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Published by: IBS Center for Management Research
Published in: 2002

Abstract

The case talks about the operational changes at Tata Iron and Steel Company (TISCO) that enabled the company to become the lowest cost producer of steel in the world. TISCO initiated a five-phase modernisation programme in the early 1980s, to overcome problems in the steel-making process. The programme's primary objectives were to enhance the operational processes and reduce costs. The operations aspect was addressed in Phase III of the programme with the help of consultants McKinsey and Booz Allen-Hamilton. McKinsey designed a programme called Total Operational Performance (TOP). TOP's main objective was to impact the bottom line with minimum expenditure and minimum time. TOP enabled TISCO to improve its performance. TISCO also achieved cost reduction through other strategies like manpower reduction, organisational restructuring, and using information technology to enhance certain business processes. With the completion of the modernisation programme, TISCO was able to record profits despite the low global demand for steel and cheap imports.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Industry:
Size:
Large
Other setting(s):
1998-2001

About

Abstract

The case talks about the operational changes at Tata Iron and Steel Company (TISCO) that enabled the company to become the lowest cost producer of steel in the world. TISCO initiated a five-phase modernisation programme in the early 1980s, to overcome problems in the steel-making process. The programme's primary objectives were to enhance the operational processes and reduce costs. The operations aspect was addressed in Phase III of the programme with the help of consultants McKinsey and Booz Allen-Hamilton. McKinsey designed a programme called Total Operational Performance (TOP). TOP's main objective was to impact the bottom line with minimum expenditure and minimum time. TOP enabled TISCO to improve its performance. TISCO also achieved cost reduction through other strategies like manpower reduction, organisational restructuring, and using information technology to enhance certain business processes. With the completion of the modernisation programme, TISCO was able to record profits despite the low global demand for steel and cheap imports.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1998-2001

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