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ROURKELA STEEL PLANT

INTERNSHIP REPORT

AN ORGANISATION STUDY

AT

ROURKELA STEEL PLANT

Submitted to Bangalore University in partial fulfillment of the requirement for the award
of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

HIMANSU SEKHAR M

(REG. NO. 101GCMA043)

UNDER THE GUIDANCE OF

INTERNAL GUIDE: EXTERNAL GUIDE:


Mrs. ANITA D SILVA Mr. SUDHANSU S M
Prof., RVIM Asst. Manager

RASHTREEYA SIKSHANA SAMITHI TRUST

R.V.INSTITUTE OF MANAGEMENT

CA 17, 36TH CROSS, 26TH MAIN, 4TH T BLOCK, JAYANAGAR, BANGALORE-41

R.V. INSTITUTE OF MANAGEMENT, BANGALORE


ROURKELA STEEL PLANT
DECLARATION

I, HIMANSU SEKHAR MOHAPATRA hereby declare that the


internship project report titled An Organization Study at
ROUKELA STEEL PLANT, Rourkela submitted in partial
fulfillment of the requirements for the award of the degree of
Master of Business Administration (M.B.A) is my original work
under the guidance and supervision of Mrs. ANITA D SILVA, Prof.
RVIM and Mr. SUDHANSU S MOHAPATRA, Assistant Manager,
ROURKELA STEEL PLANT, Rourkela.

This internship project report has not been submitted to any other
institution / university for the award of any degree or diploma or
any other similar titles.

DATE: HIMANSU SEKAHR MOHAPATRA


REG. No 101GCMA043
PLACE: BANGALORE

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

CERTIFICATE

This is to certify that Mr. HIMANSU SEKHAR MOHAPATRA bearing


Register Number 101GCMA043, student of III semester MBA
programme, has undertaken an internship study on the topic An
ORGANIZATION STUDY at RORKELA STEEL PLANT, Rourkela
under the guidance of Mrs. ANITA D SILVA, Prof. R.V.I.M. The report
is being submitted in partial fulfillment of requirements for the award of
the degree of Master of Business Administration.
This internship report has not been submitted to any other institution
for the award of any degree or diploma of any other universities.

Dr. R.K.GOPAL Dr.T.V. RAJU


Professor & H.O.D Director
M.B.A Department, R.V.I.M R.V.I.M

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

GUIDANCE CERTIFICATE

This is to certify that Mr. Himansu Sekhar Mohapatra bearing


University Regd.no.101GCMA043 has successfully completed the project
work entitled An Organisation Study at Rourkela Steel Plant in our
organization for the partial fulfillment of degree of MBA program in
R.V. Institute of Management, Bangalore under Bangalore University,
Karnataka.

No part of this work has been submitted anywhere for award, for
any degree or otherwise to the best of my knowledge.

Signature of the Guide


Mr.S.S.Mohapatra
Assistant manager
Personnel (PIS)

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

GUIDE CERTIFICATE

This is to certify that Mr. HIMANSU SEKHAR MOHAPATRA bearing


REG NO. 101GCMA043 student of III semester MBA programme has
undertaken an internship on the topic An ORGANIZATION STUDY
at ROURKELA STEEL PLANT, Rourkela under my guidance and
supervision. The report is being submitted in partial fulfillment of the
requirements for the award of the degree of Master of Business
Administration.

This internship project has not been submitted to any other institution
for the award of any degree or diploma for any other universities.

DATE: Mrs. ANITA D SILVA


PLACE: BANGALORE Prof. R.V.I.M

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

ACKNOWLEDGEMENT

The successful completion of any task would be incomplete without mentioning the people
who made it possible and whose constant guidance secured as success.

I express my deep gratitude to our Director Dr.T.V.RAJU, R.V. Institute of Management,


Bangalore, for his support in the successful completion of the project and Dr.R.K.Gopal,
HOD, MBA programme, for giving an opportunity to complete this study successfully.

It is with humble sense and gratitude with heartfelt appreciation to my beloved Internal
guide Mrs. ANITA D SILVA . whose estimable aid, keen surveillance, support, continued
inspiration, valuable guidance and meticulous supervision throughout project and to bring
this project to a successful completion.

I express my immense gratitude to the External Guide Mr. SUDHANSU MOHAPATRTA,


Asst. Manager (PL), R & PIS of the company for providing me continuous support, advice
and encouragement to go about completing my project successfully.

I owe my sincere gratitude to all the members and heads of various departments in
ROURKELA STEEL PLANT. I extend my sincere thanks especially to all the members of
Rourkela Steel Plant & especially HRD department who have made my stay in RSP most
fruitful and a learning experience.

I also thank members of non teaching staff of RVIM for their continuous support during
my internship training. I am grateful to my parents, friends and well wishers who have
encouraged and supported me throughout my internship programme at ROURKELA
STEEL PLANT, ROURKELA.

DATE: HIMANSU SEKHAR M

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
PLACE: BANGALORE

CHAPTERS INDEX PAGE


NO
CHAPTER 1 INDUSTRIAL PROFILE 1-10
INTRODUCTION
DEMAND OF THE STEEL INDUSTRY
GLOBAL SCENARIO
MAJOR PLAYERS
STEEL AUTHORITY OF INDIA LTD (SAIL)
SAILSS CORPORATE PLAN- 2012
MANAGEMENT OF SAIL
SAIL INTO THE FUTURE
CHAPTER 2 COMPANY PROFILE 11 34
ROURKELA STEEL PLANT
LOCATION
SPECIAL FEATURES OF RSP
VISION, MISSION, AND QUALITY POLICIES
PRODUCT PROFILE
PRODUCT MIX OF RSP
PRODUCT AND ITS APPLICATION
COMPETITORS
ORGANIZATION STRUCTURE
PRODUCTION PROCESS MODEL
CHAPTER 3 FUNCTIONAL DEPARTMENTS 35 65
CHAPTER 4 SWOT ANALYSIS 66 68
CHAPTER 5 FINDINGS & SUGGESTIONS & CONCLUSION 69 72
BIBILOGRAPHY 73 - 74
ANNEXURE 75 - 77

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

CHAPATER 1

INDUSTRY PROFILE

INTRODUCTION

DEMAND OF THE STEEL INDUSTRY

GLOBAL SCENARIO

MAJOR PLAYERS

STEEL AUTORITY OF INDIA LTD. (SAIL)

SAILS CORPORATE PLAN- 2012

MANAGEMENT OF SAIL

SAIL INTO THE FUTURE

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

INDUSTRY PROFILE

INTRODUCTION:

Steel Authority of India Limited (SAIL) only the name is sufficient gives a brief
idea about the company. As we know Mr. Jameshdji Tata sowed the seeds of modern steel
industry in 1907 when Tata Iron & Steel Company Ltd (TISCO) was established. In the year
1939 the production of steel started in another private steel company called the Indian Iron and
Steel Company, now a subsidiary of the SAIL. After the independence SAIL became a major
player of steel and iron and a major supplier to all the fields. After Globalization SAIL having
big opportunity to expand their sales globally and became one of the major suppliers of steel and
iron. As we know that what ever is made that must be for some purpose and that must be sold
but the process may be different from one another.

Growth:

In the era of planned economy, iron and steel, a core and basic sector, received the full
attention of the government. It became a key sector for public investment for the First Five Year
Plan itself. The year 1953 saw the first agreement being signed with Germans to establish a 1
million tone plant at Rourkela in Orissa. Two more agreement for setting up steel plants at Bhilai
with erstwhile USSRs assistance and another at Durgapur with the help of U.K. was signed
in1956. Successive capacity augmentations at Bhilai, Durgapur and Rourkela saw their capacity
increase to 2.5, 1.6 & 1.8 million tones per annum respectively by the end of the 60s

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
A new plant at Bokaro with a capacity of 2.5 million tones per annum went into
production in 1973-74. The year 1978 witnessed a major restructuring of these steel making
public sector units giving birth to the public sector giant, SAIL, having a Navaratna status

today, with an aggregate capacity of over 10 million tones. The first shore-based public sector
integrated plant, viz.The Rashtriya Ispat Nigam Limited of 3 million tones per annum capacity
went into production in August, 1992. During First two decade of planned economic
development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel production
exceeded 8 percent. During 1970-80, this growth rate in steel production came down to 5.7% per
annum and gathered up marginally to 6.4% per annum during 1980-90.

Until the 1990s the iron and steel sector was by and large the exclusive preserve of
only public sector, the sole exception being TISCO. The new economic policy, substantial
private investments flowed in with the consequent changes heralding a new beginning for the
interplay of free market enterprise in this vital sector.

Changes:

A glance at the pre-and post 1991 era reveals some interesting and significant structural
changes. At the consumer or demand end market for steel has been transformed from a seller to a
buyer market. Control and regulation have been replaced by competition. Administered price
have been replaced by supply and demand determined market prices. In the post liberalization
era, the structure of steel industry is significantly and vastly different with the advent of major
steel producers in the private sector which have come up with the world class technology and
capacities.

There has been clear shift towards the selection of the product mix. During the pre-
1991era, the private sector was mainly confined to the production of long products. The only
producer of hot-rolled flat products was SAIL in the public sector. Now there are 5 additional

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
major producers of flat products of steel in the private sector was mainly confined to the
production of long products. The only producer of hot rolled flat product was SAIL in the public
sector. Now there are 5 additional major producers of flat products of steel in the private sector.

Presently, India can boast of new technology like Corex, Thin Slab Casting and Compact
Strip Mill Technology, DC Electric Arc Furnaces. Twin Shells AC EAFs etc. in the steel
industry. The industry has now to focus on customer satisfaction and outstanding quality of steel
products in a competitive environment. Steel producers in the public and private sector have
taken upon themselves with determination and commitment to overcome the new and arduous
challenge to come up to thee Governments expectations as also the people of our country in the
most difficult and trying period for the last couple of years.

Impact:

The response of the private sector in particular has been quite encouraging in the post
liberalization era. Many all India financial institutions also came forward to support these
initiatives and had sanctioned financial assistance to 19 steel projects involving an investment of
about Rs. 30,000 crore covering an additional capacity of 13 million tones per annum during the
post liberalization era. Today, India is the tenth largest steel producers in the world. The industry
represents over Rs.90,000 crore of capital and directly provides employment to over 0.5 million
people.

Production:

The production of finished steel increased from 14.333 million tones in 1991-92 to 23.82
million tones in 1998-99. The private sectors contribution in the availability of finished steel has
constantly been increasing. From 51.4% in 1991-92 it increased to over 68% in 1998-99. This
trend is likely to continue.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

Export:

Although India started steel production as early as in 1911, steel exports began only in
1964. Exports in the first five years were mainly due to demand downturn in the domestic iron

and steel market. Once domestic demand revived, exports declined India once again started
exporting steel only on 1975, touching a figure of 1 million tonne of pig iron and 1.4 million
tones of steel export in 1976-77. Therefore exports again fell rapidly to meet the challenges
arising from increased domestic demand.

There has been a substantial growth in export of steel during the post liberation period. It
increased from 0.9 million tones valued at Rs.700 crore in 1992-93 to 3.4 million tones valued at
Rs.2580 crore in 1997-98, even overtaking sectors like electronic goods and man-made fabrics.
There has been a qualities change in the export of steel items. Earlier, export consisted mainly of
plates, bars and rods and structural, whereas now semis, hot-rolled coils, cold rolled coils and
galvanized sheets are also being exported.

Indias Present per capita consumption of crude steel is only 24 kg. which is very low
compared to the developed and developing countries- 422 kg. in USA, 417 kg. in Germany 109
kg, in Russia and 87 kg in China. Our consumption is less than one fifth of the world average
(121 kg).

Ministry Initiatives:

The Government has been making all out efforts to help the domestic steel industry to
overcome the problems faced by them. To boost the demand and assumption of steel, an
Institution for Steel Development & Growth (INSDAG) was set up involving leading steel
producers in the country. The Development Commissioner for Iron & Steel had launched a

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
National campaign for increasing the demand for steel in non traditional sectors, particularly in
construction, rural and agro based industrial sectors. Other areas include reduction in power and
railways tariffs, reduction in input costs, strengthening of antidumping mechanism, setting up a
steel exporters forum and an empowered committee for research and development.

