An Information Systems Save U.S. Steel?
Case Study – Can Information Systems Save U.S. Steel?
1. Summarize U.S. Steel’s current competitive situation.
Despite its innovative (new) information systems and significant investments in information technology, U.S. Steel still faces stiff (hard) competition. Several issues facing USS include: v Economies of scale v Significant losses due to a recession and low prices v One of the key problems that USS has is its location v Producing higher-grade steel v An industry that produces more steel than the world consumes
As the case mentions, USS spends $240 to produce a ton of steel, and half of that cost is spent on purchasing and shipping raw materials. In contrast, one of its major competitors, South Korea’s POSCO, incurs $175-$180 per ton, is located on the Pacific coastline, has very modern facilities, and uses the Internet for the company’s activities.
2. How are information systems related to the way U.S. Steel runs its business? What role is played by supply chain management systems? How do these systems provide value for USS?
Currently, USS’s continuous flow manufacturing system is a critical (key) component of its business. As mentioned in the case, USS manages its entire supply chain via a single integrated system.
The continuous flow manufacturing system facilitates order entry by customers, credit authorization, automatic order generation, order tracking, product configuration, order fulfillment, order delivery, and demand forecasting.
The supply chain management system allows the customer to enter his order via the Web, specifying product limitations and capabilities. Once the order is entered and customer credit is approved, an accurate price quote is quickly delivered back to the customer.
The order tracking system triggers each step in the ordering process, ASNs, and deliveries.
The product configuration system uses complex business rules and procedures to determine the right mix of product specifications and prices.
3.
1. Summarize U.S. Steel’s current competitive situation.
Despite its innovative (new) information systems and significant investments in information technology, U.S. Steel still faces stiff (hard) competition. Several issues facing USS include: v Economies of scale v Significant losses due to a recession and low prices v One of the key problems that USS has is its location v Producing higher-grade steel v An industry that produces more steel than the world consumes
As the case mentions, USS spends $240 to produce a ton of steel, and half of that cost is spent on purchasing and shipping raw materials. In contrast, one of its major competitors, South Korea’s POSCO, incurs $175-$180 per ton, is located on the Pacific coastline, has very modern facilities, and uses the Internet for the company’s activities.
2. How are information systems related to the way U.S. Steel runs its business? What role is played by supply chain management systems? How do these systems provide value for USS?
Currently, USS’s continuous flow manufacturing system is a critical (key) component of its business. As mentioned in the case, USS manages its entire supply chain via a single integrated system.
The continuous flow manufacturing system facilitates order entry by customers, credit authorization, automatic order generation, order tracking, product configuration, order fulfillment, order delivery, and demand forecasting.
The supply chain management system allows the customer to enter his order via the Web, specifying product limitations and capabilities. Once the order is entered and customer credit is approved, an accurate price quote is quickly delivered back to the customer.
The order tracking system triggers each step in the ordering process, ASNs, and deliveries.
The product configuration system uses complex business rules and procedures to determine the right mix of product specifications and prices.
3.