These cute little pups were born July 22, 2008, so that makes them 10 weeks old. The real big one and the tiny little one are both female sable poms from the same litter. They are both very friendly and playful.

Also from the same litter are the other two pomeranians and are males that are slightly larger than the tiny little one. One male is sable and one male is cream.

We are in Tulsa, Oklahoma and do NOT ship.

Please post if you are interested in more information about the pups.

I just cracked open the bottle, and I'm sadly disappointed. It's not terrible, but I don't really want to drink it on its own. It feels sorta watered down - I'm not sure if it's the apple juice in it, or if it's because less concentrate and no HFS or what, but it's just kind of uneventful. Which is sad. I really wanted to like it. Can't win 'em all, I suppose.

The other two pomeranians were still in our fenced yard, the gate was open, and Sweet Cherry Pie was gone.

I love that little dog and would really like to have her back. I'm offering a small reward.

She's a tri color, parti pomeranian that's white, black and brown. Her normal weight is 7.2 pounds. Keep your eyes open for this sweet little doggie who is part of our family.

If you have any information about her whereabouts, please post here with your information.

I'm broken hearted!

[caption id="attachment_31" align="alignnone" width="220" caption="Cherry Pie outside in our front yard"][/caption] ]]> http://reyadel.wordpress.com/?p=528 Sun, 21 Sep 2008 17:29:05 +0000 reyadel http://reyadel.ro.wordpress.com/2008/09/21/appendix-e-transanctions-for-nsc%e2%80%99s-stake-1995-1998/ [/caption] ]]> http://reapercreepergrimheaper.wordpress.com/?p=47 Wed, 17 Sep 2008 20:57:14 +0000 reapercreepergrimheaper http://reapercreepergrimheaper.ro.wordpress.com/2008/09/17/lots-of-things/
Pictured above is my grad ring! It's going to come to four hundred dollars, the peridot is simulated, and the 'diamonds' are really cubic zirconium, but the band is 10k white gold. Which good, I guess. But the promise ring I got for Christmas from my boyfriend last year cost half of that, and every part of it -the SIX diamonds included- is real!

But I filled out my order form at school today (couldn't purchase it at the time since I didn't even have forty bucks on me to pay for the deposit.) and they gave me a cute little pink, rubber ring so I don't forget to came back and pay for it. It says "remember whatever". I think I'm going to keep wearing it even after I pay. It's really fun to fidget with, and I imagine it will be useful again in the future. Lol. Not that it will be much good if I always wear it, since I would just forget to even notice it after a while.

Today was interesting. I saw Angele (a very attractive girl, who I kinda know but am not that close with. I do like her a lot, though) get dumped over the phone today. So that was sad. It made me feel weird, really. To hear her arguing and realizing that I'm the sort of crazy bitch girlfriend her boyfriend is. Fuck. But I love my Kenzie darling very much and I would NEVER break up with him, especially not over something like that. Fuck!  Matthew said she would go back to him, but I hope she doesn't. I don't like to see someone getting jerked around like that. But It really isn't of my business. I like to stay out of things like that, since people usually need to realize on their own that it's bad for them. It's the same reason I don't bitch at people for smoking.

Mum might be getting me an LG shine. But I have to pay a hundred on it if she does. She refuses to sign a contract, so I'll have to buy those stupid little cards. But at least I'll have a phone, and so I'll have an extra something to distract me in class. Apparently the cards she is going to get me are 25$ a month, with unlimited texting, and unlimited calling evenings/weekends, with a certain amount of day time minutes. And I guess that's all right, since I'd mostly be texting from school. We're allowed to do that anywhere in the school now, so long as it's not during class. But it's easy enough to do, anyway. My law teacher is so daft that when this morbidly obese cunt's cell went off, blasting loud, disgustingly horrible music, she didn't even notice. Maybe I just have good hearing. I usually can hear someone's cell vibe from half way across the class room.

I hate it when I have to use the bathroom and people won't GET OUT.

I've been using a combo of whitening toothpaste/mouth wash lately, and it seems to be working. I really want to get aquafresh whitening trays. It would be nice to have perfectly white teeth by Christmas, where they would probably get wrecked again by chocolates. Mm. Christmas has the best chocolate ever!

I already have plans made for Halloween! Since it's on a Friday, I'm going to wear a long coat to school, and bring my costume in a bag. I'll change into my extra slutty costume after fifth period, and put on the coat again. I'll get a drive to Kenzie's house, leaving my coat in the car, and carrying only an empty treat bag. =) I will come to his door wearing only my skanky little costume, and as him for yummies! Then he'll hug me and we'll go out to the car to get my sleepover stuff, and I'll help him give out candies to kiddies(still dressed like a ball of skank). It's all very, very exciting.

Yesterday at lunch we walked all the way from school, down to the Irving Subway. I ended up crawling underneath a train, and seeing a can of water on the cab ride back to the school. And I was only two minutes late for Trig(onometry and Three-space, not the downs baby Palin *~*Saved~*~)! It was a pretty great lunch hour, I even saw someone walking a cute, fluffy little pom. There was also a dumbass dog along the way (a white shitzu) who wouldn't stop yapping at us for daring to walk by his fucking house. Stupid dog. I wish people would train their animals to only bark like that when there was a real threat.

The day before that, someone found a sweet little black kitten in the smoking area(not the one the school created, just a big clearing in the woods in front of the school. More than tobacco ends up smoked there. In comparison, I love the tobacco smell.) the kitty was a few months old, and extremely lovely. He was happy to cuddle up in our arms, and just purr. He even licked me! =D I love kitties so much, especially sweet ones like that. I hope he wasn't a stray, the poor thing. He deserves lots of love.

Haha, I just got accused of something great, guys. On a forum I mentioned how I always sleep over at my boyfriend's house on the nights of school dances, and how usually we don't even bother to go to the dance, and some newfag said.

"Yes and by the way you act towards Gianna Jessen tells me you do it often without protection just to get pregnant and kill the baby for the fun of it. like some kind of sacrifice... This tells me and any other pro-lifer how you pro-aborts really think... Do you really enjoy being the person you are..."

I imagine she's a member of the Virgin til marriage, or death if you don't find someone club. What a sad, sad life to read. Apparently most women and men who wait end up divorced, isn't that interesting? All the waiting, since it was what the bible said, and then they go and end up divorced(which it is also against, if you recall what Henry had to go through to get rid of Katherine of Aragon.)

Partner with national agencies to address compensation package. (W2, W4, T1, T4) GSPI could seek the help of locally based government agencies to address the disparity in compensation package. For more than two years since 2004, there were no promotions, no salary increases for hired locale employees. This disparity seems less among management's priorities, but the impact to productivity is huge. Most rank and file are handled by local supervisors. If these supervisors form their own union, during NSC era there were two contending groups representing the level, thus this is a potential threat to productivity.