DEMAND OF THE STEEL INDUSTRY:

Global steel demand is rising on the back of accelerated infrastructure activity in


China, CIS and India, housing boom in USA, and white goods resurgence in Europe.
During the recent recessionary phase the industry has consolidated in terms of
ownership as well as mothballing of inefficient capacities. Steel prices continue
firming up.
For the first time in last 20 years, there is demand growth all over the world for steel.
In US, the demand is led by the booming housing industry. Additionally the auto
industry is showing signs of recovery as auto sales hit their strongest levels for the
year in July even as US postedba2.4% GDP growth.
In Europe, there is demand from a buoyant housing and white goods industry
according to industry sources.
In India, China and other Asian countries the demand is led by emphatic investment
activities in infrastructure.
Russia and other CIS nations are also witnessing strong internal demand.
Iraq re construction work is expected to fuel further demand for steel over the next
three years.
China is consuming steel like never before for its infrastructure with investment such
as Three Gorges project on Yangtze as well as part of its build up to the Beijing
Olympics in 2008 and the Songhai Expo in 2010.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

The demand supply gap is expected to increase this will drive steel prices northwards, even as
the global steel industry is not prepared for this demand onslaught.

GLOBAL SCENARIO:

The Asian countries have their respective dominance in the production of the steel all over the
world. India being one among the fastest growing economies of the world has been considered
as one of the potential global steel hub internationally. Over the years, particularly after the
adoption of the liberalization policies all over the world, the World steel industry is growing
very fast.

Steel Industry is a booming industry in the whole world. The increasing demand for it was
mainly generated by the development projects that have been going on along the world,
especially the infrastructural works and real estate projects that has been on the boom around the
developing countries. Steel Industry was till recently dominated by the United Sates of America
but this scenario is changing with a rapid pace with the Indian steel company on an acquisition
spree. In the last one year, the world has seen two big M&A deals to take place:-

The Mittal Steel, listed in Holland, has acquired the world's largest steel company called Arcelor
Steel to become the world's largest producer of Steel named Arcelor-Mittal.
Tata Steel of India or TISCO (as listed in BSE) has acquired the world's fifth largest steel
company, Corus, with the highest ever stock price.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
It has been observed that Steel Industry has grown tremendously in the last one and a half decade
with a strong financial condition. The increasing needs of steel by the developing countries for
its infrastructural projects have pushed the companies in this industry near their operative
capacity.

The most significant growth that can be seen in the Steel Industry has been observed during the
period 1960 to 1974 when the consumption of steel around the whole world doubled. Between
these years, the rate at which the Steel Industry grew has been recorded to be 5.5 %. This roaring

market saw a phase of deceleration from the year 1975 which continued till 1982. After this
period, the continuous fall slowed down and again started its upward movement from the early
1990s.

Steel Industry is becoming more and more competitive with every passing day. During the
period 1960s to late 1980s, the steel market used to be dominated by OECD (Organization for
Economic Cooperation and Development) countries. But with the fast emergence of developing
countries like China, India and South Korea in this sector has led to slipping market share of
OECD countries. The balance of trade line is also tilting towards these countries.

The following table gives a clear picture upon the major crude steel producers in the world as
of the year 2004.

Country Crude Steel Production (mtpa)


China 272.5
Japan 112.7
United State 98.9
Russia 65.6
South Korea 47.5
F.R.Germany 46.4
Ukraine 38.7
Brazil 32.9

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
India 32.6
Italy 28.4

In the year 2004, the global steel production has made a record level by crossing the 1000
million tones. Among the top producers in the steel production, China ranked 1 in the world.
Production of steel in the 25 European Union countries was at 16.3 mmt in January 2005.
Production in Italy increased by 11.5 per cent in comparison to the same month in 2004. Italy
produced 2.5 mmt of crude steel in January 2005. Austria produced 646,000 metric tones.
In Russia it increased by 4.0 per cent to reach at 5.5 mmt in January. In case of the North
America region particularly in it was 1.5 mmt of crude steel in January 2005, up by 8.0 per cent
compared to the same month in 2004. Production in the United States was 8.3 mmt. Brazil had
produced 2.6 mmt of crude steel in January 2005. In South America region it was 3.7 mmt for
January 2005. According to rating made by the World Steel Dynamics", Indian HR Products
are categorized in the Tier II category quality of products. Both EU and Japan have ranked the
top. USA and South Korea comes as like India.

MAJOR PLAYERS IN THE STEEL SECTOR:

Steel Authority of India Ltd.


Tata Iron and steel Company
Jindal Steel and power Ltd.
Jindal Iron and Steel Ltd.
Jindal Vijayanagr Steel Ltd. Jindal Stainless Ltd.
Ispat Industries Ltd.
Kalyani Steel Ltd.
Rashtriya Ispat Nigam Ltd.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
Lloyds Steel Ltd.
Nippon dendro Ispat Ltd. Essar Steel Ltd.

STEEL AUTHORITY OF INDIA LIMITED (SAIL):

SAIL is among India's largest steel producing companies and tops among them. It is one of the
companies which have been accorded the Maharatna status for greater autonomy in its
management. With a production capacity of 13.9 million tonnes it is one of the top twenty steel
producing companies in the world. It is a fully integrated iron and steel maker, producing both
basic and special steels for domestic construction, engineering, power, railway, automotive and
defense industries and for sale in export markets. The company has the distinction of being
Indias second largest producer of iron ore and of having the countrys second largest mines
network. This gives SAIL a competitive edge in terms of captive availability of iron ore,
limestone, and dolomite which are inputs for steel making.
It was initially established as Hindustan steel limited in the year 1954. The company initially as
Hindustan Steel Limited was established to control the plant at Rourkela but later it took up the
managing of other plants at Bhilai and Durgapur. SAIL was incorporated as a holding company
in the year 1973 with an authorized capital of Rs. 2000 crore, was made responsible for
managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the
Alloy Steel Plant and the Salem Steel Plant to oversee iron and steel production. In 1978 SAIL
was restructured as an operating company. Since its inception, SAIL has been influential in
establishing a sound infrastructure for the industrial development of the country. It also has
immensely contributed to the development of technical and managerial expertise. It also has
played an important role in secondary and tertiary growth of the country by providing for the
consumer industry.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
SAILs wide range of steel products is much in demand in domestic as well as in the
international market. This responsibility is carried out by SAILs own central marketing
organization (CMO) and the international trade division. CMO consists of a wide network of 38
branch offices and 47 stockyards located at major cities and towns across India.

With technical expertise and know-how in steel making gained over four decades, SAIL
Consultancy Division (SAILCON) at New Delhi provides services to clients worldwide. Sail has
a well equipped research and development centre for iron and Steels (RDCIS) at Ranchi which
helps to develop new technology for production of quality steel. SAIL also has its own in-house
Centre for Engineering and Technology (CET), Management Trainee Institute (MTI) and SAIL
Safety Organization (SSO), a Corporate Unit set up in 1988 at Ranchi, monitors and guides the
safety Promotional, fire and Occupational Health Services activities undertaken at different steel
Plants/Units/Mines/Stockyards. To accomplish the above mentioned functions, SSO formulates
and prepares appropriate safety policies, procedures, systems, action plans, guidelines etc. and
follows up for their implementation and thereby helps in providing accident free work
environment.

HISTORY OF SAIL:
The Precursor
SAIL traces its origin to the formative years of an emerging nation - India. After independence
the builders of modern India worked with a vision - to lay the infrastructure for rapid
industrialization of the country. The steel sector was to propel the economic growth. Hindustan
Steel Private Limited was set up on January 19, 1954. The President of India held the shares of
the company on behalf of the people of India.

Expanding Horizon (1959-1973)


Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at
Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
Steel Ministry. From April 1957, the supervision and control of these two steel plants were also
transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to
Calcutta in July 1956 and ultimately to Ranchi in December 1959.
A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and
operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were
completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was

completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai
Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The
last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February
1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after
commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai,
1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL
was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

Holding Company
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing
industry. The policy statement was presented to the Parliament on December 2, 1972. On this
basis the concept of creating a holding company to manage inputs and outputs under one
umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company,
incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crores, was made
responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an
operating company.
Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial
development of the country. Besides, it has immensely contributed to the development of
technical and managerial expertise. It has triggered the secondary and tertiary waves of
economic growth by continuously providing the inputs for the consuming industry.

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ROURKELA STEEL PLANT

SAIL Today
SAIL today is one of the largest industrial entities in India. Its strength has been the diversified
range of quality steel products catering to the domestic, as well as the export markets and a large
pool of technical and professional expertise. Today, the accent in SAIL is continuously adapt to
the competitive business environment and excel as a business organization, both within and
outside India.

SAILS SEVEN DIMENSIONS OF CUSTOMER SATISFACTION:


Consistent Quality
Committed delivery
Customized product mix
Competitive price
Contemporary product
Complaint settlement
Culture of customer service

CORE VALUES OF SAIL:


Customer satisfaction
Concern towards people
Commitment to excellence
Work culture

MAJOR UNITS:
Sail has integrated steel plants i.e. from extraction of ore to production of steel is done in same
plant. The five integrated steel plants of sail are:-
Bhilai Steel plant.
Rourkela steel plant

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
Bokaro steel plant
Durgapur steel plant
Burnpur steel plant

SPECIAL UNITS:
Alloy Steels Plants (ASP), Durgapur, West Bengal
Salem Steel Plant (SSP), Tamil Nadu
Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka

CENTRAL UNITS:
Centre for Engineering and Technology
Research and development centre for iron and steel
Management Training Institute
SAIL safety organization
Raw materials division
Central Marketing Organization
SAIL consultancy organization

JOINT VENTURES:
NTPC SAIL Power Company Pvt. Ltd (NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power
Corporation Ltd. (NTPC Ltd.); manages the captive power plants of Rourkela and Bhilai Steel
Plant
Bokaro Power Supply Company Pvt. Limited (BPSCL)
This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January
2002 is managing the steam generation in Bokaro Steel Plant.
Mjunction Services Limited

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT
A 50:50 joint venture between SAIL and Tata Steel formed in 2001. This company promotes e-
commerce activities in steel and related areas. Newly added services include e-Assets sales,
Events & Conferences, Coal Sales & Logistics, and Publications etc.
Bhilai JP Cement Ltd
SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a
2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at
Bhilai by March'2010,
Bokaro JP Cement Ltd

SAIL has incorporated another joint venture company with M/s Jaiprakash Associates Ltd to set
up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. The project implementation is
under progress.
SAIL&MOIL Ferro Alloys (Pvt.) Limited
SAIL has incorporated a joint venture company with M/s Manganese Ore (India) Ltd on 50:50
basis to produce ferro-manganese and silico-manganese required for production of steel.
S&T Mining Company Pvt. Ltd
SAIL has incorporated a joint venture company with TATA Steel for joint acquisition &
development of coal blocks/mines. New indigenous opportunities for coking coal development
are being explored by the Joint Venture Company for securing coking coal supplies.

International Coal Ventures Private Limited


Towards achieving the target of making steel PSUs self reliant a joint venture company
comprising of five central PSU companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL),
Coal India Limited (CIL), NTPC Limited and National Mineral Development Corporation
(NMDC) has been incorporated. The company is scouting for coal properties in Australia,
Mozambique and other target countries.

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

SAILS CORPORATE PLAN 2012:

Sail announced its corporate plan in the year 2004 and set itself on a growth track making steady
progress in launching several projects. The company has initially aimed at increasing its annual
hot metal production capacity from 13 million tonnes to 20 million tonnes. But following the
inclusion of IISCO in Feb. 2006 and firming up of growth plan for Sails specialty steel plants, it
has been revised to 22.5 million tonnes
The growth plant forces the companys finished steel production of mild steel from its five
integrated plants being raised to a level of 17.5 million tonnes per annum. The broad product

portfolio of SAIL will consist of 30% market share in flat and 26% in long by 2011-12.Besides
capacity enhancement, the growth plan addresses the need of the sail plants and other units
toward eliminating tech gaps, interlinking product profile with the growth segments and focusing
on customer centric business processes. The key technological up gradations undertaken during
growth period that are expected to achieve:
>State-of-the-art process control automation
>State-of-the-art online testing and quality control facilities.
>Gradual implementation of Enterprise Resource planning (ERP) across its plants.

MANAGEMENT OF THE SAIL:

Steel Authority of India Limited is managed by an efficient and experienced


board of directors aided by the chairman.

Chairman of SAIL : Shri Chandra Shekhar Verma


Director (Personnel) : Shri B B Singh
Director (Finance) : Shri Soiles Bhattacharya

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ROURKELA STEEL PLANT
Director (Commercial) : Shri S.S. Ahmed
Director (Technical) : Shri V.K. Gulhati
MD of Rourkela Steel Plant : Shri S.N Singh
MD of Bokaro Steel Plant, Bokaro : Shri S.S. Mohanty
MD of Bokaro Steel Plant : Shri Virendra Kumar Shrivastav

SAIL - INTO THE FUTURE :


Modernization & Expansion:
SAIL, is in the process of modernizing and expanding its production units, raw material
resources and other facilities to maintain its dominant position in the Indian steel market. The
objective is to achieve a production capacity of 26.2 MTPA of Hot Metal from the base level
production of 14.6 MTPA (2006-07 Actual).

