Capability Evaluation in Global Steelmaking

Summary

During recent years more and more companies have embarked on studying the feasibility of globalising their manufacturing activities as a means of gaining access to new markets, minimising production costs and taking advantage of regional investment incentives. The steel industry in the developed countries in the West is at cross roads today. Demand in their countries has stagnated and overcapacity is a major problem. Steel industry is growing fast in developing countries offering competition for export markets. Still there is immense scope for the industry to grow in these countries , an opportunity for steelmakers in developed countries. A Manufacturing Capabilities Model is being developed for the steel industry to measure, compare and project the manufacturing performances of a company, if it supplies to a particular market using products manufactured in different locations. This paper identifies the performance parameters in the context of the steel industry, defines the Manufacturing Capabilities Model and demonstrates the way it can be implemented.