01 W XV Intro Manthan 12.08.05

CONFIDENTIAL
Introduction to Manthan
Wave XV August 12, 2005 H T Gangaramani
CONTENTS
Why do we need Manthan? What has Manthan achieved so far?
What is the plan for Wave XIII ?

Illustrations from earlier waves
TATA CHEMICALS OVERALL PERFORMANCE HAD BEEN DETERIORATING OVER THE LAST FEW YEARS
Sales Rs crore PAT Rs crore
1,648 1,464 1,521 1,493 1,433
1627
289 182 117 165 197 127
1998 1999
2000
2001
2002
2003
1998 1999
2000
2001
2002
2003
Pre-tax ROCE Per cent
Market capitalisation Rs crore
18 12 11 11 10 12 2,701 1,297 949 839 1190
687
1998
1999
2000
2001 2002
2003
1998
1999
2000 2001 2002
2003
THIS IS DUE TO THREE REASONS
Overcapacity in domestic industry
The production capacity of the soda ash industry has been

growing due to entry of new players like Nirma and expansion in capacities of existing players. This has not been accompanied by corresponding demand growth.
Threat from imports
Import duties on Soda ash are expected to go down further in

subsequent years. This will make the domestic market susceptible to an import threat.
Price-cost squeeze
A normal phenomenon in most chemical industries, it refers

to the increase in costs accompanied by a reduction in realizations or prices.
* Footnote Source: Source
THE OVERALL MARKET SCENARIO FOR SODA ASH IS WEAK
There is over 30 % overcapacity in the domestic market Production capacity in 000 tons p.a.
and realisations on exports are lower than that in the domestic market Realisation Rs / ton of SAL**
115
Demand for 01-02 1820 K tons* 420
96
2396
365
525 875
9001 5009
TCL
GHCL Nirma
SCL
TACFL DCW
Total
Domestic
Exports
* Includes internal consumption by producers including Nirma ** Price ex Mithapur, inclusive of excise and bagging costs Source: TCL Marketing department
FURTHER, THE DOMESTIC INDUSTRY FACES THREATS FROM CHEAPER IMPORTS IN THE NEAR FUTURE
Imports can come in cheaper US costs, 000 Rs./MT (natural soda ash) 8.2 1.5 Current landed price*
2.0
1.5 1.3 1.1 2.4 3.9
5.9
7.4
6.5
Landed price at full cost

Landed price at 10% duty
Variable Fixed Ex-works Local FOB Shipping, CIF cost costs cost freight handling Cost curve suggests price pressure Cash cost**, Rs./MT (2000-01 Indian cost curve) 8,200 Current landed price 6,500 Landed price at 10% duty 4,750 5,000+ 4,500 GHCL Nirma TCL
Duty
Landed cost
Past prices have shown a lower trough Ex-Mumbai Rs./MT 9500
5,900
SCL & others 10140 Imports 7760
10
15
20
Demand 19
25
Capacity (lakh tpa)
May 98
May 99
May 00
May 01
AND THE PRICE-COST SQUEEZE IN THE CHEMICAL INDUSTRY HAS LEAD TO CONTINUOUS REDUCTION IN MARGINS
Price-cost squeeze in chemical industry, Western Europe, 1986-1994 Index Costs increasing at 0.6% p.a.
Major drivers :
Labor (direct, services) Energy

Major drivers : Commodities Flattening of cost curves New/improved processes Operational excellence New entrants Specialities Customer sophistication New entrants Limited number of true innovations
100
Price cost squeeze -1.6% p.a.
Prices decreasing at -1.2% p.a. Time
Source: McKinsey
TATA CHEMICALS IS THEREFORE WORKING ON GROWTH OPPORTUNITIES WHILE STRENGTHENING POSITION IN CORE BUSINESS
Key Issues
Focus of current program
How can TCL achieve long term sustainable competitive advantage in core businesses?
Growth What should be the long term aspiration and strategy for soda ash, urea and salt?
What growth potential (e.g., exports) can cost reduction unlock for the core businesses? What should be the future growth engines for TCL? How far should TCL step out? Is M&A an attractive route? Should available options be pursued (e.g., Soda Ash
consolidation, fertiliser privatisations)?
Purchasing: Review sourcing strategy for key materials and services; improve purchasing
Profitability processes and organisation capabilities
Manufacturing: Optimise manufacturing processes and practices to reduce raw material

consumption and other fixed and variable costs
Supply chain: Optimise end-to-end supply chain to reduce working capital requirements,
logistics costs and improve customer service
Marketing: Optimise customer mix to increase profitability, increase emphasis on non-price

attributes, re-organise marketing and sales around key accounts, increase market share without deteriorating industry conduct
THE ROLE OF MANTHAN IS TO IMPROVE PERFORMANCE IN THE CORE BUSINESS

Total performance improvement Quantum leap and continuous improvement Performance
Throughput
Reduced losses at bottlenecked stations Current state Future state
Manthan
Cost Quality
Reduced accidents Reduced fines generated 40% reduction in compressible cost; 10-20% reduction in total cost
Time Past Manthan Future
MANTHAN aims at overall performance improvement that is both dramatic and continuous
MITHAPUR IS WORKING LIKE A HUB TO PROVIDE SUPPORT & KNOWLEDGE SHARING TO OTHER LOCATIONS TEAMS WORKING TOWARDS ACHIEVING ACCELERATED PERFORMANCE IMPROVEMENT
Other Group companies
API Centre Mithapur
Mumbai (Marketing) Haldia
Babrala
CONTENTS
What is the plan for Wave XIII ?

MANTHAN UNITS AT MITHAPUR FOR CYCLE - I
Wave 1 Wave 2 Wave 5
Wave 3 Wave 4
Process flow
Soda ash plant
Plants or sections
Raw material inputs
10.TOP at salt works

