Steel-a-thon 2022

Theme: Be More
About Us:
The world of Tata Steel is one without boundaries. A world that embraces different
skills, continuous improvement, sustainable growth and better quality of life.
We touch the lives of millions of people across the world every day. From the vehicle
you drive, to the house you live in; from the bridges you cross, to the hand tools that
you use, we strive to deliver unparalleled quality through our customised value-
added solutions to make your life easier.

This is made possible by our commitment to a culture of continuous improvement,

through which we drive operational excellence in processes, products and people.

We are one of the few steel operations that are fully integrated – from mining to the
manufacturing and marketing of finished products. A Great Place to Work-
Certified organisation, Tata Steel, together with its subsidiaries, associates, and joint
ventures, is spread across five continents with an employee base of over 65,000.

Our Employee Value Proposition:

We believe, it is human to aspire for more, to challenge our boundaries, to set the
vision high. We provide an ecosystem to achieve this and “Be More, with us”
You get to experience Life@TataSteel boundaries. A world that embraces different
skills, continuous improvement, sustainable growth and better quality of life.
We touch the lives of millions of people across the world every day. From the vehicle
you drive, to the house you live in; from the bridges you cross, to the hand tools that
you use, we strive to deliver unparalleled quality through our customised value-
added solutions to make your life easier.

This is made possible by our commitment to a culture of continuous improvement,

through which we drive operational excellence in processes, products and people.

We are one of the few steel operations that are fully integrated – from mining to the
manufacturing and marketing of finished products. A Great Place to Work-
Certified organisation, Tata Steel, together with its subsidiaries, associates, and joint
ventures, is spread across five continents with an employee base of over 65,000.
 Case Study
Theme: Do More
Track: Value Chain
(Sustainable Value chain)

Sponsor: VP-Supply Chain

Name of the Case: Assess Tata Steel’s current strategy of supplying to

discerning Automotive customers having long supply chain lead time with
demand/supply variability.

Introduction: The Indian Automotive Industry is growing at a very fast pace. On

an average, steel contributes to ~60-65% of the total raw material used in the
average Indian vehicles. Tata Steel has chosen Automotive as their strategic
segment and commands a market share of ~50% in Indian automotive market.

Over the last 20 years, Tata Steel has been the preferred supplier for all major
automotive manufacturers like Maruti, Toyota, Tata Motors, Hyundai, Nissan,
Honda etc. and aspire to maintain this leadership position in the automotive
segment. Tata Steel’s supplies has increased from 1.18 MTPA (FY’14) to 2.1
MTPA in FY’22 at a CAGR of 8.4%.

Background: The Automotive product basket of Tata Steel is very varied with
~12000 different SKU’s ranging from Hot Rolled, Cold Rolled & Coated products,
which is supplied from our manufacturing plants at Jamshedpur, Kalinganagar,
Angul, Shahibabad & Tarapur and around 30 Steel processing centres (SPC)
across India.

Supply lead time is very high ranging between 30-60 days, and production is done
based on 3 month rolling forecast, which has an accuracy of ~ 60%. Some OEMs
operate on JIT model demanding supplies within 2-3 days, which further puts
stress on the supply chain. The continuous trend of light-weighing in Automotive
industry has led to increased demand of High strength materials which are a
constraint product at our manufacturing plants.

Challenges Faced:

• Multiple delivery modes from Multi-Plant and Multi-site supply chain

Complex network
• Long supply lead-time of 30-60 days
• High service level expectations and JIT (Just-in-time) requirements from
OEMs.
 • Demand variability in multiple SKUs - increase in SOB, phasing out of
models, introduction of new models & growth of automotive sector.
• Supply side variations due to disruptions at supply plants, fluctuating strike
rates etc.

Critical Case Questions:

• To handle demand variability which forecasting strategy to follow – Sales

forecast vs Statistical forecast?
• To handle supply variability & SKU proliferation – Raw material size
rationalization optimizing the yield loss vs inventory carrying cost.
• To manage long-lead time & JIT requirement – decide between buffer
buildup cost vs. increase in Customer service levels.

Assessment Criteria:

• Strategy recommended
• Forecast accuracy being predicted by the strategy chosen
• Quantify the benefit of increased service levels over long run