ABC Steel Company Case Study
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ABC STEEL COMPANY
I – Problem Statement
ABC Company’s production backlog had reached such proportions that top management decided not to accept any further business. The company was paying penalties of P50, 000.00 a day due to non-fulfillment of contract delivery dates. II – Statement of the objective
Supervisors and Leadmen will be given supervisory training. Also, enhance the planning and scheduling for the production control of any upcoming projects. III – Areas of consideration:
As of now “ABC Steel Company” still experiencing problems about their productivity and man power. But there are strengths they can still use to fix the problems of the company and there are also weaknesses that they should fix. Strengths:
Ninety percent of the laborers came from a nearby barangay and many were also baranggay leaders that are implementing company policies and taking disciplinary action against the workers. Other baranggay leaders who did not hold 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 “outsider” and did not reside in the nearby baranggay. This can lead to efficient and accurate production because they came from the same barangay. They should trust each other and the supervisors can easily give the task to all of the leadmen and its workers.
As of now there are still many weaknesses that they should change or fix so the company will have its progress and be as good as new again. The General Manager admitted, production and control was a “hit and miss” affair. Which means the production and control sometimes succeeds and sometimes fails. Also, there is a shortage of skilled manpower, the use of skilled welders, cutters, and steel workers was ABC Company’s only assurance that this quality could be maintained, and in recent years such skilled workers had become scarce. And for the workers that are still working, there are still serious “discipline” problems in the shop. Workers were often tardy, they fraternized constantly during working hours, and often disregarded the authority of their leadmen and supervisors. Leaders also tended to be more lax in implementing company policies and taking disciplinary action against the workers. Lastly, production control is the worst of them; therefore planning, organizing and scheduling should be more accurate. IV – Assumptions:
After the Interview that was help on ABC steel company and knowing the problem, strengths and weaknesses of the company. I can assume that lack of budget is the main reason why they’re experiencing all of the problems they’re experiencing now. They just hired supervisors, leadmen and workers in only one barangay. And it makes sense that there are some workers with attitude and disciplinary problems. Supervisors, leadmen and workers know each other so they can just do what they wanted to do before, during and after work. They can’t reprimand any of their peer and that’s the problem that should be taken care of from the start. V – Alternative courses of action
By the assumption we made, they should welcome new professionals that can help them on their major problem about the lack of skilled workers. Also, they should try other ways to approach their workers and how to plan and organize the work load of the workers. They should give rewards to the workers for their job-well-done accomplishments. Motivation will make all of the employees do their job accurately and efficiently.