total quality management of tata power

8/22/2019 Total Quality Management of TATA POWER

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TOTAL QUALITY MANAGEMENT

SUBMITTED BY

MONIKA SHARMA

TYBMS

2006-2007

SUMMITTED TO

UNIVERSITY OF MUMBAI

PROJECT GUIDE : PROF . BHANU KRISHNAN

GHANSHYAMDAS SARAF GIRLS COLLEGE

S.V. ROAD MALAD ( WEST )

MUMBAI - 400064


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ACKNOWLEDGEMENT

I sincerely thanks my guide PROF BHANU KRISHNAN for providing necessary information

and valuable guidance which help me in compiling this project in a much better manner .I would like to thank PROF SUBRAMANIUM for being there whenever I need help and

provided valuable guidance in this project .

I most thankful to HR Manager THAKKAR Sir and Assistant manager S.V.SHETYE of

TATA POWER COMPANY Borivali branch for devoting their precious times and shared

information about TQM and how it is implement in the organization without which this

project would not have complete .

I have tried to cover all the aspects of the project and ever care has been taken to

make the project faultless .

I will be looking for such type of projects in near future and do my best .

This project has been complied in simple and lucid language so as to enable every reader

easy to understand .

I am eagerly waiting for fruitful comments and constructive suggestions are most welcome

to improve upon this project .

Suggestions , if any , are most welcome .

THANK YOU,

MONIKA SHARMA .


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INDEX

SR.NO TOPIC PAGE NO

1. INTRODUCTION OF TOTAL QUALITY MANAGEMENT 1.

2. ROLE OF TQM 2.

3. IMPLEMENTATION OF TQM 3-4.4. TATA POWER COMPANY:-

i. INTRODUCTION 5-7.

ii. TATA BUSINESS EXCELLENT MODEL ( TBEM ) 8-9.

ii i. QUALITY COST REPORT 10-14.

iv. COSTS ASSOCIATED WITH INSPECTION AND TESTING 15.

v. BENEFIT THROUGH TQM 16.

vi. TECHNIQUES USED FOR TOTAL QUALITY CONTROL 17-18.

vii. TECHNIQUES BASED ON MALCOLM BALDRIGE REPORT

ASSESSMENT YEAR 2005-2006 :-

19-66

a. LEADERSHIP 21-25.b. STRATEGIC PLANNING 26-27.

c. CUSTOMER AND MARKET FOCUS 28-36.

d. MEASUREMENT , ANALYSIS AND KNOWLEDGE MANAGEMENT

AND INFORMATION AND KNOWLEDGE MANAGEMENT

37-42.

e. HUMAN RESOURCES FOCUS 43-44.

f. PROCESS MANAGEMENT 45-47.

g. BUSINESS RESULT 48-66.

viii. NEW QUALITY MANAGEMENT SYSTEM ISO 9001: 2000 :- 67-88.

a. QUALITY MANAGEMENT SYSTEM 68-69.

b. MANAGEMENT RESPONSIBILTY 70.

c. RESOURCE MANAGEMENT 71-72.

d. PRODUCT REALISATION PLANNING OF PRODUCT REALISATION 73.

e. PRODUCT REALISATION CUSTOMER RELATED PROCESSES 74.

f. PRODUCT REALISATION DESIGN AND DEVELOPMENT 75-76.

g. PRODUCT REALISATION PURCHASING 77-78.

h. PRODUCT REALISATION PRODUCT AND SERVICE PROVISION 79-82.

i. PRODUCT REALISATION CONTROL OF MONITORING AND

MEASURING DEVICES

83.

J. MEASUREMENT , ANALYSIS AND IMPROVEMENT 84-88.

5. EVALUATION OF TQM 89-90.

6. CONCLUSION 91-92.


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EXECUTIVE SUMMARY

This project contain the information about the topic TOTAL QUALITY MANAGEMENT .

This project introduces Total Quality Management it mainly focus on Malcolm Baldrige

Report and ISO 9001:2000 of TATA POWER COMPANY and how it is implement in

the organization and what are the strategy taken by them .

Total Quality Management is a continuous process of improvement for individuals , groups

of people and whole organizations . To improve the process , therefore, people must know

what to do , how to do it , have the right method to do it , and be able to measure the

improvement of the process and the current level of achievement .


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When put into practice, appropriate quality methods can rapidly give rise to quality

improvement . Choosing the right methods for development of a TQM process is one of

vital roles of management process is complex and the use of some of these methods

requires careful consideration and clear understanding .

TQM is blend of technologies focus on four concept i.e. defect prevention , continuous

improvement , focusing on the customer and a philosophy that quality is not just a

responsibility of an organization quality assurances department , but rather it is a

responsibility shared by all TQM reserve our fixation on inspecting to defect and focuses

on practice that identify potential defects to prevent them from occurring .

TQM is still a philosophy emphasizing a continuous search for improvement and

implementing actions to convert improvement opportunities to reality .

TQM emphasizes knowing our customer both internal and external and focusing on

satisfying their needs and expectation . The continuity , stability and growth of a business

depends upon its customers. TQM as an sub serves the institution goals . Returns on

investments , market expansion , high employee morale and delighted customers are some

of the benefits of upgrading through TQM .

INTRODUCTION

The word total stand for whole or gross . The term quality stands for degree of excellence

and the word management stand for art of doing a particular work .

Therefore , TQM is art of doing the whole work in order to achieve a degree of

excellence .

TQM in the organization by employee involvement or step to be taken by management to

implementation TQM :-

i.) Clarify the goal and objective of organization .

ii.) Decide the philosophy of management .


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iii.) Follow decentralization and delegation of authorities.

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

v.) Involvement the worker in the system of achieving and maintaining the

quality concept of kaizen , quality circle are useful in this area .

vi.) Teach the worker the concept of house keeping .

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

Benefits of TQM :-

i.) Ability to be more competitive .

ii.) Increased market share .

iii.) Cost reduction .

iv.) Increased flexibility and responsiveness .

v.) Simplified processes.

vi.) Improved communications .

vii.) Less frustration and more satisfaction among the workforce .

THE ROLE OF TQM METHOD

Total quality management can be implemented by putting into practice suitable TQM

methods . However , adopting the right kind of method is one of the most important jobs

of senior management and degree of success obtained will depend on their knowledge

and understanding of these methods . TQM methods are unlikely to be useful not usedproperly .

When TQM is implemented in an organization , it invariably starts with a simple procedure:

the setting up of teams to solve particular problems. However , total quality management


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deals with quality culture , which is all about culture change based on desire to satisfy

the customer and eliminate existing problems permanently .

Education and training are key factors in total quality management , including the process

of learning TQM method . If team start to look at quality management problem without

proper training they will lose their way and become disheartened . If the quality problem is

not identified accurately and the TQM method selected for solution based only on data

analysis , then the problem will not be eliminated forever . In addition , the quality

improvement process need to be managed by an effective leader to ensure that proper

implementation is achieved . By applying TQM method properly and not fluctuating from

one step to another before completion , the quality team will have a much greater chance

of completing the task successfully .

The basic role of TQM methods in problem-solving for quality improvement is to help to

help to meet customer requirements . The methods also help to generate possible root

causes and potential solutions, and to use data and information to select the best options

for managing quality . To implement total quality management , it will be necessary to

apply the method in ever aspect of business life .

IMPLEMENTATION OF TQM

Total quality management process and implementation can be divided in three parts as

follows :-

1) Total employee involvement ( TEI )2) Just in time ( JIT )

3) Total quality control ( TQC )

1.) Total employee involvement :- The basic thinking is the human should not be

considered as robot or machine . They should be treated with respect and consideration .


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An organization has number of people working for a purpose . Every person has important

role to play . Organization will be the most effective if all employee work together and

harmoniously , to achieve common goal .

TEI is achieved in through following methods :-

a) House keeping :- Only where by the departmental manager who does not follow

the principle of housing keeping can be convenience by clicking the photography of

it department . Which is organized condition and display on the notice of the

organization and once he improve again the photography will the organization

department . To show the different which is apparent between the photography .

