Case Analysis: ABC Steel Company

Decent Essays
Register to read the introduction… Most work orders were started and completed in one bay; less than 20% of the production work flowed from one bay to another.

(3 there were no consistent “follow-up” policies and (4) machine scheduling was so poor that during one week, a huge cutting machine lay idle, while during the next week it had to be run 22 hours a day.2

As shown in Exhibit 1, Rudyard de los Santos was acting Production Control Manager. He and Gabby Alcantara, (Shop Production Control Supervisor), were working on a more effective system of production control. But Robert believed it would be at least six months before any new system would be ready for implementation. As the General Manager admitted, production and control was a “hit and miss” 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 producer of top quality steel products. 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
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Workers were often tardy. They fraternized constantly during working hours, and often disregarded 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 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 …show more content…
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 Supervisor’s 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 loudly. “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. After 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

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