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ABC Steel

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ABC Steel
CASE ANALYSIS
ABC STEEL COMPANY
(for Human Behavior in Organization)

VIEWPOINT: a) Mr. Robert Cruz, newly appointed Shop Manager of ABC Steel Company. The company had placed Mr. Robert in charge of all shop operations; OR b) Top Management

TIME CONTEXT: At present

I. PROBLEM STATEMENT:

How can ABC Steel Company avoid delays in the production and delivery of the products to the customer?

II. STATEMENT OF THE OBJECTIVE

To 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 CONSIDERATION

A. STRENGTH
1. ABC Company was one of the country’s 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. WEAKNESSES
1. ABC Company has an inaccurate labor and materials estimates;
2. The targets were unrealistic;
3. Shifts in manpower requirements were not anticipated;
4. There were no consistent “follow-up” policies;
5. Poor planning and scheduling of manpower and machineries;
6. Shortage of skilled manpower that produces top quality products;
7. View of subordinates that Mr. Rober Cruz lacked management experience;
8. Authority of leadmen and supervisors is being disregarded by their subordinates;
9. Discipline problems among workers; and
10. Lax in the implementation of company’s rules and regulations.
11. Production backlog

C. OPPORTUNITIES
1. ABC’s known credibility in producing high quality fabricated steel products can still be used to generate other leading consumers in the market.

D. THREATS
1. Bankruptcy in another five months;
2. Industry’s awareness of ABC’s situation/inefficiency; and
3. Decrease in customer loyalty
4. Other companies in the same product line that target the delivery schedule

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