The different will through the light on importance of house keeping in the

organization .

b) Kaizen :- Kaizen is derived from two word kai & Zen . Kai - mean small , Zen -

mean improvement i.e. bring small improvement where , when , why how A

person who bring small improvement in himself is called as Kaizen

c) Quality circle :- A group people coming together and having a brainstorm over

issues to come out with good conclusion of problem or issues . Quality circle by

name itself we can understand where is circle of quality people having a quality

brainstorm and coming out with a quality conclusion .

2.) Just in time :- It is a concept where time management is exercise for the entire

process right from procuring the raw material from the vendors till the sale of finished

products to the customer .

3.) Total quality control :- Total quality control is applicable to all the functions . Quality

at work , service , information , process , divisional units, people , system and company has

to be maintain at minimum cost . This process consist of evaluate actual quality

performance , compare actual performance to quality goals , act on the differences.

7 QC Tools :-

i.) Statistical data


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ii.) Pareto diagram

iii.) Cause and effect diagram

iv.) Histogram

v.) Scattered diagram

vi.) Check sheet

vii.) Control charts.

TATA POWER COMPANY

INTRODUCTION

Tata power was ranked for its continuous effort to transform the 90 years old power utility

through a combination of cost reduction, steady growth and change in attitude into a moreconsumer-friendly place in a highly regulated environment.

Tata power as been selected among the top 13 best managed companies in India by

business today.


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While tata power fundamental have remained committed to quality and pursue of excellence

now there is a definite thrust on ensuring power supply at competitive tariff to consumer of

all sector

for constant self-evaluation of its plants and performance tata power has adopted the tata

business excellence model[T.B.E.M.] under the J.R.D. Quality values award which the tata

group has instituted in the memory of MR. J.R.D. TATA

incidentally j.b.e.m is modeled on the globally accepted MALCOLM BALDRIDGE national

quality award administered by department of commerce u.s.a.

Tata valuesThe tata has always been a value driven organization these value continue to direct the

groups growth and business. the five core tata value under the way they do their business

are:

1] Integrity: we must conduct our business fairly with honesty and transparency

everything we do must stand the test of public scrutiny.

2] understanding: we must be caring show respect compassion and humanity for

our collogues and customer around the world and always work for the benefit for the

communities we serve.

3] Excellence: we must constantly strive to highest possible standard in our day to

day work in quality of good and services we provide.

4] Unity: we must work cohesively with our collogues across the group and our

customer and partners around the world to build strong relationship based on tolerance

and mutual co-operation.

6] Responsibility: we must continue to be responsible and sensitive to the

countries communities and the environment we work, always ensuring that what comes

from the people goes back to the people many times over.

Quality policy of the tata power transmission and

distribution division


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we at transmission and distribution division of the tata power company limited are

committed to:

1. provide reliable quality power at most competitive price

2. constantly strive for exceeding customer expectation

3. ensure safe and healthy environment for employees equipment and community

4. we shall comply with requirement and continually improve the effectiveness of

quality management system

Quality objectives

1. maintain equipment availably higher than 99.75%

2. improve average restorations time to affect customers[C.A.I.D.I.] from 22 minute to

20 minute

3. reduce average duration of interruption per customer per year reliability index from

47 min to 35 min

4. maintain supply voltage within limits[variation of +/- 6%]

5. reduce T & D operation cost by 10%

6. continually upgrade employee skills to adapt the change

7. have concern [minimize inconvenience] for the community during execution of work

8. continually improve system to become an excellent organization

The above objective shall be received half year the above target are at

all T &D level

Departmental quality objectives operation

Functional quality objectives Measures


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1. Monitoring & controlling of operation

parameters

2. Ensuring heal thinness of equipment

by timely detection of abnormalities

3. Increasing availability of equipment

by normalization during tripping of

equipment lines and outage

4. Preparation and storing of

operational database

5. Ensure reliability and safety correct

and safety operation

6. Continual improvement

Logged value of parameter / logging of

corrective measure taken .

Defect register entries / check list entries

Measure taken during emergencies to

restore normal in minimum possible time of

normalization.

Availability of operational data

Accident free operation no wrong operation

safety practices

Work instruction revisions

TATA BUSINESS EXCELLENCE MODEL [T.B.E.M.]

T.B.E.M. purposes

1.To help improve organizational performance and business excellence practices ,capabilities result .

2.To facilitate communication and sharing of best practices information among tata

organizations of all types .


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3.To serve as working tool for understanding and managing performance and for

providing guidance for planning and identification of opportunities for learning and

improvement .

T.B.E.M. GOALS :

1.Delivery of ever improving value of customers , contributing to market place

success

2. Improvement of overall organizational effectiveness capabilities , resulting in

enhancing to all other stake other

3.Organizational and personal learning

visions of the quality

1. To be an excellent and efficient organization

2. To be a significant player in the national power sector

3. To participate in adjacent infrastructure business that provide opportunity for the

growth

4. To be the best in the tata group

mission of the quality

Improving the quality of life

value

1. Customer driver

2. Result oriented with professional work culture

3. Abide by tata code of conduct

4. Earn trust through fair business practices with all stake holder

5. Growth with environmental protection and enrichment


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6. Corporate citizenship

QUALITY COST REPORT

SR.

NO.

PERFORMANCE

MEASUREMEANT

TARGET

2004-2005

ACTUAL

2004-2005

TARGET

2005-2006


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1.

2.

3.

4.

5.

6.

7.

DIAGNOSTING TESTING OFEQUIPMENTS

DIAGNOSTING TESTING OFPROTECTION

DIAGNOSTING TESTING OFSYSTEM PROTECTION

COMMISION OFEQUIPMENT &PROTECTION SCHEMES

F.D.R. AVILABILITY

TEST INSTRUMENTAVAILABLE

TRIPPING DUE TO HUMANERROR

95%

95%

100%

95%

100%

98%

NIL

70%

76%

79%

95%

99%

97.2%

NIL

95%

95%

95%

95%

100%

98%

NIL

COST OF POOR QUALITY [C.O.P.Q.] REPORT

[C.O.P.Q.] company wide capturing format used for T.R.D.[C.O.P.Q.] to be captured under following two major head

A. cost of non conformance

B. cost of conformance

A. cost of non conformance

1.1] Internal failure cause related cost rework /

repairs cost due to internal causes -

For example -


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a ] E.Q.A.G. relay improper co-ordination / relay maloperation

b ] Non conformance to operating instructions

c ] Non conformance to maintenance work instruction etc .

d ] Non conformance due to inadequate specification in power operation byengineering department

1.2 ] External failure cause related cost - rework

a ] O.E.M. poor quality / inadequate material , fabrication assembly , design

, q.a. / q.c. Causing earlier failure

b ] O.E.M. not informing product modifications incorporated .

1.3 ] Appraisal cost -

Testing / appraisal cost to attend failure / rework - example - O.E.M. engineerservices etc

B. COST OF CONFORMANCE

2.1 ] Preventive cost - cost incurred to prevent recurrence of failure / faultfor that station and other stations for similar equipment .

2.2 ] Appraisal cost - cost incurred to test / appraise for case where failurenot occurred

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

A SR.NO.

Direct cost repair reworkto attend occurrence /forced outage / outagedescription

Man days Man dayCost

TransportCost

Total cost causes


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1.

2.

3.

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

Tripping of 11 kvvasant utsav f1 feeder

Tripping of 11 kvvasant utsav f6

5

2

2

3000

600

600

Nil

Nil

Nil

15000

1200

1200

External

External

External

B. Srno

OCCURRENCE/FORCED OUTAGEDESCRIPTION

LOAD MW SHUTDOWN

INTERUPTION

Mwh notsupplied

Cost/lossrate rs.2p.u. causes


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1.

2.

3.

