voltage and frequency as per approved procedure . The test charging procedure is unique is nature for unique in nature for each HV/ EHV equipment. The test charging of new HV/EHV equipment is done prior to commissioning as per approved test charging procedures from load dispatch department ( system controller ) / division . High voltage test is carried out to confirm the healthiness of the joint . Test charging of the cable is done as per approved testing procedure. ii.) Qualification of the personnel :The personnel implementing the processes are qualified engineers . iii.) Specific Methods:The equipment is test charged by connecting it to the existing network of power supply . iv.) Records :Test charging relay setting and test results. v.) Revalidation:The processes are periodically revalidated by load dispatch and EQAG. C.) Identification and traceability I.) Material / Equipment in stores are stored as follows :i.)

Material received and awaiting inspection / testing is stored in inspection separately.

ii.)

Usable material is store in bin / racks properly labeled with code numbers details material / equipment are maintained in material of SAP system.

iii.)

Defectives / rejected material is stored in a separate area identified for such material with proper labels / tags- mentioning details defects.

iv.)

unserviceable obsolete material in stored in a separate area identified for scrap material details of such material are with stores engineer .

II.)

All equipment in service are identified by label and their details are fixed assets inventory in SAP . The location of the equipment is mention in the fixed asset inventory against each equipment for traceability . The name plates on the equipment contain details such as :i.)

Name of equipment

87


III.)

ii.)

Ratings of equipment

iii.)

Serial no

iv.)

Year of manufacture

v.)

Name of manufacture

All control panels in control room are labeled with equipment name and relevant details.

iv.)

Safety tugging system is adopted to identified the equipment out service or under work various tags as necessary are put on the control switches / equipment to indicates the status of the equipment . ( e.g. :- Release notice is used for equipment out of service , caution order is used to indicate equipment is live but certain work can be carried out ) . The tag contains the details of name of the equipment , handed over by , taken over by , nature of work etc.

v.)

“ Danger” sign boards with voltage level are installed wherever required .

vi)

Transmission lines are provided with name plates, danger boards ,antic liming devices etc as identification and safety .

VII.)

Prior to back filling , cables are covered with cement tiles with voltage and ‘ TATA’ name engraved on it . This ensures safe working and easy identification by giving a unique. viii.) Customer record with respect to the specific customer are identified by giving a unique customer number . This files contains all records / drawing for identification and traceability .

d.) Customer property :System exists to identify , verify , protect and safeguard customer property like land , substation building , money deposits etc. Customer ‘s drawings, in our control are preserved in customer files are records . If any customer property is cost , damage or otherwise found unsuitable for use , it is reported to customer and records are maintained by concerned group heads. e.) Preservation of group:-

88


i.)

All equipment in service and in stores are properly identified by code number , name , location , etc . ( The information is available in SAP ) . The material is handled in such a way that the first received material is issued first (FIFO) .

ii.)

Appropriate means of transport skilled manpower and tool are used for handling equipment . ( e.g. Trailers , pallet wheel tracks , cranes , fork lifts and hoists) .

iii.)

Equipment received at stores are stored and preserved under controlled condition if required . ( e.g. Hot rooms for spares motors and coils and cold room for gaskets and certain rubber material , temp shed for monsoon protection ) .

iv.)

Shelf life material are stored separately and they are disposed off after their self life as over . ( For this third party checks of stores inventory are regularly carried out ) .

9. PRODUCT REALISATION CONTROL OF MONTIORING AND MEASURING DEVICES . Purpose :-

89


This section describes a) The process of monitoring and measuring the parameters of the product. b) The method of calibration / verification of monitoring and measuring devices to ensure product conformity . Activies:i.)

All revenue meters are identified by their unique serial no . They are tested , calibrated and commissioned by EQAG . Indicating meters are only verified by EQAG .

ii.)

Adjustment and readjustment if required is done by EQAG .

iii.)

