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ORGANISATIONAL RESTRUCTURING AND MANAGEMENT INFORMATION SYSTEM


Saurastra Cement Limited (SCL), India

SCL is a part of the Mehta Group of Industries, who in addition to cement have interests in chemicals, plastics and other sectors. The group currently has a cement capacity of 2.4 million tpa, with two production units. This particular study was carried out in 1993, at a time when SCL was on the threshold of expansion-cum-modernisation. A need was felt for a performance-enhancing organisation structure, supported by an effective management information system, to provide the required operating advantage to SCL. Holtec was commissioned by SCL to design a new organisation structure and develop a comprehensive information master plan encompassing the needs of various work groups. Following this, a change management initiative was also launched. In designing the organisation structure, the principles of a Learning Organisation and continuous improvement were incorporated.

Holtec has been closely associated with the Mehta Group and has conducted about 50 assignments in both engineering and management consulting.

Holtec's COMP Organisation Model

holtec's COMP Organisation Model

Key Assignment Information

  • Covered the entire organisation, all locations, including the manufacturing facility, the marketing office and all branch offices
  • Besides design and strategies, Holtec worked out specific action plans to ensure the implementation of the recommendations
  • The new structure and information system comprised a flatter and more responsive organisation armed with the right information.
  • About 100 consulting days were spent on the field and about 200 consulting days at the home office.

Objective and Coverage

  • The key objective was to develop a more responsive organisation structure, more conducive to continuous improvement, with improved vertical, & horizontal differentiation and an optimal level of decentralisation & formalisation.
  • The possibilities of shifting from a functional structure to a more transparent, process-oriented team structure with a scope for job rotation were thoroughly explored and established.
  • Holtec’s proprietary COMP model was recommended as the appropriate structure for SCL.
  • Another objective of the assignment was to align the recommended organisation structure with effective information management for day-to-day operational control, decision support and strategic planning.
  • The direction for change in information management was established and information needs at various levels were identified. Subsequently, output & input formats were designed, information flow was mapped and input-output algorithms were defined.
  • Action plans, with responsibilities and deadlines, were formulated after freezing the recommendations, for implementing the structural change and information system development.
  • Holtec worked on a highly interactive mode with SCL, with active participation of the likely implementers of the change process.

Holtec’s interactive method of arriving at recommendations facilitated a high degree of ownership of the changes and actions proposed. Changes proposed in the organisation structure were perceived as extremely innovative. The information system design provided SCL with a robust base to develop new systems.

Holtec has executed 15 similar assignments.

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Dec 2006