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

Tripping of 11 kvvasant utsav f1 feeder

Tripping of 11 kvvasant utsav

40

0.25

0.5

0.11

3

16.5

4.4

0.75

8.25

8800

1500

16500

External

External

External

QUALITY PLANNING AND QUALITY IMPROVEMENT

QUALITY IMPROVEMENT -

1. Renew focus on growth in generation capacity


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2. Restructuring of business development & project function to new growth

opportunities

3. Setting target in A.B.P. which are more stretch than M.E.R.C. requirements

QUALITY PLANNING

1. Centralized control room with remote operation

2. Distribution automation of customer substations

3. Diversion of nallahs to increase hydro generation

4. Broad band on power line

COSTS ASSOCIATED WITH INSPECTION ANDTESTING

Vendors / contractor are selected through a well defined selection process with

emphasis on quality management process at suppliers end . In cases of branded off

the shelf type of items , vendors certified by O.E.M. [ original equipment manufactures


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] through their vendor authorization programs , all selected . thus doing away with the

need to expend resources on certification vendor quality .

Vendor rating system has been introduced for tracking the performance of the

vendors . cost of poor quality is being tracked analyze rework and defect and to

minimize the cost.

BENEFIT THROUGH TATA QUALITY MANAGEMENT

1. Improvement in C.A.I.D.I.

2. Improvement in reliability and quality of supply at customer end


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3. Reduction in failure , there by improving reliability

4. Reduction in cost of power to customer

5. Improvement in the availability to the customer , meeting customer expectation

6. Reduction in auxiliary power reduction from 12.66% to 10.98%

7. hunting load customers quires can be taken by T.P.C. there by reducing the

dependence on the state grid and making the power withdrawal from K.P.T.C.L. to

zero minimum impact of the outage to the customer

TECHNIQUES USED FOR TOTAL QUALITY CONTROL

FISH BONE DIAGRAM


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ROUTE COST ANALYSIS

MEN

A. Moisture from compressor is not regularly drained

B. Lack of knowledge about overhaul method

MATERIAL

Quality of material should be improved

MACHINES

A. Frequent failures of control circuits of compressor starting and stopping

1. Failure of pressure switches for starting and stopping

2. Failure of contactors and single phasing of switches .

3. Dripping of setting of pressure switches

MEN METHOD

S

MATERIAL MACHINE

COMPRESSOR

EXCESSIVE

RUNNING


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B. Frequent leakages from loose pipes used for air inlets of air blast circuit

breakers and defective non return valves of air blast circuit breakers

methods

A. Existing maint practices not sufficient

B. Conditioning monitoring is not adequate

ADVANTAGE OF FISH BONE DIAGRAM

1. Process is define systematically .

2. Simple to understand .

3. Several time ask the question why till they dont get the

answer

4. Use to find limitation

TECHINQUES BASED ON MALCOLM BALDRIGE

REPORT


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ASSESSMENT YEAR 2005- 2006

REPORT ON MALCOLM BRIDGE FOLLOWED TATA

POWER

SR.

NO.

LINE OF BUSSINESS TURNOVER

FY05 IN

[RS CRORE]

PERCENTAGE

1.

2.

3.

POWER BUSINESS

STRATEGIC ELECTRONICS

DIVISION

POWER SYSTEM DIVISION

3674

62

184.5

93.5%

1.6%

4.7%

The baldrige award examine the quality of an organization

activities in several category

1. Leadership


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2. strategic planning

3. customer and market focus

4. measurement analysis and knowledge management & information &

knowledge management

5. human resources focus

6. process management

7. business result

1. LEADERSHIP

Highlights leaders role in setting and communicating vision , value and focus on customer

and accomplishing organizations objective


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A. SENIOR LEADERSHIP

STAKE

HOLDER

DEVELOPMENT

MECHANISM

RECENT

IMPROVEMENT

RATIONAL

IMPROVEMENT

CUSTOMER

SUPPLIER

1.Customer meets

2.customer focus group

3.Customer opinion

leaders meet

4.Level of customer

contact plans

5.Customer valueimprovement program

Supplier meet

Half yearly supplier survey

together inputs on their

survey together inputs on

Designing and implementation of

customer portal

Visits of customer groups during

major activities at TPC like 500

MW unit overhaul

Inclusion of opinion leader

communication

Participation of senior leader in

the customer meeting cascade

Supplier meet also at divisional

level

Formation of complaints &

grievances cell and vendor portal

as additional mechanism of

To proactively satisfy

queries related to

reliability during customer

meets and building

relations

Communication regarding

TCOC ,TPC future plan

and other area of

common interest

Speedy resolution of

complaints


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Shareholder

INVESTOR

their alias of concern

Half yearly and yearly

report

Investor / forums seminars

/conference

access and information

Half yearly result communication

introduced

Initiated in fy05 , 2/3 meeting

interaction annually

Keeping shareholder

informed about TPCS

future plan

Image building , support

for growth initiative

1. Continued focus on enhancing and improving the equipment , system and network

reliability refuilishment and replace programs leveraging the new technology


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

etc.

3. Focus on developing technical , managerial and leadership competencies

4. Participation by senior leaders in training program - M.D. as acted as faculty on

tata group level workshop on project management

5. Participation by senior leaders in training program

6. Regular risk assessment and preparation of risk mitigation plans

7. Knowledge management

8. Environment management and C.S.R.


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PERODIC REVIEW OF PROTECTION SCHEMES TO

ENSURE CONTINUED EFFECTIVENESS

ADVERSE IMPACT

PUBLIC CONCERN KEY PRACTISESMEASURES

1. Reliability of power

supply

2. Load shedding

planned and power

interruptions to partial

consumer under low

frequency conditions

A. Forecast demand growth and

address shortage

B. Continues improvement in O&M

practice to ensure high reliability

C. Scheduling of plant / equipment /

outages during low loads

D. Built in redundancies ,T&D

equipmentE. power purchase during shortage

A. Segmentation of on consumers

based impact on business and

public servicesB. Design of graded load shedding

scheme for minimizing power

interruption to critical consumption

Generation plant availability 1%

Indices like CAIFI CAIDI SAIFI

SAIDI

Transmission line availability

Loss of scale due to forces

outages

No. of under frequency load

shedding operation

No. of times critical consumer got

shut down

No. of block outs saved /


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3. Block out [ total

interruption of power

supply to all

consumer ]

A. Islanding scheme to isolate Mumbai

customer from grid disturbances

B. Stand by power arrangement with

M.S.E.B.C. Periodic review of protection scheme

to ensure continued effectiveness

systems block outs

Time taken to restore supply after

a block out .


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2. STRATEGIC PLANNING

Strategy development has been rewritten to clearly address the key aspects of strategy

developing , including ability to execute the strategic planning .[ In contrast , consumer of tata power continue to enjoy uninterrupted supply of quality

power ]

STRATEGIC OBJECTIVE

STAKE

HOLDER

KEY REQUIREMENT

STRATEGIC

OBJECTIVES

1. CUSTOMER

2. INVESTOR

AND

SHAREHOLDER

3. EMPLOYEES

Reliable uninterrupted power supply at competitive rates

Optimum returns

Employee growth and development

1. Low cost generation capacity

2. Peaking power availability

3. Enhancing value to customer

1. Growth to capacity addition ,

entry into adjacent business

2. Organization transformation

Growth through capacity addition



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4. SUPPLIER

AND PATNER

5. community

Challenging work environment

Growth and prosperity

Good corporate citizenship

Organization transformation

1. Growth through capacity additi


1. C.S.R. initiative

3. CUSTOMER AND MARKET KNOWLEDGE / FOCUS


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Focus on customer complaint data and organization process for minimizing customer

dissatisfaction and less of repeat business .

Customer and market knowledge has an enhanced focus on identifying current and

potential customer for both existing and new products and services .

TPCS market development process , is and process in the customer value chain starting

with market identification till developing new initiatives .

The market department has reviewed and refine to take care of new emerging market as

SEBS , traders open access customers and distribution circle .


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Process no Name of

process

improvement

1. MDP2

2. MDP4

3. MDP5

4. MDP7

5.MDP8

Segment market and

customer base

Develop business

plans

New customer

acquisition

Manage customer

a/c

Complaint

management

Criteria for market attractiveness and internal

capabilities are clearly defined , growth potential

of segment also included in the analysis .