All revenue meters are identified are calibration . Following devices are used for indication :a) voltmeter

for voltage

b) Ammeter

for current

c) wattmeter

for quantity of energy

d) Frequency meter for supply frequency . e) MVAR meter f)

iv.)

for reactive energy .

Temperature meter for temperature of equipment .

g) Pressure gauge

for pressure .

h) Recorders

for voltage and frequency .

All the revenue meter are sealed and protected against tampering . Holograms are provide for the sealing purpose .

v.)

Due care is taken during handling , maintenance and storage of devices to protect from them from damage and deterioration.

10. Measurement , Analysis and Improvement The organization has planned and implemented the monitoring , measurement , analysis and improvement of process to ensures conformity of the product and continual improvement of quality management system . The organization has identification the steps where monitoring and measurement and required . 90


e.g. Customer complaints , equipment defects etc . Monitoring and measurement :a.) Customer satisfaction T D &S division is adopting various methods for determining consumer satisfaction . Information related to customer satisfaction is gathered through the following internal and external sources :i.)

Customer requirement survey is carried out once in two year with help of external agency . Segment wise requirements of customer are captured through the survey and action plan is prepared .

ii.)

Listening and learning methods are development by T,D&S . Based on these inputs , the continual improvement plan are addressed through customer co-ordination meets and then actions are initiated .

iii.)

Annual customer satisfaction survey is conducted by CRD to / collect and analyses satisfaction / dissatisfaction levels for each segment to customer and those of customer competitors . Implementation plans are drawn out along with the support services .

iv.)

Customer complaints ( call centre report , customer written complaints ) . The complaints received analyzed by concerned division . The data is used to take corrective and / or preventative action ( Customer complaint handling ) .

v.)

Customer meets:-

Consumer relation department conduct annual

customer for HT , LT and retail customers . This provides the direct interaction between top management and the customers . A verbal and written feedback is obtained from these customers. The evaluation of this data is used to takes correctives and preventives actions . vi.)

Market intelligence:-

Information about competitor and customers is

acquired through opinion leader ( Builders , contractors etc.) . Relevant feedback received required from above mention method continual improvement in product / service by CED this report is circulates to the concerned departments.

91


b.) Internal Audit :T,D& S division carries out internal audit twice a year . Management representative plan the audit , appoints an internal audit team ensures that the audit is carried out in an impartial internal audit is carried out as per schedules to assess the strength and weakness of quality management system . Audit team is sent to division to carry out the audit . The scope of the audit includes the following :1) Effectives and efficient implementation of processes and resources. 2) Learning and sharing of information to extract opportunities for continual improvement . 3) product performance results and expectation . 4) Previous audit reports / and action taken 5) Level of relationship with all interest parties The audit report contains performance measurement of OMS , list of non - conformities and access for improvement . non - conformities are eliminated by taking necessary corrective and preventive action by respective divisional heads . audit report are maintained by management representative . C ) MONITORING AND MEASUREMENT OF PROCESS :i.)

The quality management system processes are mention by tracking result . the result and measures wherever applicable are defined in the processes .

ii.)

Key indices monitored regularly are CAIFI , SAIFI ,SAIDI ,reliability index and building integrity index

iii.)

Processes to meet the quality objective have been established along with there measures for monitoring the data .the data is capture in relevant document . this takes into all scope for improvement , performance expectation , consumer focus ,effectiveness and efficiencies of the weak forces , utilization of resources .

92


iv.)

Vendors supplying material / equipments and those providing services are evaluated to use their performance by CSG

v.)

Control of parameters of power supply like voltage is carried out by operation engines ( eg . taking in services or cutting out capacitors banks and changing transformer taps for voltage regulation ) .

Monitoring and measuring of product :i.)

Major equipment are tested at manufacture’s work by inspection team and

inspected

on

receipt

at

our

works

and

tested

prior

to

commissioning . ii.)

The testing is carried out as per applicable is standard / EQAG instruction and result are recorded . Responsible authorities for acceptance of the equipment at various stages are identified .

iii.)

