POSCO Successfully
Launches MES
- Steel firm completes digitalization of its steel plants becoming first steel mill to do so

POSCO successfully launched the Manufacturing Execution System, an infrastructure for its continuing management reform, POSCO officials said recently.
The steel maker has been able to maximize the competitiveness of its manufacturing by introducing high-tech IT technology to make its operation sector refreshed with best practice for the past 3 years since 2002, they said.
Pohang steel work of the steel maker inspected the execution of its data system from 12 a.m. until 11 a.m. Jan.25 to check if the existing and new systems work together without a hitch. They found out that the new system worked fine at around 7 a.m. From 11 a.m., they started to replace the existing system with MES and the work was completed at around 7 p.m. on all manufacturing systems at the steel-making plant.
Officials of Oracle, who participated in the project, said it is highly unusual to see a giant steel mill such as POSCO has been able to replace its system with MES while work was progressing at the plants, very rare in the world.
In the first period, POSCO has been able to introduce an all-company integrated management system based on ERP covering such key departments as marketing, purchasing, accounting, and personnel, among others. In the second period, the company pushed the MES system on its manufacturing operations, which is based on the Internet base, providing for a system for setting up a managerial reform.
POSCO started its MES on the entire plant facilities at its Gwangyang steelwork in November last year and this time, it covered 43 plants in its Pohang steelworks and 19 yards, including traffic control, transportation and quality systems.
POSCO has been able to standardize its operation system and integrate them under a Web base, enabling a part of the plant cover for a part in distress caused by accidents for example as steel-making is a 24-hour work through MES system.
POSCO has now built a system through which it can operate its two separate steelworks with 81 plants as one unit through MES, enabling itself to shorten the delivery period and raise the level of customer satisfaction. The company has also been able to upgrade its maintenance and repair system with the application of high-tech. They also worked on network computing system, whereby all the works are done on the server and all users are required to get references through the terminals to safeguard information.
For POSCO. Jan.25 should be a memorable day as its six-year effort to digitalize its operation came to completion on that day. It was a big mammoth-class project not hardly seen any where in the world in terms of digital management system once again showing to the world that POSCO finished all the projects it takes on.
Every one at POSCO should be proud of their steel works as it now boasts FINEX, the strip casting and MES, which is tied up with a high-tech IT technology becoming a leading steel maker in the world.
POSCO's operational technology has been accumulated in the past 30 years of its operation, which has now reached a mature stage with its hardware and software coming together for further development.
The completion of MES, however, should not mean that the process innovation is finished as the steel maker is faced with the challenge for making itself a competitive steel maker, moving a step up to enhance its operation system's competitiveness, a key task ahead for the company.
POSCO has been able to build a customer-centered process and a digital management system by pushing process innovation for the past 6 years and in the process, the company acquired a large number of officers and staff with the experience for management reform.
POSCO has now become a leader instead of a fast follower. It may find the reform task ahead more difficult than the ones it faced during the past 6 years. But the company is confident and become a firm and successful world leader falling back on its success of accomplishing the first and second periods of mammoth projects. nw