Reduce tariff to direct customer of TPC , new

ht residential tariff .

Targets are taken monthly and reviewed

quarterly.

Customer contact plan, monthly customer

coordination meeting, sharing of complaint,

coverage of wider cross section of employees in

customer coordination, focus group/ key a/c

manager meeting (KAM) , customer value

improvement program

Complaint escalation, % of time TPC meets

customer services standards added in bad

measures, complaint analysis shared with other

division , about 30% of sustains covered under

distribution automation to reduce restoration

time, new web based system for complaint

management for call centre.


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SEGEMENT MARKET AND CUSTOMER BASE

i)


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ii)

START

Market

information andindustry trend

from MDP1

1.List segment

2.Segmentcharacteristics

Revised

marketing

segment

Customer

detailfrom

MDP5

Analyses

competitorsmarketsegment tariff

comparison

Analyses

geographicalarea to

understandexisting

distribution

networkcustomer

density

classify

customer

and market

STRATEGIC TACTICAL

MDP1

Develop marketoutlook and

scenarios

MDP3 Formulate

actionable strategies and

propose investment

MDP2

Segmentmarketing and

customer MDP4 Developbusiness plan


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Customer relationship and satisfactionTPC user Manage customer account process to built and strengthen relationship with

customer. TPC interacts customer through many form in order to built relationship and to

understand changing requirement future plans.

TPC use multiple channels to provide access to customer to seeks information, conducts

business and lodge complaints. All customer are well informed about contact central control

room and fault duty / maintenance engineers.

In addition REL and BEST have provide with microwaves communication facilities to

contact any of receiving station LD\ CCR .

Customer contact requirement and gathered through direct customer interaction by the

divisional service staff and feedback received through various post CSS also specifically

check for customer preference on various customer contact mechanisms some example of

improvement in access mechanisms are provision of additional mobile phone to O&M

engineer and web based complaint management system .

Effectiveness of the call centre and all other access mechanisms in assessed through the

happy call survey and CSS .

OPERATIONAL

MDP5 New customeracquisition

MDP7 Managecustomer a/c

MDP6

Implementation and

internal logistics

MDP8 Complaint

management

MDP9 Formulate new

initiatives


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ACCESS MECHANISM

STATION

LICENSES

AREA

AVAILABILITY

TIME

LANDLINE MOBILE FAX E-

MAIL

VSAT WEBSITE

L.D. 24 HRS

M.C.R. OFFICE HRS

ENGINEERING OFFICE HRS

DIVISIONAL

MAINTENCE

24 HRS

CENTRAL

CONTROL

ROOM

24 HRS

CALL

CENTRE

24 HRS

YEL 24 HRS

FAULT DUTY

ENGINEER

24 HRS

CONSUMER

ENGG . DEPT

OFFICE HRS

PLANT LEAD 24 HRS

Complaint management process

TPC user Complaint management process is to ensure prompt and effective resolution

of customer complaint. While the call centre is available round the clock , bulk customer

prefer to contact , respective CCR nodes , divisional control rooms or duty engineer

directly due to long term relationship some customer like railway and licenses lodge written

complaint as well as . All complaint whether received directly or through control room are

collected at call centre for analysis .

In CPP\ IPP all complaint are received by control room . Each control room maintenance a

complaint register and complaint are immediately recorded and to concerned authorities to

takes prompt and suitable action . The existing software at call centre has been replaced


39/105

recent by a web based software which is accessible to all in the customer service

response chain , with restricted access . This will enable on line monitoring of complaint

status . The complaint data is reviewed in monthly meeting with departmental heads and

suitable to avoid recurrence .

customer complaint management process

Attend complaint and inform

complaint attended by CR cell

D\E and informed call centre

If not call centre escalates If not CRR escalates, if not 2nd

complaint, upto 4 level of escalation

escalation .

Complaint attended by D\E Complaint attended

and informed call centre

Customer informed and confirm Inform customerto be satisfied

Call centre updates record and CR cell updates record and generates

generates MIS MIS.

Review report and analyses Review report and analyses complaint

Call centre

phone

inform field

dutyen ineer

CCR nodes\ control room of

receiving station

CR cell (written

interact with

concerneddepartment)

In case of

criticalcomplaint

higher level

alsoinformed

Action byrespective

department


40/105

complaint

Feedback to all concerned to Feedback to all concerned to avoid

avoid recurrence recurrence

Input to HR To EQA for system reliability

studies.

Customer satisfaction determination

Customer satisfaction and dissatisfaction survey are conducted , on various attributes of

product and services quality . Process use for survey is broadly same for different

segment . However questionnaires are designed to reflect difference importance of various

attributes with respect to different segment . Survey is designed to capture information on

customer satisfaction and dissatisfaction . TPC has this year changed the model from

orgs EQ model to Metric model .

This model help to find out the satisfying and delighting attributes separately for each

customer segment .

Customer satisfaction relative to competitorsMumbai Area: CSS cover customer to all major competitors and main utilities i.e; REL,

BEST, and MSEB . TPC also conduct win/loss analysis feedback from opinion leaders

also help to identify area of improvement findings of these surveys are converted in action

plan for implementation benchmarks / comparison of best utilities.

Customer satisfaction survey process

Review in CCM and action plan prepared

Input to engineering for designreview

Qualitative

discover phase

(Customer

requirementsurvey)

Attribute wise

questionnaires

development

Customerinterviews


41/105

Analysis of data

TATA POWER MARKET SEGMENTS

Relativeimportance

of each

factor

Satisfaction/

dissatisfactionlevel of TPC

and competition

an each factor.

Relative rating of TPC V/S Competitor on each factor

A

cti

on pl an pr ep ar ati

on and de pl oy m ent

T

A T A P O WE R M A R K E T S E G M E N T S


42/105

SEBSPublic utilities

REL TPTCCaptives Industry

(TATA STEEL)

BEST TRADERS(NEW

MSEB segment) Lager (Industrycommercial users)

KPTCLDVC Exclusively service

by TPC

Service by TPCand others

Change

over openaccess.

Distributors (75%of power demand)

Short term

buyersLong termbuyers

Consumer

L

I

C

E

NS

EE

High volume (21%of power demand)

Low volume(4% of powe

demand)

Low tensio

industries,commercia

Residential

OPINION MAKERS

ARCHITECTS CONSULTANT BUILDERS


43/105

4. MEASUREMENT , ANALYSIS AND KNOWLEDGE

MANAGEMENT AND INFORMATION AND KNOWLEDGE

MANAGEMENT

It added emphasis on the purpose and use of the result of analyses and review including

strategic decision for organization .

Information and knowledge management : It is a new area to address on data ,

Information and knowledge quality in recognition of challenges all organization face in this

area . This item also now addresses the availability of data and information in the event

of an emergency .

Measurement , analysis and review of organizational performance : Organizationperformance is tracked through OPMS (ORGANISATION PERFORMANCE MEASURE

PROCESS) . The measure for which are derived from strategic objective .

Operation data , information is aggregated and made available to senior management

through Daily operation and statistics report.

ORGANISATIONAL PERFORMANCE MONITORINGSr.no Performance

parameters

area

Sources /MethodsCollection

Organizationperformance KPM

reviewed

Improvementcarried out in

FY 06

Rationale behind theimprovement

1. Finance Departmental /

SAP report

Business area

wise sales

average tariff

operation profit ,

cost of capital.

Business

area wise

drill down for

sales.

To monitor business are

wise performance for

better control and timely

action plans to achieve

competiveness in financia

performance2. Customer Through various

report in sap,

customer surveys,

complaint

management

Customer

satisfaction index

Dissatisfaction

index, Complaint

index.

Customer

dissatisfaction

Andcomplaintindex addedAs KPM.

To identify dissatisfied a

Reduce complaint

resolution cycle time and

no. of complaint


44/105

system

3. Internal Control room logs,

SAP report

departmental

reviews

Availability index,

control

effectiveness

index , 3SCR

targets coal

consumption ,

O&M cost , fuel

cost CRS

assurances .

