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IIMS Journal of Management Science
Year : 2011, Volume : 2, Issue : 1
First page : ( 66) Last page : ( 91)
Print ISSN : 0976-030X. Online ISSN : 0976-173X.

Enhancement of Production through Strategic Decision Making: A Case Study of Diesel Locomotive Works (DLW)

Mohan Ashutosh, Raman Lakshmi

Biographical Note: Ashutosh Mohan is presently Assistant Professor at Faculty of Management Studies (FMS), Banaras Hindu University (BHU), Varanasi, He is a recipient of AICTE's Career Award for Young Teachers (CAYT).He is also a recipient of CAPS Fellowship, University of Arizona, USA. He is also a Member of Editorial Board of Journal of Supply Chain Management, USA and is serving as Associate Editor of BHU Management Review. E-mail: ashutoshmohan@rediffmail.com
Lakshmi Raman is presently Chief Mechanical Engineer/Planning in East Central Railway of Indian Railways. He has got vast experience in manpower management, productivity improvement, internal supply chain management and resource management in diesel locomotive production. E-mail: lakshmirita@rediffmail.com

JEL CLASSIFICATION: M11, M110

Abstract

This paper aims to summarize the strategic decisions taken to double the production level of DLW in four years of time. The paper enumerates the possibilities up to which strategic and radical decisions can be taken in a government-owned industrial setup in India. Diesel Locomotive Works (DLW) manufactures diesel electric locomotives primarily for Indian Railways. To increase the output, strategic decisions are taken to purchase/outsource large number of items which used to be manufactured in-house. Achievement of loco production targets is the result of concerted efforts by all departments. Each department improved their working to dovetail their efforts to the loco production targets. Staff and unions of DLW are very supportive in implementing strategic decisions. The strategic decisions have transformed DLW, from an integrated locomotive manufacturer, to more of an assembler of locomotives.

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Keywords

Outsourcing, Strategic Decisions, Productivity, Staff Utilization, Multi-Skilling.

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