Producing quality steel by stressing sound management

Assignment Help Marketing Research
Reference no: EM13981

Nucor Corporation- Producing Quality Steel by Stressing Sound Management Practices

Nucor Corporation, headquartered in Charlotte, North Carolina, is the largest manufacturer of steel and steel products in the United States. The company received a great deal of attention because of its impressive performance in an industry plagued by a multiple of problems, especially in recent years. Si8nce the 1970's, Nucor pioneered the minimill concept, which is a method of making steel by melting scrap metal in electric arc furnaces at a fraction of the cost of conventional steelmaking. Nucor is admired for its quality products, its state-of-the-art manufacturing processes, and its industry- leading productivity ratio.

Although the company has recently made key acquisitions, and has modern facilities and equipment, competitors that have the same level of technology do not fare as well. What Nucor does have that is unique is a set of sound management principles and a somewhat novel approach to employee relations. Although Nocur is a $4.8-billion-per-year company, there are only four management layers between the CEO and frontline employees, and the general mangers on the plant floor make the day-to-day decisions. Rank-and-file employees are involved in devising methods to improve operations. The company has a very egalitarian culture. There are no company cars, company planes, assigned parking spaces, hunting lodges, and or other indication of status. All the employees wear the same color hard hat (with the exception of maintenance workers and visitors, who must be easily recognizable in case of an emergency), have the same group insurance program, have the same holidays, and have the same vacation plan.

There are other areas in which Nucor is distinct. The company has a well-developed employee incentive plan that aligns the interests of the employees with the interest of the firm. The typical mill worker at Nucor receives a base pay that is slightly below the industry standard, but the firm's bonus plan is very generous when the company is doing well. Two distinctive features of Nucor's bonus system are that it is all written down and is totally objective based on firm performance criteria. There is no subjectivity involved. If the firm reaches certain performance level, a bonus will be paid, period. With bonus figured in, Nucor employees typically lead the steel industry in terms of average pay. Yet the company's total cost per ton of steel produced is lower than that of other integrated producers.

Question based on Case Study

1. Analyze the key reasons why Nucor is well-known for its production of quality steels.

2. Comment on how Nucor's management practices affect its ability to produce high-quality products.

3. Justify how Nucor's human resource practices affect product quality.

Report Outline:

1. Introduction

1.1 Introduction to quality and management and production strategies that affects quality
1.2 Introduction to Nucor Corporation

2. Content

2.1 How Nucor's management practices affect its ability to produce high-quality products
2.2 How Nucor's human resource practices affect product quality
2.3 How has the success of Nucor's policies and structure affected the thinking and behavior of other organizations and what are the general lessons that can be more widely applied.

3. Conclusion

Reference no: EM13981

Previous Q& A

  Case study: a new campus for the university of rummidge

Case Study: A new campus for the University of Rummidge

  Cyclic group

A cyclic group is a special kind of group that has many similarities with modular arithmetic.

  Scm for profitable growth

Analysis to identify alternatives and recommend a decision to the board to make sure that the TSC supply chain supports the plan to double the number of stores in the next three years and look ahead to long-term growth goals.

  Market research

The director of market research at a large department store chain wanted to prepare a survey throughout a metropolitan area to calculate the amount of time working women spend shopping for clothing in a typical month.

  Physics of medical imaging

Physics of Medical Imaging

  The theory of evolution

The Theory of Evolution

  Prominent faults

Research on the prominent faults

  Long-term effects of air pollution

Long-Term Effects of Air Pollution

  Develop a new linear programming for an aggregate production

Linear programming applied to Aggregate Production Planning of Flat Screen Monitor


Write a Review


Similar Q& A

  Managerial decision making

This assignment is based on Managerial Decision Making. Compare and contrast the theoretical and practical differences between "formal research" and "business proposals".

  Market research

The director of market research at a large department store chain wanted to prepare a survey throughout a metropolitan area to calculate the amount of time working women spend shopping for clothing in a typical month.

  A business plan: gift shop

A business plan for a gift shop contains so many constraints and aspects to be taken into consideration before start up with something.

  London congestion charge

Generate revenue for city are under consideration. The two proposals are London Congestion Charge and Charging for Firefighting.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd