Abc Steel Company Essay

Robert Cruz, sorely name Shop charabanc of kickoff rudiment Steel friendship, was making his way through the plant back to his office. He had exactly critical reviewed the comp all(a)s most recent operating statistics with his boss, Rudyard de los Santos, Operations director. The statistics were shocking first principle come withs payoff backlog had reached such proportions that top management headstrong not to accept any further business. The company was paying penalties of P50, 000.00 a day due to non-fulfillment of contract pitch shot dates.ABC familiarity was maven of the countrys largest producers of fabricated steel products. The company fabricated and installed storage tanks, mine and chew out railroad car bodies, trench bodies, boats and many types of structural steel. As shown in the organization chart (Exhibit 1), fabrication and facility activities were organized as independent activities.See more Is the Importance of beingnessness earnest a satiric play essayRobert Cruz had recently been promoted from Quality take c ar Supervisor to Shop Manager (see Exhibit 1). cardinal geezerhood overage, Robert had progress toed for ABC confederation for the past 2 years. He had previously worked as a mainsheet metal worker and as an instructor at a United States naval base in Subic. Robert held an engineering degree from a local university.Plagued by an ever-increasing production backlog, ABC Company had situated Robert in charge of all shop operations. There were 200 workers in the shop reporting directly to leadmen who, in turn, reported to mouth supervisory programs.1There were five Bay supervisors reporting to Robert. Before Roberts appellative, Jim Fuentes, 45, was in charge of the shop. It was decided to transfer him to the position of Field Manager. (This position had formerly been a part of Rudyards responsibility.)Before, he and Mr. de los Santos had reviewed the ABC Companys performance. Robert had isolated a number o f critical conundrum areas in the fabrication shop. turnout control was a constant problem. Schedules were drawn up improperly and they were seldom met. For example, a local construction firm had recently contracted ABC Company to build 2 dump trucks. The contract damage agreed upon was P150,000 each, and the trucks were to be delivered in 8 weeks. ABC Company had failed to meet the delivery date.The first dump truck was delivered after 10 weeks time, and the production statistics revealed that out of pocket costs for the first truck exceeded P170, 000. The second truck had yet to be delivered, and Robert estimated that fabrication costs for the two would total near P400,000. It was disc everywhereed that labor and material estimates had been inaccurate. More pregnantly, Robert listed four reasons why tar pop off dates were not met (1) the targets were unrealistic, (2) shifts in men requirements were not anticipated,_______________1All fabrication activities were carried on in separate sections of the plant called bays. Most work orders were started and completed in unrivalled bay less than 20% of the production work flowed from one bay to an opposite.(3 there were no consistent redirect examination policies and (4) machine scheduling was so poor that during one week, a huge piercing machine lay idle, while during the next week it had to be run 22 hours a day.2As shown in Exhibit 1, Rudyard de los Santos was acting Production Control Manager. He and Gabby Alcantara, (Shop Production Control Supervisor), were workings on a more effective system of production control. But Robert believed it would be at to the lowest degree six months sooner any new system would be ready for implementation. As the General Manager admitted, production and control was a hit and head for the hills affair.Another problem Robert Cruz inherited when he took over the fabrication shop was a shortage of skilled manpower. ABC Company had long prided itself on being a produce r of top quality steel products. The use of skilled welders, cutters, and steel workers was ABC Companys merely assurance that this quality could be maintained, and in recent years such skilled workers had become scarce.Finally, Robert had been told that there were serious discipline problemsin the shop. Workers were often tardy. They fraternized constantly during working hours, and often disregard the authority of their leadmen and supervisors. Ninety percent of the laborers came from a nearby baranggay, and many were also baranggay leaders tended to be more lax in implementing company policies and taking disciplinary action against the workers. Other baranggay leaders who did not take over positions of responsibility with ABC Company were able to undermine the authority of the leadmen and supervisors in the shop. Two of the five Bay supervisors were described by the workers as baranggay leaders two were described as being not important in the baranggay. One supervisor was an ou tsider and did not reside in the nearby baranggay.When Roberts appointment to the position of Shop Manager became known, many persons in the shop were surprised. Although his performance in the Quality Control Department had been excellent, many of the old timers in the shop believed he lacked sufficient management experience.Interview with Robert CruzEdison Mojica, an MBA student specializing in Organizational Behavior, had been observing the operations of ABC Steel Company as part of practicum for a number of weeks. He was waiting in the Shop managers office when Robert Cruz returned from his meeting with Rudyard de los Santos. He and Robert sat down and the new Shop Manager began to talk.Robert Well I know Ive got my work cut out for me You should see those penalty figures Well be bankrupt in another five months at this rate Im still swimming in a pool of problemsLots of them. aged(prenominal) problems dropped into my lap._______________2ABC Steel Company fabrication operations were carried on during two eight-hour shifts. The first shift was from 8 AM to 5 PM the second shift was from 5 PM to 2 AM.Whats worst, present problem multiply them (Pause). Of course, management does not expect me to solve these problems all by myself. Im new in this position.besides, the odds seem to be on my side. I would need the help of other departments.Edison What do you mean by odds?Robert Well, take the case of my supervisors in the shop. They are too old to be my subordinates. (Laughs) Not only that, theyre too good to their men. I dont get any bad reports from them. Thats not an accurate reflection of things. The supervisors cant afford to go against the majoritys rule you know how baranggay folks are.Edison But do you get results from your supervisors?Robert Its not a question of getting results from