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Abc Steel Company

Autor:   •  October 11, 2017  •  Case Study  •  1,201 Words (5 Pages)  •  219 Views

Page 1 of 5

Thomas Jesse Albovias



ABC Steel Company is one of the country’s largest producers of fabricated steel products. The company’s dynamic brief is to generate and set up storage tanks, mine, cane car bodies, dump bodies, boats, and various types of structural steel in the Philippines. The ABC Company had long prided itself on being the home of the top quality steel products.

Robert Cruz, 45, is an engineering degree holder. He was promoted from Quality Control Supervisor to Shop Manager. There are 200 workers in the shop, five Bay supervisors, and of top of them is Robert. Reviewing the company’s recent operating statistics with his boss, Rudyard de los Santos, Operations Manager, they found out that the ABC Company’s performance is declining while the production backlog had gotten in such percentage. This main problem had been out of hands that the company has decided to refuse any additional business. The company was paying a P50, 000/day penalty in line to non-fulfillment of contract delivery dates.

The main problem was brought about by different dilemmas under the supervision of the old manager, Jim Fuentes, 45. There are critical problems such as delays on the contracts made, resulting into financial losses and the wrongly made schedules are due to unrealistic targets, poor manpower control, inconsistent supervision, terrible machine handling. Other problems includes skilled manpower unavailability, slackness of employees during working hours, and the fact that all these weak work ethics are stood on by incompetent bay supervisors.

Statement of the Problem

        The newly promoted Shop Manager, Robert Cruz, is bombarded with all the problems. Judging from the factors presented above, the problems continue because the supervisors seem to allow the negligence, laxity, and incompetency inside the shop.

        The difficulty is anticipated from time to time because schedules were poorly decided upon and are often met. Inaccurate labor and material estimates resulted into this. Since the targets are too unrealistic, proper manpower control were not made, supervision negligence occurred, and the schedules of the machines are not followed, the target dates on the contracts will probably be missed thus resulting into big financial losses. ABC Company believed that the use of skilled workers was the only guarantee to maintain their spot as the producer of top quality steel products, and unfortunately the number of skilled workers had declines over the years. Lack of disciplinary actions had been a serious problem and a major contributor to the Production dilemma. Most of the workers result into tardiness. They usually slack off and socialize during working hours. They ignore the authority of their leadmen and supervisors. Ninety percent of the laborers came from a nearby barangay leaders who did not hold positions of responsibility weakened the authority inside the shop.


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