In fact, Bayside Aluminum has quite a few advantages other than transportation compared to its competitors. To remain in a good position to be the supplier of choice, Bayside Aluminum must be.
3 1 Casthouse2
In reality, Bayside Aluminum was still high on the cost curve and showed no signs of lowering its cost base. Bayside Aluminum was one of the first companies to adopt the all-inclusive package for employees.
LACK OF CONTROLI
Value of the Research
Bayside Aluminum will therefore need to outperform the current target to be on par with the benchmark smelters. It must be stated that it would be a stretch for Bayside Aluminum to be an improvement on benchmark smelters.
Research Objectives
To be effective, the financial benefits must be in line with those of benchmark companies. The reason for this is that in the same financial year, the benchmark smelters would have also reduced their costs and fallen even further down the cost curve by the time Bayside Aluminum's re-engineering process was complete.
Limitations of the study
Does the process change the modus operandi of the organization, i.e. the way of conducting business, in order to maintain the results of the reduction process in the future. Would the natural attrition process take too long for the organization to downsize.
Structure of the study
- Chapter 2 - Organisational reengineering theory
The process flow can be applicable to any organization and the principles of the process flow are highlighted. A critical view is taken of the results achieved based on different areas of the reengineering exercise.
Important Questions that need to be asked
Research methodology
Summary
Theory
- The cost comparison unit used by all smelters - $/ton aluminium
Bayside Aluminum continues to invest heavily in refurbishing and upgrading smelter components to maintain its global and domestic market position. There is no doubt that Bayside Aluminum has successfully positioned itself as a force to be reckoned with in the global market.
BiDiton
The Brook Hunt cost comparison graph
If other smelters reduce costs and Bayside Aluminum does nothing special to reduce costs, Bayside Aluminum will continue to move up the cost curve. If all costs at the other smelters had remained the same, Bayside Aluminum would have achieved its target. Bayside Aluminum must move faster along the cost curve to stay ahead of the competition.
Bayside Aluminum's total cost of $1200 per ton of Al or the breakeven cost of producing one ton of aluminum is too close to the price of aluminum. Therefore, Bayside Aluminum would look at the components of controllable costs and use them to achieve cost targets.
Benchmarking and its value for Bayside Aluminium
- Metrics or measures of efficiency
- Standardizing Operational Data Definitions
Of the "big six" costs, four can be directly controlled by the organization on a day-to-day basis. If 84% of the company's costs are controllable, this indicates that there may be an opportunity for a major workout or cost savings. External standards must be part of the corporate culture if organizations are to succeed in business today.
Identifying performance gaps (evaluating)
Raising awareness of practices (educating)
Allowing comparisons (benchmarking)
- Why Have a Network?
- Benchmarking process flow
- Cost saving potential for Bayside Aluminium
- Why were items like Alumina, Plant power and Electricity left out of exercise?
- Involvement of a consultant in the reengineering process
- The effect of Outside Consultants Involvement over the Success of reengineering Projects
- Analysis and Results
- Discussion and Conclusion
- Procedure development
This is the figure that will be published to shareholders to inform them of the exercise and the benefits to be achieved. First, being outsiders to the organization, they have a limited knowledge of the existing processes. As for the breakdown according to the level of consultant involvement, it was as follows.
There are several possible reasons why the data do not support the contribution of consultants to the success of reengineering projects. It also causes a serious strain on the relationship between unions and companies to the overall detriment of the company.
BAYSIDE
34;CLOSE THE GAP" (CTG) RETRENCHMENT PROCESS
Affected employees will be informed of their expected exit date subject to the implementation of relevant CTG ideas. Affected employees will be notified in writing of their termination date at least two months before the date. Laid-off employees will be eligible to apply for re-employment at Bayside if vacancies arise for which they are qualified.
Affected employees will be informed in writing by means of a notification letter, as shown in Appendix 5.4 below. Affected employees are entitled to their respective profit sharing benefits upon completion of the respective six-month profit sharing cycle.
Continuous group service means continuous service by employees with Bayside, Hillside and, at a minimum, with any other Billiton company. The average of the sum of the assigned points resulting from the MBO evaluations between the period 01/07/1997 and.
OMET SKILLS LEVEL RATING FOR THE CTG PEOPLE PLAN SELECTION
Summary
It is therefore beneficial for the organization to invest in understanding internal processes as well as the theory surrounding the redesign process to know what to expect once the exercise begins. Bayside Aluminum's management has made a decision to carry out a short-term cost-cutting exercise with the hope that this exercise will bring long-term benefits. It was also hoped that this exercise would enshrine the culture of cost saving in the organisation.