The parameters of the equipment i.e., voltage , current , power , pressure, temperature are monitored and records are maintained .

iv.)

The equipment are maintained are periodically tested as per laid down procedures and their records are maintained .

v.)

When planned result are not achieved, correction and correctives actions service delivery processed only after approval by relevant authority by the customer and or by third party.

vi.)

To ensures correct product is delivered , inspection of equipment at manufactures work , electrical inspection by cross functional team are carried out for each customer installation .

vii.)

It is ensured , by respective divisional head that all mandatory regulations are complied with final delivery of the product .

e.) Control of non-conforming product :i.)

Incoming

equipment

identified

as

non-conforming

equipment

is

segregated and stored separately with rejected. ii.)

Non-conforming equipment is either rectified by the manufactures at sites or returned to the supplier for rectification / replacement.

93


iii.)

Equipment in services that is detected as non-conforming is rectified / repaired and retested engineer during monitoring or routine works and are rectified by them .

iv.)

Regarding elimination of services non-conformity during a break down in power supply , suitable alternate arrangement is in corporate in the distribution network design .

v.)

To eliminate non-conformities on services quality ,TPC has an effectives complaint management system . The MIS is generates at the end of the every month is analyzed and corrective action taken to prevent recurrence of the same .

f.) Analysis data :The data required for demonstrating the suitability , effectiveness and continual improvement of quality management system is determined and gathered in various formats ( quality format / records ) . The analysis of data provides information are about :1) Customer satisfaction :- Yearly this is carried out by the customer relation department and action plan is prepared by division . 2) Conformity of product requirement :- The daily parameters of power supply and equipment are monitored . 3) Characteristics and trends of the processes and products :- Quarterly this scheduled and actual targets of the performances are reviewed every quarter and appropriates action plan is prepared for implementation . 4) Supplier :- Vendor analysis is done by CSG . Data is presented in the form of bar chart , flow chart , graph , histogram etc and analyzed action are initiated based on the analysis . Reference is made to various report likes , daily report , monthly report , call centre report , MIS report , customer contact plan . g.) Improvement :-

94


i.)

Continual Improvement :-

It is achieved by using quality policy ,

objectives , CAPA and taking a feedback from internal / external audit report , finances audit report , consumer complaint analysis , management review , marketing survey from customer through existing relationship mechanisms , suggestion schemes and adopting new technologies . Record are maintained by respective divisional head . ii.)

Corrective actions :- The division takes action to eliminate the cause of non-conformities to prevent recurrences . Reports of product related non-conformity arising out of condition monitoring , consumer complaint or internal audit are handle by maintenance engineer . They investigate the root causes and report system relates major non-conformity arising out of management review and external audits and initiate the corrective action review of the corrective action taken is carried out in divisional meeting .

iii.)

Preventive action :- The division determines action to eliminate the causes of the potential non-conformity to prevent their occurrences a.)

Analysis of CSS , occurrences , defects are carried out to determine preventives actions maintenance information notes is generated and circulated in system . Other division then implement similar actions to avoid occurrences in their area in relation to the effect of potential causes .

b.)

Review of the preventive actions taken are maintained.

EVALAUTION OF TOTAL QUALITY MANAGEMENT

95


With increasing emphasis on the need to enhance productivity and quality of manufacturing units , it is essential to carry out evaluation of the entire quality system from time to time and take corrective measures overcome the deficiencies in the system . 1) Organization :- It consist of ( a.) Constitution of functional departments to look after various responsibilities concerning planning , execution and control such as finance , marketing , personnel , purchase , manufacturing and research and development and ( b.) Constitution of committee to assist in conducting all the operations smoothly , such as cost reduction committee , rejection control committee , production improvement committee , safety committee , quality circles , etc. 2) Finance:- This section consist of major function area like function control and report generation , corporate financial planning , budgets and budgetary controls , pricing , cost accounting and cost control . 3)

Product planning :- It consist of function area such as current and long range planning , plant capability and product compatibility studies , new or expanded facilities planning , product diversification and product range modification .