Salt works
11.TOP at brine refinery

Brine Refinery 6. TOP at process house Process house 12. TOP at STD 7. TOP for soda ash handling Packaging
16 Stores & Services 17 Township & Over heads 18 Safety-I 19 MHY & Inbound Logistics 20 Port 21 ENCON 22 Replacement Ideas 23 Safety - II
STD
5. TOP at lime kiln 1. Coke purchasing 9. Limestone purchasing Lime kiln
Power plant MUW plant 8. TOP at MUW 14. TOP at Marine & WTP CC plant 14. TOP at CC plant Boiler 2. Fuel purchasing 4. TOP at boiler Rest of power plant 15.TOP at Rest of power plant 3. Packaging Purchasing
Gypsum, Limestone
13. TOP at Cement plant
Cement plant
MANTHAN UNITS AT MITHAPUR FOR CYCLE - II
Wave 8 Wave 7 Wave 6
Wave 9
Soda ash plant
28 TOP at Bicarb & Dense Ash
26.TOP at Finished Product handling
Units repeated in cycle - II Process flow Plants or sections Raw material inputs 33 Soda Ash Quality 34 Plant Safety 35 Fire Safety 36 Solar Salt Quality 37 OEE in Soda Ash
Salt works
Brine Refinery
31.TOP at Pr House & STD
Packaging
25.TOP at lime kiln
Process house
STD
Lime kiln
38 Cement Marketing 39 Sea Water System 40 Corporate & Mktg O/Hs 41 Stores Inventory 42 Administration
Power plant
29.Packaging Purchase
Gypsum, Limestone
MUW plant
CC plant
32. TOP CC & Marine
27. TOP at MUW
Boiler
24.TOP at Power Plant
Rest of power plant
30.TOP at Cement
Cement plant
Wave 10
Wave 12
MANTHAN UNITS AT MITHAPUR FOR CYCLE - III
Wave 11
Wave 13
Units repeated in cycle -III Process flow Plants or sections
Soda ash plant
Salt works
Brine Refinery
Packaging
Process house
STD
Lime kiln
Power plant
MUW plant
CC plant
56 Caustic Throughput & Marketing 57 ESF Cake Utilisation
Raw material inputs 43 Salt Logistics 44 Supply Chain - I 45 Soda Ash Maintenance 46 Corporate Overheads 47 Supply Chain - II 48 Delayed Ideas 49 Lime Path -I 50 Brine Path 51 Lime Path-II 52 Raw Material - Cement 53 Soda Ash Throughput 54 Energy conservation Cement 55 Salt Throughput 56 Caustic Throughput & Marketing 57 ESF Cake Utilisation 58 Water Conservation Gypsum, Limestone Cement plant
55 Salt Throughput
Boiler
Rest of power plant
58 Water Conservation
WE HAVE TAKEN ENERGY CONSERVATION, WATER MANAGEMENT, MUW PLANT EVAPORATORS AND SIX SIGMA OEE IN CYCLE - IV
64 Water Management
Wave 15 Wave 14
Wave 12 Wave 13
66 Six Sigma and OEE
Units repeated in cycle -III Process flow Plants or sections Raw material inputs 51 Lime Path-II 52 Raw Material - Cement 53 Soda Ash Throughput 54 Energy conservation Cement 55 Salt Throughput 56 Caustic Throughput & Marketing 57 ESF Cake Utilisation 58 Water Conservation 59 Maintenance Excellence 60 Waste Reduction 61 Business Process Innovation 62 Replacement Ideas 63 Energy Conservation 64 Water Management 65 MUW Plant Evaporators 66 Six Sigma and OEE Gypsum, Limestone Cement plant
Soda ash plant
Salt works
Brine Refinery
Packaging
Process house
63 Energy Conservation
STD
Lime kiln
Power plant
MUW plant
CC plant
65 MUW Plant Evaporators
Boiler
Rest of power plant
AFTER COMPLETING THE CYCLE-1 WE HAVE NOW STARTED WITH CYCLE-2, IN CYCLE-2 WE SHALL REVISIT ALL THE UNITS OF CYCLE -1 IN 4 MORE WAVES AND CONTINUE TO IMPROVE SAFETY & PRODUCT QUALITY
Wave 8 Wave 7 Wave 6 Q1, 2003 Q2, 2003 Q3, 2003 Q4, 2003 Wave9
Units
Lime Kiln Finished Product Handling Soda Ash Quality Power Plant Plant Safety (MUW, Marine & CC)
Fire Safety Bicarb- Dense Ash Quality Solar Salt MUW Plant OEE - Soda Ash
Cement Marketing Cement Plant Cooling Water System Packaging Purchase Corporate O/Hs
Process House & STD Administration CC and Marine Stores Inventory and usage
Num.of units
CYCLE - III HAS BEEN COMPLETED AFTER COMPLETION OF WAVE- XIII IN APRIL 2005
Wave 12 Wave 11 Wave 10 Q1, 04-05 Q2, 04-05 Q3, 04-05
Wave 13
Q4, 04-05
Units
Supply Chain Soda Ash Maintenance Corporate Overheads Salt Logistics & Distribution
Lime Path Lime Path Brine Path Soda Ash Delayed Idea Throughput Implementation Cement Plant Supply Chain Energy Raw Materials for cement plant
Salt Throughput Caustic Throughput & Marketing ESF Cake Utilization Water Conservation
No.of units
WE STARTED CYCLE 4 BY LAUNCHING WAVE XIV AND WILL START WAVE XV ON 12 AUG 05
Wave 16 Wave 15 Wave 14 Q1, 05-06 Q2, 05-06 Q3, 05-06
Wave 17
Q4, 05-06
Units
Maintenance Excellence Waste Reduction Replacement Ideas Forecast to stock (Business Process Innovation)
MUW Evaporator bodies Water Balance Six Sigma and OEE Energy Conservation 4
Indigenous Purchase Coal and coke purchase Coke Consumption soda ash plant Salt Marketing 4
No.of units
Gypsum and Solar Salt Throughput Cement Plant Throughput Customer profitability improvement Fixed Cost reduction 4
TOTAL COST SAVING IDEAS FROM CYCLE - I, II & III WAVES UNDER IMPLEMENTATION ARE WORTH ~ Rs 135 CRORES
Throughput
Syndicated Savings Rs crore

Cycle - I (Rs 111.66 Cr) Cycle - II (Rs 33.47 Cr)
8.30 0.29 4.90 6.72 4.50 1.38 18.36 13.31 45.78 18.45 0.69 2.47 1.12 13.05 4.64 3.13 3.96 2.67
Cost based Cycle - III (Rs 26.83 Cr)

171.96
2.39 5.47 3.26 6.82 0.30 37.39
134.57
Mktg & Logistics
Dropped Idea Repl
Wave - V
Wave - IV
Wave - IX
Wave - III
Wave - VI
Wave - X
Wave - II
Wave - I
Wave - VII
Wave - XI
Wave - XII
Wave - VIII
Wave - XIII
Total
29.53
Fuel Purchase& Fuel Mix
Wave-1
7.14
Power plant
2.53
Packaging purchase
6.57
Coke purchase
1.53
L/s purchase
5.54
Lime Kiln
Wave-2
7.58
Process House MUW plant Prod Hand. Solar Salt SABR STD Cement Usage&Services Marketing&Logistic
Cost Based Savings Rs crore
1.96 2.02 2.62 1.06 4.10 2.63 8.06
Wave-3
Rest of Power plant CC&MC
Wave-4
Town &O/H
TOP at MHY
TOP At Port ENCON