A new unit coming up at ISP


Orders for all major packages of ISP & SSP and part packages of BSL, BSP, RSP & DSP
Expansion have been placed and these packages are in various stages of implementation

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Objective of Expansion Plan


100% production of steel through Basic Oxygen Furnace (BOF) route
100% processing of steel through continuous casting
Value addition by reduction of semi-finished steel
Auxiliary fuel injection system in all the Blast Furnaces
State-of-art process control computerization / automation
State-of-art online testing and quality control
Energy saving schemes
Secondary refining
Adherence to environment norms

Production Target:
The production target of hot metal, crude steel and saleable steel after Expansion is indicated
below:
(Million tonne per annum)
Base Case
Item (2006-07) After Expansion
Actual
Hot Metal 14.6 26.2 (23.5)
Crude Steel 13.5 24.6 (21.4)
Saleable Steel 12.6 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing phase of


modernization and expansion to be completed by 2012-2013.

Capital Expenditure:
Amount spent on Expansion Plan and other Capital Schemes of SAIL (incl. subsidiary) during
last 3 years are as follows:
Total
Year
(Rs./Crore)

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2007-08 2181
2008-09 5233
2009-10 10606

PRODUCT MIX OF SAIL:

PRODUCT WISE
Semis Blooms, Billets & Slabs
Long Products Structurals, Crane Rails, Bars, Rods & Rebars, Wire Rods

Flat Products HR Coils, Sheets & Skelp, Plates, CR Coils & Sheets,
GC Sheets\ GP Sheets and Coils, Tinplates, Electrical Steel
Tubular Products Pipes
Railway Products Rails, Wheels, Axles, Wheel Sets
PLANT WISE
Bhilai Steel Plant Blooms, Billets & Slabs Beams, Channels, Angles, Crane Rails
Plates, Rails, Pig Iron, Chemicals & Fertilizers

Bokaro Steel Plant HR Coils & Sheets, Plates, CR Coils & Sheets, GP Sheets & Coils/
GC Sheets, Pig Iron, Chemicals & Fertilizers
Durgapur Steel Plant Blooms, Billets & Slabs, Joists, Channels, Angles, Bars, Rods &
Rebars, Skelp, Wheels, Axles, Wheel Sets, Pig Iron, Chemicals &
Fertilizers
Rourkela Steel Plant Plates, CR Coils & Sheets, GP Sheets/ GC Sheets, Tinplates,
Electrical Steel, Pipes, Pig Iron, Chemicals & Fertilizers
Salem Steel Plant Stainless Steel

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CHAPTER 2

COMPANY PROFILE

ROURKELA STEEL PLANT (RSP)

LOCATION

SPECIAL FEATURES OF RSP

VISION, MISSION AND QUALITY POLICIES

PRODUCT PROFILE

PRODUCT MIX OF RSP

PRODUCT AND ITS APPLICATION

COMPETITORS

ORGANISATIONAL STRUCTURE

PRODUCTION PROCESS MODEL

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ORGANISATION PROFILE:

ROURKELA STEEL PLANT:


INTRODUCTION & INCEPTION:

Rourkela Steel Plant (RSP) is one of the most important units of the Steel Authority of India Ltd
(SAIL). Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India,
was set up with German collaboration with an installed capacity of 1 million tonnes.
Subsequently, its capacity was enhanced to 1.9 million tonnes. It presently has achieved a
capacity of 2.27 million tonnes of hot metal and 2.13 million tonnes of crude steel. RSP
surpassed the two-million tonnes mark in hot metal production for the fourth consecutive year
and in crude steel production for the third consecutive year.

It went into operation in the year 1959 and was the first integrated steel plant established by the
Government of India. RSP was the first plant in India to incorporate LD technology of steel
making. It is also the first steel plant in SAIL and the only one presently where 100% of slabs
are produced through the cost-effective and quality-centric continuous casting route. The initial
thrust for establishment of the plant was provided by the appointment of a team to survey the
possibility for setting up a steel plant by the Govt of India in 1948. The plant was started in the
year in 1956 with the technical and financial assistance of Messers Fried Krupps Essen and
Messres Demang A.G. Duisburg, the leading steel makers from Federal republic of Germany. It
was designed to produce flat product. The plant recently has been modernised with state of art
facilities and most of the old units have been revamped and which has lead to the substantial
improvement of the quality of products, reduction in cost and also ensuring cleaner environment.
Developed infrastructures of support systems like captive power plants, brick manufacturing
units, railway transport system etc facilitate the smooth operation of the plant. Other services

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like electrical shops, air conditioning which is maintained by centralized services has brought
about a great change in the quality of products. In- house R&D projects undertaken with RDCIS

(Research and Development centre for Iron and Steel), Ranchi lead to the enhanced productivity
and efficiency while conserving energy. Quality control is ensured through state- of- the art
computerization. Through computerization control in all production units, there is continuous
data analysis, monitoring, network coverage, data management and document handling. Total
quality management has been implemented since 1992 and awareness on total quality and to
employee involvement in quality involvement projects through interactive participation also
undertaken.

GEOGRAPHICAL LOCATION:

Rourkela Steel Plant is located in the north western tip of Orissa and at the heart of a rich
mineral belt. Being situated on the Howrah-Mumbai mainline, Rourkela is very well connected
with most of the important cities of India. The nearby airports are Ranchi (173 km),
Bhubaneswar (378 km) and Kolkata (413KM). Rourkela also has an Airstrip maintained by
Rourkela Steel Plant.
One of the largest steel plants of the Steel Authority of India Limited is situated here. It is
surrounded by a range of hills and encircled by rivers. It is situated in an area with the richest
deposit of mineral wealth in Orissa. It came into prominence in 1955, with the establishment of
the Rourkela Steel Plant. The city's name is derived from the famous 'Ruhr' iron & steel belt of
Germany, with whose collaboration the Rourkela Steel Plant was setup. The plant which is one
of the major contributors to render Rourkela a place in the national diary.

SPECIAL FEATURES OF ROURKELA STEEL PLANT:

It is the first Plant in Asia to adopt LD process of steel making.

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ROURKELA STEEL PLANT

1st public sector integrated plant to be set up in the country.

It is the only Plant producing large diameters ERW/SW Pipes confirming to most rigid
standards of API.

It is the first steel Plant in India to adopt external desulphurization of hot metal by
calcium carbide injection process.

It is the only steel Plant in SAIL producing Cold Rolled Oriented (CRNO) Steel sheets
for use in the electrical industries with installed capacity of 73000 Ton/yr

Rourkela is the first in vacuum degassing metallurgy. This system has been adopted
primarily for production of silicon steel for the cold rolled non-oriented sheets. This
system consists of vacuum arc refining and vacuum oxygen refining units and
degassing facility.

It is the first integrated Steel Plant of SAIL which adopted the cost effective and quality
centered continuous casting route to process 100% of steel produced.

All the major production departments and some service departments and some service
departments certified to ISO 9001:2000 QMS.

Silicon Steel Mill, Environmental Engineering Department and Sinter Plant-II certified to
ISO 14001:2004 EMS.

It has got an electrical sheet mill capable of producing both dynamo and transformer
grade electric sheet.

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ROURKELA STEEL PLANT

It has a special plate plant where special alloy steel plates are shaped to different shapes
as per requirement in the defense sector.

RSP has the distinction of being the unique steel plant in India with an integrated
Fertilizer Complex.

It has two captive power plants (CPP) with a generation capacity of around 120 mw.

GUIDING PRINCIPLES OF RSP:


VISION:

To achieve market leadership and prosper in business through satisfaction of customer needs by
continual improvement in quality. Cost of delivery of products and services.

MISSION:

The future of our steel plant lies in our own hands. It is our individual and collective
responsibility to rebuild our plant into a profitable, harmonious and vibrant organization. We
will do whatever things are necessary which are good for our plant. We shall never do anything
that hurts our plant.

QUALITY POLICY:

We have to create and sustain a peaceful work environment where every employee can
contribute to the plant in assigned area of work with full freedom and dignity and without fear.

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PRODUCT PROFILE:

As far as RSPs products are concerned, there are two types of products of RSP-

Primary Products
Secondary products

PRODUCT RANGE OF RSP:

Primary Products:

I. Pet Products:-
1. Pipes
a. ERW Pipes
b. Spiral Wield pipes

2. Electrical Steel Sheets


a. Cold Rolled Non Oriented Steel Sheets (CRNO)
b. Cold Rolled Grain Oriented Steel sheets(CRGO)
c. HRD Sheets

3. Electrolytic Tin Plates

II. Non-Pet Products:

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a. Plates
b. Hot Rolled Coils
c. Hot Rolled Sheets
d. Prime Slab

e. Cold Rolled Sheets


f. Galvanized Plane Sheets
g. Pipe Plant Return (PPR) Coils

Secondary Products:

I. Iron and Steel


a. Cast iron skull scrap
b. Cast iron U/R ingot steel
c. MS turning and Burning O.S scrap
d. Tundish Steel skull
e. Steel skull trimming scrap
f. Iron and steel BF fines scrap
g. BF dumps iron
h. Used/rejected CI bottom plates scrap
i. Used/rejected CI mould scrap
j. Cast iron scrap

II. Re-Rollable Scrap


a. Steel plates cutting scrap
b. Steel plates shearing scrap
c. Steel crop ends scrap
d. Concast steel short length slab
e. Comcast steel slab crop end.

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f. CI Skull scrap
g. URIN/IS
h. Steel skull scrap GR-I
i. Side trimming
j. BF drums iron

k. BF fines
l. Steel skull scraps

III. Steel Melting Scrap


a. Steel skull scrap
b. Scrap bales (Bundle scrap from rail lines press)
c. MS turning and boring
d. Side trimming
e. Scrap slab

IV. Industrial Scrap


a. CR steel cutting scraps
b. CR steel coils end scraps
c. CR steel cut flat end scrap
d. CR steel bas cut scraps
e. HR steel- cutting scraps
f. Sticker coils
g. Semi Rolled steel plates
h. Steel test piece scraps

V. Defectives
Defective HR Coils (2.0mm)
Defective HR Coils (2.3mm)

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Defective HR Coils (2.5mm)
Defective HR Coils (2.8mm)
Defective HR Coils (3.15mm)
Defective HR Coils (above 3.15 & up to 5 mm)
Defective HR Coils (above 5mm)

HR U/T Coils from CRM (below 3.15mm)


HR U/T Coils from CRM (3.15mm & above)
Defective HR Coils (Pickled) (2.0mm)
Defective HR Coils (Pickled) (2.3mm)
Defective HR Coils (Pickled) (2.5mm)
Defective HR Coils (Pickled) (2.8mm)
Defective HR Coils (Pickled) (3.15mm)
Defective HR Coils (Pickled) (above 3.15 & Up to 5mm)
Defective HR Coils (Pickled)(above 5mm)
Defective CR Coils (0.4mm)
Defective CR Coils (0.5mm)
Defective CR Coils (0.63mm)
Defective CR Coils (0.8mm)
Defective CR Coils (1.0mm)
Defective CR Coils (1.25mm)
Defective CR Coils (1.6/1.8mm)
Defective CR Coils (2.0mm)
Defective CR Sheets (0.4mm)
Defective CR Sheets (0.5mm)
Defective CR Sheets (0.63mm)
Defective CR Sheets (0.8mm)

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Defective CR Sheets (1.0mm)
Defective CR Sheets (1.25mm)
Defective CR Sheets (1.6/1.8mm)
Defective GP Sheets (0.35mm)
Defective GP Sheets (0.4mm)
Defective GP Sheets (0.5mm)

Defective GP Sheets (0.63mm)


Defective GP Sheets (0.8mm)
Defective GP Sheets (1.0mm)
Defective GP Sheets (1.25mm)
Defective GP Sheets (1.6mm)
Defective Chequered plates (5-10mm)
Defective HR plates
Defective plates (6-20mm)
Defective plates (above 20mm)
Defective Under sized plates (length 400-610)
Defective Electrolytic Tin plates
Defective CRNO Sheets

VI. Semis
a. MS ingot (Non Silicon)
b.Pig iron

VII. BF Slag
BF granulated slag (NLT)

VIII. Coke Fraction

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a. Hard coke
b. Mixed coke Nut coke
c. Mixed breezed coke

PRODUCTS OF RSP:

BY NAMES

Minerals
RSP Corporations family of minerals, sorted by their names, all with Silica as their major
constituent, including Quartz, Feldspar, Silica and Clays.

Refractories
Acidic and basic Refractories, including the most popular and highest exported VINRAM
Acidic Ramming mass, suitable for Induction furnace lining.

