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Trias Decision on Cable Ladder Production

Trias is a firm that mainly focuses on the making of cables. Therefore, it is considered a good and quality company offering good services to those people work with. This is one reason why the chief executive officer of the Trias company comes to the office, whereby the company’s leaders are seated. As he greets them, there is a joy in his face which can be depicted clearly through the writing. This was his best moment as he announced how the company had placed a bid and won. Therefore, upon this news, which is considered accurate and thoroughly reliable, the CEO decides to lead the whole group into making the best decision to develop a way to make sure that everything works out alright. In this case, the working out is whereby they have to decide how they can fulfill the bid won in the shortest time possible with the least amount of resources or rather the cheapest resources to make an excellent profit for the company.

Trias company is a company located in Indonesia, and it has been in operation since 1987. This period has been termed as one of the best companies offering quality cables and cable accessories and services (Chu & Hermanto, 1). As the company gets a new bid, there is a need for the company to also look for new ways to do its activities and run the business. For so long, the company has been relying on GI as a partner in running the business. However, this has always been a challenge as if it was to be used for this particular project; the profit margin would have been a mere 5 percent. This is very small compared to the use of the new method, which has been in development in japan and south Korea. Therefore, the CEO of the company recalls their conversation with several of his engineers about eh new material instead of using the GI method of welding, which needed more skill and thus translated into more input.

The new way involved galvanizing and not welding. Welding is seen as an insensitive process because of its need for particular skills. However, for the new material galvanizing is to be used. The material is also more expensive than the former material used. However, the expensive material is not a big challenge as it will lead to more production and therefore higher profits. The leadership is seen as ecstatic due to the happenings which take place and how things happen. In this, we can see how the engineers just approached the CEO with the new idea of getting a different material, and it acts as a coincidence to get to use the same material so fast after winning the bid. This serves as a positive impact on the company, and it is a crucial step for the use of the new material for production, which enables higher profits and productivity.

Welding, according to the case, takes around four steps. However, riveting only takes two steps. This is seen as a significant improvement because, first of all, the members of the rest of the two phases which were being used in welding are thus released from their jobs or assigned new duties of less pay. This makes sure that the company’s profit margin does not remain 5 percent as it would have been if the company used the welding method. However, with the new material being realized, it turns out that there are two companies to decide from; PSC from South Korea and NSH from japan. Therefore the characteristics of these two companies are discussed below.

Even though selected and seen as the best option for the company to go with, the new material also brings challenges as the first time to run such kind of business is always met with bureaucracies and other organizational issues. For example in this import there had to be payment of the customs office and additional costs like transport fee and insurance. However, even before this, we see a presentation of this material compared to hot-dip galvanization, a common practice, and the company had been practicing for a long (Chu & Hermanto, 2). The person assigned this duty was Gunawan, and therefore he talks of how this new method would eliminate two stages, thus leading to a reduction in expenditure on labor. He also states that the new process’s riveting required fewer skills compared to welding they have been using before. Welding could make it 5 percent profit. On the other hand, riveting, which is the new method, can make them 30% profit. This difference is so big, and therefore the decision was made to go for riveting.

One of the advantages of this material is that it is corrosion-free (Chu & Hermanto, 2). The company also has to apply for a clearance certificate from the Indonesian customs and excise department for this kind of importation to take place. PSC was a bit expensive due to the demand in its area of operation as compared to NSH. However, even though expensive, it provided a large volume, which made it much more costly due to the demand it faced. The two companies have also stated that their prices are fixed, and therefore the company buying has to buy the whole of the material from them to fulfill the tender won.

In conclusion, we can say that the company is likely to decide and go for PSC because of its capability to deliver better and with much higher quality compared to NSH.

Works cited

Chu & Hermanto, TRIAS: Decision on Cable Ladder Production, Harvard Business Publishing Education (2016), London, Hbsp.harvard.edu, hbsp.harvard.edu/product/W16068-PDF-ENG. Accessed 11 Mar. 2021.

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