CASE ANALYSIS – ABC STEEL COMPANY

I. VIEWPOINT: Vice-President Production

II. TIME CONTEXT: Upon appointment of Mr. Roberto Cruz as the new Shop Manager III. PROBLEM STATEMENT
Delay in delivery of finished goods

IV. STATEMENT OF THE OBJECTIVES
To zero backlog by end of the third month.

V. AREAS OF CONSIDERATIONS

Strengths
 Producer of top quality steel products
 Largest producer of fabricated steel products
 Majority of workers are within nearby district
 Management is responsive to the problems in the organization
 Management are open to appoint employees to open position(s) within the organization (vertical movement/lateral movement)

Weaknesses
 Shortage of skilled manpower
 Workers constantly violating company rules
 Damaged reputation with clients due to late delivery
 High cost of operational expenses due to excessive overtime pays and payment of penalty for undelivered items
 Poor planning and coordination
 No back-up plan
 Possibility of going chapter 11
 Inaccurate estimates and targets
 Discipline problem
 Shifting and work schedule
 Some of the middle management lacked sufficient “management experience”

Opportunities
 Arrival of new technologies that would fast track the fabrication of steel products
 New partnerships or mergers with local and international firms
 Innovative product variations
 Export of services & products
 Skills Training School (accreditation to TESDA)

Threats
 Emergence of substitute products
 Increase in price of raw materials
 New competition
 Government-mandated increase in labor wages
 Expansion of competitors

Sourcing of Sub-Contractor VP Production, Admin, Finance, GM, OM, Shop Manager & E&R Manager 3rd day – PM Board Room Identify which part of the process, volume and estimated cost should be subcontracted. Admin should