Preserving

asset base

capex and

reduce risk

control

effectiveness

index added

To accelerates capex jo

and to strengthen the

governances system and

proactive approach for

statutory comp lances .

4. Growth ,

globalization

And

regulator

management

Review at

leadership level ,

fibers regulators

order and

communication

Status /milestone

achieves for

generation and

transmission

capacity addition

captive coal .

New

performance

parameters

added.

To focus organization

efforts on substances an

Expansion activities .

5. Learning

and growth

Employee

engagement

survey ,TBEM

assessment MBEsurvey .

Employees

engagement index

talent

management PPMFor future leader

MBE assurances

TBEM score

Taken

management

PPM for

future leader.

For leadership

development.

Analysis to support performance review and validationof conclusion


45/105

Analysis data and information based on KPMS , is carried out using different methods like

variance analysis cause effect , waterfall diagram , cost benefits.

These analysis are presented during organizational performance review to senior leaders ,

departmental head as mention in next page table.

The developed action plans with result analysis and communicated to relevant division ,

department , working groups through leadership to enable decision making result of

analysis , regulatory charges , new opportunity action plans etc are shared to suppliers

and partners during customer / vendor meets and regular interaction for effective

performance from them in future transaction .

Analysis to support performance review and validationof conclusion

KPMS Method

used for

obtaining

information

Strategic

objectives

Analysis

method

Action

plan

supporting

objective

Example of improvement

made based on review

finding

Result

related to

achieveme

nt of

strategic

plans

Result related

achievement

1. fuel

cost

[belga

m]

Report from

fuel dept.

supplier

interaction

Reinforce

current

business

low cost

generation

Variance

and

cause

effect

monthlyreview

Sourcing

cheaper

reliable

fuel

With continuous rise in

fuel cost in international

market search of

alternative reliable fuel

suppliers reducedtransportation cost

Reliable

and reduce

cost of

fuel

Able to source

alternate

supplier who

reliable and

cheapercompared to

international

market

2. fuel

cost

Report from

fuel dept.

Reinforce

current

Variance

, trend

Sourcing

reliable

In view of falling trends

from local refinery

Availability

of fuel for

Fuel made

available


46/105

[tromb

ay]

supplier

interaction

business

low cost

generatio

n

analysis

/

monthly

divs.

O&M

and

strategy

review

fuel imports initiated generation through

alternate

source

Cost

of fuel

[for

trombay]

Report

from fuel

dept.

Reinforce

current

business

low costgeneratio

n

Cause

effect

monthly

review

Ensure

reliability

and

reducedfuel cost

Work on new coal berth

started at trombay

Will reduce

dependenc

e on other

contractorin coal

supply

Reduce cost

of fuel

Consu

mer

interru

ption

duratio

n and

reliabil

ity

Monthly

marketing

information

system

[MIS]

report

Reinforce

current

business

enhance

value to

customer

Variance

/ causes

effect

analysis

monthly

review

Reduction

of

consumer

interruptio

n

frequency

and

improve

reliability

Network modification on Improve in

CAIDI from

28.50 min

in FY05 to

25.95 min

in FY06

and

reliability

index from

42.47 in

FY06 to

42.99 min

in FY04

Minimum

duration of

interruption to

consumers

Information and knowledge managementData and information is made available and accessible on need to know basis to various

stakeholder .


47/105

Data and information availability for stakeholders.Stakeholder Process of

Gathering

requirement

Data and information

Needed

Types Available through

Customer Customer co-

ordination

meeting

Complaints, billing ,

Payment quires

Transactional Customer portal,

call, seminar ,

customer visit

Meets, SAP.

Supplier Supplier meets

And interaction

Order information ,

Forecast

Transactional/

Strategic

E-MAIL,

telephone , fax

Communication,

Vendor , portal,Personal visits,

Supplier meets.

Employees Open dialogues

Focus groups,

Committee

meeting.

Functional and

administrative

Functional

Transaction

strategic

SAP, people

Power, new

letters,

transmission line.

Investor Investors

meets, AGM,

Investors visit.

Financial result, growth

plans , queries

Operational

and strategic.

Quarterly result ,

Annual report,

websites

feedbacks.

Partner Interaction Function Transactional/

Strategic

Web-sites , call

centre ,

meetings/reviews,

Interaction SAP.

Improvements carried out this are pay slips are now available in electronic format with

intimation through E-MAIL.

TRANSCATION

TRANSCA

TION

TRANSCATION

TRANSCATION

TRANSCA

TION

TRANSCAT

ION

TRANSCAT

ION

TRANSCATIO

N

TRA

N

SCATION

TRANSCATION


48/105

5.HUMAN RESOURCE FOCUS

The item in this category have an added focus on how work system and employee

learning reinforce accomplishment of organization action plans and retention of critical

organization knowledge.

TPC has undertaken several initiative to promote high performance work culture .

Some of include :-


49/105

a. Setting goal and expectation .

b. Introduce PPM process to identify and groom talent .

c. Introduction of scientific tools to assess potential and aptitude at entry level

and aptitude at entry level and ascertain job fit.

d. Restructured performance reward policy .

e. To promote improvement through team activity.

f. Reward and recognition.

WORK SYSTEM:-TPC has adopted following initiative in its work system to promote co-operative ,

empowerment agility and innovation are :-

Migration towards a team based cultures - Cross functional team are formed at two level

i.e. Corporate level to address organizational level problems . These teams are empowered

to suggest and drive change in work processes. Innovation is primarily driven through the

3SCR Initiative . Suggestion schemes and small group activities quality circle are other are

mean to encourage innovation and team work.

Job Rotation- Job Rotation addresses objectives such as leadership development, meeting

organizational needs an opportunity to individual to manage their own careers. In meeting

these their own careers . In meeting these objectives , job Rotation is linked with the

PPM process and an online job posting mechanism has been introduce to encourage

people from within to manage their career paths.

Work systems to capitalize on diverse ideas:- TPC is an equal opportunity employer and

as such the recruitment polices are directed in which organization operates . Suggestion

scheme ,CFTS, SGAS, Quality circle , Knowledge sharing session etc. Issues impacting

work system are identified during structured meets, feedbacks and focus group discussion .

Various training delivery options

Delivery Method Training program

Lecture All training programme with class room set-up.

Case studies Finances for senior manager , basic of finance.


50/105

Role plays Presentation skills, Develop your own potential.

Hands on training Techniques, Breaker maintenance workshops , OEM training , welding

Technique.

Simulation Business simulation games , Simulator training , PS awareness,

MS offices.

On the job Control room training , Deputation to outage job.

Project based

learning

Project management , CFT/SGA on specific project.

Distance learning K HUB, Knowledge portal.

Seminars and

conference

Nominations to vital seminars and conferences conducted by reputed

Organizations and institutes .

Outbound training Outbound team building

Video session Industrial safety, Base level awareness session.

Mentoring Induction / system for new entrants (Guide for every individual)Group Discussion Team Building ,Develop Management potential.

6.PROCESS MANAGEMENT

It has new area to address on operational planning . This area focus on financial planning,

resources , as well as process for continuity of operation in case of an emergency.

Design of value creation processes

Design of value creation processes translates into expansion , refurbishments ,

modernization and improvement and to O&M process and meeting customer requirement in

these areas while designing the value creation processes efficiency and effectiveness factor

such as cost cycle times, consideration for new technology.


51/105

Cycle time , Productivity and cost control

O&M processes are constantly Monitoring cycle time of various sub processes such as

overhaul time, quantity of coal receipt etc. To identity opportunity for improvement. Process/

performance improvement have been achieved through benchmarking . Due to this capital

overhaul and startup periods have been steadily reduced and luster capital overhaul period

22 days for 500MW coal fired. This was facilitated by various improvements in outage

management and safety compliance.

Example Improved productivity use in average coal receipt by critically reviewing and

modifying system by the O&M team .

