ABC STEEL CORPORATION: PRODUCTION CONTROL AND BACKLOGS
(A Case Analysis)
Presented to :
DR. NERI S. PESCADERA
In Partial Fulfillment of the Requirements of the Course-
Graduate School of Management - Executive Special Program
Pamantasan ng Lungsod ng Maynila
BARAIRO, MELODY M.
GALSIM, ISAGANI D.
GUTIERREZ, ROMMEL U.
PAGAO, JUANITO C.
SAN GABRIEL, JULIETA P.
TUMLOS, ROGER M.
21 July 2012
I. VIEWPOINT: The Board of Directors
The choice of the Board of Directors [BOD] as viewpoint of the analysis is primarily based on quick-dispatch and pragmatic purposes, i.e., since it has the encompassing capacity to provide for corporate solutions being the highest authority in the management of the corporation, its decision on whatever corporate concern is not subject to any review or approval/disapproval. The corporate officers would only have to implement and carry on what the Board has resolved to adopt.
Between the possible perspectives of a viewpoint, that of the decision maker offers the highest, fastest and independent resolution a corporation, such as ABC Steel Corporation, may adopt. The “recommendatory” perspective requires consideration and approval of the Board. The intricacies from recommendation to review and approval require time. Hence, for a corporation being forecasted to fold in five months if backlogs and penalties are a not subverted, time is of the essence and therefore the most decisive viewpoint, the BOD as decision maker, is considered pragmatically superior.
II. TIME CONTEXT:
This case analysis looks back six years from the current date. This is so considering that based on the facts, the problems brought about by backlogs had been manifest only in December 2006. Although it may presumed that the same set of circumstances prevailed in the previous set-up, for lack of data, this study will not delve on periods earlier than 2006.
The analysis will venture within the time frame and will attempt to propose solutions which are corrective to the problems identified. The proposed solution/s is viewed to be applied prospectively.
III. STATEMENT OF THE PROBLEM
This study identifies policy-related reason/s/cause/s of the work backlogs resulting to delays in the delivery of finished products and the consequent failure to meet contract terms.
IV. STATEMENT OF THE OBJECTIVES
The ultimate objective of this analysis is to provide a solution to keep ABC running, achieving its goals and targets and meeting its accountabilities. The basic objective involves the identification of policy-related issues/problems and to co-relate these matters to solutions that may be provided via policy review and adoption of new/corrective house rules.
Specifically, this analysis will:
1. identify problems related to backlogs and output issues; and 2. propose solutions to identified problem areas.
The identification of problems related to backlogs and output issues is at point with the corresponding proposed solution/s, therefore, specific. The result of the policy implementation in terms of finished outputs vis-à-vis the scheduled outputs is quantifiably measurable. Moreover, the problem identification and proposal of solution/s require no complex procedure and therefore attainable. The proposed solution/s through policy adoption zero-in only to the problems identified and its success will depend simply upon its rigid implementation, hence, realistic. Finally, the period where data are sourced is confined to a certain span of time; the period for data analysis and policy review is set to a maximum one month limit; the application/implementation of the new/corrective policy/cies must be made within five months and the same to subsist prospectively. This thread will account for the time-boundedness of the analysis.
V. AREAS OF CONSIDERATION
Please join StudyMode to read the full document