Assignment Task

Project Description and Problem Statement

a. Introduction

Tata Steel Europe Ltd (Tata Steel Europe), a subsidiary of Tata Steel Group, is one of the biggest players in the UK (United Kingdom) steel market with a market share of 83.4%. Its integrated steel making operations spread end-to-end across the value chain from mining to producing premium flat steel products to major industries (Marketline,2023).

As with most large industrial operations, the company’s commitment to safety in the workplace has led it to adopt a PTW system to manage and control safety risks associated with its operations. However, the existing PTW is a paper-based system. This system adopted by the company requires workers to obtain a paper PTW which allows controlled access of personnel to hazardous areas, equipment, and machinery (Severijn,2021). This traditional paper-based system has been shown to have weaknesses that lead to safety hazards, delays in completing work, and difficulty in auditing compliance with safety regulations. The digital PTW system can help to address these issues, while also providing a more efficient and effective way of managing permits. 

The purpose of this project is to present a proposal evaluating the benefits of implementing a digital PTW system and the strategies that Tata Steel can use to adopt and integrate the system into its existing corporate structure. To achieve this, a detailed analysis of the current PTW system in place at Tata Steel is conducted to understand its strengths and weaknesses with respect to the digital PTW system. This will not only help to identify the benefits of the digital PTW system over the traditional one but also highlight any potential challenges that may arise during the implementation. We will also involve a comprehensive review of the literature on digital PTW, including academic research papers, industry publications, and case studies of companies that have successfully implemented such systems. This review will help to identify best practices and standards that are required for the successful implementation of the digital PTW, while also providing a deeper understanding of legal and ethical expectations. The project will develop a set of KVM’s (Key Value Measures) that would demonstrate the effectiveness of the digital PTW system, which can be used to monitor and evaluate its ongoing success. These KVM’s will be designed to align with the identified benefits and goals of the system and ensure that it delivers tangible benefits to Tata Steel. In conclusion, a set of actionable strategies will be developed for the successful adoption and integration of the digital PTW system at Tata Steel. These strategies will be designed to address any potential cultural or operational barriers to adoption and ensure that the system is successfully integrated into the existing corporate structure.

b. Opportunity and Problem Statement

The ownership of Port Talbot steelworks was passed onto the Indian multinational corporation in 2017 from British Steel, by Anglo-Dutch Group Corus (Kotter, 2018). By way of background Port Talbot Steelworks, involves various processes- chemical, metallurgical, electrical, mechanical etc. that are hazardous in nature and is subjected to major hazards legislation (Satish et al., 2020). Tata Steel has progressively adopted these safety practices at a rapid pace, majorly driven by the legal compliance and by sharper awareness of the impact accidents can cause on its business. This can be illustrated by the company’s own experience of prosecution followed by an accident where three employees suffered serious burns when tonnes of molten metal on the factory floor at Port Talbot ignited (Lexis + UK, 2015). As per Health and Safety Executive1 (HSE), 30% of accidents that occur in chemical industries are due to poor maintenance (Iliffe et al., 1999). A PTW system is a key tool that has been put in place to manage work safety. Major purposes of a PTW include:

• Identification of the potential hazards,
• Coordination of the imposed precautions, and
• Record of events and related details.

Even with these safeguards, it has been noted that incidents related to PTW happen at an alarming rate (Iliffe et al., 1999). As per European Maritime Safety Agency (EMSA, 2019), two-thirds of all incidents (between 2011 to 2018) were contributed by human factors. The top factors include lack of safety awareness, inadequate work methods, and poor planning and coordination.

These fundamental purposes strongly implies that a PTW system must be highly adaptable and modifiable for changing circumstances and environmental needs.