Adoptions of condition based maintenance approach as compared to periodic , preventive

maintenances work has resulted in optimum resource utilisation and reduced equipment

down time .

T&D :-

i) Process of preventive maintain of 22kv

Action plan identified

Improved preparation before breaker is to taken out for maintenanceReduction in inspection and general cleaning time

Considering the system of safety taken

Benefits

Cycle time reduction from 150 minutes to 120 minutes

Inputs from markets,customer, statutory,

strategy planning

ABP

Translating deliverablesin location plans and

review then feedback

mechanism

Performance measuresviz. cycle time , cost

v/s target.

Track measures and changing requirementsreview and feedback mechanisms


52/105

ii) Process of replacing and transformer to reduce down time


Storage of spare and transformers of these more location in tested communication of

status to all.

Round the clock accessibility of spares and review of test to minimized time .

Standard of transformer and relay setting

Benefits

Cycle times reduction to 16hrs from 36hrs.

iii.) Cycle times to attend HT (high tension/ cable to fault to increase reliability)


Increased working hrs

Resident cable ENGG at receiving station and material storage at 3 more receiving station.

Benefits

Target reduction in cycle times from 7 days presently to 3 days.

HYDRO

i.) Process of daily performances review


Improvement in aggregation and reporting mechanism for daily performance

Benefits

Better performance on key parameters due to renewed focus and internal competition.

ii.) Forced outage


Semi annual technical audit of division

Benefits

Improved availability of the units.


53/105

iii.) Unit start up


Unit start up time reduced from 330 sec to 125 sec.

Benefits

Improved response to real time load requirement.

7.BUISNESS RESULT

i.) Product and service outcome

It has been given a value of 100% to indicate the importance of product and service

performance result to customer satisfaction , loyalty , and long term business success.

ii.) Leadership and social responsibility resultIt addresses all governance, senior leadership and social responsibility results. The item

places in one location the evidence of accomplishing organization strategy , ethical

behavior , fiscal accountability , legal compliance and organization citizenship.

1. Product and service outcome


54/105

a.) Commercial Complaint Index Survey and customer interaction have

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

3

1.92

2.28

1.83

0.48

0

0.5

1

1.5

2

2.5

3

3.5

1

year

percentage

(%

)

2002 2003 2004 2005 2006

d.) SAIDI INDEX MINUTES. System average interruption frequency in frequency

index in average interruption in minutes for customer served during the year has been

shown improvement in SAIDI trend. This is achieved through installation of line fault

locators, automation of critical networks etc.


55/105

54.29

41.76 40.99 39.63

0

10

20

30

40

50

60

1

year

MINUT

ES

2003 2004 2005 2006

2. Customer focused results

TPC has been conducting annual customer satisfaction survey since the year 2001 through

an external agency . TPC has an external agency . TPC has further refined its method by

including customer requirement inputs as a part of the CSS . TPC from ORGS EQ model

to metrics moster model . Results are presented as per the customer segmentation

revised in 2005-2006.a.) CSI ( Customer satisfaction index ) Overall based on ORGS model.

b.) CSI- LT

Industrial

86

89

86

84.5

85

85.5

86

86.5

87

87.5

88

88.5

89

89.5

1

year

percentage(%)

20 04 2 00 5 20 06


56/105

89 89

88

87.5

88

88.5

89

89.5

1

year

percentage(%)

2003--2004 2004-2005 2005-2006

c.) CSI- Residential

88

86

90

84

86

88

90

92

1

year

percentage(%)

2003-2004 2004-2005 2005-2006

d.) CSI- LT Commercial

9088

80

7476

7880

82

84

86

88

9092

1

year

percentage(%)

2003-2004 2004-2005 2005-2006


57/105

It is seen that CSI has improved for the residential , but has reduced for the LT

commercial segment . This is also seen by the increase in dissatisfaction for this segment

.

CUSTOMER SATISFACTION INDEX

OPINION

LEADER

YEAR TPC REL BEST03-04 89 71 87

04-05 84 75 76

05-06 89 NA NA

CUSTOMER DISSATISFACTION INDEX

TPC REL BEST

03-

04

04-

05

05-06 03-04 04-05 05-06 03-04 04-05 05-06

Larger

ind/Commercial

14 9 5 41 20 19 22 27 9

Public utility 12 6 9 10 34 34 13 9 9

Long term

Buyer

16 10 0 NAPP NAPP NAPP NAPP NAPP NAPP

LT Industrial 6 6 4 9 11 44 5 10 17

LT Commercial 6 6 10 10 10 38 7 7 15

Residential 9 6 5 10 10 19 8 8 2

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

3.) Human resource result

a.) Team engaged in improvement

( CFTS + SGA + QC ) CFTS ( Cross functional team )


58/105

96

61

237

179

0

50

100

150

200

250

1

year

Numb

er

2003 2004 2005 2006

b.) Number of knowledge sharing section

30

183213

359

0

50

100

150

200

250

300

350

400

1

year

Number

2003 2004 2005 2006

c.) Employee productivity


59/105

4.2

7.1

0

1

2

3

4

5

6

7

8

1

year

No's

pere

mployee

2005 2006

d.) Training coverage percentage employees receiving training.

81.9

90

81

76

78

80

82

84

86

88

90

92

1

year

perce

ntage(%)

2004 2005 2006

e.) Training effectiveness


60/105

77

81

78

75

76

77

78

79

80

81

82

1

year

percentag

e

(%)

2004 2005 2006

f.) Absenteeism rate

0.24

0.28

0.08

0.02

0.11

0

0.05

0.1

0.15

0.2

0.25

0.3

1

year

percentage(%)

2002 2003 2004 2005 2006

g.) Training effectiveness segmented


61/105

h.) ETD Intervention in strategic area

501

87

591

26

931

121100

1581

59107

492

200

0

200

400

600

800

10001200

1400

1600

1800

1

Intervation in strategic area

Manday's

Fin

Value engg

QTY CIRCLE

7QC TOOLOEM

Project management

EMBA

TBEM

Power trading

DRUM

Team bldg

PMS

4.) Organizational Effectiveness Result

79

76

80

83

75

85

76

70

72

74

76

78

80

82

84

86

1

Segment

percentage

(%)

Customer

Finance

Leadership

MDP

3SGA

Team building

Technical


62/105

a.) Thermal plant availability (%)

93

91

96.8 96.9

94.4 94.05

88

89

90

91

92

93

94

95

96

97

98

1

year

percentage(%)

2002 2003 2004 2005 2006 Target

b.) Hydro plant availability (%)

83.58

89.7788.5

92.72

96.44

93.43

75

80

85

90

95

100

1

year

percentage(%)

2002 2003 2004 2005 2006 Target


63/105

c.) Generation Due to improved availability , TPC has been able to generate and meet

the increasing demand of city of Mumbai and total generation increase by 2.4% over the

production .

9779

10391 10374

10965

11208

9000

9500

10000

10500

11000

11500

1

year

ACTUAL

2002 2003 2004 2005 2006

9740

10437 10442

10708

11206

9000

9500

10000

10500

11000

11500

1YEAR

TARGET

2002 2003 2004 2005 2006


64/105

5.) Marketing result

i) Market share (Generation) TPC has maintained its leadership position in generation

TPC has continue to be leader in the generation in licenses area contributes in volume

from power business outsides MA (Mumbai area)

ii) Market share (Distribution) Despite down trend in the HT industrial segment, TPC has

maintain increasing trend in the business volume through growth in HT and LT

Commercial segment business and sales to SEB directly .

iii.) Sales to SEB In order to increase volume of business in licensed area and

maximum utilization of assets , TPC continued to peruse sales to other SEBS directly.

a.) Number of customers

1886

5181

9110

17028

214422206723488

0

5000

10000

15000

20000

25000

1

year

Numberofcustomer 1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

b.) Sales and Revenue (New consumer)


65/105

SALES

100156

237

360

483

607

0

100

200

300

400

500

600

700

1

year

SALES

MILLION

UNITS(MUS)