Replacement Ideas Total savings
Wave-5
4.50 1.09 0.61 0.92 0.79 0.80 1.99 4.01 97.58
TOTAL COST SAVING IDEAS FROM CYCLE - I WAVES UNDER IMMEDIATE IMPLEMENTATION ARE WORTH ~ Rs 97 CRORES
0.54
Cancellation Value of ideas under implementation
97.04
97.58
Cycle - I Savings
1.34
Power plant
Wave-6
3.23
Lime Kiln
0.16
Soda Ash Quality
1.01
Cost Based Savings Rs crore
Finished Product Handling Bicarb Dense ash Solar Salt Quality
0.11 0.66
Wave-7
2.10
MUW
OEE in Soda Ash plant
0.79
5.56
Packaging Purchase Cement Marketing
4.90
Wave-8
1.20
TOP at Cement Sea Water System Corporate & Mktg O/Hs Process House & STD CCG & Marine
0.49 2.84 1.62 0.94
Wave-9
0.24
Stores Inventory
TOTAL COST SAVING IDEAS UPTO CYCLE - II (INCLUDING CYCLE -I) UNDER IMPLEMENTATION WILL BE WORTH ~ Rs.124 CRORES
124.77
Total Savings
UPTO WAVE - XIII, UNITS HAVE SYNDICATED ~ Rs.175 CRORE IN COST AND THROUGHPUT RELATED SAVINGS
Rs Cr
Cost Based Savings
Throughput Savings
37.39 13.09 134.82 171.96
20.80 93.48 7.45
No Investment
Investment <10 Lacs, ROI>50%
Investment > 10 Lacs, <100 Lacs, ROI > 50% 82 27.06 77
InvestTotal ment > Savings 100 Lacs, ROI >50%
Through put Investment >100 Lacs, ROI>50% 46 36.54 110
Total Savings Syndicated
No. of Ideas 697 Investment 0 -
207 6.84 109
10 24.03 54
996 57.93 233
1042 94.47 185
ROI%
IMPLEMENTATION OF CYCLE - II IDEAS WILL BE FULLY COMPLETED BY JAN 2011

Number of ideas to be implemented by the end of month/year
* 151 Ideas of Marketing & 9 Ideas of OEE, which are ongoing in nature, not considered
Wave - VI Wave - VII Wave - VIII Wave - IX
280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
225 240244 232 218

208 195 160 51 43 143 98 76 62
27 31 58 53 54
248* 247 247
59 59 59 59 59
62 62 62 62 62 60 60 50 58 46
26 11 22
32
40
2 1 14 8 3 2 4 20 22 23 24 3 11
42 5 35 71 75 78 78 79 28 60 60 60 63 66 15 44 48 5 8 33 25 27 30 46 47 47 48 48 48 48 48 48 48 27 27 31 32 37 39
57
Aug-03
Mar-04
Jul-03
Year 06-07
Year 07-08
Year 08-09
Year 09-10
Year 10-11
Sep-03
Nov-03
Dec-03
Oct-03
Jan-04
1 2004-05
2 2004-05
3 2004-05
4 2004-05
1 2005-06
2 2005-06
3 2005-06
4 2005-06
Jun-03
Feb-04
IMPLEMENTATION OF CYCLE - III (till Wave - XII) IDEAS WILL BE FULLY COMPLETED BY MAR 2007 Wave - XII
Wave - XI

* 41 Ideas of Marketing, 3 Ideas of Delayed Idea Unit and 6 SOP ideas, which are ongoing in nature, not considered
Wave - X
75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Q3 04-05 Q4 04-05 Q1 05-06 Q2 05-06 Q3 05-06 Q4 05-06 Year 0607
Dropped Idea Repl
60
60 *
9 13 2
50
44 42 38 34 22
1 5 2 1 7 2 2 8 2 3 9 2 4
9 13
10 2 2
21
26
28
30
30
34
36
36
Year 0708
ON IDEA IMPLEMENTATION FRONT THERE IS A GAP BETWEEN TARGET & ACTUAL

Cumulative Idea nos.
Target Actual 600 574 575 516 ** 522 550 514 525 499 486 500 473 462 475 448 426 450 476 413 464 403 383 425 389 441 448 375 * 400 423 369 358 405 411 375 401 331 382 350 375 314 301 325 351 291 338 342 276 300 326 260 275 299 244 229 277 286 250 267 211 225 225 192 212 244 253 236 198 200 177 175 155 150 125 100
Ye ar 02 Ap 03 r' M 03 ay ' Ju 03 n' 03 Ju l'0 Au 3 g' 0 Se 3 p' 0 O 3 ct '0 No 3 v' 0 De 3 c' Ja 03 n '0 Fe 4 b' 0 M 4 ar Ap '04 ril M '04 ay Ju '04 ne Ju '04 ly '0 Au 4 g Se '04 pt '0 O 4 ct ' No 04 v ' De 04 c '0 Ja 4 n ' Fe 05 b ' M 05 ar '0 Ap 5 Ye r ar '05 05 -0 6
* Impact of rescheduled ideas ** Impact of dropped ideas Note: In above status, Marketing ideas are not included
THE VALUE OF ACTUAL IDEAS IMPLEMENTED IS BELOW THE TARGETED IDEA VALUE
Rs Crores
Target
130 120 110 100 90 80
Actual
127.80 117.09 113.67 **
110.22 106.31 107.32 104.32 105 101.14 103.02 97.6 102.42 100.43 96.96 98.08 96.16 97.76 102.64 96.59 91.92 93.96 * 94.81 88.94 91.63 87.43 95.78 96.84 90.07 89.66 90.71 88.12 84.49 94.05 85.94 88.65 89.85 90.21 90.76 82.8 82.78 83.21 80.49 83.6 83.8 77.35 76.66 83.11 81.61
70 69.59 60 50
Ju l '0 3 Se p' 03 No v' 03 Ja n '0 4 M ar '0 4 M ay '0 4 Ju ly '0 4 Se pt '0 4 No v '0 4 Ja n '0 5 M ar '0 5 Ye ar 05 -0 6 02 -0 3 Ye ar ay '0 3 M
* Impact of rescheduled ideas ** Impact of dropped ideas
IMPLEMENTATION OF CYCLE - I IDEAS WILL BE FULLY COMPLETED BY SEPT 2005

* 127 Ideas of Marketing , which are on going in nature, not considered
Wave-V Wave-IV Wave-III Wave-II Wave-I
340 320 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
299 270 254 236 187 28 129

35
39 56 72
275
301*
52 52 38 42
42 43 49 50
139
9 31 54
148
10 34 58
159
15 40 58
4
20 46 67
33 53 71
65
65
70
70
99
78 62 45 20 28
3 17 30 1 41 4 8 45
5 28 51
73
73
76
77
11 1 46 46 50 51 52 52 52 52 52 28 32 36 42 45 45 11 19 25
ay -0 2 Ju n02 Ju l-0 Au 2 g0 Se 2 p02 O ct -0 No 2 v0 De 2 c02 Ja n0 Fe 3 b0 M 3 Q a r-0 1 20 3 Q 032 0 20 4 Q 03-0 3 20 4 Q 034 0 20 4 0 Ye 3-0 4 ar 04 Ye a r 05 05 -0 6
Ap r
-0 2
IMPLEMENTATION OF CYCLE - II IDEAS WILL BE FULLY COMPLETED BY JAN 2011

* 155 Ideas of Marketing & 9 Ideas of OEE, which are ongoing in nature, not considered
Wave - VI Wave - VII Wave - VIII Wave - IX
280 260 240 220 200 180 160 140 120 100 80 60 40 20 0
252 267271 259 245
274 275* 274
234 219
176 46 55 158
63 58 59
64 64 64 64 64
70 70 70 70 68 70 32 68 58 66 53 107 28
79 63
58
26
47 51 5 8 31 35 22 27 2 25 11 1 14 3 55 56 56 57 57 57 57 57 57 57 8 2 4 33 36 42 45 20 22 23 25 28 28 3 11
32
41
5 41 31 15
48 76 80 83 83 84 65 65 65 68 71
Aug-03
Sep-03
Mar-04
Nov-03
Dec-03
Feb-04
Jun-03
Oct-03
Jan-04
Jul-03
1 2004-05
2 2004-05
3 2004-05
4 2004-05
1 2005-06
2 2005-06
3 2005-06
4 2005-06
Year 06-07
Year 07-08
Year 08-09
Year 09-10
Year 10-11
SAVINGS OF ~ Rs 135 CRORES HAVE BEEN IDENTIFIED UPTO WAVE - XI

