4 Whereas there are leaders in the private sector at par with the global bests

4 whereas there are leaders in the private sector at

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4) Whereas there are leaders in the private sector at par with the global bests in operation, the public sector plants suffer from both high capital costs and inefficient operation. 6. Proposed Framework to implement operations strategy Strategic Options for the industry 1) Commodity character of steel is fading away.The industry has to look at emerging trends in product development and path breaking technologies. 2) This means massive investment in basic research or investment on high end imported technology is required. 3) The industry has to change its operations and business practices to support new product development in collaboration with the end users constantly much ahead of time. 4) A capital intensive industry cannot run on volumes and low value products alone.
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5) The steel end user industries have to be modern and technologically competitive to create demand for high end steel products. The steel industry need to have programme for that to happen. Strategic Options for the Industry. 6) Raw materials are important but no global shortage is feared. 7) Global iron ore and coking coal capacities are to push aside overall supply risks for India’s steel industry. 8) But, overdependence on Australian coking coal is risky due to unpredictable and changing climatic and weather conditions. 9) Other nations such as China, Japan, Korea, etc. are also significantly dependent on Australian coking coal. Therefore, adverse conditions of mining and transport may hit Indian steel plants hard. 10) Indian steel will have to diversify coking coal sourcing options. 11) Indian steel makers will have to depend on suitable blends from multiple sources rather than tightly dependent on a few. Strategic Options for the Industry 12) Strong steel scrap conditions will significantly change the technology options for the steel industry worldwide as also for India. 13) Indian steelmakers should consider scrap/Sponge Iron option more seriously as also coal gasification to reduce dependence on imported coal. 7. Conclusion and Discussion The challenges that confront Indian steel industry in the age of globalization are complex in nature. The secret of sustainable turnaround lies in how Indian steel industry faces the challenges and develops combative and anticipatory process. The achievement of operational excellence often required a significant cultural change in operational Management in order to be sustained. Operational Management process must be well planned and coordinated so that employees are involved throughout the process and that all improvement activities occur in a coordinate manne. 8. References 1) 2) or-days/2010/627-48-2-0-InvestorDay2010-Presentation-Guup.pdf 3) Neelachal Ispat Nigam Limited, Kalinganagar, Odisha Case Study Operation Management In Steel Plant Santosh Kumar
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  • Spring '15
  • nauriyal

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