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OCCASION This Publication Has Been Made Available to the Public on The OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] 1~11.o ~~~ MICROCOPY RESOLUTION TEST l-HART NATIONAL BUREAU,;F STANDARDS STANDARD REFEFIENCE MATERIAL 1010• IANSI •nrJ ISO TEST CHAilT Nn 21 18563 United Nations Development Programme Mission Report Industrial Development and Renovation Organization (IDRO) Teheran, November, 25, 1989 to December, 9, 1989 Ing. Jan Ludvik 52, Sverdlcvska Street Pilsen Czechoslovakia Table of contents List Nr. Abstract ••••••••••••••••••••••••••••••••• « ••••••• 2 1. Introduction 3 2. Activities ....................................... 8 2.0. Activities Introductory meeting 8 2.1. Activities Strategic planning 9 2.2. Activities Visit to IDRO plants 14 2.3. Activities Lectures ........................... 18 3. Rec0mmendation ................................... 26 Annexes Project Formulation Complementary Remarks Abstract: Industrial Development and Renovation Organisation •10RO" is the biggest industrial organisation in Iran. It is under ministry of Heavy industries. The organisation produces and sales very wide sortiment of industrial goods. The technical progress in t~e world and in Iran is fast and the demands of the consumers too. The organisation itself should develop as the demands. To manage such a huge organisation is very complex activity. The team of managers shouldhave •toolsft to guide the organisation. One of the successful methods is to use strategic planning as such a tool in the organization. It was the consul­ tant's task to find out if the strategic planning introduction might be useful for IDRO and to gain and collect the basic data of IDRO organization for preparing of relevant recommendations. The cooperation with the managing staff was very good. It was necessary to pay attention to the effective development of IDRO. - 3 - 1. Introduction Industrial Development and Renovation Organisation of Iran (I.D.R.O.) was established in 1967 with the aim of developing and r~novating industrial and mining organisations within the country. There were gradualy implementation of industrial organisa­ tion production of basic raw materials, aluminium, research and development of mines, manufacture of capital equipment like me­ chine tools, some consumer goods industries like cement facto­ ries, paper mills and food processing plants. With the victory of the Islamic revolution and with the new Constitution which established Ministry of Heavy Industry, the extend of IDRO's activities changed. At present Industrial Development and Renovation Organiza­ tion of Iran has 160 GOmpanies. Production programme is very wi­ de. It consists of manufacturing and production of light and heavy vehicles, heavy equipment and machine tools, a~ricultural machines, marine industries, industrial structures, rollin~ mills, foundries, engineering, financing and research services. IDRO is the largest industrial organization in the Iran Islamic Republic. IDRO has about 14 plants for manufacture of industrial equip­ ment and structures, 9 mostly modern plants for industrial equip­ ment and machine tools. Rolling and foundry industries for sh~ets, pipes, profiles, copper profiles, foundry products, rolls etc. are produced in about 12 companies, heavy vehicles, gear boxes, engines, foundry parts in 7 companies, marine industries in 5 companies. Machines and heavy equipment like steam boilers for power plants, industrial steam boilers, cooling towers, sugar and ce­ ment plants, wagons roac building machines etc. about 10 compa­ nies. - 4 - Agriculture machines like tracto~s, combines, pwnFs, agri­ culture equipment in 7 companies. Light vehicle and parts and components in 10 companies Semi heavy vehicles in 10 companies. Industrial developmenL and renovation organization of Iran has about 60 000 employees and annual sales achieve about 300 bilions Rials. - 5 - IORO in an organisation comparable with big industrial European concerns. The production assor~iment is highly diversified and broad. This is a ?resent state. It is necessary to take into account future development of IDRO. The world development _of science and industries goes very quickly ahead and also the requirments of customers and consu­ mer's industries are growing up. There exists a basic rule on industrial products saying that every similar organisation has to have its products on a high technical level and at an acceptable price. It is a ba­ sic rule of an industrial organisation. This can be completed by the necessity of delivering these products on ~he market in time. Industrial development and renovation organisation, simi­ larlyas otner organisations is awaiting further great develop­ ment. It will be quantitative as wel! as qualitative develop­ ment of production and services in accordance with the develop­ ment of science, technolog}' and market. Production assortim,ent will expand and further new products and especially !ORO servi­ ces required DJ market will be further developed. It will be above all engineering services, whi~h have beeing started at IDRO. Comrnodi ty structure. of IDRO is c.hanging and this process of changes will continue even faster. It seems useful to expand the activities above all of complete pl~nts deliveries incl. engineering activities. As an example it is possible to set forth the following. IDRO built-up in ARAK AB new modern plant for production of boilers for power stations. It means that IDRO is able to deli­ ver appr. 40 % of the technological equipment of thermal power r-tations and together with other existing ~roduction capacities in operation fo= electric power equipment it is even more. It is therefore advantageous and it would make this acti­ vity more valuable and effective when the existing capacities woul'i le expanded by introduction of production of steam turbi­ nes, generators, pumps, cendensing equipment, regenerative e­ quipment, high pressure piping for high temperatures and pressu­ res and above all if a new engineering organisation for proccess design of the complete power station would be set-up. In such a way the IDRO will be able to design and to deliver most of the equi~ment for the power stations. The res~ of equipment would be purchased, all the equipment assembled anc the whole power station put into operation incl. training of customer's perso­ nel i.e. to deliver the complete power station on turn-key ba­ sis. In the same way would be csetul to produce and deliver al­ so other complete industrial plants as e.g. refineries, petro­ chemical plants, cement works, sugar plants etc. It follows from the existing state and expected development of IDRO, which represent the complex managament problem, that one of the main issues is the management of such a unit and its improvement. The objective of the mission was above all to appreciate existing state and expected development and to propose the way to the management and planning improvement. The possibility of suitable and effective implementation of Etrateqic planning in IDRO was evaluated. For this reason some important activities were analysed during the 14 days visit with the aim to propose the implementation of strategic planning. Both the existing sta- te and achieved development of !ORO and above all its expected future development. The further expected develo~ment is suitable and useful to manage in the best possible way. The existing problems of IDRO were compared with the SKO­ DA Concern. It has also very wide assortiment and appr. 70 000 employees. The S~ODA Concern.beganwi~bthe implementation of modern strategic planning some 18 years ago. It is now realized as a reg -~ar planning activit-y which makes possible to manage the big engineering organisation not only with regard to present state but above all to t:be future development. There exists ma­ ny years experien~e and achievements with the strategic planni­ n9. I took personally part in introduction of the strategic planning in the SKODA Concern and many years I ma~aqed these activities. 2. Activities 2.0.Introductory
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