4) Marketing :-The main functional area to be looked after in marketing are marketing strategy , sales promotion and publicity, product identification and market forecasts, sale management , customer services and technical support , customer feedback analysis and follow-up , load planning , manufacturing engineer . 5)

Material Management :- The major area to be provided are : inventory control and purchase , receiving and warehouse, work-in-process , material handling scrap and rework analysis and shipping .

6) Manufacturing:- This section may consist of following functional areas, each of which must be given due attention for achieving high performance. i.)

Facilities

utilization:-

layout and

arrangement , condition

and

maintenance of plant and equipment , availability of supplies , such as compressed air , water , fuel oil , power , etc. ii.)

Manufacturing engineering :- Design and manufacture of dies and tools, laying down technology for production , prepare wok standards , material development , process development , process layout planning ,

96


use of new technology , co-ordination with research and development , management information system and report generation for marketing . iii.)

Production :- Implementation of production schedules and control of delays, control of production operation for maximum efficiency, ensuring high

level of performance

from workers and

other

employees,

maintaining production standards , general house keeping in all production level . iv.)

Quality control :- Defect analysis , trouble shooting and customer analysis , third party inspection co-ordination , calibration and control of gauges , instruments and inspection / testing equipment , maintaining record of inspection and quality assurances , use of statistical analysis for material and process control , planning and method .

CONCLUSION

97


Thus , I would like to conclude that Malcolm baldrige report

is help to improve

performance practices and capabilities . To facilities communication and sharing of best practices information among and within organization of all types based upon common understanding of key performances requirements . It serve as a working tool for managing performance , planning , training , and assessment The criteria was to design to help companies enhance their competitiveness through delivery of ever – improving value to customers , resulting in marketplaces success , and improvement of overall company performance and capabilities . Customer judge quality . All product and service characteristics that contribute values to customers and lead to customer satisfaction and preference must be focus of a company management system , value , satisfaction , and preference may be influences by many factors throughout the customer overall purchase , ownership , and service experiences . These factors include the company relationship with customer that help built trust , confidences , and loyalty . These have been identified as leadership , a people focus , a customer focus , and a supplier focus , planning for improvement , process optimization and organizational performance . The organization will also have to approach the markets for new talent as strategically as the customer markets and have to develop the same market strategy development process for both customer markets and talent markets , including a process to develop strategic objectives , action plans, and relates plan for how to attack and to keep talented individual. ISO 9001:2000 :- It involve in making decision about going ahead with ISO certification , and initiating the work by defining the scope for certification example entire company , single location , project setting up project team to take care of the work , defining the responsibilities , assigning authorities , carrying out a detailed analysis of the company ‘s activities and performance . The ISO model for quality system can be applied to design , development , production , installation , serving ,final inspection and testing of any product or services . Duly

98


accredited certifying agencies are available and these issue ISO certificates after carrying out necessary check and verifications . Thorough preparation and training of people at all level is necessary before applying for the certificate . For assistance in the implementation of the ISO:9000 , designing and adopting suitable documentation and providing training , consultancy services of external agencies specialized in this work can be obtained . Adoption of quality management system and holding quality certification can be extremely useful in procuring new markets and building confidence in the customers about quality of products . Therefore , Total Quality Management is receiving considerable attention . It is receiving increasing significance in modern organization . The intensely competitive global and domestic markets have created enormous pressure on total quality .

BIBLOGRAPHY

99


BOOKS REFEREDS:1) METHOD OF TOTAL QUALITY MANAGEMENT _

GOPAL K. KANJI

2) QUALITY CONTROL AND TOTAL QUALITY MANAGEMENT _

PL JAIN

3) PRODUCTIVE AND QUALITY MANAGEMENT _

S.D. APHALE

SITE VISITED :1) WWW. TATAPOWER .COM COMPANY REPORT ( TATA POWER ) :1) QUALITY COST REPORT 2) TECHNIQUES USED FOR TOTAL QUALITY CONTROL 3) COST ASSOCIATED WITH INSPECTION AND TESTING 4) MALCOLM BALDRIGE REPORT ASSESSMENT YEAR 2005-2006 5) NEW QUALITY MANAGENT SYSTEM ISO 9001-2000 ARTICLE :1.) TATA POWER COMPANY INDUSTRIES VISITED :TATA POWER COMPANY , SAILESH NAGAR , NEAR MAGATHANE BUS DEPOT, BORIVALI (EAST) – 400066 .