Study viability of SCADA, self-generation and mechanics of WESM. (W3, T2). Monitoring of electric power usage at NSC facilities used traditional meters, and these are located on some entry points only. No individual meters are available on a per mill basis, thus load scheduling and load shedding cannot be effectively done. Supervisory Control and Data Acquisition (SCADA) systems or an Energy Monitoring System (EMS) have been used by steel mills the world over, and they surely are applicable to GSPI scenario.

With the WESM on its initial stages of spot market tests, GSPI being a large user of electric power should be prepared to have a competent and WESM-accredited electricity broker upon the implementation of open access (Mendoza, 2007). Furthermore, a technical feasibility and economic viability study of self-generation of power for GSPI could also offer another option.

Partner with steel end-users on Tariff resolution. (W1, W5, T3). In contrast, on May 24, 2002, China has set custom duties on steel imports ranging from 18% to 26% depending on the type of steel products (China Watch, 26 July 2003)

Also, on December 20, 2001 the US International Trade Commission recommended: a four-year program on tariff and tariff-rate quotas for plate, hot-rolled, cold-rolled and coated sheets 20% for the first year, 17 for the second, 14% for the third and 11% for the fourth (Walker, 2002).

Similar rates should be vigorously pursued to protect investments. It is hoped that dumping of steel products be reduced to a minimum if the tariff rates are imposed favorable to all players in the Philippine steel industry, not just one company.

Augment legal pay with perks and fringe benefits. (W4, T4). Wing Tiek-Hottick NSC offered competitive salaries comparable to other multinationals in the country. Not just that but also with a comparable package of other benefits on top of those mandated by law which extends beyond what was required by the Collective Bargaining Agreement, notable of which are: maternity, hospitalization, 100% cost-free medicines, free infirmary services, housing loans, insurance, dependents scholarship, corporate wellness, 1.5 months per year of service retirement, and bereavement assistance. (NSC News, August 1992)

All these paved the way of harmonious relationship between management and union during NSC (NSC News Supplement, October 1992).

The matter of unionism at GSPI, as explained in the SWOT fourth weakness (W4) above, however, remains on deadlock with management not budging on its first and last offer of economic benefits.

Although, GSPI offered volume production incentive for its pickling line and rolling mills since 2005, citing their bottleneck constraints, thus other production lines have been deliberately excluded. Several supervisors have pointed out this discrepancy since then, but suggestions for correction have not been heeded, aside from the delayed disbursement of deserved incentives.

Update Environmental Monitoring equipment and beef-up EMS personnel. (W4, T5) Most environmental monitoring equipment was sequestered by NSC liquidator, as added-value equipment to manufacturing. With the global thrust of protecting the ecology and the environment (Cola, 1993), such equipment are vital to the issuance and renewal of an Environmental Certificate of Compliance by the DENR, without which GSPI could end up like Sonic Steel Industries.

Sonic operates a galvanized iron factory at Trece Martirez, Cavite. The Foundation for National Development alleged that Sonic Steel “failed to put up an environment monitoring fund (EMF) and create a multi-partite monitoring team to regularly check on the factory's air, noise and wastewater emissions as required by the ECC.” Sonic Steel, however, denied these allegations (The Philippine Star, 06 February 2005).

With only one personnel assigned to monitor GSPI's environmental management, truly a job for a specialized department with dedicated environmental engineers in 1999, additional staff should be hired to beef-up EMS monitoring.

Notes:

Mendoza, Edward L (2007), Essentials of Open Access and Retail Competition. Proceedings of the 12th Region VIII (Nothern Mindanao) Regional Conference. Elena Tower Inn, Iligan City: Institute of Integrated Electrical Engineers of the Philippines, Inc. 26-18 August 2007. back to text

China Watch (2003), Tariffs Boosting Steel May Have Short Life. China Watch Orbis Publications, 26 July 2003. back to text

Santos, Bayani Jr. (ed.) (1992), Steel isn’t just for things; It's for people. NSC News, XVII: 8, Makati: Corporate Communications, NSC, 31 August 1992. pp. 8-15. back to text

NSC News (1992), National Steel Corporation: “Building a Country Together,” Eighteen Years of a Most Meaningful Commitment. NSC News Supplement. Makati: Corporate Communications, NSC, 23 October 1992. back to text

Cola, Doods (1993), Agenda 21: Survival in the Next Century. NSC News, XVIII: 6, Makati: Corporate Communications, NSC, 30 June, 1993. p. 11-14. back to text

The Philippine Star (2005), “Advocacy group seeks closure of steel plant," Manila: The Philippines Star, 06 February 2006. back to text

Revive Corporate Communications to update employees of all issues. (S1, S4, T1, T4). NSC News, associated with the Company itself rather than with any of its sectors, enjoyed almost 21 years of being the corporation publication for NSC from 1976 to 1997. Bayani Santos, Jr., NSC News editor-in-chief, wrote in November 1992 issue, “The magazine ... has become our people's collective intellectual and written tradition ... as they build this Institution.” For years, it featured corporate affairs, news updates, regular columns, forum, miniature art and literary pieces written or drawn from a small editorial staff of ten, plus at most 55 area coordinators-contributors.

On 06 January 2005, then GSPI's president Sushant C. Das appointed twenty-two employees to comprise the editorial staff and communications coordinators for the company's quarterly newsletter, aptly named: Global Phoenix. The newsletter aimed an added communication link between the organization, its employees and their families by informing of the events, updates, plans and direction of the company (Internal memo to author). Drafts were laid out for the maiden issue, but except for the appointment memo, it never saw the light of day.

When Indian expats first came to NSC, they had the mistaken notion that events regarding NSC written in the newspapers then at the end days of liquidator's phase were not allowed inside the corporate grounds. Employees caught reading or disseminating the clipped news items were made to explain to their respective heads. Every so often, even recent office memoranda regarding personnel matters are marked for your eyes only or restricted to the recipient. Moreover, a Total Productive Maintenance (TPM) newsletter, Flash TPM, is sometimes published aggrandizing the breakthroughs of the Management Initiatives department. Although there is the facility of using Lotus Notes, for select individuals who has ready access to a networked computer, the system is more often than not used for recycling spam or forwarding memos, but not used as a communication tool for the whole corporate arena because of software and hardware limitations. The same dilemma is faced by the Intranet, which can only be viewed by select individuals excluding most rank-and-file personnel. Thus, this researcher doubts the sincerity of the efforts to revive a semblance of a printed and publicly-viewed corporate communication newsletter at par with the defunct NSC News. Yet, it is common knowledge that corporate communication is the key to disseminating the right information at the right time rather than building-up loose talks through the grapevines.

Use local talent to address power conservation. (S1, T2) During the trying times under the Wing Tiek-Hottick NSC, cost reduction and austerity measures were the key words, as exhibited by the constant articles on this subject on many issues of the NSC News. Power conservation means were suggested by local personnel. Recycling, i.e., writing on the other unused side of a used paper, saved the company money intended to buy reams of crisp clean sheets; refilling of used computer printer ink cartridges; etc. was a fashionable money saver. Using the available local talent, pooling them together could result in a much bigger savings than just turning off the lights in a room when nobody is around.

