POSCO hosts 50th global technology convention ‘World Steel Association Technology Committee (TECO)

TECO is a global convention in which global steel companies share their current status of technology development and discuss the current issues that the steel industry is facing. POSCO hosted the 50th TECO for a second time following its first hosting of TECO back in 2010, to celebrate its 50th anniversary this year.

At this convention, more than 60 experts from steel and related industries such as ArcelorMittal, NSSMC, Tata Steel and Voestalpine and also Secretary-General of the World Steel Association joined to shine the conventions. This convention held in Gyeongju, South Korea from April 23rd to April 26th.

Since sustainability has become main global issue, the main focus of the convention was carbon dioxide emissions and energy. The participants in the convention expressed their own perspectives related to the development of iron and steel manufacturing, rolling process technology and development of innovative products and digitalization that lead positive impacts on environment.

Wonderful opportunity to spread POSCO’s world premium technology

POSCO’s own technology that may shine in the convention is ‘high-manganese product and manufacturing technology that is invented first in the world. This unique technology was one of the driving forces of POSCO become world leading company.

Additionally, participants had a great opportunity to experience Pohang Steel Works, the FINEX plant, smart factory and rolling system and then visit POSTECH to see world’s 3rd 4G synchrotron accelerator.

* 4G synchrotron accelerator: ‘Ultra-high-performance gigantic microscope’ that observes the microscopic structures and reaction of materials using synchrotron radiation when accelerating electrons at the speed of light.

The World Steel Association, founded in 1967, is the most authoritative organization in the steel industry, which promotes the understanding and interests of the steel industry. Currently, as many as 170 steel companies, related associations and laboratories around the world are listed as members. The World Steel Association and the Technology Committee shares the technologies developed by individual steel companies in every year to propose joint research on steel technology and encouragement of cooperation.

Huayou Cobalt is one of the world’s biggest mining companies that can produce about 50 percent of the cobalt required for manufacturing lithium-ion batteries worldwide. They also have their own nickel mine in addition to a cobalt mine.

The joint venture for precursor production is made up of 60 percent of investments by Huayou Cobalt that can supply cobalt, nickel and manganese, and 40 percent by POSCO. 60 percent of investments for the joint venture for cathode material production comes from POSCO who owns the high-grade cathode material production technology and 40 percent of investments come from Huayou Cobalt. The joint ventures will be operating production lines for 4,600 tons of precursors and cathode materials a year starting from the second half of 2020.

POSCO and Huayou Cobalt sign agreements for joint ventures in cathode material supply and production.

Through these joint ventures, POSCO can now secure its market position in China by directly manufacturing and selling cathode materials locally. In addition, it can gain a competitive edge by securing a stable supply of not only precursors but also materials such as cobalt, nickel and manganese for POSCO ESM’s cathode materials plant in Gumi. Huayou Cobalt can expand its business in manufacturing and sales of cathode materials in addition to that of raw materials.

As the eco-friendly policies of the world continue to be tightened, the demand for electric vehicles, industrial energy storage systems (ESS) and IT bulk batteries has increased rapidly. Thus, the market for cathode materials, which are essential materials for lithium-ion batteries, is also expected to quadruple from 210,000 tons in 2016 to 860,000 tons in 2020.

Accordingly, the price of cobalt, one of the most expensive materials, tripled in the last two years, followed by the price of nickel and manganese. This explains why a stable supply of materials is essential for profitability.

POSCO’s lithium-ion battery material business is headed for future growth, and is expected to gain increased momentum with the joint ventures for precursors and cathode materials. POSCO completed its carbon lithium plant PosLX at Gwangyang Steelworks last year after 7 years of developing its own proprietary technology of directly extracting lithium in 2010. It is currently under commercial production.

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

What’s more, manufacturing is no longer a rigid industry that produces uniform, one-sided goods. There is constant communication between customers and businesses for hyper-customization. Not only that, machines and products communicate within a smart factory, and factories exchange data with other factories. Manufacturing is no longer limited to production plants. Moreover, the data generated in the manufacturing process is combined with customer information, and a new service can be created. This combination of manufacturing and services is resulting in creation of added value. In the midst of such drastic change, how can companies stay competitive?

Staying Competitive Through Connection and Convergence

Global manufacturing companies are at the forefront of the 4th Industrial Revolution, as evident in their smart factories. A smart factory collects data generated from the production process using ICT technology, and the system controls all processes from material input to the final product. This has led to flexible production systems with the ability to make various products in one factory or to expand the range of products on the basis of connectivity. Typically, when a company builds a smart factory, it can improve productivity by 20 to 30 percent. A 20 percent improvement in efficiency in the manufacturing sector is a significant, outright increase in global competitiveness.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

Siemens Electronics Manufacturing Plant incorporates robotics, AI and IoT to its production processes. (Source: Zawya)

If the productivity of a plant can be improved through smartization, it is important to also think about connectivity with the ecosystem that exists outside of the plant. Once a smart factory is built, all the data from customer orders to production and delivery are collected in a system via sensors. The customer, product and production data create meaningful connections with each other and provide extensive insight. Examples of added value creation through meaningful connections include hyper-customized goods, data-driven after-sales services to customers and collaboration among companies connected within the smart factory’s external ecosystem. Such advancements will lead greater product quality, production stability as well as shortened delivery times between value chain suppliers.

