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1- NEW COMMAND AT PAKISTAN STEEL
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TRADE FACILITATION

 

NEW COMMAND AT PAKISTAN STEEL

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Guiding SWOT analysis

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By ALY KHAN
Feb 02 - 15, 2004
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SWOT analysis according to Management Guru Bovee is a situational analysis tool that helps managers to identify internal strengths and weakness, external opportunities and threats, and the potential impact of these factors on organizational performance.

If one goes into this type of activity taking Pakistan Steel into focus, we can get this type of analysis.

STRENGTH:

No local competition, in fact absolute monopoly. Occasionally Ship Breaking moguls may offer competition at time when the ships are cheap or can be under invoiced, or Local steel ingot manufacturers who with the help of WAPDA linemen can get electric consumption waiver.

Company is not in red (adequate financial resources available, in fact Bank loans are being paid back thanks to Late Col policies).

Voluntary retirement option available all the time. Any employee can opt for this Golden type hand shake. No question asked neither answered. Through this scheme about 8000 employees relieved off. (Mostly Kam kay Banday).

Only Mill in Pakistan to produce Flat products. Hot rolled, Cold rolled and Galvanized products.

Customers no quality complaints approach (as they would not get the product if they complain).

Labour Unions not operative (Big plus). No strike chances.

Marketing Strategies. (keeps on increasing the price daily, if not hourly).

Technical Manpower, Honest and Hard working can be relied upon.

WEAKNESS:

Demoralized work force (Company wants every one to go, Entropy operative, Motivation, innovations, creative suggestion non existent, One of the plant called Raw (Not Indian) Material Handling plant is being used as Concentration plant, the head of the plant is follower of Hitler's mein kamp)

No clear strategic direction. (only retrenchment strategy implemented.

Company though ISO standard certified, Quality Management System exists only in letter not in spirit.

Spare parts manufacturing facility at its Foundry and Heat treatment and Machining shop has degenerated because of no Improvement policies. No new facilities have been added up. Heat treatment cannot be properly done.

Human resource Development is considered bad for Company's health.

Information Technology not being promoted, Company's Computer Service bureau which in the past developed lot of Useful programmes now is not in the front. Where as the whole country has made advancement in this area at PS it was put into Fast Backward scenario. Most of the Manpower left.

Corrosion Eating up the whole plant, not much of Corrective action. Visit to Sea water Pump house will tell you all, sea water leaking through the walls. If the walls break the plant breaks.

Shortage of Phenol eating Bacteria. Russian supplied this bacteria to eat phenol a deadly waste from PS Coke Oven bye product plant. This bacteria civilization has vanished alternate not yet developed. Probably waste water containing phenol being discharged. Grave violation of National Environment Quality Standards.

Research and Development which is the index of Development of any good steel plant hardly exists at PS. Find out the number of papers published or patents developed. There will be hardly any. This is a Metallurgical Crime.

Technical Wing and Design Bureau are the main think Tanks according to Russian Steel plant designers. The same has been unceremoniously destroyed almost beyond repair. Engineers working in this area should have been taken care off They were forced to leave.

Russians gave Metallurgical Training Center for development of work force, here Excellent Diploma programmes in Metallurgy, Electronics were being conducted the same have become Second class institutions with nobody willing to support them.

 

 

Previous Chairmen like Gen Sabeeh, Haq Nawaz Akhter had the vision of setting up Post Graduate Metallurgical Institute called Institute of Materials Sciences and Research offering Masters degree programme in Metallurgical Engineering and was affiliated with NED University. The Institute produced top class Scholars who are working in top metallurgical organizations in the country has been closed down. Metallurgical Crime which will not be forgiven. Need to restart.

Cold Rolling Mill and Hot Strip Mills needs to be upgraded to produce Quality product with controlled thickness variations. No body is willing to take a decision.

Too much interference of monitoring agencies. People are afraid to take decision.

Company's promotion policy require an officer to be Mr. Seventy percent to get promoted. The promotion policy is so unfair that an officer against whom case is registered by FIA is more likely to get promoted than the others. Similarly officers who have been suspended are more likely to be promoted than others who are not. The policy is so unfair that even person like Mr. Advani will cry if he sees this policy.

The most notorious operation is called Annual Confidential report. This is used for a KILL. Careers destroyed without any officer knowing his crime. There is need to fill performance appraisal in front of officers as done in any civilized steel Mill. No stabbing from the back.

OPPURTUNITY:

Due to excellent financial position, Expansion plan to 3.5 million tons per annum has Government approval. This needs to be put into full gear and implemented. Must for the Country. Enough time has been wasted.

Need to promote spare part development in the country through Joint Ventures in Public and Private organizations, This will give the adrenalin for development.

Make this plant centre of Excellence for Muslim World.

Hold Seminars and Share with others.

GO for JOINT ventures. in Spare parts development

THREATS:

With WTO tariff becoming operative and Indians steel import to start, high prices of PS products will not make it competitive. Better look out General.

FINALLY: The new Commander with his excellent previous back ground can add more value to the plant. GO for Human Resources development. Don't feel shy of Hiring fresh graduates. By 2997 you will hardly have any technical person to run the show.

Motivate and take care of Employees working for you
Be Humane. God loves those who love HIS Creations