Chemicals
Lime and Sodium based chemicals for the leather, color and other related industries.

BY USER INDUSTRIES

Engineered stone
RS Glassy White Quartz for Engineered Stone Industry of Breton technology, making Quartz
countertops, in filler, grits, also crushed mirror.

Ceramics

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Silica based minerals, from Clays to Silica, from Quartz to Potassium Feldspar, in all grits,
flours, fillers, particle size distribution, for industrial and other ceramic tiles, sanitary ware etc.

Glass
Silica based minerals, from Feldspar to Silica. Highest purity Quartz to lead crystal and high
purity glass manufacturers. Very strong in Potassium Feldspar and Quartz.

Induction furnaces
VINRAM Acidic Ramming Mass, with premixed Boric Acid, Silica sand and Bentonite for
Ductile and other foundries with induction furnace.

Construction chemicals
Various minerals such as Silica, Quartz and various chemicals like Hydrated Lime etc. to the
construction chemical industries, with foreign collaborations and in all specifications.

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Oil well drilling
Strong thrust on oil drilling industry with franc sand, Silica, Quartz, Bentonite, Sodium Silicate,
exporting to Middle East, as per API (American petroleum institute) specifications.

Foundry Casting
Crystalline silica has a higher melting point than iron, copper and aluminum. This enables
castings to be produced by pouring molten metal into moulds made out of silica sand and a
binder. Castings form the basis of the engineering and manufacturing industries. Quartz and
cristobalite flours are the main components in investment casting (also called precision casting)
for the production of specialist products such as jewellery, dental bridges, aviation turbines and
golf clubs.

Blasting
Silica is used for sand blasting purposes, as micro blaster, for micro graving, for filter sand, as
glass beads for sand blasting, as paint stripping blasting sand.

PRODUCT MIX OF RSP:

PRODUCT-MIX TONNES/ANNUM
Plate Mill Plates 2,99,000
HR Plates 92,500
HR Coils 3,98,000
ERW Pipes 75,000
SW Pipes 55,000
CR Sheets & Coils 4,33,000
Galvanized Sheets (GP& GC) 1,60,000
Electrolytic Tin-Plates 85,000
Silicon Steel Sheets 73,500

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Total Saleable Steel 16,71,000

PRODUCTS AND ITS APPLICATIONS:-

Products Applications

HR Coils LPG Cylinders, automobile, railway wagon chasis and all


types of high strength needs.

Plates Pressure vessels, ship building and engineering structures

Chequered Plates Flooring & staircases in the industrial sectors and railway
platforms etc.

CR Sheets & Coils Steel furniture, white goods like refrigerators, washing
machines, automobile bodies, railway coach paneling,
drums, barrels, deep drawing and extra deep drawing
etc.
Galvanized Sheets Roofing, paneling, industrial sheeting, air conditioner
ducting and structural

Electrolytic Tin Plates Containers for packaging of various products including


edible oils, vegetables and confectionary items

Silicon Steel sheets & Coils Small generators, stators for high efficiency rotating
equipment and relays etc.

Spiral Weld pipes High pressure transportation of crude oil, natural gas
and slurry transportation, water supply, sewage
disposals, grain silos, civil engineering pilings etc.

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ERW Pipes High pressure transportation of oil and water, sewage
disposal, tube wells etc.

Plates and Sheets

Coils

COMPETITORS OF SAIL:

A) Tata Iron & Steel Company


Sales turnover Rs.132, 110 crores.
With an annual crude steel capacity of 31 million tones.
Product mix changing.
7TH largest steel company in the world.

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ROURKELA STEEL PLANT
B) RINL
Sales turnover Rs.9202 crores.
With an annual crude steel capacity of 3.6 million tones.

C) ISPAT GROUP
Started in 1976 by setting up a multicrore ISP in Indonesia & going ahead as one of the
fastest growing companies in the world.
Sales turnover Rs.10, 000 crore.
With the acquisition of Turkish steel company Izmir Demir Celik, its capacity will go up
to 15 million tones.

D) Lioyd Steel Industries Ltd.


E) Jindal Strips Ltd.
F) Essar Steel Ltd.
G) Malvika Steel Ltd.
H) Bhusan Steel.

ORGANIZATIONAL STRUCTURE:

The most important asset from which RSP derive its true competitive strength is its committed
and talented workforce. The employees of RSP range from unskilled labourers to senior
management officials. In RSP the manpower planning is done on yearly basis. The employees of
the steel plant range from unskilled Khalasi to supervisor and charges man. The employees at the
steel plant are basically divided into two group; those who take part in the production process are
known as workers whereas those who provide associate services are the non-workers. These two
groups of employees can be each further classified into categories of Executives (EXE) and
Non-Executives (N-EXE).

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The following diagram shows the organizational structure of Rourkela Steel Plant:

MANAGING DIRECTOR

ED(WORKS) ED(MM) ED (PROJ) ED ED(MED) ED(P&A)


(FINANCE)

DGM
OD GM(P&A)

DGM I/C (PL) W DGM (PL)NW

DGM (PL) W
AGM AGM AGM
WELFARE IR,RULES RECRUITMENT

AGM AGM AGM

UPE
CENTAL FUNCTION OF PERSONNEL
DEPARTMENT

UPE

UPE

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PRODUCTION PROCESS MODEL:

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CHAPTER-3
FUNCTIONAL DEPARTMENTS

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PRODUCTION DEPARTMENT

PERSONNEL DEPARTMENT

MARKETING DEPARTMENT

FINANCIAL DEPARTMENT

PUBLIC RELATION DEPARTMENT

QUALITIY CONTROL SYSTEM

FUNCTIONAL DEPARTMENTS

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The organization structure of RSP can be classified under two broad heads. Such as-
Works
Non-works
The work area is the process related area, where as the non-works area is the non processed
area.

Works area:

The works area deals with the process of bringing of raw materials to the making of
finished goods. The work area directly refers to the all major units which come under production
department. The SAIL has its own mines, which procures raw material and produces steel from
it. Iron ore, one of the ingredients to produce steel is not purchased from outside. But coal is
purchased, generally imported from foreign countries.

Therefore work area constitutes following departments:-

OBBP- Ore Bedding and Blending Plant


SP-Sintering Plant
BF-Blast Furnace
SMSI &II-Steel Melting Shops
CCM-Continuous Casting Machine
HSM-Hot Strip Mill
CRM-Cold Rolling Mill
PLATE MILL
PIPE PLANTS

The production flow is depicted below. The first step is to bring raw material from the mines to
OBBP, then it comes to sinter and then to blast furnace. After that it reach to SMS I and SMS II

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and take the form of liquid steel and then becomes solid. Then it comes to CCM, then to HSM
and finally gives the final output in the form of plates or pipes

MINES

OBB SMS I & II


SP BF
P

CRM

HSM CCM
SSM

PLATE PIP
E

(PROCESS FLOW-CHART OF WORK AREA)

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Non-works Area:

Works area deals with the process of raw material to finished goods where as the
non-works area consists of several non process area departments such as:-

PERSONNEL

MARKETING

FINANCE

PURCHASE

STORE

PBLIC RELATION

HOSPITALITY

All these six departments or areas come under the non-works area. Besides these, RSP
has two special departments which comes under non-works area as well. They are:-

HOSPITAL
&
TOWNSHIP

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ROURKELA STEEL PLANT
These two facilities do not come under the necessary obligation of RSP rather these are
non-statuary obligations. The idea of having medical allowance and House Rent allowance is
ruled out. Because of the task of providing rental accommodations to 20000 employees is
enormous. And so is the case of providing well equipped hospital.

The total number of employees of Rourkela Steel Plant as on 01.09.2010 is


19220, among whom 2187 are executives and 17033 are non-executives.

PRODUCTION DEPARTMENT

Major production units of RSP:-


1. Ore Bedding and Blending plant
2. Coke oven
3. Sintering plants
4. Blast furnace
5. Steel melting shop (SMS-I & SMS-II)
6. Continuous casting mill (cmc-i)
7. Plate mills
8. Hot strip mills
9. Electrolytic tinning line
10. Galvanizing lines
11. Silicon steel mills
12. Pipe plants
13. Traffic & Raw material
14. Environment Management
15. Computerization

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16. HRD centre
17. CPTI

Ore Bedding and Blending Plant RSPs Ore Bedding & Blending Plant (OBBP) has a base
mix preparation system with on-ground bedding, blending and conveying facilities. Set up under
the earlier modernization programme to provide pre-mix feedstock to Sinter Plant-I & -II, the
plant has an annual dispatch capacity of 500,000 tonnes of material.
The facilities in OBBP include major installations like wagon unloading (tipplers & track
hoppers), iron ore crushing and screening system, raw material storage yard, rod mills and roll

crushers for flux and coke crushing, proportioning bins and elaborate conveying systems.

Coke Oven
RSP has five 4.5-metre-tall coke oven batteries (COBs) that produce coke as the input for blast
furnaces. The coke ovens are equipped with wagon tipplers, automatic handling and conveying
facilities, coal blending provisions, coke wharf age crushing together with screening and
conveying systems.

Sintering Plant
RSPS two sinter plants feed sinter to the blast furnaces with a combined capacity of 3.07 MT
per annum. Sinter Plant-II is operating at more than its rated capacity since the year 2000. This
has facilitated the increased usage of sinter in blast furnace burden.

Blast furnaces
The four blast furnaces of RSP, with a combined capacity of 2 MT, produce hot molten metal for
steel production.

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Steel Melting Shops
SMS-I
Apart from a computerized LD process which has enhanced shop capability, the LA Vacuum
Metallurgy Technique has been also adopted for secondary refining of steel. This facilitates
production of special steels for application in electrical machines, pipe making, tin plate, boilers
and auto chassis members. The shop was originally designed to produce ingots for conversion to
slabs through the Slabbing Mill route. However, after the discontinuation of the ingot route,
SMS-I produces slabs through casting machines.
SMS-II
Provided with the latest steel making, secondary refining (ladle furnace and argon rinsing)
facilities and two single-strand slab casters to produce 1,355,000 tonnes of steel slabs annually,
the shop is equipped with automation through three levels of computerized control, LD gas

cleaning and recovery, power distribution system, water and utility services.

Plate Mill
RSPs 3.1 meter wide, 4 high reversing mill is equipped with online thickness measurement
facilities. Provision for inspection by customers nominees, online ultrasonic testing and
checking ensure dispatch of superior quality plates to customers. The Plate Mill also has a
walking beam-type furnace with a capacity of 100 tonnes/hour for slab heating. The mill has a
production capacity of 299,000 tonnes per annum.

Hot Strip Mill


The facilities of the 1.44 MT per annum mill has:
Two new walking beam type reheating furnace (225 TPH)
Roughing/sizing stand RoVo with automation
Automated coil box
Quick roll change system in Roughing Stand-1 and finishing mills
Coil marking, sampling and conveying systems.

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Cold Rolling Mill


Produces about 678,000 tonne of cold rolled sheets per annum, RSPs Cold Rolling Mill has a
modern 5-stand tandem mill and a 4-high 1700-mm reversing mill. The tandem mill is equipped
with automatic gauge control, x-ray gauge, data logging and thyristorisation.

Electrolytic Tinning Line


The continuous electrolytic tinning line produces a shining tin-coated surface in a variety of
coating thicknesses. The tinplate shearing lines are equipped with sensitive pinhole detectors and
an automatic sorting system.

Galvanizing Lines
Two continuous hot-dip galvanizing lines are equipped with jet-coating facilities. There are 2
multi-roller-corrugating machines as well which produce corrugated sheets.

Silicon Steel Mills


This unit produces steel for the electrical industry through various operations carried out in
sophisticated, continuous/semi-continuous processing lines and a 4-high reduction mill.
Advanced process control and product testing facilities ensure product quality.

Pipe Plants
A highly sophisticated Spiral Welded (SW) Pipe Plant is equipped with submerged arc welding
process and produces large diameter pipes. Hydrostatic pressure testing, ultrasonic testing and
eddy current testing are some of the features which ensure quality control.

The Electric Resistance Weld (ERW) Pipe Plant caters to the smaller diameter pipe consumers.

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This plant has been recently upgraded to enable it to produce API grade pipes.

Traffic & Raw Material


The Traffic & Raw Material Department deals with procurement and supply of raw materials to
various user departments, internal movement of in-process and other material from one unit to
another and dispatch of finished products in railway wagons to outside parties or SAIL
warehouses. The department maintains 350 wagons, 40 locomotives and a network of 240 kms
rail tracks across the plant.

