A STEP TO BANGLADESH
Tata Steel is well known for Steel Production but we also serve Paint Industry. Due to global rise in demand of Paint and coating by 5.2% in which Asia is the fastest growing continent among others, hence we planned to put our legs in Bangladesh considering several factors like low manpower cost, less regulations and governance, manpower productivity. We come up with Idea of manufacturing Cement Based Paint considering economy of Bangladesh and the choice of customers.
Major idea behind this project was to cater the increasing demands of customer from East
Asia by reducing the price of product. But unfortunately, after setting up plant with investment of Rs. 25 Crore, we are not able to sustain in Bangladesh for more than six months. Although the demand was high we fall short in our expectations and we finally decided to shift back to India and continue to export these products as per demand.
Reason behind failure was very simple. Initial one month we transferred our employees from
India but later on we decided to hire the locals and continue the business. From second month itself we found productivity of plants started declining and the reason behind that was inadequate knowledgeable workforce.
During expansion we focused to look on the price margin and only opportunity cost associated with the project like cheap labour, ease availability of resources, etc. But we never checked for the standard of the workforce. We never went for calculating OLE (Overall
Labour Effectiveness) of workers of Bangladesh.
OLE basically measures the three parameters, broadly:
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Availability - the percentage of time employees spend making effective contributions
Performance- the amount of product delivered/ output
Quality- the amount of perfect or saleable product produced

In general we can say, OLE helps companies to ascertain that