Paper Example on Order Prioritization in Steel Manufacturing

Paper Type:  Essay
Pages:  5
Wordcount:  1222 Words
Date:  2023-01-10


First, I would like to express my deepest gratitude to my thesis supervisor Dr Atill Ozgur and examiner Dr Ugun Yilmaz at Jacobs University Bremen. The doors to their offices were always open whenever I ran into a trouble spot or had a question about my research or writing. They consistently allowed this paper to be my work but steered me in the right path whenever he thought I needed it.

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Secondly, I would also like to thank the experts who were involved in completing the questionnaires administered as well as the validation survey for this research project; they are ER. Manan Bhandari, ER. Kartik Mehta, Mr Biren Vora, Mr Sudhir Chakole. Without their passionate participation and input, the validation survey could not have been successfully conducted and hence promoting the steering of the research in the right path.

I would also like to acknowledge DR. Ugun Yilmaz of Logistics Department from Jacobs University Bremen as the second reader of this thesis, and I am gratefully indebted to him for his valuable comments on this thesis.

Finally, I must express my very profound gratitude to my parents and my friends for providing me with unfailing support and continuous encouragement throughout my years of education and through the process of researching and writing this thesis. This accomplishment would not have been possible without them. Thank you.


  • CEO - Chief executive officer
  • EAF- Electric Arc Furnace
  • DRI- Direct Reduced Iron
  • BF- Blast Furnace
  • BOF- Basic Oxygen Furnace
  • BOS- Basic Oxygen Steelmaking
  • CO2-Carbon di Oxide
  • HR-Human resource
  • ICT-Information communication technology
  • JIT-Just in time
  • SC- Supply chain
  • SCM-Supply chain management
  • SKU- Stock Keeping Unit
  • SPSS- statistical packages for social science
  • SS- supplier selection
  • WIP-work in progress


This study seeks to investigate order prioritization in steel manufacturing; quantification and modelling of relevant steel manufacturing factors in the steel industry. More notably, how actors in the industry view their steel manufacturing. Moreover, the thesis investigates the reasons that encourage order prioritization. It is enticing to include all activities to prioritization into the central business or concentrate on a specific field of work. What are the reasons for this kind of model? In-depth interviews have been carried out to answer questions like the one above with major steel manufacturing industries. Additionally, a survey has been given to a section of other steel companies with similar connections. The reviews and interview together with the financial position of the corporations contain the primary base for this study.


1.1. Introduction

Globally, before steel making and consumption era, iron was the commonly known metal used all over the world. With the need to develop a durable non-rusting metal that can last for decades without any need of replacement or maintenance, scientists came up with new Greenfield plants technology that brought forth the establishment of steel industries. The fact that Steel is essential to the development of the modern day economy is indisputable, it is also highly ranked as the pillar of human development and civilization. Steel consumption rate in per capita level is used as a significant index in determining the socioeconomic development and the living standards of people in a particular economy or country. However, order prioritization and best supplier selection strategies take center stage in Steel manufacturing industry since Steel is a technologically sophisticated product which has a vast and great forward and backward linkages when it comes to flow of materials and generation of income. Several corporations are currently in positions where they are required and necessitated to grow their international market sector to subsist and withstand evolution intents. Similarly, these powerful corporations have to fight to stay on top and protect their local market sector against global opponents. The question now is what to do to grow their universal and local circulation system. These will make the organizations supply merchandises to consumers who make their demands in a vibrant and quickly shifting natural frequencies. The deliberate placing of catalogues is crucial; to make sure that the merchandise is accessible and obtainable.

Although steel manufacturers work to meet the designated customer demands, steel industries within any particular country face challenges such as trade barriers in the developed markets and structural problems of the local steel industries notable as a result of the skyrocketed cost of commissioning new projects. Corporations should strive to ensure that their supply chain is proficient and operative. Proficiency is determined by a company's ability to deliver merchandise to clients, excellent quality of products. When it is operative, this means that the service that consumers receive is impeccable and it satisfies the desires of a customer.

1.2. Research Background

The ideal firms and organizations in the Steel manufacturing industry globally are finding out a tremendous first-hand source of economic benefit. It's titled order prioritization plus it includes all of those incorporated activities that bring products to the market and bring forth satisfied customers. Order prioritization Program forms into one whole topic from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Efficient supply chain management coordinates and forms into one all of these activities into a flawless process. It brings closer all of the partners in the chain. To add to the departments in the organization, these partners encompass vendors, carriers, third-party companies, and information system providers. Generally, a supply chain can be said to be a network for combining various parties, from the customer to the supplier, through manufacturing and services, so that the flow of materials, money, and information can be efficiently managed to attain the business requirements. (Zigiaris, 2000).

Inside the institute, the order prioritization in steel manufacturing is viewed as a comprehensive array of purposeful capacities. These involve customer order selection relevant going-on such as incoming and outgoing transport, warehousing, and catalogue regulator. Locating, obtaining and supply management fall under the supply chain authority, too. Foretelling, manufacture scheduling and planning, order handling and consumer service are all inclusive in the whole procedure. Notably, it also encompasses the information structures so crucial to keep an eye on all these actions. (Zigiaris, 2000)

"Customer order selection includes the planning and management of all activities that are employed in sourcing and procurement, conversion and all management dealings. Importantly it also involves coordination and collaboration with channel entities, which can be suppliers, intermediaries, third-party service providers, and customers. In all important supply chain management forms into one supply and demand management within and across companies".

A while back, logistics and SCM were viewed as compulsory vices, and presently, they are seen as a problem of outliving and capability of competing successfully. As companies take a closer look at steel manufacturing, they shift to specialized service providers to end non- core activities internally. An increasing concentration on outsourcing is resulting in a sudden rush in commercial accomplishment for logistics service suppliers. (Srivastava, 2006)

In the current era, there is a supposition that order prioritization ought to compete in place of companies, given that success is mostly ascertained definitely by the market place. As a result, it is regarded as a strategic influence for the improved achievement of organizational attainments such as enhanced competitiveness, enhanced customer service and a rise in profitability. However, to be sure of a much better system it is prudent to come up with a performance estimator system that very well shows the real accomplishments. Given this point of view,...

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