On a report work carried out by HSE, number of written PTW forms used in a chemical plant varied from 3 to 10, and the specificity of these forms lead to greater confusion and thus subsequent loss of efficiency in the system (Iliffe et al., 1999). Additionally administrative difficulties of locating authorized issuers and time lapse between permit’s necessity and issuance contribute to the weakness of a traditional PTW system. There is general lack of clarity and coordination with paper based PTW, with the risk of these being disintegrated risking the loss of site-specific data. The issue of multiple paper PTW is compounded when there are separate maintenance tasks occurring in close physical proximity. This may result in information overload on the workers, diluting the actual purpose of the permit, with redundancy eventually resulting in decreased safety (Iliffe et al., 1999). Comprehensively, it is in these areas that a digital PTW system has great advantages over a paper-based one. As per the report by International Labour Organization 2019, technological developments in worker safety and health could enhance safety by improving real-time communication with workers, enabling safety managers to monitor behaviours (ILO, 2019). Tata Steel, as a pioneer of ‘zero-harm culture’ is constantly invested in developing innovative technologies to ensure the safety of its workforce (Tata Steel in Europe, 2022).

c. Potential benefits of the project

The above problem statement suggests there is a clear need to replace the traditional system, establish a new set of standards governing safety management and bring on a simple and robust system making the best use of technology available today. It also presents the opportunity to shed greater clarity to roles and responsibilities. This proposal, therefore, advocates harnessing the power of technology to ensure the rules of the PTW system be implemented in a robust, consistent, and simple manner. This gives space for more standards to be developed and incorporated easily, which will be too complex in the case of a manual system (Oliver, 2010). Some of the perceived benefits include (Oliver, 2010):

• Standard safety protocols across the organization
• Reduction in system documentation
• Dissolution of permit hierarchy and greater work control
• Same volume of work achieved more safety and more speed.

The potential benefits of implementing digital PTW is elaborated in section below.

Background literature

Most of the research done on PTWs have focused on finding the factors responsible for the failure of the PTW in its content and structure. Abbasi et al., (2021) researched major factors influencing the effectiveness of the PTW to enable adequate prioritizing of preventive measures and reduction of accidents. The top three factors, derived qualitatively by safety experts and quantitatively by data collection and software analysis were “preventive actions, training, and safe procedures,” while the others were “emergency system, control and corrective measures, coordination, monitoring, details of the permit form and documentation” (Abbasi et al., 2021). Also, in a study conducted by Mousavi et al., (2020), the factors responsible for the failure of PTW systems were researched. Here, it was discovered that hazard identification by the PTW in an oil refinery in Iran was poor.

Having helped to shape and edit the content and modalities of the traditional PTW, and aided familiarization with the uses of a traditional one (Subiyanto & Fauziningrum, 2020) research around digitization seem to enhance the full benefits of the traditional system, to deliver seamless benefits. Sarkheil et al. (2019) conducted a study that investigated the fault creators in a paper based PTW system in the starting phase of a gas refinery plant. The issues found revolved around speed and the unavailability of online real-time updates for seamless operations. A semi-intelligent electronic PTW with real-time updates was recommended to bring deviation during implementation and identified fault causing factors to a level “as low as reasonably possible.” Similarly, research by Purwoko and Liawatimena (2020), discovered a gap around compliance as the traditional PTW lacks an efficient accountability monitoring system. They recommended enhancing the PTW system with the use of GPS, facial recognition, and Internet of Things (IOT), ensuring on-site compliance and accountability, while reducing the possibility of human error or negligence. 

d. Market Analysis of the industry

The steel industry plays a crucial role in the growth of the UK’s economy by providing raw materials to various sectors. In 2021, the steel industry provided 39,000 jobs in the UK. Furthermore, economically the output of the industry was around £2.4 billion, which is 0.1% of the total UK economy and 1.2% of the output produced by manufacturing (Jozepa et al., 2023). EU’s contribution to the production of steel was 8% of the world total which is 157 million tonnes of steel in 2019. The UK was the 8 ^th largest steel producer in 2019 when it was a part of the EU member state. Due to the abundance of steel on the international market, there is a fall in steel demand. This has resulted in lowered prices of steel and a surge in the expense of steel production which is higher compared to other countries (Rhodes & Hutton, 2020).