Environment Management
RSP has provided air pollution control equipment like ESPs, Bag Houses, Dry Fog Dust
Suppression systems & Wet Scrubbers in different units. RSP has also provided dedicated Waste
Water Treatment Units in different plant units for treatment of wastewater. The treated
wastewater is recycled back to the process and blow down water is discharged only into drains

for final treatment at Lagoon before discharging into river. RSP has established a full-fledged
Environmental Engg. Department way back in 1989, along with Environment Laboratory which
is certified with IS/ISO14001. RSP has adopted 4R (Reduce, Reuse, Recover & Recycle)
strategy for enhancing the utilization of wastes. With the dedicated efforts of RSP collective the
pollutant levels have shown drastic reduction. The pollutant levels monitored during Apr.-
June,10 & for 2009-10 are;
Apr 2009-
SN. Environmental Indicator Description Norm
June,10 10
PM10 76 99 90.2 100
Suspended Particulate 289 487 283.8 --
Matter
Ambient air quality (Average Sulphur dioxide 37 68 49.5 80
1. levels monitored at 6 stations) Oxides of Nitrogen 24 63 32.0 80
Units : mg/m3 Ammonia 12.8 28.2 400
58.6 0.04 1.0
Lead 0.02
0.09
2. Specific Dust Load on Cumulative dust load 1.29 --

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ROURKELA STEEL PLANT
coming from different
Environment
stacks (kg/TCS)
1.09
PH 7.22 6
7.3 7.4
Suspended Solids 47.8 8.5
83.5 88
Oil & Grease 2.17 100
Quality of finally treated 24
BOD3 8.4 10
3. effluent discharged from 13 16
COD 35.8 30
Lagoon into river Brahmani 44 92
250
(All units are in ppm except
pH)
4. Solid Waste Utilisation % 79.1 75.9 --

Computerization
Rourkela Steel Plants online Production Planning & Control (PPC) system, developed and
executed in house, connects various functional departments of RSP into a single network.

Human Resource Development Centre (HRDC)


The Human Resources Development Centre (HRDC) of Rourkela Steel Plant was set up in the
late 1950s. It consists of a Management Development Programme wing, auditoriums, well-
equipped workshops, skill up gradation shops, lecture halls for apprentices and a well-equipped
library on a plethora of technical and managerial subjects. The HRDC has received ISO
9001:2000 QMS certification.

Central Power Training Institute (CPTI)


RSPs Central Power Training Institute (CPTI) is a CEA-certified category-1 institute that meets
the statutory training needs of power engineers of SAIL. Certified with ISO 9001:2000 QMS,
CPTI conducts training largely for operation and maintenance personnel of SAILs captive
power plants and Power Distribution Network departments.

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PERSONNEL DEPARTMENT:

INTRODUCTION:

The overall growth of the organization depends on the Human Resource Development. It is the
foundation for any successful organization. Personnel management is a profession on transaction
and in any organization which looks toward to a positive and dynamic management philosophy.
Purpose of human resource in RSP is to increased production, productivity,
sophisticated technology and automation that depend on human endeavor.

Personnel department is responsible for following activities:-


1. Takes care of growth, deployment, grievance redressal etc. of employees
2. Manages employees services functions
3. Manages Industrial relation with respect to the plant.
4. Recruits quality manpower.
5. Takes out circular to streamline the effective functioning of plant.

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ROURKELA STEEL PLANT
6. Regulates Contract labour deployment inside the plant.

Personnel department is headed by Executive Director(ED) (Personnel & Administration).


Under him is the GM who reports to the ED. GM (P&A) is the head of personnel-works and
Personnel-Non-works unit. Under the GM are the DGMs of the works and non-works areas. In
turn AGM comes under the hierarchy. The AGMs of works area manages the unit personnel
executives(UPE) of the different personnel units and the AGMs of the Non-works area manages
central functions of Personnel department such as the recruitment, welfare and the Contract
Labour, Rules , Industrial relation sections.
All the executives of RSP are managed by personnel (OD) and all non-executives are
managed by Unit Personnel Executives.
The above organizational structure is prevalent for all plants in SAIL.

The hierarchy is given below in flow diagram

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MANPOWER POSITION:

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ROURKELA STEEL PLANT
The total number of employees working in Rourkela Steel Plant as on February 2011 is 18,000.
The employees are broadly categorized into

Executives
Non-Executives

May 2011 June 2011 July 2011

Executives 2282 2308 2297

Non-Executives 16472 16414 16378

Total 18754 18722 18655

HUMAN RESOURCE MANAGEMENT IN RSP:

The Human Resource Management is a integral part of the personnel department as well as the
personnel organization. It is classified into three heads-

(i) Personnel Function


(ii) Industrial Function
(iii) Welfare Function

(i) PERSONNEL FUNCTION:


Recruitment
Induction and Placement
Training

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Promotion
Transfer
Incentive and reward

(ii) INDUSTRIAL FUNCTIONS


collective bargaining
conciliation arbitration and adjudication
Joint consultation and participation
Discipline and its maintenance.

(iii) WELFARE FUNCTIONS


Maintaining working schedule
Giving leave facilities like, L.T.C., L.L.T.C.
Scholarship schemes for children of RSP employees
Medical treatment facilities
Various types awards like-
- Nehru Vishist Award
- Jawahar Rojgar Award
-Creativity Award
-Srujani Award etc.

TRAINING AND DEVELOPMENT ACTIVITIES:

The training and development is a vital part of the organization. The training activities carried
out by plant itself namely Central Power Training Institute (CPTI) at Rourkela
Types of training:
(i)Technical
(ii)Mechanical

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(iii)Technical & Mechanical

Objective of training:
(i) De-Criticalise/key/critical skills
(ii) Prepare individuals for higher responsibilities
(iii)Develop ability in employees to run and maintain new units as per standard operating
parameters.

HR PLANNING OF RSP:

It is the process by which the guiding members of an organization manages and leads the
people who will be responsible for analysis, forecasting, planning and implementing the
strategies necessary to fulfill its mission and reach its vision. Therefore, it is necessary for every
organization to make a HR plan.
Similarly, Rourkela steel plant has also its human resource plan. The human resources
deployed in RSP are of various cadres i.e. the executive and the non-executive. Again, these two
cadres are sub divided into various grades
Non Executive Selection:
The non-executive includes 11 different grades as given below.
1. S1
2. S2

3. S3
4. S4
5. S5
6. S6
7. S7
8. S8
9. S9

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ROURKELA STEEL PLANT
10. S10
11. S11
Note-Here S denotes Scale.

S1 is the lowest grade in which employees are to be employed. With the help of the
promotions the employees go up the higher level and according to the better performance
performed.
Employees may be recruited in different grades directly. They are given below.
S1 Lowest level-Earlier KHALASI are recruited in this cadre. They are the minimum
qualification required for the workers, (matric holders)
S3 Next higher level of recruitment are the Diploma holders with or without graduates
(B.Sc ) (Nurse, paramedical, etc.)
S6- In this grade also recruitment is made. Earlier Diploma engg. were recruited in this
grade.
S10 The recruitment is made to them who fulfills the eligibility criteria of the
engineers and comes under compassionate ground.

Executive selection:

Like the non-executive cadre, in the executive section E1 is the base level. In E1
cadre MTT for engg and MTA (for MBAs).Doctors and other professionals like law graduates

and finance graduates are also recruited. Once recruited in this cadre they can be promoted. The
hierarchy is given below.

E1-junior manager
E2-Assistant manager
E3-Deputy manager
E4-Manager

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E5-Senior Manager
E6-AGM
E7-DGM
E8-GM
E9-Executive Director
Managing Director

Moreover there is one more level called E0 but no recruitment is made in this level. This grade
is for the executive who gets promoted from Non-executive level.
Executive promotion up to E5 is done at unit level by organization Development
section known as OD.
The OD unit takes the care of the promotion process of E1 toE5 level where as from E6 to E8
that is AGM onwards, promotion is handled by Corporate Office of SAIL at New Delhi and ED
and MD posting is done by the Board of Directors.

MANPOWER PLANNING OF RSP:


Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization. Human Resource
Planning has got an important place in the arena of industrialization. Human Resource Planning
has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
Analyzing the current manpower inventory

Making future manpower forecasts


Developing employment programs
Design training programs
Manpower Planning is a two-phased process because manpower planning not only analyses the
current human resources but also makes manpower forecasts and thereby draw employment
programs. Manpower Planning is advantageous to firm in following manner:

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Shortages and surpluses can be identified so that quick action can be taken wherever
required.
All the recruitment and selection programs are based on manpower planning.
It also helps to reduce the labour cost as excess staff can be identified and thereby
overstaffing can be avoided.
It also helps to identify the available talents in a concern and accordingly training
programs can be chalked out to develop those talents.
It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
It helps the organization to realize the importance of manpower management which
ultimately helps in the stability of a concern.

COMPONENTS OF MAN POWER PLANNING:

At the outset viz. at the start of the financial year a detail of man power planning is
being made. This constitutes forecasting separation for the year, the first of every month there is
a calculation of the total man power.
Basing on that recruitment requirement is prepared. This constitutes recruitment against
retirement and against expansion. And thus man power at the end of the year is predicted.
That means the personnel department has to prepare a report of the total employees working in
the organization.

The man power calculation is done on monthly, quarterly, half yearly and annual basis i.e. How
many of them are executives and how many are non-executives.
The simple formula for calculation manpower for man power planning is
Manpower planning=Opening Manpower Separation + Recruitment
=Closing manpower

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The above formula elucidates that if we add the total recruited person with the opening number
of employees and less the separated employees; we will get the closing man power i.e. the total
number of employees present in the organisation.
It should be noted that the de facto norm of the company is closing amount should always be less
than the opening manpower for annum.
Labour productivity can be measured for a firm, a process or a country.

Separation:
Separation is a process whereby the employees are separated from the organisation. It
involves 3 modes.
1. Retirement
2. VRS
3. Others (Death, medical unfit, dismissal/resignation etc.)
1. RETIREMENT:-
(i) In retirement scheme, separation is done taking into consideration the age factor. That means
any person attending the age of 52 will automatically be separated from the organisation .It is a
continual process. This is also known as natural separation.
(ii) A person born on any date except 01st will retire at the end of month.
(iii) A person born on 01st of a month will retire at end of previous month.
.
2. VRS (VOLUNTARY RETIREMENT SCHEME):-
In case of VRS mode of separation, this is done as and when required. Reason for
VR scheme is
1-Reduce excessive manpower- In other words, when the organisation feels the necessity
of separating excessive employees from the organisation VRS is implemented.

2-More important reason is by implementing VR scheme the age-mix of the company is


maintained. The average age of the company gets reduced appreciably by introduction of VRS.

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The benefits will be in line with what is described below. However it changes from time to time
as per requirement at that instance

BENEFITS:
The following monetary benefits would be available to employees seeking retirement under
these rules.

a) Lump sum Compensation: An employee whose request for Voluntary Retirement has been
accepted would be entitled to a Lump sum compensation equivalent to 25 days basic pay plus
fixed dearness allowance plus dearness allowance and DP, if applicable, for each completed year
of service or the basic pay plus fixed dearness allowance plus DP, if applicable, at the time of
voluntary retirement multiplied by the balance months of service left before normal date of
retirement whichever is less. (Ref. OO No.11 dated 10.12.2003. further modified vide OO No.21
dated 7.12.2004.)

b) Gratuity: Gratuity will be paid only for the served period as per rules.

c) Encashment of leave: In addition to the encashment of Earned Leave under the existing rules,
such employee will be entitled for encashment of Medical Leave also on half pay as is due to
them on the date of Voluntary Retirement. However, in case of those employees who seek
voluntary retirement on attaining the age of 55 years and above, the admissibility of benefit shall
be as under:-
(i) 75% of the Medical Leave, due, can be encased if the voluntary retirement is sought, on
attaining the age of 55 years;
(ii) 50% of the Medical Leave due can be encased if the voluntary retirement is sought on
attaining the age of 56 years;

(iii) 25% of the Medical Leave due can be encased if the voluntary retirement is sought on
attaining the age of 57 years.

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D) Provident Fund: Full employer's contribution to Provident Fund.

E) Retirement TA: Full retirement TA as applicable to the employee on superannuation.

3. OTHER MODE OF SEPARATION includes:-


Death
Removal/Dismissal
Medical unfit
Resignation

Removal/Dismissal: -The only difference between the two is that in the case of dismissal
the employee is disqualified from future employment while in the case of removal he is
not debarred from getting future employment. Therefore, dismissal has more serious
consequence in comparison to removal.
Removal
An employee can be removed from the roll of the company .
-Habitual absence on duty
-Crimes
-Imprisonment
Dismissal
An employee can be dismissed from the organization because of many factors.
These includes:-
-Impersonation
-Fraud
-Forgery
-bribery
A person once dismissed cannot be employees anywhere else.

