【正文】 demand estimated to grow by 50 million tons to more than 182 million tons by 2022, industry expansion plans fall far short of these numbers. Only 27 million additional tons of capacity are forecast to be built, forcing the existing plants to either bee more efficient quickly, or to leave a lot of demand on the table.Demand for steel in the US, Europe and Japan has been sluggish while China has seen growth of over 400% since 1980. Consuming over 130 million toms in 2022, China is now the biggest steel market in the world. China consumed more than 130 million tons1 of steel in 2022, surpassing the United States to bee the biggest steel market in the world. Three percent of the nation’s $1Trillion gross domestic product es from steel and over three million people are employed in the industry.Jonathan Woetzel, a director in McKinsey amp。 Co’s Shanghai office believes that the “country’s steel producers are in poor shape to take advantage of their homeland’s boom. Fragmented, unpetitive, unprofitable, heavily in debt, and geared to the wrong products, they are losing out to imports.”BaoSteel Yichang, like most of China’s steel industry, has focused primarily on producing steel rather than on satisfying customers. The pany tries to keep the mill running at optimal capacity to maximize their Return On Assets instead of focusing on increasing profit and customer satisfaction. Many operational improvements and mindset changes, such as managing processes instead of managing siloed functions, are required for real efficiency gains to be felt. Yichang, a subsidiary of the $8 billion steel behemoth BaoSteel Group, came to KPMG Consulting to understand the many changes it would have to make to pete in the global market effectively.The client wanted an actionable roadmap they could embed in their immediate operating plans. They viewed the roadmap as the initiating step of an evolutionary process to sustain their profitability as they enter the global steel market. Many management practices that are established in faster moving industries and in more aggressive markets had not yet been introduced into BaoSteel, given the protected markets and significant government involvement in China’s steel industry. The Chief Financial Officer considers KPMG Consulting a strategic partner in educating the team in proven business practices.7 / 15 Methodology and AnalysisSpecifically, BaoSteel Yichang sought to:1. Diagnose inefficiencies in its operational and infrastructure processes2. Identify improvement opportunities3. Develop specific remendations and solutions for future execution4. Add metrics and quantitative measurement around it’s key process areas5. Instill more rigorous performance management practices to aid in acplishing goalsThe client selected KPMG’s Enterprise Value Creation framework that has been known to create value for panies, and has earned favorable acclaim from external analysts at Goldman Sachs, Aberdeen Group and AMR, among others. Through the Enterprise Value Creation (EVC) framework, the team was able to understand Yichang’s primary problems, a