Rs. Crores
Cycle I
Wave- V
Cycle II
Wave- VI Wave- VII Wave- VIII Wave- IX
Cycle III
Wave- X Dropped Idea Repl Wave XI
140 130 120 110 100 90 80 70 60 50 40 30 20 10

26.8 30.48 31.01
Wave- IV Marketing & Logistics Wave III Wave II Wave I
135.50 134.75 135.49 130.50 121.10 94.49

11.32 12.23 14.9 14.9 14.9
5.73 5.73 5.73 5.45 5.73 7.6 7.6 7.6 7.6 3.09 7.6 0.91 0.1 2.61 2.61 2.61 0.76 5.6 2.57 2.61 3.152.25 4.5 4.5 4.5 4.5 4.5 2.25 66.50 71.35 2.61 1.2 4.5 4.5 1.08 4.5 0.4 0.38 4 4 53.99 18.46 18.46 18.46 18.46 18.46 0.37 0.36 3.84 0.36 3.67 15.29 15.29 3.5 0.36 52.08 13.07 13.49 13.69 3.34 11.98 12.77 12.99 42.64 16.94 11.94 18.32 18.63 18.63 18.63 18.63 15.13 2.6 3.17 0.36 13.32 14.5 38.84 0.25 0.05 0.73 12.35 12.54 12.54 16.94 30.48 6.68 6.99 7.69 31.07 5.88 26.80 2.5
81.38 72.91 83.88 76.86 0.55 72.51 3.02
88.83
0.06 42.75 42.75 43.17 36.34 36.51 45.7 43.17 43.17 43.17 45.7 45.78 45.7845.78 45.78 45.78 45.78 45.78 45.78
0 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Q1 02 02 02 02 02 02 02 02 02 03 03 03 0304
Q2 0304
Q3 0304
Q4 Year Year Year Year Year 03- 04- 05- 06- 07- 0804 05 06 07 08 11
Number of 11 20 ideas
28
45
62
78
99
129 139 148 159 187
236
276 311 354 550 608 621 625 629
INVESTMENT REQUIREMENTS ARE PHASED OUT OVER TIME

Rs. Crores
Cycle - I Wave- V Wave- IV
60 55 50 45 40 35 30 25 20 15 10
Cycle - II Wave- VI Wave- VII Wave- VIII
Cycle - III Wave- X Dropped Idea Repl Wave XI
Wave- III Wave-II Wave-I
59.31 59.77 57.01 54.19
Wave- IX
37.85 21.86 14.95 9.44

3.24
7.29 7.29 6.62 6.91 7.29 9.62 9.79
7.32 3.82
5.39 3.34 3.82 3.82 3.82
8.59
5.46 7.27 5.50
0.1 0.42 0.34
6.8
6.8
6.8
6.8 6.8
2.78 2.78
6.16 1.38 1.45 1.45 1.45 1.45 0.11 0.2 0.88 1.18 4.61 4.61 4.61 4.614.61
0.06 0.1 0.21 0.08 0.51 10.57 0.01 0.15 0.08 0.24 8.58 8.58 10.0510.5710.5710.57 0.60 1.14 0.01 0.06 5.97 6.27 5 0.52 5.03 4.28 4.37 4.37 2.29 2.29 2.29 2.29 2.292.29 2.15 2.15 2.29 2.29 0.34 0.38 0.03 0.06 0 0.2 0.21 0.21 0.21 0.26 0.26 0.26 0.76 0.38 1.08 1.08
4.66
Ap r-0 M 2 ay -0 Ju 2 n02 Ju l-0 Au 2 g0 Se 2 p02 O ct -0 No 2 v0 De 2 c02 Ja n03 Fe b03 M ar Q 1 20 03 Q 032 20 04 Q 033 20 04 03 Q -0 4 20 4 0 Ye 3-0 4 ar 04 Ye -0 5 ar 05 Ye ar 06 0 Ye 6-0 7 ar 07 Ye -0 8 ar 08 -1 1
TARGETED SAVING ACCRUAL FOR FY 2005-06 WILL BE ~ Rs 128 CRORE
Rs Crores
128.10
33.03
94.90 94.76
Q4
25.97
45.47
Q4
15.06 33.86 28.45

Q3
24.31 23.51 21.11

2003-04
18.20 17.20 7.86 2.21

2002-03
27.15 24.10
2004-05
32.58
Q2
Q3 Q2 Q1
28.63
2005-06
Q1
OVERALL IMPLEMENTATION STATUS
Year 02-03 Wrt. Baseline Target Actual 44.53 248 69.59 %
Year 03-04 Target Actual 69.69 265 19.06 %
Year 04-05 Target Actual %
Savings 45.47 Accrued (Rs Cr) No. of Ideas Implemented Value of Imp. Ideas (Rs Cr) Wrt. Budget Savings Accrued (Rs Cr) Savings Inbuilt (Rs Cr) --301 77.35
99% 94.90 82% 305 90% 26.97
73% 94.76 87% 71% 212 9.35
80.50 85% 200 13.77 94% 147%
30.85 9.20
---
---
(1.35) 67.15
---
1.21 81.10
(36.12) 101.15
---
SAVINGS ACCRUED (TARGETED VS ACTUAL)

Monthly Savings Accrual (wrt baseline) Rs. In lacs
1400 1300 1200 1100 1000 900 800 700
Target
Actual
1037 976 918 821 773 653 910 946
1025
1052
1033
1068
1079
1072
917
600
551*
500 400 300
Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06
* Savings is lower due to higher LS & fuel consumption at Kilns, higher fuel TCO & higher maintenance cost in Cement

Cumulative Savings Accrual (wrt baseline) Rs. In lacs
Target
15,000 14,000 13,000 12,000 11,000 9,812 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 Mar' 03 Apr'03 May'03 Jun'03 Jul'03 Aug'03 Sep'03 Oct'03 Nov'03 Dec'03 Jan'04 Feb'04 Mar'04 4,547 5,163 4,453 5,203 6,658 5,918 6,619 5,977 7,105 7,404 7,758 8,208 8,995 8,415 9,009 9,381 9,829 10,384 10,612 10,897 11,440 12,327 11,421 13,163
Actual
14,037

Year Target 4,547 9,490 9,476 Actual 4,453 6,969 8,050

Target
27,000 24,000
2002-03 2003-04
Actual
2004-05
22,962 22,007 21,067 20,105 19,162 18,148 16,447 17,257 17,971 15,819 14,366 15,032 13,682 11,421 11,885 12,399 16,515 17,158
23,792 23,513
21,000 18,000 15,000 12,000 9,000 6,000 14,037 14,810 15,634
** 19,470
18,981 19,876
Mar' 04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05
* Cumulative saving target adjusted for all dropped & rescheduled ideas * * Actual cumulative saving adjusted for anthracite coal usage in lime kilns

Year Target 4,547 9,490 9,476 Actual 4,453 6,969 8,050

Target
40,000 37,000 34,000
2002-03 2003-04
Actual
2004-05 YTD 05-06
3,626
34,349
2,923
35,421
33,432 32,353 31,285 30,253 29,200 28,175 26,163 27,139
31,000 28,000 25,000 22,000 19,000 16,000 19,470 21,446 20,243 20,793 23,513 24,431 25,253
22,392
Mar' 05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06
ACTUAL IDEA IMPLEMENTATION AGAINST THE TARGET
Cumulative Idea nos.