Resignation:-

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> A resignation is the formal act of giving up or quitting one's office or position. A resignation
can occur when a person holding a position gained by election or appointment steps down, but
leaving a position upon the expiration of a term is not considered resignation. When an
employee chooses to leave a position it is considered a resignation, as opposed to termination,
which occurs when the employee involuntarily loses a job. Whether an employee resigned or
was terminated is sometimes a topic of dispute, because in many situations a terminated
employee is eligible for severance pay and/or unemployment benefits, whereas one who
voluntarily resigns may not be eligible. Abdication is the equivalent of resignation of a reigning
monarch or pope, or other holder of a non-political, hereditary or similar position.
> A resignation is a personal decision to exit a position.
> No. of persons resigning in a year is known as attrition rate.
The attrition rate in RSP is much less in comparison to others.

Recruitment:
Recruitment is an important part of an organizations human resource planning and
their competitive strength. Competent human resources at the right positions in the organization
are a vital resource and can be a core competency or a strategic advantage for it.
The objective of the recruitment process is to obtain the number and quality of
employees that can be selected in order to help the organization to achieve its goals and
objectives. With the same objective, recruitment helps to create a pool of prospective employees
for the organization so that the management can select the right candidate for the right job from
this pool.

There are various modes in the recruitment process. They are:


Open recruitment
Other than open
Campus
Compassionate

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ROURKELA STEEL PLANT
LDP (Local Displaced People)
Reappointment

OPEN RECRUITMENT:
The open recruitment includes the written and the interview process, wherein the
candidates after clearing the written round, if get qualified, and then is selected for the interview
round. The written round is considered as the rejection round and the interview round is
considered as the selection round.
Approx. in 1:5 ratio candidates are called for interview round.

OTHER THAN OPEN: These types of recruitment involve only the interview round.

CAMPUS: The campus recruitment for which the companys visit the colleges includes
two rounds i.e.; the written as well as the interview round. It selects candidates and tests
their potential accordance to the job.

COMPASSIONATE: RSP also gives job under compassionate ground.


Under compassionate ground jobs are provided in following categories:-
(i) Death due to accident while on work place.
(ii) Death due to accident while coming to/doing out of duty.
(iii) Death due to 3 major diseases (cancer, heart Stroke, Kidney failure)

That means on the death of any employee due to the reason as mentioned above job is
provided to the dependent of the employee first offer is made to the spouse of the employee. The
spouse may further relinquish and request offer to be made to the one of the children.

Moreover the grade at which offer is made as per the qualifications and as per the rules of the
company. They are as follows.

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ROURKELA STEEL PLANT
1. S1- matric,+2
2. S2-Matric and ITI
3. S3-BSc/Diploma
4. S10-Graduate Engg.
5. E0-MBBS

LDP (Local Displaced People): LDP is providing only for displaced person.
Generally once established of the company there is required land. Company gives the
offer of the people any one person gives the job or gives the land amount. The people
accept of job offer, this offer is called displaced. This displaced process
recruitment of the people.

Reservation in Recruitment:
1. There shall be a reservation of 15 per cent for the members of the Scheduled Castes, 7.5
per cent for the members of the Scheduled Tribes and 27 per cent for the members of the
Other Backward Classes in the matter of appointment by direct recruitment on all India
bases by open competition.
2. There shall be a reservation of 16.66 per cent for the members of the Scheduled Castes,
7.5 per cent for the members of the Scheduled Tribes and 25.84 percent for the members
of the Other Backward Classes in the matter of appointment by direct recruitment on all
India basis otherwise than by open competition.
3. Except in Delhi, reservation for the Scheduled Castes and Scheduled Tribes in case of
direct recruitment to Group C and Group D posts normally attracting candidates from a
locality or a region is generally fixed on the basis of proportion of their population in the
respective States/UTs. Reservation for OBCs in such cases is fixed keeping in view the
proportion of their population in the respective States/UTs and the fact that it is not more
than7% and total reservation for SCs, STs and OBCs does not exceed 50%. Quantum of
reservation fixed for SCs, STs and OBCs in such cases has also been indicated

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ROURKELA STEEL PLANT
4. Where recruitment is made for zones or circles or regions consisting of more than one
State, the percentages of reservation for SCs and STs is generally fixed on the basis of
the proportion of SCs and STs in the respective zones/circles/regions and reservation for
OBCs is fixed keeping in view their proportion in the population of the respective
zones/circles/regions and the fact that it is not more than 27% and total reservation for
SCs, STs and OBCs does not exceed 50%.
5. The members of the Other Backward Classes who fall in creamy layer shall not get the
benefit of reservation. Criterion for determining creamy layer status amongst Other
Backward Classes is also prescribed.
6. Reservations also do not apply to:
Temporary appointments of less than 45 days duration; those work-charged posts
which are required for emergencies like flood relief work, accident restoration and relief
etc.

25000

20000

15000

10000 East

5000

0
2003- 2004- 2005- 2006- 2007- 2008- 2009- Jun-10
04 05 06 07 08 09 10

MANPOWER TREND IN RSP

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ROURKELA STEEL PLANT

MARKETING DEPARTMENT

INTRODUCTION:

The term Marketing is an all embracing term and includes activities starting with the motivation
at customer sale of product and after sale services to satisfying the need wants of the customer at
a profit from it., this purpose is achieved by selling it. Products can be sold easily by adopting
proper marketing strategies. This aspect applies both consumer good industries and producer
good industry has no exception.
Marketing deptt. Of RSP was earlier called as the Order Department. It is only deal
with the secondary product of RSP and the primary product of RSP is dealt by the Central
Marketing Organization (CMO).
Earlier till 1974 the Central Marketing Department (CMO) was in charge of the
marketing of the scrap products. Marketing of the defective products was also handled by the
CMO till 1998, and though they are also responsible for marketing of primary products of RSP,
they had produced primary products blindly due to that there was huge increase in scrap and
defective products. For that they have faced huge loss in end nineties. But later the individual
plants were asked to handle the sale of secondary and the scrap product.
During past few years the marketing dept. of RSP had a huge workforce of
employees. But due to modernization and introduction of the computer technology the workforce
have been reduce to less number of employees. Earlier the documents and important papers were
kept in lockers and required 2or 3 employees to maintain, this process make the entire sales
process time taken and unsecured. But today the documents are stored in soft copies in computer
system that makes more reliable, easy to access and increase the efficiency of the organization.

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ROURKELA STEEL PLANT
After the implementation of Single Window System the work process is minimized. This
system is new system and it has been introduced in 1st April 2004 and for last two years it has
been running successfully.

Present organization chart of marketing department is-

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ROURKELA STEEL PLANT

ED (MM)

G.M. (MM)

DGM (Mktg)

AGM Sr. Manager Sr.Manager, AGM


(SSSY) (I & S) COC, Waste product (A & D)

Jr. Executive (Mktg.)


Jr. Executive (Mktg.)

IDLE ASSETS CDY


Sr. Manager (Mktg.) Manager (Mktg.)

MARKETING OF RSPS PRODUCT:

As far as RSPs products are concerned, there are two types of products of RSP-
Primary Products

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ROURKELA STEEL PLANT
Secondary products

All these products of RSP are heavy and huge in nature. As these products are producer goods,
the customers for them are widespread in the country. So heavy strong marketing network is
needed to market these products.
The products of RSP are marketed under two authorities. The primary products of all
plants of SAIL are marketed through Central Marketing Organization (CMO). Secondary
products are marketed by individual plants.
So the primary products of RSP are marketed through CMO, whereas the secondary
products are marketed through the marketing department of RSP.

Central Marketing Organization (CMO):

The major functions of CMO are research, including assessment of demand and
availability providing feed to commercial director on the same. It collects market intelligence
and identifies new market and products required. The CMO has a network of sales officers and
stockyard within the country for purpose of distributing of materials from the outlets.

The other aspect controlled by CMO are planning customers services, transport AND
SHIPPING Data AND information system etc.

The distribution of iron and steel products is done by the CMO, through 45 branches
and stockyard located in all important steel consuming centres, in the country. For administration

purposes, the branches are grouped under 10 zones and 4 regions. They operate various schemes
to see that movement of products is fast and customer is satisfied.

PRODUCT RANGE OF RSP:

Primary Products:

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I. Pet Products:-
1. Pipes
a. ERW Pipes
b. Spiral Wield pipes

2. Electrical Steel Sheets


a. Cold Rolled Non Oriented Steel Sheets (CRNO)
b. Cold Rolled Grain Oriented Steel sheets(CRGO)
c. HRD Sheets

3. Electrolytic Tin Plates

II. Non-Pet Products:


a. Plates
b. Hot Rolled Coils
c. Hot Rolled Sheets
d. Prime Slab
e. Cold Rolled Sheets
f. Galvanized Plane Sheets
g. Pipe Plant Return (PPR) Coils

Secondary Products:

I. Iron and Steel:


a. Cast iron skull scrap
b. Cast iron U/R ingot steel

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c. MS turning and Burning O.S scrap
d. Tundish Steel skull
e. Steel skull trimming scrap
f. Iron and steel BF fines scrap
g. BF dumps iron
h. Used/rejected CI bottom plates scrap
i. Used/rejected CI mould scrap
j. Cast iron scrap

II. Re-Rollable Scrap:


a. Steel plates cutting scrap
b. Steel plates shearing scrap
c. Steel crop ends scrap
d. Concast steel short length slab
e. Concast steel slab crop end.
f. CI Skull scrap
g. URIN/IS
h. Steel skull scrap GR-I
i. Side trimming
j. BF drums iron
k. BF fines
l. Steel skull scraps

III. Steel Melting Scrap:


a. Steel skull scrap
b. Scrap bales (Bundle scrap from rail lines press)
c. MS turning and boring

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ROURKELA STEEL PLANT
d. Side trimming
e. Scrap slab

IV. Industrial Scrap:


a. CR steel cutting scraps
b. CR steel coils end scraps
c. CR steel cut flat end scrap
d. CR steel bas cut scraps
e. HR steel- cutting scraps
f. Sticker coils
g. Semi Rolled steel plates
h. Steel test piece scraps

V. Defectives:
Defective HR Coils (2.0mm)
Defective HR Coils (2.3mm)
Defective HR Coils (2.5mm)
Defective HR Coils (2.8mm)
Defective HR Coils (3.15mm)
Defective HR Coils (above 3.15 & up to 5 mm)
Defective HR Coils (above 5mm)
HR U/T Coils from CRM (below 3.15mm)
HR U/T Coils from CRM (3.15mm & above)
Defective HR Coils (Pickled) (2.0mm)
Defective HR Coils (Pickled) (2.3mm)
Defective HR Coils (Pickled) (2.5mm)
Defective HR Coils (Pickled) (2.8mm)
Defective HR Coils (Pickled) (3.15mm)
Defective HR Coils (Pickled) (above 3.15 & Up to 5mm)

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Defective HR Coils (Pickled)(above 5mm)
Defective CR Coils (0.4mm)
Defective CR Coils (0.5mm)
Defective CR Coils (0.63mm)
Defective CR Coils (0.8mm)
Defective CR Coils (1.0mm)
Defective CR Coils (1.25mm)
Defective CR Coils (1.6/1.8mm)
Defective CR Coils (2.0mm)
Defective CR Sheets (0.4mm)
Defective CR Sheets (0.5mm)
Defective CR Sheets (0.63mm)
Defective CR Sheets (0.8mm)
Defective CR Sheets (1.0mm)
Defective CR Sheets (1.25mm)
Defective CR Sheets (1.6/1.8mm)
Defective GP Sheets (0.35mm)
Defective GP Sheets (0.4mm)
Defective GP Sheets (0.5mm)
Defective GP Sheets (0.63mm)
Defective GP Sheets (0.8mm)
Defective GP Sheets (1.0mm)
Defective GP Sheets (1.25mm)
Defective GP Sheets (1.6mm)
Defective Chequered plates (5-10mm)
Defective HR plates
Defective plates (6-20mm)
Defective plates (above 20mm)
Defective Under sized plates (length 400-610)

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ROURKELA STEEL PLANT
Defective Electrolytic Tin plates
Defective CRNO Sheets

VI. Semis:
a. MS ingot (Non Silicon)
b. Pig iron

VII. BF Slag:
BF granulated slag (NLT)

VIII. Coke Fraction:


-Hard coke
-Mixed coke Nut coke
-Mixed breezed coke

SALIENT FEATURES OF THE MARKETING POLICY OF SAIL:

Customer contact officers of the producers will be regular touch with customers
according to a well co-coordinated plant and will arrange for supply of steel for them.
Producer must bring greater co-relation then hitherto between supply and demand by
working out suitable rolling programme.
Producers must ensure that large majority of customers are reasonably satisfied. Special
attention tobe paid to the needs of public sector units, director Government demand and
such priorities which Govt. may down from time to time.
Defense, Railways, Steel Plant SSICS will get their supplies direct, special qualities both
from plate mill as well as Cold Rolling Mills will be dispatched direct. As the allocations
for Hr coils are in bulk, the tube makers and wagon builders for plates in coil from will
get their supplies through stockyards.