Maximize base capacity production through efficient use of resources. (S2, S3, T3) People are the key to manufacturing or production of steel, especially if the facilities are yet to be fully automated. Maintenance spare parts are “the juice”, as one maintenance supervisor said, to make those facilities operate efficiently, safely and cost-effectively. Last but not the least is the capability of the installed base capacity the facility. A balance of all these three elements must be met for an equitable accounting of contribution to the totality of production process.

Create common corporate memories, symbols, etc. (S1, T4) In any organization, corporate symbols and corporate ceremonies create semblances of community and commonality. Management creates the means that these facades are transformed into personal convictions or group dynamics.

Initiate concept- sharing on environmental measures in AEC. (S5, T5) Three major agreements were reached at the Earth Summit in Rio de Janiero, Brazil in June 1992. These are the Rio Declaration, Agenda 21 and Forest Principles (Cola, 1993). The Rio Declaration contains the statement of principles, the basis of Agenda 21—moral, just, habitable, clean, cooperative, secure, prosperous and shared world. Agenda 21 addressed to governments, non-government organizations, groups and the public, all of which must be involved to diminish environmental catastrophe in the 21st century. Forest Principles provide for a future convention on forest conservation and restoration. These three agreements signed by 170 nation states should be dealt with also by the future ASEAN Economic Community in a concept-sharing method. The Community sharing common tropical weather has virtually the same ecology and natural environment, thus any improvement in one could be replicated in another.

Notes:

Santos, Bayani Jr. (ed.) (1992), 18th Anniversary Supplement: Milestones. NSC News. Makati: Corporate Communications, NSC pp. 46-47. back to text

Interviews with persons who wished to remain anonymous (refer to Appendix FF), various dates. back to text

Cola, Doods (1993), Agenda 21: Survival in the Next Century. NSC News, XVIII: 6, Makati: Corporate Communications, NSC, 30 June, 1993. p. 11-14. back to text

Total overhaul of organization based on worldwide benchmarks. (W2, W3, W4, W5, O1, O5) Andrew and Sirkin (2006), in a Senior Management Survey, found that globalization, organizational issues—metrics and measurement, structure, and people—and leadership remain three of the biggest challenges facing companies that are seeking to become more innovative.

A Performance Appraisal system and Key Results Anchors must set the level of performance based on worldwide comparative benchmarks, not just of equipment but of personnel, too. Presently, a supervisor claimed that some production hurdles are based on either Dolvi or Kalmeswhar that are incompatible with the equipment at the former NSC facilities.

Revive the ISM project. (W1, O1, O2, O3) Senator Gloria Macapagal-Arroyo, then undersecretary of the Department of Trade and Industry under Aquino's presidency, disagreed with NEDA's 1992 judgment that the Integrated Steel Mill (ISM) was not viable and feasible. She was instrumental to the NEDA's funding approval when NSC made a new study, which showed otherwise (NSC News, September 1992). The ISM project remained complicated then shelved, however, because of the proposed privatization, and subsequently, the Jacinto litigation in 1992.

Henares (2006) urged the public to “let's get it on with our steel industry,” after lamenting that, the Philippines steel industry lagged 35 years behind that of South Korea and Taiwan. The Integrated Steel Mill dream for the Philippines has been scuttled, not just once but thrice, by IISMI (NSC News Supplement, 12 September 1990), during the Marcos era, and the Aquino era when privatization was prioritized before backward integration.

Former NSC's CEO, Dr. Antonio V. Arrizabal, and president & COO, Rolando S. Narciso, prior to privatization, both claimed that “integration is a necessity, and privatization is a sacrosanct government policy—and . . . are 100 percent behind it” (Henares, 2006). When Wing Tiek took over, it embarked on the start of FYEP Phase II-B, but Phase III (ISM) discussions were also on the agenda.

Last 23 May 2007, Lalit Kumar Sehgal, Global Steel managing director, announced that GSPI is investing $1.5-billion two-phase Integrated Steel Mill project in Iligan City to be completed in 2010, or two years from now (Valdez, 2007m). This news surfaced after speculations that GSPI's Iligan plant was to be sold to Tata Group (Osorio, 2007) and the brouhaha regarding cold-rolled coils exports to Vietnam (SEAISI Newsletter, March 2007). Exported cold-rolled coils were slapped with higher tariff by Vietnam claiming that the raw materials used did not come from the Philippines but instead in India (Valdez, 2007j). This was reminiscent of the Jakarta Form D issue in October 2005, when the Association of Galvanized Steel Manufacturers in Indonesia complained against GSPI's availing reduced tariff rate using Form D for its cold-rolled coils questioning the source of raw hot-rolled coils allegedly from India rather than the required 40% local content from the Philippines (de Pedro, 2005).

With the ISM, the next logical step is an application for Special Economic Zone status for GSPI, which promises (de Lima, 1999) investment incentives for ecozone developers, operators and locators such as Income Tax Holiday, access to official development assistance (ODA) and other sources of financing, among others.

Pursue favorable tariff rates for raw materials imports. (W1, O3) The greatest threat is the steel tariffs. The overall trend is a gradual decrease of Weighted Average Tariffs since 1990 (Remo, 2004). The Philippine government announced in July 2004, the Cabinet Committee on Tariff Related Matters would take time to study opposing positions on raising steel tariffs, which is expected to cause increases in prices of basic commodities manufactured by downstream steel users like canned goods and construction materials. Prior to the purchase of NSC's assets by GIHL, the latter have vigorously announced its concerns regarding the tariff rates, presently from 0 to 3%, imposed on steel products. GSPI's, known then as GIHL, position highlights (Inquirer News Service, 22 July 2004) that there should be a difference in the tariff between the raw materials used for the production of steel products and the finished products itself to make the operations of NSC, now GSII, feasible and viable. This issue remains unresolved, pending the evaluation of GSPI's status whether it is already on commercial operation or not. Eñano (Manila Standard Today, 23 July 2004) wrote, “This did not sit well with opponents of the planned tariff increase.”

The Philippine Chamber of Commerce and Industry (PCCI) had been very vocal about this issue. “Government should not give preferential treatment to any group who has intentions of reviving operations of a closed company. All companies should compete normally without special favors. As in the case of NSC, Global should not be allowed to raise tariffs and then adopt an import-parity pricing system,” it said. “Rather, prices should be based on normal market forces... and other relevant factors such as cost efficiency, terms, quality and service.” (Manila Standard Today, 23 July 2004)

Under the Implementing Rules and Regulations of Executive Order 375, the 7% tariff on HR and CR steel products will be imposed once GSII's production volume is found to have reached certain level. This is 50% of GSPI's BoI-registered capacity for flats products or 50 percent of average Philippine importation volume of HR or CR steel products for five years immediately prior to the state of operations (Manila Standard Today, 25 June 2007).

