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  • Situational Analysis: Strategy Structur E Systems

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    Kalyan Ch
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    The document discusses the situational analysis and strategy of a steel manufacturing company. It aims to increase production capacity from 2000-2002 and then reduce costs once capacity is reached from 2003 onwards. The company structure changed from a functional structure to a process-driven structure. While costs per metric ton decreased for the sheet mill and casting machine over time, the cost per worker in some departments was high compared to similar departments. Several critical success factors are identified such as quality, skilled workers, on-time delivery, cost, customer focus, technology, automation, production efficiency, and raw materials.

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    Situational analysis

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    The document discusses the situational analysis and strategy of a steel manufacturing company. It aims to increase production capacity from 2000-2002 and then reduce costs once capacity is reached from 2003 onwards. The company structure changed from a functional structure to a process-driven structure. While costs per metric ton decreased for the sheet mill and casting machine over time, the cost per worker in some departments was high compared to similar departments. Several critical success factors are identified such as quality, skilled workers, on-time delivery, cost, customer focus, technology, automation, production efficiency, and raw materials.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    15 views2 pages

    Situational Analysis: Strategy Structur E Systems

    Uploaded by

    Kalyan Ch
    The document discusses the situational analysis and strategy of a steel manufacturing company. It aims to increase production capacity from 2000-2002 and then reduce costs once capacity is reached from 2003 onwards. The company structure changed from a functional structure to a process-driven structure. While costs per metric ton decreased for the sheet mill and casting machine over time, the cost per worker in some departments was high compared to similar departments. Several critical success factors are identified such as quality, skilled workers, on-time delivery, cost, customer focus, technology, automation, production efficiency, and raw materials.

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    © All Rights Reserved
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    of 2

    Situational analysis

    STRATEGY
    STRUCTUR
    E
    SYSTEMS

    Modernization & expansion - cold rolling technology to remain


    competitive
    Skilled workforce without supervision
    Non critical jobs are outsourced
    Lean & flat organisation structure
    Pay for performance

    Year

    2000-02

    2003-..

    Objective

    To increase production
    capacity

    Once, the capacity is reached, reduce


    costs

    Structure

    Functional structure

    Cost/MT

    Sheet Mill

    HSM

    2400
    2200
    2000
    1800
    1600
    2002

    2003

    After gaining expertise process driven


    structure of Sheet mill was being studied
    Cost effectiveness

    Cost per worker high in comparison to similar departments


    Number of workers in worker level 2 increased to 370
    Rewards amounts decreased and new worker level
    introduced to manage costs
    Decreasing reward amounts led to lower satisfaction levels
    They could not reduce cost as envisaged for automation

    G14009 - Ananya Das; G14015 C.Abhishek ; G14020 - Ipsita

    Critical success FACTORS

    Quality
    Skilled worker
    On time delivery
    Cost

    Revenue
    s
    Volume
    s

    Margin
    s

    Customer
    focus
    Cost

    Quality

    On time
    delivery
    Technolog
    y

    Automatio
    n
    Skilled
    Worker

    Productio
    n
    efficiency

    Raw Material

    G14009 - Ananya Das; G14015 C.Abhishek ; G14020 - Ipsita Ghosh; G14022 - C K K Mohan

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