550 525 499 500 473 475 448 450 426 425 403 400 375 * 375 350 325 300
'0 4 Au g' 04 '0 5 Ju ne '0 4 Ju ly '0 4 '0 5 '0 5 '0 4 Se pt '0 4 Ap ril '0 4 '0 4 M ay Ap r Ja n M ay M ar Ju n No v De c Fe b O ct Ju l '0 5 '0 4 '0 5 '0 5 '0 5
Target
Actual
516 486 514
536
** 522
529
531
462 476 464 413 423 383 375 351 382 401 405 411 441 448
480
488
493
338
342
* Impact of rescheduled ideas ** Impact of dropped ideas Note: In above status, Marketing ideas are not included
THE VALUE OF ACTUAL IMPLEMENTED IDEAS AGAINST THE TARGET
Rs Crores
Target
130 120 110
103.02 104.53 105 96.16 93.96 98.08 101.14 97.6 90.76 90.71 91.63 94.05
Actual
117.09 113.67 107.32 110.22 106.31 102.42 96.59 96.84 95.78 102.64 103.48 103.70 94.81 106.88 119.35 117.68 118.25
**
100 90 80 70 60 50
'0 4
89.66
90.21 89.85
Ju ne '0 4 Ju ly '0 4 Au g '0 4 Se pt '0 4 O ct '0 4 No v '0 4 De c '0 4 Ja n '0 5 Fe b '0 5 M ar '0 5 Ap r' 05 M ay '0 5 Ju n' 05
'0 4
Ap r
* Impact of rescheduled ideas ** Impact of dropped ideas
Ju l'
ay
05
GAP ANALYSIS ON SAVINGS INDICATES THAT LOSS IN SAVINGS IS DUE TO HIGHER

LIMESTONE, FUEL CONSUMPTION & MAINTENANCE IN LIME KILN, HIGHER MAINTENANCE COST AT STD, LOWER DA-1 & BICARB THROUGHPUT, HIGHER SALT POUCH COST & SECONDARY PACKAGING COST, HIGHER CAPTIVE LIMESTONE TCO, HIGHER 20# & 120# STEAM CONSUMPTION AT MUW AND HIGHER SP. FUEL CONSUMPTION AT CEHP 1& 2
Rs. Lacs
59 31
Above Target
20 7 27 27 3 2 1 0 1 1 1 2
Below Target
4 5 9 9 13 16 26 36 41 63 218 4 10 10 1,415 2 1 946
107 154 976
TOP at S Ash Quality
TOP at Bicarb & D Ash
S Ash Throughput
TOP at OEE in SA Plant
Corp & Mktg. OHs
Salt Logistics & Distribution
Packaging purchase
TOP at Town & OHs
Cement Raw Materials
Marketing & Logistics
Actual savings for these units are being tracked under other earlier units, so only targets are considered here
TOP at Sea water system
TOP at Solar Salt
TOP at Cement Mrktg
Limestone Purchase
TOP at CC, Marine
Stores & Inventory
TOP at Process House
TOP at Replacement
Usage & Services
TOP at FP Handling
SA Maintenance
TOP at ENCON
Coke Purchase
TOP at Cement
Actual Savings
TOP at SABR
TOP at MUW
Sub Total
Fuel Purchase
TOP at MHY
TOP at Port
TOP at Boiler
TOP at STD
TOP at Kiln
Target
SAVINGS OF Rs. 223.92 CRORES HAVE BEEN ACCRUED TO THE BOTTOMLINE UPTO JULY 05 FROM IMPLEMENTED IDEAS
Upto Jul..2005
01/06
Cumulative
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd
Sr. No. Unit
No.of Ideas
Ideas to be of Ideas Implemd
% of planned
Rs Cr
1 2 3 4 5 6
Fuel purchase & Fuel Mix Coke Packaging TOP at Boilers Marketing & Logistics 1 L/S Purchase
16 03 16 17 361 4
16 3 16 17 292 4
16 3 16 17 259 3
29.53 6.57 2.53 7.14 4.50 1.53
29.53 6.57 2.53 7.14 4.50 0.43
100 100 100 100 100 28
76.53 8.29
89.52 (8.35)
117
93 112 37 51
11.22
25.29 10.69 7.29
10.41
28.37 391 (3.75)
7
8 9
TOP at Kiln
TOP at Pr House TOP at F P H
11
17
9
17
9
14
3.09
7.58
3.09
7.12
100
94 100 100
16.38
24.90
4.32
20.50
26
82 170 16
25
19
25
19
25
19
2.02
1.96
2.02
1.96
5.89 4.96
9.99 0.79
10 TOP at MUW Sub Total
489
418
381
66.45
64.89
98
191.44
155.71
81
1. Marketing and Logistics includes wave I to wave XIII ideas
Continued
Upto Jul..2005
02/06
Cumulative
Idea status
Planned No. Of Actual No. Value of Ideas to be Implemd Rs Cr Implemd Actual Value of Implemd Ideas Rs Cr % of
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to
Sr. No. Unit
No.of
% of
Ideas
planned
Idea Implmd Rs Cr
planned
Sub Total upto Wave II 11 TOP at Salt 12 TOP at SABR 13 TOP at STD 14 TOP at Cement 15 Usage & Services 16 Supply Chain 17 TOP at ROP 18 TOP at CC Marine 19 TOP at Town 20 Safety - I Sub Total
489 14 10 22
418 14 10 21
381 11 10 20
66.45 2.62 0.95 3.75
64.89 1.73 0.95 4.10
98 66
191.44 6.33 2.85 5.91 5.64 20.80
155.71 6.17 2.16 0.50 8.28 11.18 7.70 4.92 3.88 NA
81
97
100
109
76
8
11
5
11
5
11
5
2.63
8.06
2.63
8.06
100
100
147 54
1222 284
6
7 19 7 14
6
7 18 7 14
4
7 19 7 14
1.09 0.49 0.85 -
1.09 0.53 0.85 -
100 108
100 -
0.63 1.73 2.44 NA
159
84
604
531
489
86.89
84.83
98
237.77
200.50
Continued
Upto Jul..2005
03/06
Cumulative
% of planned
Idea status
No.of Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned Ideas
Saving status
Targeted
accrued Savings Rs Cr
Savings Accrued due to Idea Implmd Rs Cr
Sr. No. Unit
Ideas to be Implemd
Sub Total upto Wave IV 21 TOP at MHY 22 TOP at Port 23 ENCON* 24 Safety - II Replacement Ideas* 25 TOP at Power Plant* 26 TOP at Lime Kiln* 27 TOP at SA Quality 28 TOP at FPH* 29 Safety -III
604 10
531 10
489 9
86.89 0.79
84.83 0.38
98 48 100 96 -
237.77
0.79 1.41 2.13 NA 6.96 0.49 1.20 0.21
200.50
(0.76) 1.58 NA 0.38 0.60 0.08
84
112
4
24 4 7 15
4 24
4 7 15 5 9 10 8
4
22 4 6 10 4 7 10 8
0.80
1.21 3.92 0.52
0.80
1.16 1.60 0.19 3.07 0.10 0.75 -
5 122 7 -
41
37 95 56 100 -
5
9 11 8
3.23
0.16 0.75 -
(0.33)
NA
1.42
NA
Total
701
627
573
98.27
92.88
95
252.38
202.05
80
* Actual savings for these units are being tracked under other earlier units
Continued
Upto Jul..2005
04/06
Cumulative
% of planned
Idea status
No.of Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned Ideas
Saving status
Targeted
Sr. No. Unit
Ideas to be Implemd
Sub Total upto Wave VI 30 Fire - Safety 31 TOP at Bicarb Dense ash 32 TOP at Solar salt quality* 33 TOP at MUW* 34 OEE in Soda Ash* 35 Packaging* 36 Cement Marketing 37 TOP at Cement*
701 19 5 25 17 22 14 7 14
627 19 5 11 16 9 14 6 9
573 17 3 7 13 14 13 5 11
98.27 0.11 0.59 1.12 0.05 4.52 1.72 0.72 0.49 2.80
92.88 0.05 0.06 0.97 0.03 2.78 2.68 0.59 0.14 1.92
95
45 10 87
252.38
NA 2.61 0.34 0.87 0.09 2.57 4.32 1.33 0.33 1.93
202.05
NA 2.15 1.18 (0.10) 3.08 0.22 (0.01) 9.79
80
82
136 71
60
62 156
82
29 69
17
507
38 Sea Water System*