Upgrade Business networks and systems using new technologies. (W3, O1, O5) Before any hardware and software system gains user applicability, user-friendliness, and continuous improvement, an upgrade of antiquated hardware should be the first and foremost concern. Computerization does not come cheap, thus initial investments should be programmed to ensure deployment without sacrificing the operational capability of the basic business: steel manufacturing.

One option to consider: instead of buying a new corporate server, the Mainframe System could be re-deployed to tackle the business process for the whole plant. In 1997, IBM (Layland, 1997) released its High Performance Routing (HPR) for Mainframe System offering better performance and fault tolerance than TCP/IP, the protocol used by Windows-based systems, especially those involving transaction processing and electronic commerce.

Strengthen domestic markets with local partnerships & new product development. (W5, O5) Andrew and Sirkin (2006) also found that among industrial goods companies, to include steel, the financial returns of innovation are satisfactory. Furthermore, of the four possibilities on the new products and services axis of innovation, 71% of the respondents rated new offerings for existing customers are considered important or highly important, thus most valuable and worth pursuing.

Notes:

Andrew, James P. and Harold L. Sirkin (BCG) (2006), “Senior Management Survey: Innovation 2006.” Worldwide: The Boston Consulting Group, 20 July 2006. pp. 1-30. back to text 1 | 2

Santos, Bayani Jr. (ed.) and Loy Concepcion (1992). “NSC should be privatized as soon as possible.” Interview with Senator Gloria Macapagal-Arroyo. NSC News, XVII: 9, Makati: Corporate Communications, NSC, 30 September 1992. p. 6-7. back to text

Henares, Hilarion M. Jr. (2006), “National Steal Corporation,” Give and Take. Book 9. Manila: Philippine Folio, 2006. back to text 1 | 2

NSC News (1990), What Employees Should Know About The Jacinto Claim, NSC News Supplement, Iligan City: NSC, 12 September 1990, p. i-ii. back to text

Valdez, Katrina Mennen A (2007m). “Global Steel prepared to put up integrated manufacturing plant.” Manila: The Manila Times, 23 May, 2007back to text

Osorio, Ma. Elisa P. (2007). No plan to sell Iligan plant, says Global Steelworks, The Philippine Star, 22 May, 2007 back to text

Santiono, Jati (ed.) (2007), “Vietnam imposes 7% tax on Philippine CRC.” SEAISI Newsletter, Selangor, Malaysia: Tan Ah Yong, March 2007. pp. 7, 9. back to text

Valdez, Katrina Mennen A. (2007j). “Global Steel to hurdle Vietnam challenge," Manila: The Manila Times, 25 July 2007. back to text

de Pedro, Helegarde S. (2005), Letter of Assistant Director to Commissioner, Bureau of Customs re: “Trade Complaints re GASPI”. Manila: DTI, 19 October 2005. back to text

de Lima, Lilia B. (1999). Economic Zones: Creating Employment & Other Opportunities Particularly in the Countryside, Proceedings of the 8th Mindanao Business Conference, 12-14 August 1999, Iligan City, Lanao del Norte. back to text

Remo, Michelle V. (2004), “National Steel Bidder Asks for Tariff Protection,” Manila: Inquirer News Service, 06 January 2004. back to text

Inquirer News Service (2004), Gov't reviews position on steel tariff, Manila: Inquirer News Service, 22 July 2004. back to text

Eñano, Ray S. (2004), “NSC protection won’t just go away.” Manila: Manila Standard Today, 23 July 2004. back to text

Ramos, Elaine Ruzul S. (2007). “Govt to hike tarrif on steel to 7%.” Manila Standard Today. Manila: Manila Standard, 25 June 2007. back to text

Layland, Robin (1997), Mainframe Makeover, Data Communications New York: Penwell Publications, August 1997, pp. 85-92. back to text

The better news? A fourth follie was discovered today. It may not be big enough to release with a natural surge but just the fact that it was there and had grown was great news for us. S felt really good, like her body was finally cooperating.

We have socks, pineapple and POM on board as well as a combo of Estrace, baby aspirin, Crinone and progesterone capsules. There are a host of photos or drawings of fertility goddesses hanging over our bed and we have added gemstone therapy this time around. S will also eat the traditional McMuffin at implantation. All bases have been covered I would say.

Thank you for all your support and encouragement. It means so much to the both of us. I hope with all our crazy tricks and your great energy I will have some great news to report in a few weeks.

Pursue ISO9002:2000 certification. (S2, S4, O1, O4): Western quality standards previously and currently dictate the present market (Allio, 2006). A re-certification would greatly increase the company's reputation to customers. Once ISO-9002 re-certification is achieved, an ISO14000:2000 certification should also be considered. Incidentally, GSPI's Core Team for ISO9001:2000 certification of its cold-rolled manufacturing division was formed last 21 March 2007. The team is presently on its second review of all required documents for certification. With these, plus the fact that NSC products are already afforded the “PS” mark, the whole world could be GSPI's market!

Develop technical cooperation with ASEAN, Asian counterparts. (S3, S5, O2, O5) With a recommencement of partnership agreement or technology-transfer with Japanese’ TMBP manufacturers, the company could gain a foothold in pineapple tin cans for Dole and Del Monte, if it decides to rehabilitate then operates Electrolytic Tinning Line No. 3 (ETL3). At present, with all of the three tinning lines in the Philippines remaining closed, all tinplates for the manufacture of tin cans are imported to the Philippines (compare this with Appendix O).

Okayama (2007) surveyed the use of economic partnership agreements (EPA) between 24 January and 16 February 2007 and found that 43.1% of Philippine respondents have no interest in Japan-Philippines EPA, while only 20.8% wants to know details. However, with the Philippines and Japan signing the JPEPA last 06 September 2006, and the projected Senate ratification slated this March 2008, it would be wise if the agreement would be looked upon now and explore its effects to the burgeoning Philippine steel industry, particularly its implications to GSPI.

Roxas (2007) reporting for The Manila Times, wrote “the Department of Trade and Industry stresses that JPEPA will help Philippine business become globally competitive and achieve success across numerous markets, not just Japan. When the agreement comes into force, it will create new benefits and opportunities for Philippine society. . . The agreement spells out the framework for the expansion of trade in goods and services between the two countries, paving the way for wider market access bigger investments and technology transfer from Japan.”

Technical cooperation with other ASEAN and Asian steel companies, like Nippon Steel or POSCO, or even the US Steel, could address productivity and yield improvement, cost reduction and benchmarking. Presently, only Ispat expatriates are hired for this purpose, to which a number of local personnel countered that most of these expats are still “learning the ropes” instead of sharing their supposedly expertise on steel manufacturing.

Maximize use of BOI incentive to maintain equipment's capacity and capability. (S1, S3, O3). NSC was registered as a pioneer enterprise with BOI and was entitled to up to 100% tax credits for the purchase of domestic capital equipment and parts. Presently, however, production runs are often stopped at GSPI because a critical spare is not available, a part or section of mill is continuously operated up to breakdown point; delays could even drag on for hours, even days, because certain replacement parts or necessary tools are not immediately available. Maintenance downturns, instead of behaving in a cycle of 15 or so days, are done on a spontaneous basis, yet inspection, repair, replacement or servicing activities on equipment are usually incomplete because of lacking materials and supplies to perform the scheduled maintenance work order. Several mill supervisors attested to this fact and most lamented that GSPI is running the former NSC's plant facilities to breakdown.

