Case Study : RINL Vizag Steel

Plant

By
Praveen Kumar. E
Satish T.K.
Sakthi Vigneshwar. K
Hinduja G.J.
Lakshmi P.R.

INCORPORATION
Plans were announced in 1971 by then Prime
Minister, Indira Gandhi.
Initially was a plant of Steel Authority of India
Established as a separate company in 1982.
Constructed in collaboration with former USSR and
Germany

ABOUT THE ORGANISATION

Most modern steel plant in India
It has a strength of 2,500 executives averaging 6
employees per executive
It has strong financial backup
State of the art production unit

OBJECTIVES
To achieve the rated capacity of 3 Mtpa of
liquid steel
Achieve higher levels of customer satisfaction.
Vibrant work culture in the organization.
Be proactive in conserving environment.
Maintaining high levels of safety.

PROBLEMS FACED
Rehabilitation of displaced employees
Multiple labor unions
Lack of managerial turnover
Competition

STRENGTH
Shore based location.
Operational Efficiency.
Diverse Customer base and extensive marketing network.
Availability of Land.
Image as quality producer.
Strong credit worthiness.
Committed manpower

WEAKNESS
At present there is no formal mechanism of
assessing the performance of Independent
Directors, the performance of the
Functional Directors is evaluated by the
Administrative Ministry

OPPORTUNITIES
Encouraging growth projections.
Huge infrastructure spending planned in 12th
five year plan.
Improved availability of Ports & Logistics.
Product diversification.
Scope for improving balance sheet

THREATS
Increased competition.
Increasing Raw Material Prices.
Oligopolistic coal supply side.
Single iron ore supplier.
Predominant secondary sector in long products.
Slowdown in economic growth.
Declining margins due to increasing cost of production

SKILLS REQUIRED BY THE CMD

The Chief Manager Director (CMD) has to be a
person who is a real leader by virtue of his
qualities. He has to lead the change from the
forefront in order for the change to be effective.
The workers has to know who they are working
for.
He has to motivate the executives enough, so that
the same vibes can be carried over by them to be
labours

SKILLS REQUIRED BY THE CMD

He has to understand the people as there is
always a change of character or traits from
one person to another.
The stratergy must be able to identify the
weak links and strengthen or rectify them.
By rectifying the problems of the workforce an
great deal of efficiency and effectiveness can
be achieved therefore increasing the profits
by reducing the price.

HOW TO ACHIEVE CORPORATE

EXCELLENCE?
A bias for action
A preference for doing something or
anything rather than sending a question
through cycles and cycles of analysis and
committee reports.
Staying close to customer
Hearing his or her perferences and
catering to them.

Autonomy and entrepreneurship

Breaking the corporation into small companies and

encouraging them to think independently and competitively.

Production through people

Creating awareness in all employees that their best

efforts are essential and that they will share in the rewards
of the company success.

Hands on value driven policies

Insisting that executives keep in touch with the firms

essential business.

 Stick to knitting
Remaining the business that the company know the best.
Simple form lean staff
Few administrative layers few people at the upper level.
Simultaneous loose tight properties
Fostering a climate in which there is dedication to the
central vale of the company combined with tolerance for all
employees who accept those values.

CONCLUSION
Selection of Chairman-cum-Managing Director and Functional
Directors is done by Public Enterprise Selection Board (PESB)
through the selection process laid down by the Government of
India.
Implement system standards such as QMS as per ISO 9001,
EMS as per ISO 14001 and OHSAS 18001 and ISO 50001 for
Energy Management and CMMI - Level 3 for management of IT
processes
Linkage of compensation of functional Directors with the
performance of the company

THANK YOU