2000-2001

2001-2002

2002- 2003

2003-2004

2004-2005

2005-2006

REVENUE

4060

98.5

143

201

230

0

50

100

150

200

250

1

YEAR

REVENUEIN

RS.CRORE

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

C.) Market share generation in MUS


66/105

TPC -POWER BUISNESS

9000

12996 12912 1328313746

0

2000

4000

6000

8000

10000

1200014000

16000

1

YEAR

MILLION

UNITS

2001 2002 2003 2004 2005

TPC-MUMBAI AREA (MA)

900010032 10469 10374

11086 11246

0

2000

4000

6000

8000

10000

12000

1

YEAR

MILLION

UN

ITS

(MUS)

2000 2001 2002 2003 2004 2005

d.) MARKET SHARE (MUS SOLD)


67/105

TPC-power business

9500 950011000

12194 12500 1266313574

0

2000

4000

6000

8000

10000

1200014000

16000

1

year

MILLION

UNITS

(MUS)

2000 2001 2002 2003 2004 2005 2006

TPC-MUMBAI AREA

8000 8000 85009500 10000

1047411066

0

2000

4000

6000

8000

10000

12000

1

YEAR

MILLION

UNIT

(MUS)

2000 2001 2002 2003 2004 2005 2006

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


68/105

a.) Profit before tax

700

500

700650

700759

659

0

100

200

300

400

500

600

700

800

1

year

RS

IN

CRORES

1999 2000 2001 2002 2003 2004 2005

b.) Profit after tax It has shown consistent rise from RS 330 in 1998- 99 RS 551

crores in 2004-2005 CAGR 8.92% ( Compounded Annual Growth )

330

469

390

508 520 509551

0

100

200

300

400

500

600

1

YEAR

RS

IN

CRORES

1999 2000 2001 2002 2003 2004 2005 (DEC)

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


69/105

18.78 19.66

25.68 26.27 25.6928.11

0

5

10

15

20

25

30

1

YEAR

RS

PER

SHARE

1999 2000 2001 2002 2004 2005 DEC

d.) Fixed asset There is an increase in gross fixed asset in power business from RS

4938 Crores in FY 2002 to RS 5426 in FY05 ( CAGR of 3.19 )

49365000

53055426

5842

4400

4600

4800

5000

5200

5400

5600

5800

6000

1

YEAR

RSIN

CRORES

2001 2002 2003 2004 2005 DEC


70/105

e.) Income from Power Business This is mainly due to reduction in average realized

revenue caused by MERC ( Maharastra electricity regulatory commission) order revising the

tariff downward by 9.2% and a lower FAC (Fuel adjustment chares ) resulting due to better

fuel mix.

42304043

3683

3216

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1

year

RS

IN

CRORES

2002-2003 2003-2004 2004-2005 2004-2005 (dec)

7.) Governance and social responsibility result

TPC participate in MBE ( Management of Business ethic ) assurances survey conducted byTQMS for obtaining feedback on the company s status on implementation of various

ethics policies survey for this year is being carried out.

a.) Leadership effectiveness survey

LEADERSHIP EFFECTIVENESS SURVEY RESULT

LEADERSHIP

EFFECTIVENESS

INDEX HIGHER THE

BETTER

2004 2005 2006

73.3% 73.5% 75%

b.) Results of Investor Survey


71/105

PARAMETERS PERCENTAGE (%) FAVOURABLE RESPONSE

2003 2004 2005 2006

Dissemination of

INFO :-a.) Through

news item in

paper /journal

b.) Through

annual report

c.) Through

cross web sites

NA

98%

NA

NA

98%

95%

93%

98%

94%

94%

98%

95%

Arrangement

and presentation

Last AGM

(Annual general

Meeting)

97% 96% 95% 98%

Timeliness ,

accuracy and

Quality

89% 97% 94% 96%

C.) CRS SURVEY RESULT 2004 ( Corporate social responsibility )

Perspective 2004 score

Leadership commitment 84.2%

Manage structure 69.8%

CRS strategy 75.6%

Review mechanism 71.5%

Communication and awareness 64.1%

Training and development 76.7%

d.) CRS survey result 2005

CRS SURVEY REPORT TATA POWER TATA AVG

GROUP

BEST IN

GROUP

Awareness 99% 90% 100


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CRS environment index 44% 37% 59%

Leadership committee 57% 49% 75%

Communication 37% 43% 71%

Relevance 38% 36% 59%

System process and support 44% 38% 66%

Personal committee 91% 86% 98%

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

village.

TPC 2002 2003 2004 2005 2006

Medicine to

village in

lakh (RS)

3.79 9.40 7.54 8.17 27

f.) Tree plantation is a major activity in hydro catchments area It may be that TPC

has cumulative planted more than 10 MILLION Trees.

No. of tree

planted.

2002 2003 2004 2005 2006

Hydro 615000 654000 72000 924000 990000

Jojobera 19000 5200 1850 1600 1550

Belgaum _ 3000 4000 3500 2000

ISO - REPORT 9001:2000 (New Quality Management

system)

The Quality manual is the essence of the quality management system and it provides

organizational directions in meeting the ISO 9001:2000 requirements , which are utilized to

improve overall performance of the organization . The quality manual is approved by the

management representation and it is mandatory for all to follow , as applicable .


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The quality policy and broad based quality objectives are established and communication to

all employees . All efforts are made to see that these are understood and implemented by

all.

As customer driven organization , it is necessary that the consumer requirement are

determined and met with to enhance the consumer satisfaction.

We ensured that the applicable statutory and are met with and all efforts are made to go

beyond these on our own as a special responsibility.

We are confident that all our employees will adopt this standard ISO 9001: 2000 of the

quality management system in letter and in sprit for sustainable development.

ISO 9001: 2000 IS IMPLEMENT IN THE AREA ARE AS FOLLOW:-

1.) Quality management system

2.) Management Responsibility

3.) Resource Management

4.) Product realization planning of product realization

5.) Product realization customer related processes

6.) Product realization design and development

7.) Product realization purchasing

8.) Product realization product and service provision

9.) Product realization control of monitoring and measuring devices.

1.) QUALITY MANAGEMENT SYSTEM

The Organization has:-

1.) Identified the processes needed for quality management system and their application

throughout T,D&S division.


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2.) Determined the sequence and interaction of these processes .( Activity flow charts and

given in quality management system procedures ).

3.) Developed effective methods for operation and control of these processes .

4.) Ensured the availability of resources and information required to support and monitor

these processes . Necessary manpower, infrastructure, transmission and distribution network

have been provided . Technical literature to run the processes is available .

5.) Ensured monitoring measuring and analysis of these processes.

6.) Implemented actions necessary to achieve planned results and continual improvement of

these processes.

Quality management system ISO 9001: 2000

ISO 9001:2000

Quality policy

( Intention of organization )

Quality manual ( what is being done )

Quality procedures manual ( Why , how it is being done)

Work instruction ( How in detail )

Format, records

( proof of work

done)

Control of documents

The organization has established and maintained procedures to control all documents and

data that affect the quality of product . It is ensures that all documents are prepared,

reviewed and modified for their adequacy, approved and distributed to the persons

concerned.


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All the software used in organization are controlled with password at appropriate level

depending on requirement of the control

EXAMPLE :- SAP systems are operated with unique identify for each division with a

specific password ; e-mail are operated with individual profile and password ; SCADA

system is operated with individual login name and password. Regular updating of revised

software packages and anti-virus protection is being carried out by it department (support

service)

Control record

The organization has identified and maintained the records required for effective

implementation of the quality management system.

Details of procedure required for storage , protection , retrieval, retention and disposal of

quality records are given in quality procedure manual.

2. MANAGEMENT RESPONBILITYThe top management quality objective are smart ( specific , measurable , achievable,

realistic and time bound ) .

a.) Maintain leadership position in customer satisfaction .

b.) Maintain power supply reliability index higher than 99.50%.


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c.) Achieve average restoration time of 20 minutes to affected customers.

d.) Maintain supply voltage within limits ( variation of + - 6% )

e.) Adhere to standard of performance for power supply connections.

f.) Control ATC loss below 12% .