One engineer emphasized his observation of the GSPI's cycle of facilities’ rehabilitation: rolls-out an initial rehabilitation plan; wait for spares, which is prolonged because of lack of funds; puts the plan on-hold; then a new president comes in, which changes the rehabilitation focus, and pursue another rehabilitation plan of another equipment, and the cycle is repeated.

Initiate long-term agreements with ASEAN and Asian countries. (S5, O4) China is still the most volatile market in Asia, but with the projection that it will slow down in the coming years Terrill (2007). Guerrero (2007) wrote in Global Finance, “China's continuing economic expansion may be a bumpy ride, but the country's prospects still look remarkably good.” Thus, other ASEAN markets should be pursued.

These agreements could also include slab and hot-rolled coils supply, or eventually, including tin-milled black plates supply; as well as technical cooperation on product and yield improvement, cost reduction and management systems.

Re-inculcate the importance of quality in methods, products and services. (S1, S2, O5) With adherence to world standards plus the company's appreciation and application of Six-sigma technology, boosting confidence of ex-NSC customers to be lured back as users of the GSPI's product as enthusiastic as before.

Updated and relevant seminars, trainings and workshops on Quality should be included in the training schedule. Attendance to various Quality Conferences should also be looked into, and personnel attendance to such events should be included in the annual budget. Subscription to pertinent publications on quality would be an added bonus.

Notes:

Allio, Robert J. (2006), Strategic thinking: the ten big ideas. Strategy & Leadership, Vol. 34 No. 4 Emerald Group, 26 September 2006, pp. 4-13, back to text

Okayama, Hidehiro (2007), Use of Preferential Treatment under FTA. Proceedings of Reiti Policy Symposium, Tokyo, Japan: REITI, Tokyo Chamber of Commerce & Industry, 23 March 2007. back to text

Roxas, Cipriano S. "Special Report: What's in it for us?" Manila: The Manila Times, 26 August 2007. back to text

Terrill, Ross (2007), Dealing With China in the Coming Years. Imprimis, Vol. 36:7. MI, USA: Hillsdale College, July 2007. Transcript of remarks delivered at Hillsdale College National Leadership Seminar, Fort Myers, Florida: 13 February 2007. back to text

Guerrero, Antonio (2007). Country Reports: China—Growth Pains. Global Finance. Vol. 21, No. 10. New York: Joseph D. Giarraputo, November 2007. pp. 36-38. back to text

T1. Legal and Political Environment: The political environment in the Philippines has been volatile in the 1990s, with the fall of Marcos and then Estrada, highlighting each break in the economic situation of the country. Gloria Macapagal-Arroyo's term, due to end in 2010, has shown promise in stabilizing the economic policies of the country. Most people are optimistic that the country could do better in the coming years. The MTPDP for 2004-2010 outlined the most important Philippine concerns such as Economic Growth and Job Creation; Energy; Social Justice and Basic Needs; Education and Youth Opportunity; and Anti-Corruption and Good Governance.

Furthermore, the remnants of Jacinto (NSC News, 12 September 1990) and Cacho cases, inherited from the NSC and NDC, might not bear much effect to the industrial position of the company and will be a lingering reminder of the past. If GSPI has the legal right to deal with these cases, they should also be pursued for legal finality, or a set of guidelines be drafted such that the reputation of the new corporate identity be separate from the old.

T2. Unbundled Power and Worsening Energy Supply: The Philippines passed a landmark law (R.A. 9136) which embarked on the restructuring the power sector in 08 June 2001. The Electric Power Industry Act (EPIRA) envisions an industry with an independent regulator; privately owned and competitive generating plants; single regulated and privately owned transmission system; power distribution companies with incentives for performance; and vibrant competition for retailing power to end-users. It provides for the privatization of state-owned companies in the industry, most notably NPC, establishment of wholesale electricity spot market (WESM), creation of new regulatory body, government's absorption of P200 billion of NPC's liabilities, and review of NPC-IPP contracts (Abrenica, 2004).

With unbundling of power rates in October 2002, the new power rates posed a threat to the bottom line. The present rate system allows for the imposition of sub-transmission rates for all systems below 138kV. NSC's electrical system used both 138kV and 69kV power supplies. Most sheet-production facilities, HSM, CSM and ETL manufacturing, are connected to the 138kV supply. Although the latter is specifically for the BSP operations, it also supplies the whole of NSC plant in case of power fluctuations or interruption. Thus, GSPI pays monthly for a power supply not directly used for flats production. From October 20002, transmission charge for 138kV was about P171.62/kw, while total Transmission Charges for 69kV was P242.83, or an additional P71.21/kw for sub-transmission. These charges are continually revised with increasing trend. It is imperative, therefore, that proposed project to relieve the 69kV supply and the plant to be solely supplied by 138kV be pursued (PFP, 2002).

T3. Increasing Steel Imports, Meager Steel Exports: Total imports is stable at 19% increase per annum with Iron and Steel imports regaining from a decline starting in the first quarter of 2000 and a strong climb at the end of the fourth quarter in 2002. Recent data from NEDA online shows that imports will climb from 42.6% increase during the second quarter of the current year to a level lower than the highest attained in 2002. Total exports decreased beginning 2001 and will gradually remain at low levels seen in the last quarter of 2004. While, Iron and Steel Exports accounts to a meager 0.06% of the total Manufactured Exports, NEDA predicts that it will continue to hover between P18 and 20M for the succeeding years.

T4. Rising “Brain Drain”: With the construction boom in the Middle East, especially in the United Arab Emirates, Kuwait, plus neighboring ASEAN countries like Vietnam, Cambodia and Malaysia, technically inclined Filipinos, e.g., engineers, technicians, or experts, are joining in the bandwagon in search of the proverbial pot of gold (Tullao, Jr., 2000). This is even true at GSPI, when each time offers of job on foreign lands are posted somewhere, employees—from managers down to the low-ranked personnel—flocked in hordes hoping to be slotted for at least an interview. Employees who were hired in 2004, promised with rosy future after the closure of NSC for almost four years, hoped for easier months ahead, yet remained in the same position with the same pay level for four years—pegged at 1999 exchange rates, plus holding respective familial obligations and responsibilities have no recourse but to look for greener pastures. Worse of all, these same ex-NSC employees observe that their counterpart expats, toting their GSPI-issued laptops, hired in 2004 at a salary level based on 2004 exchange rates, are pampered. Expats are afforded with shuttle buses to ferry their children enrolled to premier private school all expenses paid for by GSPI. They relax in their fully furnished no-rent blue houses with free electricity, free cable, landline and internet connections, plus free-flowing no-charge potable water, and sport amenities that could rival a five-star hotel: Olympic-size swimming pool, a covered tennis court, a standard size basketball court, guarded every hour 24/7!