them. Its more a problem of getting the trounce results. Do you imply that my supervisors would have the guts to ask their men to cut out their chat-chats during working hours, or their coming late to work? Or even correcting their poor working habits? Everyone tries to be a supervisor here, you know.Edison How do you propose to correct this situation?Robert The Personnel Department will have to help me regale this problem. My supervisors and leadmen will be given supervisory didactics. If they still dont learn Well, I think I have to be more firmed with them. Right? You see, before I stepped into this shop, these supervisors had been doing the things theyre doing now for generations. Im not exaggerating. I think previous management had been too lax with them. To break a rule was not uncommon. Nobody seemed to check on anyone. Now when I came in, I tried to moil these rules. What happened? The workers thought that Ive created new rules for them. They think Im trying to be strict with them.Edison Whats your major problem in the shop?Robert I have many major problems. (Laughs) But I think production control is the worst of them. We never seem to h ave completed any descent on time. This is whats costing us money. Planning and scheduling are a hit and miss affair. Its really hard to break a habit, isnt it? Besides, our production control section is undermanned, I think. What weve got to do is get the men to think in terms of a schedule, a plan .rather than just working on the job in front of them..The Problem of OvertimeThe following day a Bay Supervisor entered Roberts office and requested that the entire fabrication work force be placed on overtime that weekend to complete a number of unfinished jobs.3 The Shop Manager knew that in recent months overtime expenses were extraordinarily high. Mr. de los Santos and top management had tolerated this extra expense because it seemed to be the only way to meet deadlines. Before granting the Bay Supervisors request, Robert asked for detailed description of the operations that were to be completed during the overtime period.The Bay Supervisor became angry. He stood up and exclaimed l oudly. Nobody in my twenty years in this shop has demanded this from me. Who do you think you are?The two men stared at each other. later on a few moments Robert suggested they review the matter with Mr. Rudyard de los Santos. The Operations Manger, sensing that the Bay Supervisor was very upset, decided that the Supervisor on this occasion need not submit a description of work to be completed. However, it was made an operating procedure from that time on that a proposed overtime activities list had to be submitted before any overtime could be allowed in the shop.The following week Robert found that it would be necessary for one of the fabrication bays to work overtime. He approached the Bay Supervisor and asked him to work overtime on the following day. To Roberts surprise, theSupervisor told him that the men could not make the overtime because they all had previous appointments.ABC STEEL club EssayVIEWPOINTa) Mr. Robert Cruz, newly appointed Shop Manager of ABC Steel Company. Th e company had placed Mr. Robert in charge of all shop operations ORb) Top ManagementTIME stage settingAt presentI.PROBLEM STATEMENTHow can ABC Steel Company avoid delays in the production and delivery of the products to the node?II.STATEMENT OF THE OBJECTIVETo strictly comply with the stated delivery schedule requirement of the customer in recently placed orders and fully accomplish the backlogs within three (3) months.III.AREAS OF CONSIDERATIONA.STRENGTH1.ABC Company was one of the countrys largest producers of fabricated steel products. The company fabricated and installed storage tanks, mine and cane car bodies, dump bodies, boats and many types of structural steel. 2. ABC has the capability to produce top quality steel products.B.WEAKNESSES1.ABC Company has an inaccurate labor and materials estimates2.The targets were unrealistic3.Shifts in manpower requirements were not anticipated4.There were no consistent follow-up policies5.Poor planning and scheduling of manpower and mach ineries6.Shortage of skilled manpower that produces top quality products7.View of subordinates that Mr. Rober Cruz lacked management experience8.Authority of leadmen and supervisors is being disregarded by their subordinates9.Discipline problems among workers and10.Lax in the implementation of companys rules and regulations.11.Production backlogC.OPPORTUNITIES1.ABCs known credibility in producing high quality fabricated steel products can still be used to buckle under other leading consumers in the market.D.THREATS1.Bankruptcy in another five months2.Industrys awareness of ABCs situation/inefficiency3.Decrease in customer loyalty4.Other companies in the same product line that target the delivery schedule of its customersIV.ASSUMPTION/SA.The machineries used by the company are in good condition and are sufficient enough to meet production requirements.B.No price increase in commodities.C.Workers will coordinate with their supervisor in terms of work attitudesV.ALTERNATIVE COURSES O F accomplishmentA.Conduct meeting with Department HeadsB.Resources and personnel maximizationC.Sub-contractingVI.ANALYSISADVANTAGEDISADVANTAGEBetter discernment of companys situationPin-point the source of the problem thru representations of the Heads in their respective departments.Encourage participation of interested personnel in decision-makingTime consumingAdjustment difficulty evacuate idle times of machinesAvoid fraternizing during work hoursCompletion of backlogs/increased in productionHigher cost for maintenance and utilitiesAcquiring the run of company with expertise on the goods / services required.Division of laborLess profitVII.CONCLUSIONAREASACAABCAdaptability332Timeliness332Cost Effectiveness321Manageability332Total12117Legend 1 Good, 2 Better and 3 BestVIII.RECOMMENDATIONACA AIX.DETAILED PLAN OF ACTIONACTIVITIESPERSONS INVOLVEDRESOURCESTIME FRAME1.Conduct management review meetingRudyard delos Santos and Department HeadsMeeting expenses-Weekly (until the comple tion of the backlogs) and -Once every months (routine schedule).2. Strict implementation of management review meeting agreements (e.g. Status reports)Department HeadsMeeting expensesAs required. 2. Conduct Leadership trainings and seminar for Completed Staff Work Managers andStaffAt least 2 training per semester (1 internal and 1 external trainings)3.Creative an incentive scheme (e.g. Star Performer of the month) with incentive bonus StaffEvery month4. Create a Performance Evaluation CommitteeManagers/SupervisorsBefore end of the year5.Conduct of Team Building activitiesManagers, Staff, Department headsCultural expenseQuarterly all department