Abstract

Lakshmi Mittal of Ispat group takes over a factory in Mexico plagued with technical problems, running at 20% capacity and producing low quality slabs. The new management emphasises cost consciousness and discipline, overhauls the plant's existing cost accounting system, and dismisses the external consultants. Ispat also starts looking at overseas markets for Imexsa's products internationally to ensure that the entire production is sold. The management strives for constant improvement through daily meetings and reports, quality programmes, global integration and stretch goals.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Mexico, Ispat, Imexsa, Turnaround, Sircasta, Nair, Steel, DRI (direct reduced iron), Cost cutting, Product mix, Marketing steel