Abstract
Based on the case study of Kimitsu Steelworks of Nippon Steel Corp. (currently Nippon Steel & Sumitomo Metal Corp.), this paper illustrates how the factory in steel industry can innovate its production control system in the 21st century. Based on the hearing investigation on the management of steel plate factory, the paper explains the process how (i) the middle management who received unilateral authority to manage the shop floor as a result of organizational reforms provided the shop floor with a new management goal to eliminate bottlenecks in production process; (ii) organizational learning having crossed the traditional organizational boundary enabled the shop floor to change on-site routines, having resulted in the firm's improvements in both productivity increase and shortening lead-time in the shop floor. Based on our observations, the paper suggests managerial implications how to innovate production control systems in process industries.