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

h.) Ensure accident free working by adhering to safety policy.

i.) Continually upgrade employee skills to adapt to change.

j.) Minimize inconvenience to the community during exestuations of work .

Review input

i.) Confirmation / follow up of previous management review.

ii.) Result of quality management system audit report.

iii.) Feedback on customer satisfaction survey customer meet and customer

complaints.

iv.) Status of corrective actions and preventive actions takes.

v.) Recommendations for improvements from all divisions.

vi.) Review of quality objectives.

Review output

Discussions and decision are recorded in MOM (Minutes of meeting ) which includes

some of the following point :-

i.) Improvement of the effectiveness of quality management system and its

processes .

ii.) Improvement in service to consumer.

iii.) Resources required.

iv.) Action plan and agenda for next meeting.

3. RESOURCE MANAGEMENTResources required for implementing and maintaining effective quality management

system and enchaining customer satisfaction are identified and provided.

EXAMPLE:- Manpower , Material, services , Infrastructure, work environment,

information system , finance etc.


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a.) Infrastructure

The infrastructure required to achieve conformity to product / service requirement , has

been determined , provided and maintained.

b.) Preventive maintenance

This is planned as per the maintenance schedule carried out and records maintained .

Spare are maintenance , annual maintenances contracts are entered in to for support

equipment.

c.) Breakdown maintenance

Information regarding is given to the concerned maintenance department. The repair

work is carried and records are maintained . Details of the equipment regarding

manufactures data of purchase and installation , Specification , drawing and major

repairs done , are maintained . Breakdown van is available for emergency round the

clock.

d.) Work space / office

Suitable workspace and officers furniture are provided for officers and staff . Adequate

computer with necessary software and peripherals have been provided .

e.) Computer maintenance ( Hardware and software )

Computer have been provided in departments for data storage , communication , data

processing and to speed up work functions. Official software package viz. windows ,

SAP, Outlook , Novell etc have been load in the computer for various applications.

Anti-virus protection have been provided . All the software used in organization

controlled with passwords and login names at appropriates levels. Backup facility is

provided as centre serve.

f.) Transportation

Bus transport is provided to employees . Vehicles are provided for various sites

activities maintenances and repairs vehicles are carried out regularly.

g.) Communication Telephone to individual and department having intercom and

direct dial facilities are provided . Microwaves, carries, fiber optic telephone

communication system have been provided for operation staff and senior officers .

Mobile phones have been provide to senior officers and O &M Engineers. Fax

machine, Internal memos are used for written communication.


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h.) Work environment

Management has determined and ensured that adequate provision are available for

health and safe working environment . Clean rooms, proper lighting , ventilation and air

conditioners are provided to control temperature and humidity . Fire extinguisher and

first aids boxes are provided as a safety measures. In order to maintain the

temperature, air quality , air conditioners, ventilation have been provided . Proper lighting

arrangement at work places have been made .

I.) House keeping

Cleaning of the station premises is carried out . Material in stores are stocked neatly

on the racks. Space provided for them . Files are kept in filing cabinets. drawings are

kept in drawings are kept in drawing cabinets . Regular pest control is carried out in

the premises.

j.) Food

Canteen facility has been provided at certain locations given breakfast lunch , snacks ,

tea , coffee to the employees at subsidized rates.

k.) Recreation

Rest room is provided to the work force. Games rooms having gymnasium , carom

and table tennis facilities are provide . Library facilities are available with technical

books and periodicals so as to keep the employee in touch with the latest

development. Various sports meets are arranged by TPC for spotting of talent and

exceptional sportspersons are encourage to participate in tournament at various level.

4.) PRODUCT REALIZATION PLANNING OFPRODUCT REALISATION


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The network infrastructures is planned base on the long term network expansion plans

and load . Application forms from the customers according to schemes for providing

the schemes for providing power supply to the customer one finalized . The

implementation schedule is discussed in the respective divisional co-ordination meeting .

The time frame for each schedule is proportioned as per the ISLA ( Internal service

level agreement ) with the respective support processes . Job quality in confirmed

through third party inspection .

i.) These process are documented and provided to meet the requirement of

product realization .

ii.) The required verification , validation , monitoring , inspection and testing

activities specific to the equipment have been determined and the criteria for

acceptance is established by the organization .

iii.) The records are maintained to determined to demonstrate that the product

meets the requirement.

5. PRODUCT REALISATION CUSTOMER RELATESPROCESSES

Review of requirement related to the product :-


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Review of the customer requirement is carried out jointly by engineering department T&D

division CDD (Consumer development department ) . T&D division takes appropriate action

for the implementation .

EXAMPLE:- Requirement of the customer for reduction in interruption of supply and

voltage fluctuation to them by providing under ground cables in place of overhead line,

increase in the capacity of power supply requirement etc. The requirement are

communicated to the concerned and contract review records are maintained .

Customer communication :-

CCR , O&M engineers and the call centre are contacted by customer for and any help

required . These centre receive complaints and immediately intimate working agencies who

are available on telephones and monitor restoration of supply and resolving of complaint.

The complaint data is complied and reviewed by concerned division for improvements.

Customer feedback is obtained through customer meets , focus group , and customer

satisfaction survey . T,D&S division participates in the customer meets , where customer

related issues are discussed and feedback is received. Also T,D&S division receives the

report on customer satisfaction surveys for necessary action .

EXAMPLE:-

A customer contact plan is prepared, which indicates the frequency of meeting customer

by various level of personnel .

6.) PRODUCT REALISATION DESIGN ANDDEVELOPMENT

a.) Design and development planning


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Planning and control of design and development of product / services are done to

determines .

i.) Design and development stages .

ii.) Review , verification and validation as appropriates to design and development .

iii.) Responsibility and authorities for design and development .

iv.) The various division have interfaces to ensures clarity of responsibility and effective

communication.

b.) Design and development inputs

i.) Input from customer standard design and engineering guidelines .

ii.) The India electricity acts , 2003.

iii.) Relevant India standards .

iv.) Review of standard design schemes based on new technology , vendor input , site

inspection and comments on similar design .

v.) Inputs from user departments.

vi.) Inputs from other organization and distribution licenses .

vii.) Input from customer guidance .

c.) Design and development output

The outputs of design and development are verified against the corresponding inputs and

checked prior to release , to meet requirement of the customer , organizational needs ,

site constraints, material procurement activity and cost estimate. The outputs of design are

in the form of schemes , drawings , material specifications , product acceptances criteria ,

safety and it s proper application.

d.) Design development review

At suitable stage, systematic design and development review are carried out to :-

i.) Evaluate the design outputs meet the requirements as defined in the design input

stage.

ii.) Identified any problems / deviation and proposed corresponding necessary action.

The participants of design process are from CED ( consumer engineering department ) ,

civil , cable , customer division , EQAS and other as required . The records of the review

and require action are maintained by CED.

e.) Design and development verification


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The design and development verification is carried out by inspection team at the

manufacture work to ensures that the output meet the requirements given in defined at the

planning stages.

Sample approval , inspection and testing are carried out at manufacture premises to

ensure that the output as per the design requirements . The test report copies are

maintained by CED.

f.) Design and development validation

To ensure that the result product is capable of meeting required applications ; design and

development validation are out by CED , user division and EQAG as specified in planning

stages for schemes, drawings and material specifications, validation is carried out in any of

the following ways as applicable:-

i.) Comparing with manufactures test certificates for the equipment .

ii.) Conformance with performance with latest amendments under IE ACT rules ( Indian

electricity act ) .

iii.) Comparing with manufactures test certificates for the equipment .

iv.) Comparing with performance / feedback / occurrences report for similar equipment from

user department .

g.) Control of design and development change

Request for changes in design and development , whenever receive from customer

development implementing agencies are incorporates after review . The changes made are

reviewed , verified and validated . These are approved by CED before implementation.

7. PRODUCT REALISATION PURCHASINGa.) Purchase process

i.) The requirement of the material is determined by concerned division and the

s

total quality management of tata power

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