Highly trained Systems Engineers and Technicians, although loyal at first to GSPI, are now considering employment in Middle East because of employment status uncertainty. Between 2005 and 2006, a number of experienced mechanical and electrical tenders plus well-trained quality assurance inspectors resigned to fill vacancies with higher competitive compensation packages outside of GSPI. Fortunately, fresh college graduates from nearby universities and colleges, including MSU-IIT, St. Peter's College and Xavier University, were immediately drafted to fill the void, but by 2007, these same replacements followed suit their predecessors for high-paying jobs.

T5. The Challenge of the Natural Environment: Philippine government is a signatory of the Kyoto Protocol, and several landmark laws have been enacted in support of this gesture, such as the Clean Air Act, Water Conservation Act, among others.

In April 1994, NSC shared with two other companies—Coca- Cola Bottlers Philippines, Inc., and Honda Cars Philippines, Inc.—the first Macli-ing Dulag Environmental Achievement Awards Special Citation for Corporation for demonstrating deep commitment and outstanding achievements in protecting and conserving the environment (Illut, 1994).

By 1995, NSC completed the Acid Regeneration Plant, its eleventh environmental control facility since 1984 in addition to dust collectors, fume scrubber, treatment plants, neutralization facilities, and smoke stacks. Furthermore, NSC adopted a Business Chapter for the Environment in 1993 based on the Philippine Business Charter for Sustainable Development. An Environmental Management Group administered NSC's efforts in waste reduction, recycling, treatment and disposal (NSC News, August, 1995).

In contrast, GSPI has but a single person who used to be part of NSC's Environmental Management Group dealing with all this concern.

Notes:

NSC News (1990), What Employees Should Know About The Jacinto Claim, NSC News Supplement, Iligan City: NSC, 12 September 1990, p. i-ii. back to text

Abrenica, Ma. Joy V. (2004), “Contracting for Power: The Philippine Case.” Manila: Asian Development Bank, 01 December 2004. pp. 18-19. back to text

Plant Facilities Preservation (PFP, 2002), Power and Energy Analysis, Iligan: Plant Facilities Preservation, NSC, 07 October 2002. back to text

Tullao, Tereso Jr. (2000). An Evaluation on the Readiness of Filipino Professionals to Meet International Competion. CBE Working Paper Series 2000-01 Manila: De LaSalle University, 08 August 2003. p. 6. back to text

Illut, Jek (1994), NSC Cited for Environmental Concern. NSC News, XIX: 5, Makati: Corporate Communications, NSC, 31 May, 1994. p. 13. back to text

Balali, Macky (ed.) (1995), Protect and Preserve. NSC News, Vol. XX: 8. Makati: Corporate Communications, NSC, August 1995. pp. 8 - 10. back to text

W1. The Hitch of Imported Raw Materials: From the start, NSC has been importing raw materials, slabs and HRCs, from various international steel suppliers through accredited traders, thus, subject to market fluctuations (NSC News, 28 February 1993). The decline of the privatized NSC under Hottick was augured by its inability to secure a long-term agreement with its slab and HRC supplier. GSPI relies on an agreement with Stemcor and Steel Traders Corporation (STC) for its HRC needs and sourced slabs from foreign suppliers, too, claimed one STC employee. While it considers Ispat International Ltd with slabmaking facilities as its mother company, the latter does not supply GSPI with slabs, but ironically GSPI gets its slabs on spot basis from various international sources, consequently this makes GSPI's supply subject to market fluctuations and traders mark-up. Thus, initiation of a long-term agreement with traditional suppliers of slabs and hot-rolled coils becomes imperative.

W2. Lack luster remuneration scheme versus global standards. Before and after privatization, NSC offered competitive salaries to its employees which were the envy of other Mindanao-based companies. Some ex-NSC employees even considered working for NSC, with their compensation comparable to worldwide standards, as similar to working abroad from the comforts of one's home country! When GSPI took over management reins, they offered rehired ex-NSC personnel their 1999 salary levels with a gentleman's promise of adjustment when the company tided over to commercial operations. An attempt of a review of the corporate compensation package took effect in 2006, yet disparities among same level of work receiving different levels of pay triggered the formation of a union among the rank-and-file personnel. On the supervisory and middle managers level, the same is also true, but differences are great. Some former NSC assistant managers and others at supervisory level then are now occupying the same positions, doing the same supervisory tasks, at GSPI. Another disparity is the fact that most expatriates occupying various positions were hired with prevailing salary rates in 2004 or later, thus much higher than the local personnel who remained stuck at receiving their 1999 salary levels. In present terms, the locals’ salary levels are almost a decade-old compared to expats’ salary levels.

W3. Outdated Business networks and e-Commerce: The business computer systems of NSC are outdated and old-fashioned. Business reporting was done mostly through the relatively slower channel of communication: telephone, fax, and courier systems.

Dr. Bill Torres, a part time consultant to NSC on Information Technology since 1985, claimed that NSC stopped acquiring new information technology in 1990s, although it exchanged its PC-XTs to 486s, and WordStar to MSWord (NSC News, 30 September 1994).

A special project submitted by this researcher in 2006 as a course requirement to MSU-IIT MBM's Management Information Systems and Expert Systems in Business provided an analysis of GSPI's Information Systems and Services Department from the viewpoint of a user in a production setting. The paper, entitled “Reengineering the Global Steel Philippines (SPV-AMC), Inc. Information Systems” detailed the known facts disseminated through GSPI's corporate communications network, actual usage of the new in-house developed information systems, additional related literature research, and comprehensive analyses of the various systems. A copy of this paper was sent to GSPI's Information Systems Department head, who remarked that the claims made therein were in essence true.

Meanwhile, a defunct Mainframe, which handled the stock procurement and maintenance programs until 1994, sits idly and unused.

W4. Instability at the top, insecurity at the bottom. For the past four (4) years, from 2004 to the present, there has been three (3) presidents prior to the present one, the Managing Director. From discussions with several employees, most perceived this as instability at the top. Although, patience have become a virtue of ex-NSC employees, who have shared common memory of NSC's most trying era and have been loyal to the idea of the “old” NSC since then, nevertheless this could not last long enough to see another “changing of the guard.” This instability has affected the mills’ productivity, and further eroded the seemingly perceived teamwork between management and those it managed. Insecurity among the ranks is also high, foremost because of the delayed or curtailed salaries and pays, and the unremitted government dues pre-deducted from personnel's compensation for their SSS and Philhealth premiums, as well as the withheld taxes, aside from unrequited promises since 2005 to fix them. To this day, this particular insecurity is a frequent feature on most local radio commentators’ airtime. Secondly, the anxiousness shown by management towards the union is making the Labor-Management relationship a thorny issue. The union only asked for the barest minimum pay increases, plus a small list of fringe benefits, enjoyed during NSC like free hospitalization, medicines, uniforms, shifting crew transport, bereavement assistance and group life insurance, to which the former cut all these in half, claimed a key informant. Another union officer further compared the economic provisions of the union and management proposals, referring to copies distributed by the union secretariat. A typical example: the union proposed for an aggregate of three times increase in night premium pay from 11.5% to 50% of regular pay, while management countered it with 18% increase from 11.5% to 13.5% of regular pay. The informant justified that the 50% night premium was the typical rate on top of NSC's regular pay since 1989, and that most members desired to revert to the accustomed rate.

