Side-Barbara How Data Steel become the lowest cost steel producer in the world Review/analysis of Student Board Room team discussion: The following were the issues faced (and anticipated to be faced) by Data Steel prior to their drive towards becoming cost effective. ;Poor efficiency of the production unit because they operated on an old plant. Large labor force – which did not translate Into larger production but did reduce the Marginal product units and Increase the Marginal Cost per unit. ; Large and unnecessary operating costs – The Company ad a large number of ‘noncontributing’ costs which led to the PVC per unit being very high for the product. It would In case of global competition be unsustainable to put such a product on the global platform which had poor cost efficiency.
No proper marketing of the steel due to lack of competition (other than SAIL). ; No proper Innovations from the 1 960-assays period. The following was what Data Steel did to curtail costs: Curtailing Raw material costs (pertaining to production of steel