Profits are a matter of revenues minus expenses, and while Qatar Steel cannot influence global steel prices, it can exert its best efforts on cost optimization. This ensures effective and efficient deployment of existing resources for capability maximization. Some of the key avenues of internal resource optimization include process re-design for efficiency, technology upgrades, workforce planning, role clarification, skill alignment, cross functional/departmental communication, flattening organizational hierarchy, and stronger governance and accountability at the team level. The greatest opportunities for efficiency can be delivered by improving how the organization functions as a whole. Qatar Steel has identified 3 areas of focus: Operational Efficiency, Selling, General and Administrative Expenses (SG&A) and Manpower.
At Qatar Steel, implementing cost optimization strategies is a continuous process. Standard tasks, roles and procedures can translate valuable knowledge into cost reductions. Systems have been built to encourage feedback and iterate upon these processes.
A 3-Year Cost Optimization Program was initiated with full support from the MD&GM and the Senior Management Team. An implementation team comprised of multidisciplinary engineers and executives (Continuous Improvement Team – CI Team) have been tasked with driving the changes. A portfolio of prioritized initiatives is tracked, monitored and reported throughout the implementation cycle, resulting in cost reductions. Each employee has a role to play in this program and without their support this ambitious program would not be a success.