POSCO Annual Report

Maurits Blok
Global Consultant
Oracle

"I've enjoyed the challenge of helping POSCO architect its next-generation manufacturing network. The goal of the manufacturing execution system project I'm involved in is to integrate and standardize manufacturing processes at the Pohang and Gwangyang Works with a web-based integrated system that has the flexibility and scalability to grow with the company and its needs. When the network comes fully online at the end of 2004, POSCO's competitive lead in manufacturing is certain to grow even further."

Refractories, and POSDATA. We didn't neglect our customers either, expanding our Six Sigma program to every stage of the value chain. With nearly 1,000 projects under monitoring at the end of Wave 3, we're now pushing ambitiously ahead in Wave 4 with the launch of over 800 new projects that will make innovation an integral part of daily life throughout our organization in 2004.

Manufacturing Satisfaction
Launched in 2002, our manufacturing execution system refresh project is now putting in place a highly scalable web-enabled manufacturing network that integrates and standardizes the myriad operational processes at our integrated steelworks. Based on our best manufacturing processes, this state-of-the-art network will enable us to achieve maximum operational efficiency, allowing workers to spend more time on creative analysis and decision-making tasks as it creates a fertile environment for Six Sigma and other ongoing initiatives.

Covering all 81 plants and 47 storage yards at our two steelworks, the execution system is the first by a domestic manufacturer to be programmed in the platform-independent Java language using a component-based development methodology. Phase one of the refresh project encompassing our raw materials handling, ironmaking, and chemical treatment operations was launched in January 2002 and completed in Gwangyang in December 2003 and in Pohang in January 2004. When the rest of the new manufacturing network comes online in December 2004, our POSPIA integrated information system will become a seamless conduit between our marketing department and mills, sharply focusing our value chain on meeting the customer's quality, delivery, and information needs.

Expanding Innovation
Six out of eight remaining PI-1 follow-up projects were successfully completed in 2003.

Our expanded balanced scorecard system now extends from the enterprise to the department level, enabling us to more effectively align and monitor individual department objectives and performance with strategic corporate objectives.

Our new supplier relationship management system is now enhancing competitiveness across the supply chain, complementing the strategic sourcing capabilities of our e-procurement platform by providing greater accuracy and efficiency in supplier evaluation as well as timely decision-making information.

Our new customer relationship management system consolidates all customer information in a single database, enabling us to deliver tailored customer service as part of our customer touchpoint strategy.

Our new knowledge management system systematically brings together knowledge and information scattered throughout the enterprise, enabling us to enhance work performance and accelerate the implementation of Six Sigma and other key business strategies.

Six Sigma progress
Our Six Sigma program took center stage in our ongoing PI initiative in 2003, affirming the success of our initial adoption as we worked to expand it company-wide during the year. Driven by the determination and vision of top management and the dedication and commitment of employees at all levels of our organization, we made significant progress toward to our Six Sigma vision, moving beyond tools and methodologies to change the way we think and work as we continued to accelerate our transformation into a learning organization capable of evolving to meet the challenges of the future.