OM Assignment

V Rishita
122024001028, Sec-E(IB)

Challenges in Service Management:

In a world where every business is looking to cut costs, increase efficiency and
move ahead of competition, field service management becomes critical as it plays
an important role in customer satisfaction and loyalty. Field service
management however have its own unique challenges as its operations are spread
across vast territories and resources are distributed in different locations. Let us
look at some of the critical challenges faced by field services managers.
Challenge 1: Customer demand and high expectation
The customer’s relationship with an organization has dramatically changed over
the last decade. Now, customers expect their relationship to extend beyond the
initial sale. Even beyond the traditional break-fix model. In fact customers today,
want a certain level of preventive service. This clearly shows the standards of
service that is expected to be delivered. To add to this lays the fact that delivering
superior field service is one of the key factors ensuring customer loyalty which in
turn ensure continuous revenue. Therefore, field service managers are under
tremendous pressure to get it right all the time. This is almost impossible without
the right technology at hand.
Challenge 2: Service delivery optimization
Assigning work orders to the appropriate field technicians and engineers is a day to
day challenge faced by field service managers. Getting the right person with the
right skills is not enough.  They are also required to be at the right place at the right
time and with the right inventory and tools. If mismanaged, it can lead to increased
costs and lesser productivity with more time being spent on the road as against
fulfilling service orders.
Challenge 3: Real-time communication and resource location
List of work requests are ever mounting, it is vital for managers to know where
their field service personnel are located and what their availability is at any given
time. By knowing the location of the field personnel, managers can better gauge
how they can prioritize and complete the work. They can also make decisions on
whether to bring in contract assistance to supplement the workload
Challenge 4: Rising cost of operations
One of the biggest challenges for field service managers is to manage the cost in an
environment where operating costs are frequently increasing. Factors such as time
taken to check inventory or find parts, travel expenses, and the need for the
appropriate skills can add to the expenses. Missing inventory and inaccurate data
add to this human error and you’ll find costs soaring very quickly.
The Right Solution
In an industry where there is a very thin line between a satisfied and a dissatisfied
customer, it is imminent that these challenges need to be overcome on a daily
basis. Several areas of these challenges can be solved with “Field Service
Automation” on a mobile device. The workflow can be streamlined by
automatically assigning resources based on their location, availability, competency
and job priority.
Enabling field service technicians/managers with mobility brings in the “anywhere
anytime” capabilities along with real-time communications. Together it can help
reduce travel time, quickly detect location & readiness of resources, and advise on
the right skill set for the job.
Thus, with the right automation tools and systems in place, field service managers
can overcome stiff challenges and keep expenses under control.
Rashtriya Ispat Nigam:
Rashtriya Ispat Nigam Ltd, (abbreviated as RINL), also known as Vizag Steel, is
a public steel producer based in Visakhapatnam, India. RINL is the corporate
entity of Visakhapatnam Steel Plant (VSP), India's first shore-based integrated
steel plant built with state-of-the-art technology. VSP is a 7.3 MTPA plant. It was
commissioned in 1992 with a capacity of 3.0 MTPA of liquid steel. The company
subsequently completed its capacity expansion to 6.3 MTPA in April 2015 and to
7.3 MTPA in December 2017. The company has one subsidiary, viz. Eastern
Investment Limited (EIL) with 51% shareholding, which in turn is having two
subsidiaries, viz. M/s Orissa Mineral Development Company Ltd (OMDC) and
M/s Bisra Stone Lime Company Ltd (BSLC). The company has a partnership in
RINMOIL Ferro Alloys Private Limited and International Coal Ventures Limited
in the form of joint ventures with 50% and 26.49% shareholding respectively.
When founded in 1982, RINL was wholly owned by the Government of India. In
November 2010, the company was granted the Navratna status by the government.
[3][4] In September 2011, the government announced plans to divest 10% of its
stake in RINL via an initial public offering. In February 2021, the Cabinet
approved the privatisation of RINL. This decision caused massive
protests in Vizag City. The state has no equity share in the plant and the centre is
withdrawing 100% of the investment, according to a statement by Union Finance
Minister Nirmala Sitharaman in March 2021.
RINL operates a 7.3 million tonne per annum capacity steel plant in
Visakhapatnam. During the initial periods, the company suffered huge losses. Later
the profits have gone up by 200% making it the only steel industry to achieve such
a target. Its annual capacity is expected to reach almost 7.5 million tonnes by 2020.
RINL plans to invest ₹60,000 crore (US$8.4 billion) to increase the capacity to 20
million tonnes by 2027.
RINL has successfully commissioned its next phase despite some major setbacks
with blasts in its new blast furnace. Another unit of RINL is coming in Uttar
Pradesh. With an investment of 1688 Crores, RINL is establishing a plant for Rail
wheels under make in India initiative. This plant will be equipped with ultra-
modern technology. It will produce 1 lakh wheels per year.
Visakhapatnam Steel Plant is the integrated steel plants of Rashtriya Ispat Nigam
Limited in Visakhapatnam. Founded in 1971, the plant focuses on producing
value-added steel, with 214,000 tonnes produced in August 2010, out of 252,000
tonnes total of saleable steel produced.
On 17 April 1970, the Prime Minister of India, the Indira Gandhi, announced the
government's decision to establish a steel plant at Visakhapatnam. With the offer of
assistance from the government of the erstwhile USSR, a revised project evolved
some years later. A detailed project report for a plant with a capacity of 3.4 Mtpa
was prepared in November 1980 and in February 1981, a contract was signed with
the USSR for the preparation of working drawings of coke ovens, blast
furnace and sinter plant. The blast furnace foundation was laid, with first mass
concreting, in January 1982. The construction of the local township was also
started at the same time.
In the 1970s, Kurupam Zamindars donated 6,000 acres of land for Vizag Steel
Plant. A new company Rashtriya Ispat Nigam Limited (RINL) was formed on 18
February 1982. Visakhapatnam Steel Plant was separated from SAIL and RINL
was made the corporate entity of Visakhapatnam Steel Plant in April 1982.
Vizag Steel Plant is the only Indian shore-based steel plant and is situated on
33,000 acres (13,000 ha), and is poised to expand to produce up to 20 MT in a
single campus. Turnover in 2011-2012 was Rs 14,457 crores. On 20 May 2009,
Prime Minister Manmohan Singh launched the expansion project of
Visakhapatnam Steel Plant from a capacity of 3.6 MT to 6.3 MT at a cost of Rs.
8,692 crores. But the investment was revised to 14,489 crores with the following
classification:
1. Expenditure for the financial year 2009-10 Rs 1840 crores.
2. Rs 5883 crores since inception of the project.
3. Total commitment, including enabling works, steel procurement,
consultancy, spares, etc. is Rs 11591 crores as of 25 March 2010.

The expansion project is expected to become functional by 2012. Currently, the

steel plant has completed the expansion from 3.6 MT to 6.3 MT with a total
investment of Rs.12,300 crore. The company has planned to expand its production
capacity further by one more MT which requires an investment of Rs.4,500 crore.

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