Pamantasan ng Lungsod ng

Maynila
Graduate School of

ABC STEEL
COMPANY
Case analysis
Submitted by:
Lacsamana, Edita Mara
Manay, Christer
Montalbo, Hanna Kristine
Ordonez, Joana Dyan
Rivera, Glaiza
Human Behavior in Organization
6:00pm 9:30p.m., Mondays
2nd Semester of SY 2013-2014
Submitted to:
Dr. Neri Pescadera

1. Viewpoint
Mr. Robert Cruz
(The newly appointed Shop Manager of ABC Steel Company)
2. Time Context
Three (3) Months
3. Statement of the Problem
Numerous backlogs resulting from poor production control
4. Statement of the Objectives
To eliminate backlogs within the three-month time period
5. Assumptions
o The newly appointed Shop Manager has substantial knowledge as to the production
process and personnel involved in each process.
o The Shop Manager has authority given by Top Management to revise or implement
changes on certain policies that may be needed to improve the existing system.
6. Areas of Consideration
Strengths
ABC Steel Company was one of the largest producers of fabricated
steel products.
Its specialization in its industry gives its edge as to its competitors.
They have machineries and equipment that can be used for the
production of its specialized products
Robert Cruz - his drive to implement policies and procedures
Robert Cruz his experience as a sheet metal worker and as an
instructor.
Weakness
Production Control is the worst problem in the shop
Production control was a hit and miss affair
Shortage of skilled manpower
Serious discipline problems
Unwillingness to adapt to new management/new leader
Familiarity threats as to members especially on performance
evaluation
Poor organizational policies
Inability to achieve cost efficiency
Lax employees
Targets were unrealistic
Shifts in manpower requirements were not anticipated
No consistent follow-up policies
Machine scheduling was so poor
Opportunities
ABC Steel Company has penetrated the market and has its own
market share
It was one of the countrys largest producers of fabricated steel
products
Supervisors and leadmen (under Mr. Cruz) will be given a
supervisory training

Threats

The Companys inability to meet deadlines might cause loss of loyal

and recurring clients
The continuous inefficiency in the production may cause breach of
contracts between the company and its clients that may give rise to
potential law suits.
Inability to cover maturing penalties (because of lack of funds to
sustain such costs) may worsen the financial difficulty being faced
by the company.
Bad Reputation in the industry
Inflation due to the possibility of increases of price materials &
other fabrication related resources
Competitors may surpass them

7. Alternative Courses of Action

ACA No. 1 - Finish all the deliverables by maximizing company resources (plus realignment of shifts and schedules including overtime)
ACA No. 2 - Prioritize past due contracts while Sub-contracting long maturing
deliverables
ACA No. 3 -Re-negotiate some contracts which are most likely to be undelivered by
the due date; or terminate contract
8. Analysis
ACAs
ACA No. 1

Advantages

ACA No. 2

Proper scheduling of the laborers

shift can be implemented
Proper utilization of equipment
Good reputation to clients
Targets will be reached
Backlogs will be minimized and
eventually eliminated
ABC can obviate breach of
contracts or any possible
litigation/lawsuits
ABC Steel Company may prioritize
past due or near due contracts;
thus, minimizing or avoiding
penalties
With lesser pressure and work to
be done, effective scheduling of
manpower and discipline can be
implemented
Proper utilization of equipment

Disadvantages

Employees might still

be uncooperative
Limited time
Costly

Difficulty in finding a
dependable
subcontractor/s
Quality control from
ABC of the product
may be put into
question

ACA No. 3

Possible extension of deadlines with minimal or

no cost
Could maintain a good business relationship
with customers as opposed to not meeting
deadlines & causing inconvenience to our
customers
Termination fees could be lesser than total
penalties if deliveries are not made on time
Placing another estimating department under
the operations manager will provide a more
accurate quotation with the labor and
timetable.

Could give a negative

impression of the company
Having another estimating
department might confuse
the employees
Possible opportunity loss with
termination of unsettled
contracts.

9. Analysis

Decision Matrix
CRITERIA

ACA NO. 1

ACA NO. 2

ACA NO. 3

PROFITABILI
TY

EFFICIENCY

EXECUTABIL
ITY

REPUTABILI
TY

Total

12

10

Rating:
3 Highest
2 Moderate
1 Lowest

Upon consideration of all the Advantages and Disadvantages of all the Alternative Course of
Actions from ACA1 to ACA3; and based on the Decision Matrix wherein criterion of

Profitability, Efficiency, Executability and Reputability have been carefully considered, WE

THEREFORE RECOMMEND ACA NO. 1 AS THE ANSWER TO OUR PROBLEM STATEMENT.

10.Plan of Action
ACTIVITY
Formation of Rules for proposition:
1. Planning of Target Dates
2. Shifts in Manpower (Adjust
schedule of the workers into three
(3) shifts)
3. Quota/reward system point
system for every project or
accomplished to be awarded
semi-annually.
4. Reinforcement of tardiness
penalties provide ultimatums for
the tardy labourers
5. Overtime Rules and Regulations
Propose to Operations Manager together
with the Field Manager and Production
Control Manager regarding:
Rules for Propositions made
Proposition to the General Manager (with
the approval of the Operations Manager
the subordinate managers)

Proposal to the Executives and VPs (with

the approval of General manager)
Finalization of rules and Regulations
Creation of memorandums
Allocation of budget for the

Implementation

RESPONSIBLE PERSON

TIME FRAME

Shop Manager

Shop Manager , Field

Manager, Production control,
Operations Manager
Shop Manager, Operations
Manager, General Manager

Shop Manager, Operations

Manager, General Manager,
VPs, Board of Directors

Board of
Directors/President/VPs

General Manager,
Operations Manager,
Shop Manager, Field
Manager, Production
Control Manager

-=The End=-

Continuous

Thank You