On 19 November 2007, a labor crisis ensued at GSPI and its DOLE-brokered resolution was hinged on management's presentation to employees of the GSPI's financial status, which the company refused to do. The rank-and-file attributed the crisis to the government's decision to privatize NSC and sell it to a company without a good track record (Valdez, 2007n).

W5. Weak marketing of products to domestic steel markets. NSC's dominance of the domestic market before and after privatization was legendary that certain groups in the country branded the company an opportunistic monopoly (Henares, 2006). In contrast, the GSPI's marketing department, mostly staff with Indian expatriates who may or may not have any local selling experience in the country resorted to focusing their skills on exports rather than on the domestic market. It is a fact, moreover, that in the past four years of GSPI, only a few of its products are for exports.

Domestic sales and marketing is being handled by a contractor, Steel Alliance. Prospective buyers could not directly deal with GSPI but rather inconvenienced by having to deal with a contractor.

Notes:

Santos, Bayani Jr. (ed.) (1993) “Supply Side Economics: A More Challenging Ahead for our Raw Materials and Supply Group.” NSC News, XVIII: 2, Makati: Corporate Communications, NSC, 28 February 1993. p. 7. back to text

Balali, Macky P. (ed.) (1994), “Making the Information Technology Big Leap.” NSC News, XIX: 9, Makati: Corporate Communications, NSC, 30 September 1994. pp. 3-5. back to text

Interviews with persons who wished to remain anonymous (refer to Appendix FF), various dates. back to text

Valdez, Katrina Mennen A. (2007n), “Global Steel workers restrained from protest actionn,” Manila: The Manila Times, 20 November 2007. back to text

Henares, Hilarion M. Jr. (2006), "National Steal Corporation," Give and Take. Book 9. Manila: Philippine Folio, 2006. back to text

Thus, for any reincarnation of NSC, not just GSPI—the latter is only used as the base case scenario—a need to analyze its strength (S) and weaknesses (W), explore its opportunities (O) and threats (T), to come up with strategies affecting flat production. The top five (5) issues, most are interconnected, of each of the four (4) parameters of the SWOT/TOWS matrix, summarized in Appendix T: SWOT/TOWS Matrix, are enumerated below.

Strengths (S): NSC's strength came from its well-trained professional technical and managerial personnel; adherence to world- class standards and production methods; comparable “state-of-the-art” high-tech facilities and equipment; favorable customers’ reception; and its proximity to ASEAN and Asian markets. more . . .

Weaknesses (W): Some NSC's weakness remained with GSPI's taking over specifically, its dependence on imported raw materials and the outdated NSC's business networks and e-commerce. Moreover, based on the four-year GSPI's management of NSC facilities, new threats are emerging, e.g., lack luster remuneration scheme versus global standards; perceived instability at the top, insecurity at the bottom; and weak marketing of products to domestic markets. more . . .

Opportunities (O): Emerging markets are considered here both as a threat and as opportunity, but rather than present a gloomy outlook, this study proposes to positively deal with it as an opportunity. Other opportunities abound. The recapture of the Philippine domestic steel market with government's support of the steel industry as stipulated in the Medium-Term Philippine Development Plan for 2004-2010. The quest for Special Economic Zone status for GSPI is beckoning. The realization of the Japan-Philippine Economic Partnership Agreement (JPEPA) in January 2008 and the proposed implementation of the ASEAN Community by 2010, and the new production technologies, processes and methods. more . . .

Threats (T): These factors include the political and legal environment affecting the nation as a whole, thus affecting the steel industry. Although not discussed here at length, its repercussions are noted. Other threats include the unbundling of the power rates and the worsening power supply in Mindanao; the constantly decreasing import tariffs vis-à-vis the increased volume of steel importation; the rising “brain drain” syndrome; and the challenges of keeping the natural environment safe from pollution. more . . .

Notes:

Claessens, Dirk and Allan Henderson (2007), “Seize the strong positions. Steel companies in an era of consolidation.” NY, USA: IBM Global Services, IBM Institute for Business Value, June 2007. pp. 1-20. back to text

NSC's foray as a private enterprise from 1995 under Wing Tiek then under Hottick has been a tumultuous phase; its flat steel production was subject to forces that would prove fatal to its corporate existence. NSC liquidation in 2000 brought rippling economic effects to the immediate community, in particular, Iligan City, and in general, the Philippines; as well as changed the legal environment for the Philippine steel industry; and threatened Philippine trade relations, especially with Malaysia. The revival of NSC facilities into operative state in 2004 offered new possibilities for the Philippines’ quest to become a new industrialized country by decade's end; re-opened the question of steel integration—the pursuit for the country's Integrated Steel Mill; and changed, however minute, the inter-trade of steel products within the ASEAN, AFTA, and WTO communities.

Applying the merged versions of corporate strategic factors introduced by Stevenson (1990), Friedman and Gyr (1998), these forces came from external factors: the omnipresent globalization and trade liberalization, influx of new technology, fierce competition, cyclical steel prices, the hitch of raw materials imports, and the same suppliers of steel imports. The economic conditions and the political scenario might have changed personalities but considering the general state of the Philippines before and at present, most Filipinos, and even foreign observers, would say that it remained unchanged.

In addition, the contemporary internal factors are very similar. Majority of NSC employees were absorbed by both Wing Tiek-Hottick and GSPI. The privatized NSC, both then and now, operated with unchanged rated capacities of various rolling facilities, yet with slightly improved equipment capability. The list of domestic customers dealing with NSC are invariably the same, however, one or two changed their corporate identities. The minimal export steel trade are still that—minimal; and the products offered are HRC, HRP and CRC, although customers’ specifications has became more stringent as ever before. The constantly evolving organizational structure at GSPI patterned from the privatized NSC with additional interrelationships acquired from Ispat. Last but not the least, while the NSC's ISO9002:1994-certification may have lapsed in 2000, but work processes, systems and standards at still based on these ISO documents and GSPI incorporated many new Ispat-based standards, including Total Productive Management (TPM) activities, and Six-Sigma. On the manufacturing aspect, GSPI introduced a new type of steel grade 1006 and improved production of thin gauge CRC.

Thus, if push comes to shove, although possibly that there is no apple-to-apple comparison with the pre-privatized NSC versus its later rebirths, both as Wing Tiek-Hottick or GSPI, however, the same factors then, from this study's viewpoint, still exist in the current business environment, albeit different in intensity, focus and personalities.

