Enhancement of Production through Strategic Decision Making: A Case Study of Diesel Locomotive Works (DLW)

Abstract

This paper aims to summarize the strategic decisions taken to double the production level of DLW in four years of time. The paper enumerates the possibilities up to which strategic and radical decisions can be taken in a government-owned industrial setup in India. Diesel Locomotive Works (DLW) manufactures diesel electric locomotives primarily for Indian Railways. To increase the output, strategic decisions are taken to purchase/outsource large number of items which used to be manufactured in-house. Achievement of loco production targets is the result of concerted efforts by all departments. Each department improved their working to dovetail their efforts to the loco production targets. Staff and unions of DLW are very supportive in implementing strategic decisions. The strategic decisions have transformed DLW, from an integrated locomotive manufacturer, to more of an assembler of locomotives.