Purpose of launching a bar fabrication unit
The vertical expansion of the commercial and residential spaces is creating a huge demand for steel and iron works in the buildings. Most of the builders are now looking for Turnkey projects. Keeping this huge demand for bars we wish to launch a bar fabrication unit. This bar fabrication unit will cater to three main purposes.
To introduce a value addition with a help of bar fabrication in the cost of bars, this technical expertise of being closer to the final product will help us in churning out big turnovers even after following a “ just in time” business model. Most of the bar manufacturers follow a “just in case scenario” where they invest heavily (A S Aradhye, 2014).
To cater to the turnkey projects where they are outsourcing parts of their operations, in a turnkey project we break down the tasks into many heads and then distribute them to different vendors.
To develop a core competence in the field of bar fabrication so that we can meet the diversified demands of the industry in the coming future, the market for the fabricated solutions is catching up. Many bar fabrication units have already reached to the levels where they practicing under the rules of the manufacturing on the heavy scale (Wilson, 2012).
Hierarchy chart for the organization
In the above image, we can see the hierarchy Chart for the bar manufacturing unit. Here Directors of the company are on the top alongside the investors and the promoters. Apart from it, we have two separate divisions working for marketing and manufacturing. The manufacturing unit is divided into three fractions where bar fabrication unit is working in coordination with inventory unit and packaging unit.
In the process of recruitment, the directors of the company will evaluate the needs of the staff. We will first come up with a task sheet and weave a responsibility matrix around it (Bogatova, 2017). This list will give us an idea of the fact that we need how many people. We will set up a search committee which will first select the heads of each department. Later on the heads of each department along with the search committee will hire their team for the purpose of the operations.
Under this company, we will follow a strategic style of leadership. The directors of the company will plan strategies to achieve the financial and quality based goals for the company and the teams will follow. Since we are following a “Just in time” manufacturing model we need to have a centralized command line and feedback line. The hierarchy diagram of the company shows double-sided arrows. These arrows indicate that all the teams will work in tandem where the feedback from the bottom will dictate the path for strategy based decision making (Cherry, 2018).
Hierarchy chart for the organization
Our organization will follow the certain codes of ethics while dealing with other organizations, these code of ethics are imbibed in our day to day activities and overall policies that form the crux of our operations.
We deliver what we promise; we never over commit and under deliver at any given point in time.
Time is money when we are dealing with turnkey projects. This organization exists because people want to save time. It is ethical for us to abide by the pre-set time delivery charters. Apart from it we always set a fresh charter prior to each project (ACS Code of ethics, 2016).
As a bar fabrication solution provider we keep the interests of our clients on the top order of our operations. We are committed to delivering with an intention to serve the best interests of our clients as dictated by the deal that we have made with them.
- The quality of the material that we are using is a primary ethical issue. We are duty bound to deliver quality steel with satisfactory technical denomination because we are dealing with a consumer durable product.
- Timely delivery of the goods is another issue. Proper scheduling of the work in accordance with the needs of the client is another issue.
- Maintaining the confidentiality of the deals is another issue. Sometimes architects don’t want to reveal their designs prior to their erection because they can lose novelty.
- We are duty-bound to abide by the oath of the secrecy connected to the orders that we are procuring.
Strength: The culture of the outsourcing of some parts of the construction work is picking up. Since we are going to receive bulk orders we can come up with some cost-effective solutions. This cost leadership in comparison with the traditional methods is our biggest strength (Fallon, 2018).
Weaknesses: For the procurement of the raw material we are dependent on the supplier chains. We are a stand-alone fabricating unit. Most of the other units in the market are owned by the suppliers of the bars. This gives them an advantage because they are interacting with the client directly.
Opportunity: The culture of the turnkey projects is picking up. The construction market is on a boom. Since we are offering a cost-effective, time-saving and effort-saving option, we can increase our share of the market which is increasing at a healthy pace.
Threat: A decrease in the price of real estate can slow down construction industry because the builders and the landowners can slow down the proceedings of the market and it can bring stagnancy on the supporting industries like us (Palh, 2009).
As a company, we are adopting the “Just in time” manufacturing model. This model minimizes the risk factors quite considerably because the gap between the investment and the final delivery is very low. However, the Risk that we are going to face is connected with the unavailability of the big orders. In this case, our investments in the infrastructure and the workforce can become a burden on us (Kee Hung Lai, 2016). As a risk management plan, we will also invest in some standard size bar fabrication solutions. During the idling hours of the work, we will produce them and sell them as a ready solution.
ISO certification gives us a tag that we are in compliance with certain standards of manufacturing. ISO can also be considered as a stamp of quality. In general ISO grading ensures that the manufacturing unit is managing certain standards of quality and it gives an assurance of quality to the customer. In order to maintain a TQM exercise, we will mainly focus on our Process approach connected with the quality of the steel bars and their molding.
Any TQM exercise demands an attention in eight areas. All these areas are connected with the process and the people. Two of these are areas are crucial for us.
- Mutually beneficial supplier relationships
- Constant improvement in the process management.
In order to maintain a TQM status, we have to strike mutually beneficial supplier relationship. We are only offering a service. Whereas a supplier in the steel industry is handling the raw materials that belong to a core industry, the quality of our task is only a value addition in the main deal this is why maintaining a healthy relationship with the suppliers is a must for us.
ACS Code of ethics. (2016). viewed 26 August. ACS, [ Online] .Available at: https://www.acs.org.au/content/dam/acs/acs-documents/Code-of-Ethics.pdf..Viewed 26th August.
A S Aradhye, S. K. (2014). A Case Study of Just-In-Time System in Service Industry. Science Direc.t[ Online] Available at: https://www.sciencedirect.com/science/article/pii/S1877705814035371. viewed 26th August.
Bogatova, M. (2017). IMPROVING RECRUITMENT, SELECTION, AND RETENTION OF EMPLOYEES. [ Online] .Available at:South Eastern Finland, University of applied sciences, https://www.theseus.fi/bitstream/handle/10024/123598/Mariia_Bogatova_Thesis.pdf?sequence=1. viewed 26th August.
Cherry, K. (2018). Leadership Styles and Frameworks You Should Know. very well Mind. [ Online] .Available at: https://www.verywellmind.com/leadership-styles-2795312
Fallon, N. (2018). SWOT Analysis: What It Is and When to Use It. Business News Daily, viewed 26th August. https://www.businessnewsdaily.com/4245-swot-analysis.html. viewed 26th August.
Kee Hung Lai, T. C. (2016). Just-in-Time Logistics. Florida: CRC Press.
Palh, N. A. (2009). Swot Analysis – Idea, Methodology and a Practical Approach. Munich: GRIN.
Wilson, A. I. (2012). Large-Scale Manufacturing, Standardization, and Trade. Oxford Handbooks Online. [ Online] .Available at: https://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199734856.001.0001/oxfordhb-9780199734856-e-16. viewed 26th August.
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