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Operations Management

at
Tinplate Company of
India

Introduction
Tinplate Company of India Limited a Tata Company

An Introduction

TCIL is the largest indigenous producer of tin coated and tin free steel
sheets in India
Having 35-40% market share
The industry leader for more than 90 years
Headquartered in Kolkata, the Companys Works is located at
Jamshedpur, Jharkhand
Presently 11 offices in India and a distribution network with 16
stocking points
TCIL Works presently has two Electrolytic Tinning Lines (ETLs) and
Cold Rolling Mills (CRMs)
The Company is in the business of manufacturing and supplying
reliable, cost-effective, value-added tin mill products
It manufactures various grades of electrolytic tinplates, tin-free steel
sheets and Full Hard Cold Rolled Sheets (FHCR) used for metal
packaging

Operation Strategy Decision


Identify a key Operations Strategy decision made during
the above study period

The Decision
TPM (Total Productive Maintenance)

It is a Japanese initiative coordinated and supported


worldwide by Japan Institute of Plant Maintenance, was
launched at TCIL in the year 2001-02

What is TPM?

Medical science of machines

System of maintaining and improving the integrity of


production and quality systems through the machines,
equipments, processes and employees that add
business value to the organization

Goal of the TPM

To
markedly
increase
production while, at the
same
time,
increasing
employee morale and job
satisfaction

Basis for Adopting TPM


Explain the basis for the above decision

The Why of Decision


To introduce robust operational processes, improve quality and gain operational
excellence as part of the companys short term plans
Measure the effectiveness of the 8pillars of TPM through P(Productivity), Q(Quality),
C(Cost), D(Delivery), S(Safety), M(Morale)

Objectives of TPM

Achieve
Zero
Defects,
Zero
Breakdown and Zero accidents in all
functional areas of the organization
Involve people at all levels of
organization
Form different teams to reduce
defects and drive Self Maintenance

TPM @ TCIL
TCIL Speak TPM Policy
We are committed to adopt TPM through the participation of all
our employees. Our aim is to achieve zero failure, zero defects
and zero accidents. We shall achieve this by creating a clean
and pleasant work place through teamwork and committed
employees.
Direct benefits of TPM
Increase productivity and OEE (Overall
equipment efficiency) by 1.5 or 2 times
Rectify customer complaints
Reduce the manufacturing cost by 30%
Satisfy the customers needs by 100 %
(Delivering the right quantity at the right time,
in the required quality)
Reduce wastage in fast changing environments
Reduce accidents
Follow pollution control measures

Indirect benefits of TPM


Higher confidence level among the workers
Keep the work place clean, neat and attractive
Favourable change in the attitude of the operators
Achieve goals by working as Team
Share knowledge and experience
The worker gets a feeling of owning the machine

Process Structure
Identify the process structure for any two stages of
manufacture of a product of the chosen business

Electrolytic Tinplating
Process
Cold
Rolled
Steel Coil

Uncoiling

Alkaline
Cleaning

Rinsing

Pickling

Rinsing

Electroplating
with tin

Drying

Brightening
by Reflow
unit

Passivation

Oiling

Shearing

Classifier

Packing

Despatch

Pickling Process Structure

Tin Electroplating

Soak

Clean

Electro
-clean

Plate

Rinse

Rinse

Acid

Rinse

Hot
Rinse

Bright
Dip

Chro
mate

Rinse

Dry

Capacity Planning Strategy


Is the sales growth for the above product based on an
Expansionist or Wait-and-see capacity planning
strategy? Why?