39 Corp & Mktg O/H
15
12
11
12
6
11
Total
851
739
673
110.39
102.10
91
266.77
218.36
82
Continued
Upto Jul..2005
No.of Sr. No. Unit Ideas
05/06
Cumulative
% of planned
Idea status
Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
Ideas to be Implemd
Sub Total upto Wave VIII 40 TOP at Process House & STD*
851 13 8 25 13 7 10 2 17 2
739 9 6 22 13 5 3 2 17 2
673 5 3 22 11 4 3 2 14 1
110.39 0.77 0.68 0.23 0.00 3.20 0.09 0.00 3.54 0.29
102.10 0.68 0.08 0.23 0.00 0.27 0.09 0.00 3.01 0.23
91 88 12
266.77
0.28 0.18 0.23 NA
218.36
0. 32 3.19 0.32 NA
82
114
41 TOP at CCG & Marine*

42 Stores Inventory 43 Administration 44 Salt Logi. & Dist. 45 SAMG * 46 SCM - I 47 Corp & Mktg O/Hs 48 Dropped Idea Repl
1772
114 188 42 -
100
8 100
0.16 0.00
NA 3.17
0.30 NA 1.34
85
88
NA
NA
Total
948
818
738
119.19
106.69
270.79
223.74
83
Upto Jul..2005
No.of Sr. No. Unit Ideas
06/06
Cumulative
% of planned
Idea status
Saving status
Targeted
Ideas to be Implemd
Sub Total upto Wave X 49 Brine Path * 50 Lime Path - 1 * 51 SCM - 2 52 Delayed Ideas 53 Lime Path - 2* 54 Raw Mat. Cement 55 Cement ENCON* 56 Water conservation
948 2 3 7 4 8 2 5 13
818 1 0 6 2 0 1 0 0
738 1 0 5 2 2 1 2 1
119.19 0.09 0.00 0.00 0.00 0.00 0.07 0.00 0.00
106.69 0.09 0.00 0.00 0.00 0.00 0.07 0.02 0.01
88 100 100
270.79
0.01 -
223.74
-
83
-
31
0.58 -
0.18 -
Total
992
828
752
119.35 106.88
88
271.38
223.92
83
* Saving tracking for these units will be started after implementation of the cost based ideas
SUMMARY OF MANTHAN (FOR THE MONTH OF JULY 05)

Month :July .2005
01/06
Idea status
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd Rs Cr % of planned
Sr. No.
No.of Unit Ideas
Ideas to be of Ideas
Implemd
1 2 3 4 5 6 7 8 9
Fuel purchase & Fuel mix Coke Packaging Top at Boilers Marketing & Logistics1 L/S Purchase TOP at KILN TOP at Pr House TOP at F P H
16 03 16 17 361 4 11
0 0 0 0 0 0 0
0 0 0 0 0 0 0
0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
0 -
2.43
0.06 0.27 0.71 0.16 0.09 0.77
3.98
1.13 0.15 0.41 0.07 (0.16) (1.18) 1.36
164 1883 56 58 44 --
-132 162
17 25
19 489
1 0
0 1
0 0
0 0
0.17 0.00
0.00 0.17
0.00 0.00
0.00 0.00
1.03 0.18
0.14 5.85
Continued..
0.30
0.04 6.10
10 TOP at MUW Sub Total
28 104
1. Marketing and Logistics includes wave I to wave XIII ideas

Month : July.2005
02/06
Idea status
Saving status
Savings Targeted accrued Savings Rs Cr Accrued due to Idea Implmd Rs Cr % of planned
Sr. No.
No.of Unit Ideas
Sub Total upto Wave II 11 TOP at Salt 12 TOP at SABR 13 TOP at STD 14 TOP at Cement 15 Usage & Services 16 Supply Chain 17 TOP at ROP 18 TOP at CC Marine 19 TOP at Town 20 Safety - I
489
14 10 22 11 5 6 7 19
0
0 0 0 0 0 0 0 0
0
0 0 0 0 0 0 0 0
0.17
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.85
0.20 0.07 0.30 0.18 0.47 0.04 0.08
6.10
0.21 0. 07 (0.32) 0.44 1.06 0.25 0.25 0.09 NA
104 105 101 -244 226 -
625
313
129
7
14
0
0
0
0
0.00
-
0.00
-
0.07
NA
112
Sub Total
604
0.17
0.00
7.26
8.15
Continued

Month : July.2005
Sr. No.
03/06
Idea status
No.of Ideas Planned No. Of Implemd Actual No. Value of of Ideas Ideas to be Implemd Rs Cr Actual Value of Implemd Ideas Rs Cr % of planned
Saving status
Targeted
accrued Savings Rs Cr Savings Accrued due to Idea Implmd Rs Cr % of planned
Unit
Ideas to be Implemd
Sub Total upto Wave IV 21 TOP at MHY 22 TOP at Port 23 ENCON * 24 Safety - II Replacement Ideas*
604 10 4 24 4 7
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
0.17 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
7.26
0.03 0.06 0.10 NA 0.21 0.05 0.24 0.02
8.15
(0.05)
112
67
0 --
0.04
NA 0.11
52 20 4 -
25 TOP at Power Plant* 15 26 TOP at Lime Kiln* 27 TOP at SA Quality
0.00
0.00 0.00
0.00
0.00
0.01
0.01 0.00 NA
5 9
0.00 0.00
-
28 TOP at FPH *
29 Safety -III
11
8
0.00
-
0.08
NA
Total
701
0.17
0.00
8.06
Continued
8.27
103