34;Over the past 5 years, Bayside Aluminum Smelter has been in a process of continuous cost reduction. As can be seen from the above statement, the initial decision of the organization was made public about its intention to carry out a renewal exercise.
The first step
- Step 3 - Idea Generation Figure 29
- Idea Generation
- Step 4 - Perform remainder of departments Figure 30
A communications package should be created describing the process and the reasons behind the process. The communications package should be similar to the trial champion's presentation. It is important that all team leaders have a common vision and understand the process well.
A good example of the benefits of process mapping can be seen using the Casthouse example below. In short, process mapping has many benefits for the organization and this should be a process that is anchored in the culture of the organization.
8 ALUMINIUM
Idea syndication
Ideas must be in draft format and then discussed with the involved teams, who must implement the ideas and work with the changed situation. An understanding and support of the idea from the top line management would make it easier during the formal idea approval phase. Once ideas have been syndicated with the appropriate people, defined timelines must be assigned to the idea.
This can ultimately lead to a failure of the idea and increased costs instead of cost savings. Idea syndication also means the involvement of all relevant role players in the organization needed to make this reengineering process a success.
Selection of employees for retrenchment
The consequences of this happening are that people or equipment that need to be removed from the system can be removed in time without introducing a new work system. In summary idea pooling and approval is a critical phase of the process as this will garner buy-in.
Selection criteria
In the case of LST employees, if the number of employees with the lowest points exceeds the required number of employees to be laid off, individual service records will be taken into account. The selection criteria had to be different for the different levels of staff in the organization. After these lists were drawn, the required number of people were selected, starting with the person with the least number of points.
Qualifications are reflected up to NQF level 2 or Std. 8 10 . in company Up to NQF level 3 or Std. The employee performs independent, non-routine tasks of some complexity and exercises analytical, problem-solving 50 and decision-making skills acquired over considerable time.
Calculation of overall rating
Continuous service in the group means employees with the number of employees uninterrupted service with Bayside, Hillsi the smallest service.
Secondary Criteria
- Notion ofVoluntarism
- Retirement considerations
It was important to involve the senior Union members from the beginning of the process for many of the reasons mentioned in the sections above. Some of the outcomes achieved by engaging trade unions in a cooperative rather than a confrontational manner are. The outcome of the negotiations and information sessions held between Bayside Aluminum and the senior union members resulted in a document or contracts being established.
Below is an example of such a response to the unions regarding the questions submitted during one of the meetings. Bayside plans to adopt the principles of the Social Plan to mitigate the potential negative consequences of budget cuts.
Communications
In summary, the interaction between Bayside Aluminum's management team and the unions was very constructive and mature and something other organizations can only marvel at. The most important point to note is that the approach and strategy adopted towards the Union should be mature and focused on cooperation and involving the Union in the whole process.
Summary
- Is it appropriate to benchmark for competitors for the retrenchment and reengineering process?
A good example is the number of contractors used by Bayside Aluminum which increased after the redesign process. In effect, Bayside Aluminum undertook to reduce the number of contractors to zero with the redesign process. Bayside Aluminum has required an average of seventy labor hire contractors since the end of the redesign process.
Bayside Aluminum has become a benchmark expert as a result of sustained management action to ensure that every aspect of the business is benchmarked. Therefore, choosing the redesign process was the right path to choose so that Bayside Aluminum ensures long-term survival.
The end results - Exploring the effectiveness and benefits obtained from the retrenchment process
The abnormal process of natural attrition, i.e., not filling positions when people leave the organization is a good system that every organization should adopt. Bayside Aluminum needed to be proactive about the cost saving exercise and could not afford the luxury of waiting for people to leave the organization.
BAYSIDE YTD FTE
- Conclusions
- Bayside Aluminium identified one of the major flaws being Maintenance Management. Was Maintenance management addressed during the
- Addressing incompetence within the workforce
- Continually take quick hits
- Benchmark continually but do not make it into a core business
- Make mapping the process a continuous process
- Stick to the plan
- Be more realistic with financial reporting and tracking
If a reengineering process is not part of the business plan, the organization should not consider it. It is important that the various departments continue to focus on the day-to-day running of the business instead of being sidetracked by the reengineering process. Shareholders are also affected by the timing of the process and would make financial predictions based on the program of the restructuring process.
It has been mentioned several times in previous chapters that the financial position and impact of the renovation process must be reported or at least tracked in the correct context. Most importantly, the main owner of the process must be the middle management team.
Bibliography
Journals
Internet References