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ROURKELA STEEL PLANT
In view of the important role to be played by stock yards producers must increase the
number of stock yards and provides adequate handling facilities.
In the stockyard, the producers must keep a range of products as their base stock to
enable consumers to buy their requirements as and when they need it.
Demand and supply position will be reviewed in quarterly JPC meeting.
Producers should organize their sales to provide satisfaction to consumer both by
increase in production and prompt customer services.
Producers should endeavor to keep up the delivery schedules by mutual agreements.
The customers need not have large organizational set up for procurement of steel. As far
as R.S.P. products are concerned Electrical Steel Sheets, Tin Plates & Pipes dont come
under this system. The supplies of these items are arranged direct to customers.

MARKETING SECTION:

Marketing section of RSP has four major sections-


Auction and Disposal
Secondary Steel Stockyard
Iron and Steel Secondary
Coal & Chemicals, Waste Products, SPP

AUCTION AND DISPOSAL:


The section is concerned with the auction and disposal of scrap and idle assets and also deals
with the disposal of the secondary products. The secondary products are nothing the scraps those
are generated in the process of steel making. A lot of scraps are generated by capital repair,
periodical repair, and construction and changing of machineries and also due to technological

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ROURKELA STEEL PLANT
obsolescence. These are to be disposed off either by utilizing it in plant or to be sold to avoid
holding huge inventories as obsolete items. This auction and disposal deals with two sections.
1. Central Disposal Yard
2. Idle Assets

SECONDARY STEEL STOCKYARD:


The Secondary Steel Stockyard (SSSY) of RSP has been constructed just at the outsight of the
greel gate along the Bisra road with an initial investment of about Rs.1.5 crores in the year of
1991-92. It came into operation on 30.10.1991 and was formally inaugurated on 02.03.1992.
Subsequently, the yard has been expanded suiting to their requirement and necessary.

IRON AND STEEL SECONDARY:


Secondary steel products are generated during the process of primary products. It is generated at
various pieces in the plants. More the production we do, more the secondary product we will get.
These defective products cannot visible to the naked eyes, but they are defective products. The
defective products are stored in the secondary steel stockyard and from there it is supplied to the
different venders of RSP. This section deals with the marketing of IRON and STEEL secondary
products generated in the process of steel making.

COAL & CHEMICAL, WASTE PRODUCTS:


The waste products generated is liquid oxygen, liquid hydrogen, rejected fire clay bricks, blast
furnace flue dust, cinder ash and LD slag. Ferrous sulphate is a waste product that is generated
from the cold rolling mill. It is base material for print industry. It is also used as manure for
opium plants.

LD slag is another waste from SMS. It is the steel slag and its primary customer is south eastern
railways. Flue dust is also a kind of waste generated from the blast furnace. It is a mixture of iron
dust and coke dust used in small iron factories, coke briquette plants etc.

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ROURKELA STEEL PLANT
FINANCE DEPARTMENT

INTRODUCTION:

The steel plays a crucial role in the industrialization of a country for sustaining the growth of an
economy. Financial objective of RSP as an integral part of its business mission into earn a fair
return on investment.

FUNCTIONS OF FINANCE DEPARTMENT:

(i) Acceptance of cash and payment.


(ii) Maintenance of books of account, completion of balance sheets and then audit.
(iii) Preparation of capital and operation budgets.
(iv) Evaluation of capital projects.
(v) Cost accounting & cost control for each process/ product.
(vi) Internal Auditing.
(vii) Stock verification.
(viii) Time keeping and Payments.
(ix) Receiving verification and payments of bills to the contractors and supplier.
(x) Preparation of bill/ Invoice for the sale of products.

Financial Position of the Organization:

The company has financed its assets from external sources by equity share capital invested by
the Govt. long term loans from Government and Steel development fund and working capital
loan from banks, public deposits and inter-corporate deposits decide internal resources generated
in the form of depreciation provision.

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BANKERS OF SAIL:

1. State Bank of India


2. Bank of Baroda
3. Canara Bank
4. Punjab National Bank
5. United Bank of India
6. Syndicate Bank
7. Bank of India
8. Indian Overseas Bank
9. Oriental Bank of Commerce
10. Central Bank of India
11. UCO Bank
12. State Bank of Patiala
13. Punjab Sind Bank Ltd.
14. United Bank of India
15. Allahabad Bank
16. State Bank of Hyderabad
17. Jammu and Kashmir Bank
18. State bank of Sourastra
19. Bank of Maharashtra
20. State Bank of Indore
21. State Bank of Bikaner & Jaipur
22. State Bank of Mysore

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IMPORTANT FINANCIAL DATA OF RSP:

SL. ITEMS As at As at As at As at As at Budget


NO. 31.03.06 31.03.07 31.03.08 31.03.09 31.03.10 31.03.11
1 Share Capital 49022 49022 49022 49022 49022 49022
2 Loan Funds
2.1 From Govt. - - 0 0 - -
2.2 From S.D.F. 34331 3578 2934 2824 2109 2109
2.3 From Others 86958 75333 74404 142007 224036 224036
3. CASH CREDIT 2127 11217 3694 0 3531 3531
4. Reserve & Surplus - - 21808 122928 256907 369894
5. FIXED ASSETS
5.1 Gross Block 632026 632024 651992 671907 701940 754023
5.2 Depreciation 308306 334199 363492 389113 418954 454155
5.3 Net Block 322020 297825 288500 282794 282986 299868
5.4 Capital Work in 11457 18296 29624 120527 267812 415729
Progress
6. Inventories 71811 87756 87013 122856 101669 112091
7. Working Capital 49466 57749 28031 32857 53171 51865
8. Capital Employed 371486 355574 316531 315651 336157 351733
9. Gross Sales During the 463272 639501 738485 774174 709269 844279
Yr.
10. Net Profit(+)/Net Loss(-) 49651 133640 140133 101120 133979 112987
During the Yr.
11. Cum. Loss(-)/Profit(+) -251695 -118325 21808 122928 256907 369894
Trf. to Bal. Sheet after
appropriation

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ROURKELA STEEL PLANT

ED (F & A)

GM

ES TA

Payroll Loans &


Advances

FS MABC

IGH
OBA

Estate Office Stores


Accounting

ARC RMBA

PF Claims &
Freight

(Oraganisation Chart for finance Department)

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ROURKELA STEEL PLANT

PUBLIC RELATIONS AT RSP

Public Relations are the deliberate, planned and sustained effort to create mutual understanding
between an organization and its stakeholders.
The main functions of Public Relation are:
Image building among stakeholders
Dissemination of information regarding the organization
Media relations local & regional
Local advertising & publicity
Events
A pre-requisite of effective communication is a thorough understanding of the company, the
nature of its stakeholders and the dynamics of the environment (business, political, social et al)
in which it is operating.

TARGET AUDIENCE:

Internal
Employees
External
Govt.,
Financial Institutions/Banks,
Customers,
Community Neighbors,
Policy Makers,Govt. Agencies,
Suppliers,
General Public,
Others, Stakeholders

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ROURKELA STEEL PLANT

OBJECTIVE:
Reinforcing the image of Rourkela Steel Plant as a profitable, progressive and vibrant
plant that cares for all its stakeholders.
Establishing RSP as a Socially Responsible Corporate Citizen.
To create a sense of pride among the stakeholders.
Corporate image building.

UNITS OF PUBLIC RELATIONS:

COMMUNICATIONS
ROURKELA STEEL TELEVISION CENTRE
PHOTO UNIT
DOCUMENTATION CENTRE
ISPAT PRESS

COMMUNICATIONS:
1. Daily news for RSTV
2. Press Releases : a) regular b) paper specific c) special features
3. Media Liasioning
4. The House Magazine (Ispat Sahayog) in three languages.
5. Brochures, posters, hoardings etc
6. Inputs for SAIL news, website & corporate publications
7. Messages of MD, Speeches, Appeals Etc
8. Scripts and story boards of corporate films and promotional films.
9. Creating and Facilitating Advertisement Campaigns

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Content of Communication:-
1. Priorities of the Plant
2. Future Challenges
3. Production and productivity
4. Achievements of employees/ family members
5. Safety
6. Quality
7. Cost Control

ROURKELA STEEL TELEVISION CENTRE:


1. Daily News in Oriya, Hindi & English
2. Weekly News Round Up on Sundays
3. Yearly Round Up
4. Health File
5. Documentaries, reports
6. Live Recording/Telecast of important programmes
7. Interviews & Panel Discussions
8. Cultural Programmes, Quiz and other special programmes etc
9. Messages of important dignitaries

PHOTO UNIT (STILL & VIDEO PHOTOGRAPHY):


1. Glimpses for RSTV News
2. Presentation of albums to VVIPs
3. Special Purpose Still Photography :
> Press releases
> Ispat Sahayog
> Statutory, Insurance, Factories Inspector, Police inquest etc

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ROURKELA STEEL PLANT
> Booklets & Brochures Exhibitions

DOCUMENTATION CENTRE:

1. Daily Press Clippings to MD and all EDs

2. Computerized data bank on clippings & different topics


3. Media Analysis
4. Record Keeping
5. Library

ISPAT PRESS:
1. Technical stationeries for Internal Use
2. Office Stationery, Medical Books, coupons, Park tickets
3. APP Booklet, Delegation of Power, Periodicals, Log books
4. Messages, speeches, appeals etc
5. Risograph of different communication materials

R.V. INSTITUTE OF MANAGENENT, BANGALORE


ROURKELA STEEL PLANT

QUALITY CONTROL IN RSP

INTRODUCTION:

At Rourkela quality is way of life which begins at the mines follows meticulously at every step
of processing and ends with inspection of the products. Quality control measures are inbuilt in
the highly sophisticated equipment with continuous monitoring of essential data through
computerized control in all the production units. The quality control team maintain history card
for each coil, sheet, plate, or pipe the leaves Rourkela.

TQM @ RSP :
It was the consistent belief in this business philosophy that led to the adoption of TQM by RSP
since January 1992 and today forms the core of all our business strategies. No other strategy can
be predictive of success in todays competitive environment. We have been able to realize the
customer first approach and percolate it down to the workmen level with associated changes in
our attitude towards quality of our processes in general and quality of product in particular.
Subsequently, the scope of TQM was enlarged to include implementation of various
management systems for Quality, Environment, Occupational Health & Safety and Social
Accountability as a mark of obligation towards all sections of stakeholders.

TOTAL QUALITY MANAGEMENT:


In RSP, 36 departments consisting of all the production departments, all the Mechanical &
Electrical Repair Shops, majority of the service departments, Personnel and Steel Township have
been certified to ISO 9001: 2008 QMS. Quality Management System(QMS) for the various
departments under Iron & Steel Zone, Rolling Mills and Shops & Services have subsequently
been integrated to achieve single certificate for entire RSP (Works) in Jan11. This integration of

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ROURKELA STEEL PLANT
QMS has resulted in considerable saving apart from reduction in documentation and processing
time. To strengthen the system, Recertification Audit is conducted once in every three years and

Surveillance Audit every year.


Implementation of Quality Management System has brought following advantages:
Better quality of product and high customer satisfaction
Implementation of Computerized Maintenance Management System and systematic
maintenance practices.
Competency assessment of employees and need-based training.
Systematic monitoring and review of process performance.

ENVIRONMENT:

Looking back, Silicon Steel Mill and Environmental Engineering Department were the first
departments to be certified with ISO 14001 Environment Management System (EMS) in the year
2000. Subsequently, SP-II, HSM, PM, SWPP, ERWPP, SPP and Steel Township were certified
to ISO 14001:2004 EMS. RSPs Steel Township is the first Township of SAIL to be certified for
both ISO 9001 QMS and ISO 14001 EMS.
The implementation of EMS at important locations has brought in
Regular monitoring for adherence of environmental parameters.
A clean and green environment and thus stakeholders delight
Compliance to legal and other requirements.

OCCUPATIONAL HEALTH & SAFETY:


Entire RSP has been certified to internationally acclaimed Occupational Health & Safety
Assessment Series (OHSAS 18001: 2007) in Apr10. It is noteworthy that OHSAS
(Occupational Health & Safety Assessment Series) standard covers the salient aspects of Health
and safety of all regular and contract employees, visitors and any other person at the workplace.
It facilitates identification of hazards and assessment of risks at different places and redressal of

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ROURKELA STEEL PLANT
the significant risks within a timeframe.
This certification has helped RSP in the following aspects:

Systematic Hazard Identification and Risk Assessment (HIRA).