ABBREVATION FOR TATA POWER

100


3SCR - Speedy significant and sustainable cost reduction . ABP - Annual business plan . ABT - Availability based tariff . AOP - Annual operating plan . ARR - Annual revenue requirement . AT&C - Aggregate technical and commercial . ATR - Action taken report . AVR - Automatic voltage regulator . BE - Business excellence . BD - Business development . BDO - Business development officer BI - Business intelligence . MMC - Mumbai municipality corporation . BIS - British institute of standards . BM - Bench mark . BKC - Bandra kurla complex . BPCL - Bharat petroleum corporation Ltd . BPSU - Bhira pumped storage unit . BRC - Business review council . BSC - Balance score card . BT - Business today . BU / SBU - Business unit / strategic business unit . BVQI - Beuro veritas quality institute . CAGR - Compounded annual growth rates . CAIDI - Customer average interruption duration index. CAIFI - Customer average interruption frequency index . CAM - Customer account manager . CAPEX - Capital expenditure . CBIP - Central board of irrigation and power. CBI - Computer based training . CCI - Corporate citizenship index .

101


CCM - Customer coordination meeting . CCR - Central control room . CDD - Customer development department . CDM - Clean development mechanism authority . CEA - Central electricity authority. CED - Customer engineer department . CEI - Control effectiveness index . CERC- Central electricity regulatory commission . CESC - Calcutta electricity regulator commission . CFT - Cross functional team . CG - Core group . ECM - Engineering co-ordination meeting . ESP - Electro static perception . EQAG - Electrical quality assurances group . EMBA - Executive MBA . ETD - Education , training , and development . ISLA - Internal service level agreement . IPP - Independent power plant . KAM - Key account manager . KM - Knowledge management. KPM - Key performance measures . KRA - Key result area . KSF - Key success factor . KWHR - Kilo watt hr. KHUB - Knowledge hub . OEM - Original equipment manufacture . OPEX - Operational expenditure . PAT - Profit after tax . PBT - Profit before tax . PB - Power business , PPE - Personal projection equipment .

102


PPM - Personal planning meeting . PSD - Power system division . PTC - Power trading co-operation . PWS - Price warehouse cooperation. QAP - Quality assurances plans . QMS - Quality management system . SAIDI - System average interruption duration index . SAIFI - System average interruption frequency index . SAN - System area network . SBU - Strategic business unit . SCADA - Supervisory control and data acquisition . SCM - Supply chain management . SEB - State electricity board . SEBI - Securities and exchange board of India SED - Strategic electronic division . SERC - State electricity regulator commission . SAP - Software application . SPP - Strategic planning process . SRR - Statutory regulatory requirement . SSSC - Supervisory surveillances of customer . S & BD - Strategy and business development . TCOC - TATA code of conduct . TCE - TATA consulting engineer . TEI - Training effectiveness index. TG - Turbine generator. TIN - Technical information notes . TLP - TATA Leadership practices . TNCI - Training need compliances index . TNI - Training need identification . TPM - Total productive maintenances . TOD - Time of the day .

103


TPC - TATA POWER COMPANY . TPC - Tones per day . TSS - Total suspended solid TSGM - TATA Strategy management group . VCP - Value creation process . VPN - Virtual private network . VSAT - Very small aperture terminal . WBT - Web based training . WREB - Western region electricity board . WIFI - Wireless fidelity . WRF - Western region forum . XLPE - Cross linked poly ethylene. YEL - Yashmun engineers Ltd.

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