Atom Henares (2006a) in his foreword to his father's book series summed it all:

“. . . running of a manufacturing enterprise requires 4 M's:—money, machines, materials, and the management which combines the first three M's in productive and profitable relationship. The four pillars of a business enterprise are: the investor who provides the money for financing, the government which takes care of the business environment, the employees who provide the labor, and the consumer who buys its products. It is management that ties them all together – giving the investor an adequate return for his investment; the government the taxes that it needs to run the country; the employee a fair compensation for his work; and the consumer his wants and needs with the highest quality at the lowest price.”

Notes:

Stevenson, William J. (1990). Production/Operations Management. New York: Richard D. Irwin, Inc. & Toppan Co., 3rd ed., 1990, pp. 28-29. back to text

Friedman, Lisa and Herman Gyr (1998), The Dynamic Enterprise: Tools for Turning Chaos into Strategy and Strategy into Action. New York: Jossey-Bass Publications, 1998. pp. 58-65. back to text

Henares, Alfredo Tomas (2006a), Foreword to Give and Take, Make My Day – Book 9 by Larry Henares. Mania: Philippine Folio, 2006. pp. ii-ix. back to text

Check out Sophie do her th'ang:

S1. Well-trained Personnel: NSC's claim to fame during the 1990s was its well-trained personnel. Training, seminars, and workshops, including continuing educational modules, were foremost in NSC's Human Resource development agenda. Most of its engineers and other technical personnel underwent foreign trainings in the United States, Japan and other countries. Most managerial and supervisory personnel have undergone the Industrial Engineering and the Engineering Management Training programs in 1980s and 1990s, respectively. In addition, managers were afforded access to Asian Institute of Management courses to augment their baccalaureate degrees (San Pedro, 1994).

On one hand, with GSII tapping these ex-NSC employees from the different phases of its corporate existence, some from the pre-privatized NSC but mostly from the Wing Tiek-Hottick era, the same competency and adeptness can be achieved through re-training and enrichment. With the reintroduction of Total Productive Maintenance (TPM) and 5-S, which initially came to NSC's consciousness in 1993, high mill availability and reduced maintenance costs are definitely assured.

On the other hand, while GSPI's rehired ex-NSC employees were well trained, these same employees are now older and aging. Based on the survey of the list of retrenched employees in 1999, the average age of most employees when NSC ceased operations was in their early 40s with an average length of service of about 12-15 years. Mosner and Craig (2003) emphasized the value of retaining experienced and capable—yet aging—employees, versus the significant costs of employee turnover. Retention, Mosner and Craig continued, “will slow this exodus from the workforce and the knowledge and talent drain while maximizing older workers’ productivity.” For GSPI, however, dealing with older and aging technical personnel and skilled crew could pose a two-prong future corporate financial problem. Retention requires the acquisition of accessible and assistive technology, while retirement obliges GSPI the disbursement of retirees’ benefits.

S2. Adherence to World Standards and Production Methods: Prior to its shutdown, NSC was a Bureau Veritas Quality International (BVQI) ISO9002:1994-certified company specifically ETL3, Cold Strip Mill and Billet Steelmaking Plant. Only Hot Strip Mills certification was unrealized because of economic constraints. Internal Quality Auditors have been trained to check continually the certified mills compliance to ISO9002:1994 systems. Product quality has been maintained at highest standards possible adhering to the Philippine National Standard (PNS), Japan Industrial Standard (JIS) and Deutsche Internationale Normen (DIN). NSC products were granted the Philippine Standards (PS) mark in 1992. Back when Kaizen was still a novelty, NSC supervisory and rank-and-file personnel have been active participants since 1986 of Productivity Improvement Program for Operating Lines (PIPOL). PIPOL (Sinangote, 1993) was NSC's comprehensive program of quality circles comprised of personnel from different departments, such as, operations, quality assurance, mechanical and electrical maintenance, roll shop and utilities dealing with team projects ranging from productivity and quality improvement; to delay, cost and defect reduction. Thus, each of them have put to heart the concept of quality work, quality product and quality process.

S3. “State-of-the-Art” High-tech facilities: NSC facilities were at par, if not more advanced, with other international steel mills. Most of the installed equipment was supplied by original equipment manufacturers with constant consultation with USX Engineers, Kawasaki and Nippon Steel experts. Most process-computer systems are new, and vintage electronic systems have been upgraded to suit new applications (Hatch, 1996). Maintenance of these facilities is paramount to the continued efficient and effective quality operations of the mill and process lines, without which could derail customer relations because of unrealized production, thus translated to delayed deliveries.

S4. Favorable Customers Reception: NSC enjoyed a good reputation among customers. Complaints were relatively at a minimum and were promptly attended to by a Customer Service Department plus the fact that recurring ones were treated with all the help—technical or otherwise—from all concerned parties, e.g. operations, quality assurance, maintenance, support, research and development (NSC News, May 1995).

Based on this study, even during the privatized NSC phase, mean number of complaints were at a meager two (2%) of the total sales, when NSC were selling almost 30 to 35,000 metric tons per month. Although this is not the best, compared to GSPI's Six-Sigma quest, back then this was a feat not to be looked down. Hearing the prospective resumption of NSC's operation in 2004, many NSC customers, especially those that were then led by ex-NSC employees, such as the former Executive Vice President for Cold Strip Mills, sent words to adopt GSPI as their primary supplier of their steel requirements. Their affinity to NSC came from the long-held belief that the resurrected plant would supply them quality products once supplied by NSC before.

This is better explained by the former Customer Service Department head, in an interview (NSC News, May 1995), who described NSC's relationship with its customers as one of transparent, open reciprocity—“a mutual exchange of goodwill with a healthy awareness of each other's capabilities and limitations while resolutely upholding the interest of both.”

S5. Proximity to ASEAN and Asian markets: Competitively located at the heart of the ASEAN markets, NSC's geographical location can supply products by sea routes promptly. Iligan to Manila is about 525 nautical miles. From Manila, most ASEAN and Asian countries are accessible.

Notes:

San Pedro, Angelo A. (1994) “It Was Twenty Years Ago Today . . . ,” NSC News, XIX: 2, Makati: Corporate Communications, NSC, 28 February 1994. pp. 4-5. back to text

Mosner, Ellen and Craig Spiezle (2003), The Convergence of the Aging Workforce And Accessible Technology: The implications for commerce, business and policy. USA: Microsoft Corp. and AgeLight Marketing Consultancy, July 2003. p. 16. back to text

Sinangote, Nards (1993), “Total Quality Management: Is National Steel ready for it?” NSC News, XVIII: 2, Makati: Corporate Communications, NSC, 28 February 1993. pp. 8-9. back to text

Hatch Associates Ltd. (1996), “National Steel Corporation–Philippines: Benchmarking, Optimization, and Overview of Materials Management Policies,” Final Report PR 64624.001, 14 June 1996, p. 15-16. back to text

Balali, Macky (ed.) (1995), “Settling Customer Complaints.” NSC News, XX: 5, Makati: Corporate Communications, NSC, May, 1995. pp. 5 - 7. back to text