Capacity Planning Strategy


The sales growth for the above product is based on Expansionist Strategy as Tata Tinplate has
always focussed on expanding their capacity. For 50 years, TCIL single-handedly built up the
Indian Tinplate Industry
TCIL has undergone on-going expansion projects to double its capacity to 380,000MT between 2006 and
2010. These projects were taken up in phases, with the tinning line (downstream phase) being
commissioned in September 2008 and the cold-rolling mills complex (upstream phase) during 2008-10

The State-of-the-Art new combination line with Electrolytic Tinning & Tin Free Steel production facility
is one of the main reasons that enabled TCIL to achieve this target for capacity expansion in the short
time frame

TCIL has a wide range of product offerings both in coil & sheet form for the discerning customers,
primarily in the growing domestic and international markets and facilitate in consolidating its
undisputed status as the leader in the domestic market and emerge as a world class regional player
As previously discussed TPM is also one of the strategy used by TCIL to improve their capacity by
increasing productivity by 1.5 to 2 times and decreasing their manufacturing cost by 30%

Products
List at least two variants of the above product

Products and Variants

Open Top Sanitary Cans (OTSC)


o TCIL introduced the concept for open top sanitary cans
o TCIL is the domestic source for all OTS products
o Available in single and double reduced forms
o Used for packaging of processed food
Variants
o D 5.6/2.8
o D 8.4/2.8

Tin Free Steel


o Its an electrolytic chrome plated steel
o Consists of thin layer of chromium

Product Structure Tree


Determine the product structure tree for one of the above
product variants

Product Structure Tree for


OTSC

Operations Planning
Briefly describe how Operations Planning could be adapted
to the above identified process structures

Aggregate Planning

Master Scheduling Process


(MPS)
INPUTS

OUTPUTS

Master Scheduling Process


(MPS)
The result of dis-aggregating an aggregate plan, showing quantity and timing of a
specific end items for a scheduled horizon.
BEGINNING INVENTORY:
Materials required are steel cover and metal cap
FORECAST:
YEAR

ELECTROLYTIC TINPLATE
(tonnes)

COLD ROLLING MILL


(tonnes)

2010-2011

2,23,090

2,01,823

2011-2012

2,41,182

2,64,403

2012-2013

2,93,128

3,23,426

2013-2014

3,09,812

3,35,833

Master Scheduling Process


(MPS)
Total tinplate consumption in India has increased from 300,000 tonnes to 460,000
tonnes in five years, but in terms of per capita consumption it is still abysmally low
compared with global standards.
TCIL has greatly benefited from the food consumerism revolution. It has responded
by making available a vast array of products in different shapes, sizes and quantities.

CUSTOMERS:
Tinplates product open top sanitary cans in the form of finished goods are serviced
to Tayo rolls limited, The Tata pigments limited and Tata steel international
(Singapore) Pt. Limited

Interdependence

Material Requirement Planning

STEEL

STEEL

As you can see in the above structure, steel is used twice in the process
Usage of steel is a dependent variable because it is used in the production of finished
goods

Planning Horizon

MRP Processing

Inventory Management
Model
To take advantage of economies of scale and smoothen production requirements,
TCIL uses the EPQ Model
Economic production quantity (EPQ) is the quantity of a product that should be
manufactured in a single batch so as to minimize the total cost that includes setup
costs for the machines and inventory holding costs
Production is done in batches or lots
Raw Materials Used
Steel and Hot rolled coils procured from Tata Steel
Acid for electroplating
Packaging box
Spares

Inventory Management
Lead Time
The key raw material involved in steel and hot rolled coil which is procured from
Tata Steel
The lead time usually is between 12-15 days
Inventory (safety stock) must be planned in accordance with the lead time
To effectively decrease the lead time for raw materials, TCIL commissioned its
state-of-the-art 120,000 tonnes per annum Cold Rolling Mill having the benefit of
synergy with Tata Steel
Inventory Counting System
TCIL could emply the Perpetual Inventory System wherein removals from
inventory continuously, thus monitoring current levels of each item
Universal Bar Code to be created and labeled on each product variant to monitor
products inventory level

Thank You!!!

References

Tinplate Company of Indias website: http://www.tatatinplate.com/


Electroplating process http://en.wikipedia.org/wiki/Electroplating
Slideshare TPM

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