Month : July 2005
No.of Sr. No. Ideas Unit
04/06
Idea status
Saving status
Targeted
Ideas to be Implemd
Sub Total upto Wave VI 30 Fire - Safety 31 TOP at Bicarb Dense ash 32 TOP at Solar salt quality * 33 TOP at MUW *
701 19 5 25
1 0 0 0
0 1 0 0
0.17 0.00 0.00 0.00
0.00 0.00 0.00 0.00
-0 0 0 0 513
8.06
NA 0.41 0.06 0.12 0.02 0.22 0.30 0.12 0.04 0.00
8.27
NA 0.00 0.06 (0.01) 0.31 0.05 0.01 --
103
-
50 -103
42
17
0
0 0 1 0 1 0
0
0 0 1 0 0 0
0.00
0.00 0.00 0.52 0.00 0.00 0.00
0.00
0.00 0.00 2.68 0.00 0.00 0.00
34 OEE in Soda Ash * 22 35 Packaging * 36 Cement Marketing 37 TOP at Cement*
14 7 14
38 Sea water System* 15 39 Corp & Mktg O/H
25
12
93
Total
851
0.69
2.68
388
9.34
Continued
8.69

Month : July.2005
05/06
Idea status
Saving status
Targeted
Ideas to be Implemd
Sub Total upto Wave VIII 40 TOP at Process House & STD *
851 13 8 25 13 7 10 2 17 02
3 0 0 0 0 0 0 0 0 0
2 1 0 0 0 0 0 0 0 0
0.69 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.68 0.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
388
-
9.34
0.07 0.09 0.02 NA 0.02 0.01 NA 0.04 NA
8.69
0.00
93
256
41 TOP at CCG & Marine *

42 Stores Inventory 43 Administration 44 Salt Logi. & Dist. 45 SAMG * 46 SCM - I 47 Corp & Mktg O/Hs 48 Dropped Idea Repl
0.23
0.01 NA 0.29 0.00 NA -NA
0
0 -
50
-
1450
-
--
444
Total
948
0.69
3.07
9.59
9.22
96

Month : July.2005
06/06
Idea status
Saving status
Targeted
Ideas to be Implemd
Sub Total upto Wave X 49 Brine Path *
948 2 3 7 4 8 2 5 13
3 1 0 0 0 0 0 0 0
3 1 0 0 0 0 0 0 1
0.69 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3.07 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.01
444
100 -
9.59
0.01 -
9.22
-
96
-
50 Lime Path - 1 *
51 SCM - 2 52 Delayed Ideas 53 Lime Path - 2 * 54 Raw Mat. Cement* 55 Cement ENCON * 56 Water Conservation
406
150 -
0.16 -
0.24 -
Total
992
0.78
3.17
9.76
9.46
97
* Saving tracking for these units will be started after implementation of the cost based ideas
SAVING ANALYSIS
Categories of Savings 1 Operational Performance For the Month Jul 05 243.12 For YTD Jul 05 1,007.27
Rs. In lacs Cumulative Upto Jul 05 8,594.01
2 Procurement
3 Fixed Cost
422.21
281.06
814.28
1,101.22
4,800.38
8,998.45
a)
Idea Base
90.28
368.48
3,174.15
b)
Top Down
190.78
732.73
5,824.29
TOTAL
946.38
2,922.76
22,392.83
TEAM CONFIGURATION FOR WAVE XIV- MITHAPUR (From 05.05.2005 to 11.08.2005)

CIG/Suggestion Avdhesh Chaudhary Manish Shah Sreejith Manish M Vakil Manthan Admn Deepak D Karelia Business Process Innovation Mentors S Kilambi Z N Langarana M Vivekanand Rao Replacement Ideas T Radhakrishnan R V Chaudhary M Ravindranath K B Makadia A K Savani Tushar Padia M J Lakhani Hitesh Patel Waste Reduction T Radhakrishnan R V Chaudhary M Ravindranath K B Makadia Ashok Thakur P P Chaudhary Ajay Trivedi Raj Lingam A A Patel Maintenance Excellence G J Adroja T Radhakrishnan B P Joshi B B K/ R C S R R Koyani Vijay Trivedi M Bharmal Manish Aghera Sunil Sadhu
Mithapur Operations
Unit Leader Facilitator
Supervisor TAS Sr Facilitator
K Panchmatia Vijay Pashupati
J Bhardava
Co-ordinator
H T Gangaramani
CONTENTS
What is the plan for Wave XV?

TEAM CONFIGURATION FOR WAVE XV- MITHAPUR (From 12.08.2005 to 20.11.2005)

CIG/Suggestion Avdhesh Chaudhary Manish Shah Sreejith Manish M Vakil Manthan Admn Deepak D Karelia
Mithapur Operations
Six Sigma and OEE

Mentors T Radhakrishnan V P Chandarana M Ravindranath K B Makadia
MUW PlantEvaporator
V P Chandarana G J Adroja
Water Management
T Radhakrishnan V P Chandarana M Ravindranath K B Makadia
Energy Conservation
T Radhakrishnan V P Chandarana M Ravindranath K B Makadia
Unit Leader Hitesh Patel

Facilitator M K Nayak Mohmadi Bharmal
Rajlingam R. M V Bhatt Rashmin Shah Tushar Padia K M Pillai
Alpesh Merja
A J Takodara Jayesh Bhatt
S J Shah
A L Sah A K Savani
Supervisor
Kamlesh Thakur Suresh Ghedia Vijay Pashupathi
Sandeep Shah
M P Mashroo
TAS
Sr Facilitator Co-ordinator
H T Gangaramani
LIKE IN EARLIER WAVE A SYSTEMATIC PROCESS WILL BE FOLLOWED WHICH WILL TARGET COMPLETION OF WAVE XIV BY 20 NOV 2005
Phase 1
Set aspirational targets (1-2 weeks)
Phase 2
Phase 3
Phase 4
Plan implementation (1 weeks) Nov 20
Review meetings
Generate & Take evaluate ideas decisions for improvement (8 weeks) (1 week) Communication Sep 26
Plant SC
Implement & track progress
Aug 12
Aug 22
Plant SC
Oct 28
Plant SC
Develop cost
database
Create exhaustive Preparation

idea list (2A) New ideas
Experts Brainstorming
Develop
detailed implementation plans
Develop detailed KPI

trees and TCO models
Existing ideas
for steering committee meeting
Understand
organisation and process flows
Formal
steering committee meeting for finalisation of all ideas
Understand impact of
existing ideas
sessions
Suppliers Competitors
Set baseline and

targets on key KPIs
Evaluate and
prioritise ideas
Prepare for Phase 2
Syndicate ideas
RECENTLY WE HAVE INITIATED THE SIX SIGMA PROJECTS TO REDUCE THE PROCESS VARIATION
No. of Projects Identified
No. of Projects Completed
No. of People trained as Green Belts
12
40
The 12 Step DMAIC Strategy

