POSCO innovates thinking and creativity: Improving productivity

To be ready for competition, Posco Steel Company – VSC has constantly improved and Technological innovation to optimize costs, improve product quality in the context of increasingly fierce competition of  steel market. As a result, when the electricity price increases in the second quarter of 2019, company still provides quality products and stable prices for market.

New ideas, innovative

The steel industry always faced with foreign trade lawsuits, while domestic production is larger than demand, energy costs are constantly increasing. Facing that situation, Posco – VSC has constantly innovate, improved corporate governance to optimize costs, improve productivity and product quality.

Posco always upholds creativity with the motto “resources are finite, creativity is infinite” and widely applies this to develop not only in corporations but also in all member units. At Posco, ideas always exchanged and actualized on the basis of high feasibility, project formulation and visual planning. The key to success of this plan is clarify decision privilege and structural changes.

Specifically, company has applied a visual plan aim to reach better efficient in work, reduce useless working time, increase 17% in creation value job, reduce unexpected work by 21% and improve satisfaction in work of employees among 30 – 90%. The key to success of this plan is clarify decision privilege and structural changes.

Improving the production process

Besides, improving in production process to optimize cost and efficiency is also implemented by Posco, through the solution of stopping in changing furnace, stopping and not following the plan. This solution has been applied at electric-arc Electric furnace steel plant in Vietnam, bringing high efficiency.

Mr. Choi Jeong Woo – President of Posco – said that in Vietnam, all factories produce are stop in peak hours, some factories only run at night shift. This discontinuity of production is causes of many disadvantages, because when starting production again after the discontinuation time, the amount of slag and steel in the remaining kiln from the previous batch was frozen and Oxidized, this is not only prolong Cooking practice but also affect product quality as well as other wear and tear, etc. Therefore, company implemented apply the effectively process evaluating tool, saving production costs.

However, along with other improvement solutions, Company also need to build and strictly apply management systems according to international standards such as ISO 9001, ISO 14001, ISO 50001 or JIS (Japan) and ASTM, etc. This is basis and foundation to strictly manage the quality and production costs.

Posco has built the Program of Find out 100 improvement projects to implement in the future.  The projects will focus on three aspects: Business, society and people. In particular, for people, to create creative working environment, trust each other and employees are always passionate with the work, Posco’s goal is to constantly innovate culture, organization and personnel.

Thanks to the development of business results and continuous improvement efforts, Posco has held the position of “No. 1” with the title of the leading competitive steel company in the world for 9 consecutive years (2009- 1018).

Productivity and Quality Office