Happenings: 1. Babcock and Wilcox were pioneers in manufacturing boilers since past 15 years 2.

They built a 25 million plant at !ount "ermon for fabrication of nuclear #essels $. %lant failed to execute as planned due to lot many factors &. "essels worth &' million were taken out of their shops

What went wrong: 1. (rders poured in faster than expected 2. %olicy )o measures for retention *ow wages

$. !other nature +arth,uake

&. !achine Time wasted in new automation setups -ebugging of the machines pro#ed unexpectedly difficult .re,uent ad/ustments were re,uired due to non air conditioned plant

5. 0upplier -elay in #ital e,uipment

1. *ittle pro#ision was made for the time it would take to get the new plant operating at full capacity 2. !an 3nskilled labour due to which re/ection was around 2'4 )o focus to sort out issues with union inspite of fre,uent strikes

Solutions: Strategy related: 1. %lant location %lant was situated near (hio ri#er for ease of transportation They did not consider the a#ailability of skilled labour in that area They ended up spending 1 million on training labour and failed to retain trained labour

2. 5ompeting factor They should ha#e competed on ,uality and deli#ery reliability as nuclear #essels ha#e to meet rigid specifications unlike boilers in which they had expertise

Management related 1. 5hief executi#e 6 7eorge 8ipf came from the tubular products di#ision and was a stranger to the problems of the power generation di#ision 2. 9e was also unaware of the problems of that di#isions big corporate customers $. Thus: the management did not ha#e rele#ant experience Conclusion 1. They should not ha#e applied their experience of the boiler industry as is because the customers and the processes are entirely different 2. Their manufacturing strategy should ha#e re#ol#ed around ,uality and deli#ery reliability $. %lant location should ha#e setup according to this manufacturing strategy by considering the a#ailability of skilled labour