Significant reduction in accident rates and man-hour loss.
Higher employee motivation.
Systematic compliance to legal & other requirements.

SOCIAL ACCOUNTABILITY:
Being a responsible corporate citizen, RSP has taken significant strides to respect and uphold
the dignity of its stakeholders. This has become amply evident with the intention of our plant to
implement and achieve certification of internationally acclaimed SA (Social Accountability)
8000 standard. The certification process of RSP is under progress.
It is worth mentioning here that SA 8000 focuses on nine areas. Significant among them are
Non-deployment of child labor,
Abolition of forced labor,
Right to join trade unions and
Fair wages

INTEGRATED MANAGEMENT SYSTEM:


In order to have synergy and synchronization in implementation of various management
systems, concept of Integrated Management System (IMS) has been initiated in RSP. An IMS
Policy covering Quality, Environment, Occupational Health & Safety and Social Accountability
of RSP has been introduced.
The IMS Policy signifies commitment of RSP towards
Production of defect free products and services
Prevention of environmental pollution, injury & ill health

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ROURKELA STEEL PLANT
Ensuring a socially accountable work culture and compliance to all legal and other
requirements.
RSP has the distinction of the first SAIL unit to adopt the IMS policy.

REVIEW SYSTEM:

To implement, document and maintain all these management systems, a Three Tier Management
Review of IMS is held regularly by HODs, GMs and ED (Works)/ED (P&A). TQM Department
facilitates the monitoring and reviewing of around 300 parameters concerning Quality,
Environment and Occupational Health & Safety aspects of the certified departments. The
necessary corrective and preventive actions are taken in case of deviations with respect to
Process Parameters, Objectives & Targets, complaints and audit findings for effective
implementation of management systems.
The periodic review system has resulted improvement in
Production and productivity
Periodic preventive maintenance
Monitoring of Environmental parameters
Monitoring of occupational health and safety performance
Compliance with legal and other requirements

QUALITY MONTH CELEBRATION:


A distinct feature in RSP is the celebration of month of November as the Quality Month and the
2nd Thursday of November as the Quality Day every year. To imbibe the sense of Quality
consciousness among the employees, Essay, Debate & Quiz Competitions related to Quality are
conducted and the Managing Director felicitates the successful employees on the Quality Day as
well as the best departments from Iron & Steel zone and Rolling Mill zone for achieving best

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ROURKELA STEEL PLANT
Quality parameters. Eminent speakers are invited to Quality Day function to address the
gathering of employees on recent advancements in the field of Quality.

DEPARTMENTS CERTIFIED UNDER ISO 9001 QMS:

1. Ore Bedding & Blending Plant


2. Calcining Plant-II
3. Sinter Plant-I
4. Sinter Plant-II
5. Blast Furnaces
6. Coke Ovens
7. Coal Chemicals Department
8. Steel Melting Shop-I
9. Tonnage Oxygen Plant-I
10. Tonnage Oxygen Plant-II
11. Steel Melting Shop-II
12. Lime Dolomite Brick Plant
13. Plate Mill
14. Hot Strip Mill
15. Special Plate Plant
16. Silicon Steel Mill
17. Cold Rolling Mill
18. Spiral Weld Pipe Plant
19. ERW Pipe Plant
20. Captive Power Plant-I
21. Traffic & Raw Materials
22. Mechanical Shop
23. Repair Shop (Mechanical)
24. Fabrication & Structural Shop
25. Roll Shop
26. Field Machinery Maintenance
27. Air Conditioning

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ROURKELA STEEL PLANT
28. Repair Shop (Electrical)
29. Power Distribution
30. Electrical & Electronics Services
31. Foundries
32. Instrumentation
33. Repair & Construction (Mechanical)
34. Steel Township
35. Personnel
36. HRDC

The following units of RSP have also been certified with ISO 14001: 2004
Environment Management System (EMS):

1. Environmental Engineering Department


2. Hot Strip Mill
3. Plate Mill
4. Silicon Steel Mill
5. Sinter Plant-II

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ROURKELA STEEL PLANT

CHAPTER 4

SWOT ANALYSIS
R.V. INSTITUTE OF MANAGENENT, BANGALORE
ROURKELA STEEL PLANT

SWOT ANALYSIS

STRENGTH:

Established name in India & Abroad.


Large period of experience.
Availability of raw material and manpower.
Adopt modern management schemes such as Srujani award scheme and Creativity award
scheme in order to encourage employees (especially non executive) that indirectly help in
increasing labour productivity.
Total Quality awareness through training of executive and non-executive employees.
Established infrastructure like land, township, and medical.

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ROURKELA STEEL PLANT

WEAKNESS:

Absence of core competence


Limited understanding of positioning its product
Statutory & committed recruitment of unskilled, semiskilled personnel
High cost of production
Over manpower is the main weak point for RSP.

OPPORTUNITY:

Ability to influence market share


Emergency of quality of steel
Large coverage of area
Government of India has introduced a new floor price of steel below which steel cannot
be sold. This is a safeguard to native industry.
Total Quality Management Programme will open up ample opportunity towards
profitability.
Full utilization of the vast work force.

THREAT:

Less market share in Indian market.

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ROURKELA STEEL PLANT
Import of Iron & Steel at abnormally low rate from Russia, Brazil, Iran, Japan etc. as a
result of liberalized import policy and cut in custom duty.
Deli censing to encourage private investors giving chance to avoid complicated licensing
procedure.
Stiff competition from other companies.
Slow in responding to modernization necessities.
Rising cost of coal.

CHAPTER 5

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ROURKELA STEEL PLANT

FINDING, SUGGESTION &


CONCLUSION

FINDINGS

Managing a huge workforce of approx. 19,000 is a challenging job at any instance and at
any place. Its truly overwhelming to know the mammoth task be carried out so
smoothly.
Most of the employees said that the training needs/development plans are identified
during Performance Review Planning. Some of the employees said that Training
needs/development are not identified during PRP.
When the respondents were asked to suggest any improvement in the present appraisal
system of SAIL, a majority of them could not suggest anything. Few of the employees
have suggested a few improvements. These suggestions are included in suggestions of
report.
Maximum employees of the Rourkela Steel Plant are satisfied with RSP,s leadership and
planning.

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80% employees abide by the corporate culture.
87% of employees believe there role are clear in RSP.
Maximum employees find the working environment as suitable.

SUGGESTION
Considering all the facts I think there must be changes in policy of RSP. Some of the suggestions
are as follows:-

The marketing strategy of RSP should crucially depend upon customer satisfaction, so
improved.
The security deposit of 105% should be reduced to 102%-103%, as the variation in
quantity of the allotted material during loading is minimum.

The practice of just-in-time delivery should be thoroughly internationalized to give RSP


the strength to grow under the competitive scenario. The dispatch destination with the
railways in this regard should be given priority.
Customer database to develop incorporating product wise/zone wise requriment.
RSP should plan to explain the possibility of diversifying the product mix so as to
enlarge its customers base and also improve quality of product.
The appraisal system of SAIL is very good indicating that there is good degree of
improvement desirable to the organization. The following are some of the points that
have been born in my mind while attempting to study the Executives Performance
Appraisal System of SAIL.
The appraisal system should be more focused to achieve all its required objectives.
Continuously stretch the boundaries of the current jobs: challenging people to re-
conceptualize their roles reorient their responsibilities.

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The raw material prices for RSP have been increasing at a very fast rate which should be
taken care off by efficient usage of raw materials and avoiding wastage at all levels of
value addition.
Expense on employee remuneration and benefits from the second highest expenditure,
this expense has also been increasing at a faster rate, so a check on this expense is
necessary.
RSP should focus on operating at full capacity this is because it has missed many
opportunities because of its not operating at full capacity.
It should look after the growth of ancillary industries, which depend on the secondary
products.
Customer section should be done by choice not by chance.
The plants need to update with technology constantly, and also focus on the production
of steel of that sector which will have high future demand.

CONCLUSION

SAIL, RSP is a large public sector organization whose main concern is the manufacturing of
steel. Since its a public sector organization their employees enjoy special benefits and also
every possible care is taken by the organization towards their employees. There are a total of 1
lakh 17 thousand employees in SAIL, whereas 18,655 are in RSP itself. So its quite a huge task
to take care of so many employees and the organisation trying to achieve it. RSP also pays
attention to multi-facets of employee welfare. It tries to recognize and nurture potential of their
employees. The plant is highly systematic disciplined and modernized.

Rourkela Steel Plant has completed four decades of existence and during this period there has
been complete shift, moving from a monopolistic state to a totally competitive market

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environment. Over the years many changes were initiated. I being the pioneer in the production
of wide varieties of iron & steel also produce diversified varieties of secondary arising during the
production process. RSP caters to a varied and wide spectrum of consumers. There is hardly any
industry, which does not utilize its products either directly or indirectly. Total customer
satisfaction in all aspects is therefore the key to success of any business organization. Hence
RSP now aims at devoting it energies towards producing quality and crating values of customers.
Every operation, however small, is carried out keeping the customer and his expectation in mind.

RSP is taking a lot of steps in marketing quality steel. New players have
entered into the steel market. Each player would like to gain in terms of market share. RSP gives
priorities to various customer problems, its pricing and distribution policies. RSP now gives
emphasis making market oriented and customer oriented strategies.

There is a little bit of SAIL in everybodys life- this is catchword for


SAIL.

BIBLIOGRAPHY

http://www.citehr.com

http://www.sail.co.in

http://www.rsp.co.in

SAIL News

Sahayog- a magazine of RSP

A panorama of Human Resource Development Centre, RSP

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ROURKELA STEEL PLANT
Samaskar- magazine of RSP

SAIL Annual Reports

RSP Manuals

ANNEXURES
SAIL/ROURKELA STEEL PLANT

Profit & Loss Account for the year ended 31st, 2011

Particulars Year ended Year ended


March 2011 March 2010
(Rupees in (Rupees in
crore) crore)

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ROURKELA STEEL PLANT

A. Income

Sales 7452.19 6992.24


Less: Excise Duty 696.32 6755.87 555.31 6436.93
Policy Loss 0.00 7.59
Interest Earned 15.08 11.99
Other Revenues 107.01 109.43
Provision no longer required Written back 5.16 10.75
Stock transfer to the units 206.62 100.45

Net Income 7089.74 6677.14

B. Expenditure

Accretion/Depletion to stocks -289.39 137.08


Raw materials consumed 3549.26 2733.83
Employees Remuneration & Benefits 1182.79 811.60
Stores & Spares Consumed 492.01 480.34
Power & Fuel 482.66 422.90
Repairs & Maintenance 65.03 50.92
Freight Outward 107.67 88.98
Other Expenses 185.81 170.68
Share of expenditure over income
- Corporate office 79.92 62.48
- CMO 48.00 42.00
- CCSO 6.13 5.49
Interest & Finance charges 95.88 103.32
Depreciation 332.77 310.68
Total 6338.54 5420.34
Less: Inter Account Adjustment 112.52 6226.02 82.21 5338.09
Profit of the Year 863.72 1339.05
Adjustments pertaining to earlier years 8.17 0.74
Net Profit 871.89 1339.79

SAIL/ROURKELA STEEL PLANT

Balance Sheet as at 31st March, 2011

ITEMS As at 31st As at 31st


March, 2011 March, 2010

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ROURKELA STEEL PLANT
(Rupees in (Rupees in
crore) crore)
SOURCES OF FUNDS
Shareholders Fund
Reserve & Surplus 3440.96 3440.96 2569.07 2569.07
Loan Funds
Secured Loans 2.06 75.37 75.37
Inter Unit Current Accounts 10766.85 8308.81
TOTAL 14209.87 10953.25
APPLICATION OF FUNDS
Fixed Assets
Gross Block 7616.52 7019.40
Less: Depreciation 4506.61 4189.54
Net Block 3109.91 2829.86
Capital Work-in-Progress 4560.80 7670.71 2678.12 5507.98

Current Assets, Loans Advances


Inventories 1362.61 1016.69
Sundry Debtors 15.92 32.31
Cash & Bank Balances 25.77 24.00
Other Current Assets 1.06 1.26
Loans & Advances 371.12 267.33
1776.48 1341.59
Less: Current Liabilities & Provisions
Current Liabilities 1423.08 1522.52
Provisions 1061.16 1070.30
2484.24 2592.82
Net Current Assets -707.76 -1251.23
Inter Unit Current Accounts 7246.92 6696.50

TOTAL 14209.87 10953.25

R.V. INSTITUTE OF MANAGENENT, BANGALORE

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