Formulating the Practical Problem
DMAIC DMAIC DMAIC

DMAIC DMAIC DMAIC
Step A : Collect VOC & identify CTQ Step B : Project & Team Charter development Step C : High Level process Map (SIPOC) Step 1 : Drill-down Y, characterise CTQ Step 2 : Define Performance Standards
How do my customers look at me? Team Dynamics & Biz. Need How my output links with processes& suppliers? Detailed Y analysis Whats the best way to measure? Can I trust the output data?
Step 3 : Validate the Measurement System
Changing to a Statistical Problem

DMAIC DMAIC DMAIC Step 4 : Establish Process Capability & Set Target Step 5 : Identify Variation Sources Step 6 : Validate Variation Sources
Where am I today & where do I want to go? What factors possibly make a difference? What factors actually make a difference?
Developing a Statistical Solution

DMAIC DMAIC DMAIC Step 7 : Discover Variable Relationships
How do the factors affect the Output? What are the options to improve Output? What option to select and how to implement?
Step 8 : Generate Possible Solutions

Step 9 : Select Best Solution, Plan & Implement
Implementing the Practical Solution

DMAIC Step 10 : Validate X Measurement Systems DMAIC DMAIC Step 11 : Determine Process Capability Step 12 : Implement Process Control
Can I trust the in-process data? Have I reached my goal? How can I sustain the improvement?
FURTHER, WE ARE PLANNING FOR FULL SCALE DEPLOYMENT OF SIX SIGMA FOR VARIOUS PLANTS THROUGH A SYSTEMATIC APPROACH
Understand various plant operations
Step I:
Understand the plant operations in detail, in the context of its function, existence in the organization & outputs produced.
Identify key input, process & output variables
Step II:
Identify various input & process variables with regards to various plants, that are critical to measure the performance of the plant, consumption of inputs, productivity/efficiency of processes, quality & quantity of outputs.
Review existing measures & measurement systems at various plants
Step III:
Evaluate the measurement systems for the identified input, process & output variables with regards to their ability to reflect the actual performance of various processes.
Evaluate & Plan Six Sigma Deployment Roadmap
Step IV:
Analyze the information gathered and plan way forward towards a full scale deployment of Six Sigma for various plants.
CONTENTS
What is the plan for Wave XIII?

SODA ASH PLANT: LIMESTONE CONSUMPTION (T/TSA)

1.5
TRAINING EXAMPLE
Star ideas
1.45
Use of kiln top level

controller, air flow controller, discharge temperature indicator and oxygen analyser at the kilns
1.4
1.40 1.40 1.40 1.40 1.40 1.39 1.38 1.38 1.37 1.36 1.36 1.36 1.36 1.35 1.36 1.36
Tighter control of
MOL in still effluent using an online lime analyser
1.3
To provide for auto

lubrication to prevent stopping of one kiln everyday and to provide for continuous discharge for improving efficiency
1.2
Base Sep-02 line
Dec-02
Mar -03 Jun-03
Sep-03
Dec-03
Mar-04
SODA ASH PLANT: COKE CONSUMPTION (T/TSA)
TRAINING EXAMPLE
109
109
Star Ideas
107
Use of kiln top level

controller, air flow controller, discharge temperature indicator and oxygen analyser at the kilns
105
105
104
103
102 101
Tighter control of MOL in

still effluent using an online lime analyser
101
100
Enrichment of lime at the

MOL plant by stopping the overflow from tank 2
99
97
95
Base Sep-02 line
Dec-02
Mar -03 Jun-03
Sep-03
Dec-03
Mar-04
SODA ASH DENSE: HANDLING COST (Rs/TON)

Star Ideas
TRAINING EXAMPLE
Presently Jumbo bags (1000

Ton) loading rate is paid as per tonne basis similar to 50 kg loading though companys crane is used for loading. Loading rate can be reduced to reduce the handling cost.
45.0
25.0
23.3 23.3
21.8
21.8 15.6 15.6 15.6 12.9
Soda Ash Dense 50 Kg after

packing is loaded into trucks after one stacking. Direct truck loading after getting the excise permission will reduce stacking cost
5.0
Base Jun 02 line Aug
Soda Ash Dense - 50 Kg are

stacked and loaded from Dense Ash plant. After installation of truck loader loading, internal transportation rates and losses / damages will reduce.
Oct
Dec
Feb 03
Apr
THE END
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01 W XV Intro Manthan 12.08.05

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CONFIDENTIAL

Wave XV August 12, 2005 H T Gangaramani

Why do we need Manthan? What has Manthan achieved so far?

What is the plan for Wave XIII ?

1,648 1,464 1,521 1,493 1,433

289 182 117 165 197 127

Pre-tax ROCE Per cent

Market capitalisation Rs crore

18 12 11 11 10 12 2,701 1,297 949 839 1190

2000 2001 2002

THIS IS DUE TO THREE REASONS

Overcapacity in domestic industry

The production capacity of the soda ash industry has been

Threat from imports

Import duties on Soda ash are expected to go down further in

A normal phenomenon in most chemical industries, it refers

* Footnote Source: Source

THE OVERALL MARKET SCENARIO FOR SODA ASH IS WEAK

Landed price at full cost

Past prices have shown a lower trough Ex-Mumbai Rs./MT 9500

Capacity (lakh tpa)

Labor (direct, services) Energy

Price cost squeeze -1.6% p.a.

Prices decreasing at -1.2% p.a. Time

Focus of current program

Manufacturing: Optimise manufacturing processes and practices to reduce raw material

Marketing: Optimise customer mix to increase profitability, increase emphasis on non-price

THE ROLE OF MANTHAN IS TO IMPROVE PERFORMANCE IN THE CORE BUSINESS

Time Past Manthan Future

API Centre Mithapur

Mumbai (Marketing) Haldia

Why do we need Manthan? What has Manthan achieved so far?

What is the plan for Wave XIII ?

MANTHAN UNITS AT MITHAPUR FOR CYCLE - I

Wave 1 Wave 2 Wave 5

Soda ash plant

Raw material inputs

10.TOP at salt works

11.TOP at brine refinery

5. TOP at lime kiln 1. Coke purchasing 9. Limestone purchasing Lime kiln

13. TOP at Cement plant

MANTHAN UNITS AT MITHAPUR FOR CYCLE - II

Wave 8 Wave 7 Wave 6

Soda ash plant

28 TOP at Bicarb & Dense Ash

26.TOP at Finished Product handling

31.TOP at Pr House & STD

25.TOP at lime kiln

27. TOP at MUW

Rest of power plant

MANTHAN UNITS AT MITHAPUR FOR CYCLE - III

Units repeated in cycle -III Process flow Plants or sections

Soda ash plant

Rest of power plant

66 Six Sigma and OEE

Soda ash plant

65 MUW Plant Evaporators

Rest of power plant

Wave 12 Wave 11 Wave 10 Q1, 04-05 Q2, 04-05 Q3, 04-05

Wave 16 Wave 15 Wave 14 Q1, 05-06 Q2, 05-06 Q3, 05-06

Syndicated Savings Rs crore

Cost based Cycle - III (Rs 26.83 Cr)

Mktg & Logistics