A Study of the Operational Efficiency of SAIL Plants Using SAP-LAP Framework

Abstract

Steel is one of the most essential products of the modern world and is strategically important for any industrial nation.  The steel industry is characterized by high capital intensity, high dependence on bulk raw materials, cyclical growth trends, perpetual over-capacity, and relatively low profitability. This is why the problems associated with the steel industry are generally complex, and the Indian steel industry faces several challenges, including competition from foreign players, rising costs, and increasing environmental regulations. Therefore, it becomes crucial for the Steel industry to adopt efficient management practices that can help it overcome these challenges and improve its performance. Steelmakers need a flexible system management paradigm and a Holistic Framework. One such framework is SAP-LAP, which aims to streamline business processes and enhance efficiency. The SAP-LAP model gives better insight into the status of the case problem, expectations from that case problem, and how to change these expectations into reality. The flexible model of the SAP-LAP, along with internal and external environments, also considers the impact of the dynamic environment on inter-organizational systems and intra-organizational systems. This case study analyzes the challenges faced by the Steel industry and how the SAP LAP framework can help overcome these challenges. The study is based on secondary data sources and Expert views based on open-ended questionnaires from SAIL steel plant senior and middle-level Executives with an experience of more than 15 years in the Indian steel industry. The experts' views were transformed into the SAP-LAP framework and the SAP-LAP analysis. The findings of the study present a report, which serves as a valuable resource for businesses operating in the Indian steel industry or any other sector looking to improve their efficiency and management practices.