Port Talbot Steelworks, the largest in the UK, produced 3.5m tonnes of liquid steel in the year to March 2022 an increase of 100,000 tonnes in comparison to previous years. Tata Steel UK recorded a 2.7% increase in global steel demand was recorded in 2021, up from 0.5% growth in 2020, and a 3.6% growth in global production. A particularly strong recovery has been seen in the automotive sector, in the second half of the company`s financial year 2022, supply chain problems, particularly semiconductor shortages, hit steel demand in the automotive sector (Guardian, 2022).

Figure 2 United Kingdom (UK) annual crude steel production output from 2009 to 2021 (in 1,000 metric tons) Source- (Statista, 2023).

e. Aims and Objectives

Tata Steel Digital PTW project proposal aims to explore the viability of implementing a digital PTW system over the current traditional paper-based one, by identifying best practices for the purpose of strategic integration of the system into the organizational structure at Port Talbot Steel Works facility.

An objective is simply something that the project hopes to accomplish in the pursuit of a larger goal. SMART stands for "a tool designed to assist organisations and individuals in setting objectives in an effective and productive manner" (Chartered Management Institute, 2014). The letters commonly represent Specific, Measurable, Achievable, Realistic, and Time-bound. However, there are some variations; for example, the S can be interpreted to mean strategic, while the R can be interpreted to mean results-based (O`Neill, 2000). The project`s objectives along with an action plan is given below:

To determine the benefits of implementing a digital PTW instead of a traditional paper-based one

• To research on PTW, its features and importance in ensuring safety compliance in the steel industry. 
• To analyse the current paper based PTW in use and identify the problems faced.
• To identify performance benchmarks of current process for later comparison post implementation. 
• To study the beneficial impact of implementing a digital PTW over the current system-in-use. 
• To study the challenges and implications of implementing the new digital system.

To identify best practices in the implementation of a digital PTW.

• To conduct a situational analysis and map internal resource strengths to the opportunity.
• To conduct a comparative study using scientific literature on evidence-based research. 
• To review success stories from competitors who have put-in-place a digital PTW system. 
• To identify and benchmark frameworks and roadmaps used in successful implementation stories.

To determine the implementation strategies that align with the current organizational structure and culture and identify the best approach for optimization.

• To conduct strategic analysis of the internal and external environment of the organization.
• To evaluate the alignment of mission, vision, and objectives of the organization to the project. 
• To review opportunities and threats that may emerge because of adoption of the new system. 
• To analyse implications of the change in organizational governance, culture, and attitudes.
• To convert the blueprint (structure) of the digital implementation strategy into actionable steps. 

To gauge the success of the implementation by comparing performance metrics pre- and post-implementation

• To compare time taken to raise, approve and grant PTW to a worker-on-site pre and post implementation.
• To assess the cost-benefit impact and environment benefits of the new system. 
• To assess the improvement in level of safety compliance in the work site. 
• To evaluate the feedback and satisfaction of users, customers, and other stakeholders to ensure the change aligns with the organizational vision and mission.

f. Consequences of not completing the set objectives

• If these objectives are not completed, there can be several consequences for the organization.
• If the organization does not implement a digital PTW system, it may continue to face delays and errors in the permit approval process. This can lead to increased downtime and decreased productivity, ultimately affecting the bottom line. 
• If the organization does not identify best practices in the industry, it may miss out on opportunities to improve its operations and marketing efforts. This can lead to a loss of market share and decreased revenue (Özkan & Seyis, 2021).
• If the organization does not determine implementation strategies that align with its current structure and culture, it may face resistance to change and struggle to implement changes effectively. This can lead to delays in implementation, increased costs, and decreased employee morale.
• It may include delayed permit approvals, lost or misplaced permits, compliance issues with regulatory requirements, and increased risk of accidents or incidents due to miscommunication or lack of information
• Overall, failing to complete these objectives can lead to decreased efficiency, effectiveness, and profitability for the organization (Kadir & Broberg, 2021). 

g. Success criteria – Key Value Measures

Success criteria for the aim include demonstrating cost-effectiveness by comparing financial benefits between the digital and paper based PTW systems, enhancing data management through improved accuracy, accessibility, and centralization, and ensuring better compliance and traceability by leveraging improved monitoring and audit capabilities in the digital system.