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Case
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Reference no. 691-002-1
Authors: Meena Adusumalli (Centre for Organization Development); K Paul Chinnasamy (Centre for Organization Development)
Published in: 1991
Length: 15 pages
Data source: Field research

Abstract

The Government of India decided to set up the Silicon Steel Mill in Rourkela Steel Plant, Orissa, to meet the demands for electrical steel in the country. The approval for the project was given on 19th November, 1977 for a construction schedule of 40 months and estimated cost of Rs.109.73 crore, of which the foreign exchange component was Rs.51.03 crore. The project was to be completed by January 1981. However, the Directorate General of Trade and Development (DGTD) issued a directive calling for indigenization of equipments. The Indian consultants and suppliers did not have the adequate expertise to implement the project. There were too many work packages and complicated contractual relationships with the suppliers and consultants. Hence the project implementation resulted in inordinate time and cost over-runs. The teaching objective of the case is to sensitize the managers to problems of project management and indigenization. The questions for analysis can be: (i) what went right?; (ii) what went wrong?; and (iii) what are the lessons for Project Management?
Location:
Industry:
Size:
Large
Other setting(s):
1977-1985

About

Abstract

The Government of India decided to set up the Silicon Steel Mill in Rourkela Steel Plant, Orissa, to meet the demands for electrical steel in the country. The approval for the project was given on 19th November, 1977 for a construction schedule of 40 months and estimated cost of Rs.109.73 crore, of which the foreign exchange component was Rs.51.03 crore. The project was to be completed by January 1981. However, the Directorate General of Trade and Development (DGTD) issued a directive calling for indigenization of equipments. The Indian consultants and suppliers did not have the adequate expertise to implement the project. There were too many work packages and complicated contractual relationships with the suppliers and consultants. Hence the project implementation resulted in inordinate time and cost over-runs. The teaching objective of the case is to sensitize the managers to problems of project management and indigenization. The questions for analysis can be: (i) what went right?; (ii) what went wrong?; and (iii) what are the lessons for Project Management?

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1977-1985

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