The Adidas Speed Factory and GE Brilliant Factory are examples of successful smart factories. Adidas customers choose the materials, colors and design of their sneakers, and have them manufactured and shipped within 24 hours in an automated factory.

GE has built a system that can produce all of their widely-diverse products in one factory. When the factory receives customer orders, it operates in a flexible production system which starts with the necessary raw materials, inputted by the automated scheduling system that controls the entire production process, including the final distribution system.

The Future of Manufacturing

Overall, the adoption of innovative changes in the manufacturing sector is likely to progress from lighter industries to the heavy industries, from B2C to B2B sectors. Small plants, quick manufacturing and B2C companies can more readily adapt to rapid technological and market changes. On the other hand, heavy industries like steel and B2B companies with continuous and heavy manufacturing, large production volume and numerous linked companies are likely to be slower to adapt to changes.

It is much more difficult for traditional, heavy industries to adapt to changes. (Source: Live Mint)

For example, adapting to the changes of the 4th Industrial Revolution in the steel industry may be slow, but it is inevitable. What’s more, the long-term adaptation process is more likely to be systematic and deliberate.

As a leading company in the global steel industry, POSCO is pursuing a long-term, systematic “Grand Design” to reinvent its systems to align with the changes of the 4th Industrial Revolution.

First, POSCO built a pilot smart factory in their steel mill, Gwangyang Steelworks, in 2015 that is currently in operation. The company used IoT to collect big data on site, analyze it in real time and build a smart factory that enables optimal control through AI and self-learning. As a result, the Gwangyang Steelworks is reaping the benefits of a smart factory not only in cost reduction but also in improved steel quality, minimized malfunctions and a safe and stable production environment. This year, POSCO plans to expand and apply smart factories to all of its production processes.

POSCO built a smart factory in Gwangyang Steel Mill.

Smart factory application throughout the entire steel mill will improve overall efficiency through a flexible production system. In addition, the factory will be able to respond directly to various customers in real time based on platform construction with customers within the connected ecosystem. The customized characteristics and design of the steel grade for each customer can be applied to production in real time.

SEE ALSO: How Factories Produce Steel – the Smart Way

Ultimately, a smart ecosystem that links manufacturing, processing and distribution with customer input will lead to a new, innovative ecosystem within the steel industry. In Europe, some companies are experimenting with material libraries and steel distribution platforms. The material library displays a variety of materials for customers to see, touch and test the workability and performance of the materials, and get information about the characteristics, design and delivery times through the order platform. Customers can designate the shipment date on the spot. This will be one of the new promising business models that steel and other material companies will strive towards in the coming future.

POSCO’s Grand Design includes a step-by-step approach to smart factories to expand the use of IoT, AI and Big Data in its production systems. To this end, POSCO ICT has developed PosFrame, a standard software platform that collects basic data of production processes and collectively manages, controls and analyzes the information.

POSCO uses its software platform, PosFrame, for data collection and analysis.

When the software becomes standardized and reliable enough to extend to other sectors, it will be applied to other business areas such as energy and construction, as well as to POSCO’s affiliates.

Manufacturers will have to take into account the heavy production environment, the slow industrial change cycle and the complexity of related industries and affiliates to implement the most effective, long-term, systematic upgrades to its production systems. This will result in a brand-new production and business model for manufacturing companies that will align with the new environment of the 4th Industrial Revolution.

Cover photo courtesy of Sputnik International.

Here’s a look at how steel is produced in a steel mill or factory, and what the “smartization” of steel factories will look like.

So, how is steel made?

Iron Making

To make steel, manufacturers first need molten iron. Molten iron comes from two raw materials; iron ore and coal. Iron ore is converted into sinter ore in a sintering plant and coal is converted into raw coke using a coke oven. The processed materials are poured into a blast furnace where hot air reaching 1200℃ is blown in from the bottom through tuyeres, causing a chemical reaction. This process oxidizes the coke and reduces the sintered ore, creating molten iron.   

Steelmaking

In the steelmaking stage, the molten iron is transported to the steel making plant via a torpedo car, where the liquid is poured into a converter. Then, oxygen is blown into the converter to burn off all the impurities. All that is left is pure molten steel.

Continuous Casting

This is where steel finally becomes solidified into different shapes such as slab, bloom and billet. Liquid steel is poured into molds and cooled as it passes through a continuous casting machine until it solidifies into the desired shape.

Hot steel passes through rolling machines to be rolled into specific sizes and thicknesses. (Source: Global Sourcing Blog)

Rolling Process

During the rolling process, steel is heated once more to achieve various sizes and thicknesses. Steel slabs are heated to over 1100℃, then pass through rolling machines. This results in hot-rolled coils that can be shaped for different uses such as thick plates. They can also be processed into long, wire-shaped rods for billets. Often, the hot-rolled coils are rolled at room temperature for cold-rolled coils. Cold-rolled coils can be fabricated to produce galvanized and electrical steel products.

“Smartizating” these processes will involve converging IoT, Big Data, and AI to connect the different facilities, IT systems and workers in order to collect and analyze data for optimization.

POSCO is “smartizing” the steel-production process

POSCO is a steel company looking to lead the industry in adopting smart factories. CEO Kwon Ohjoon made “smartization” one of the 4 key priorities for POSCO starting back in 2014, and Kwon will continue to increase those investments.

POSCO smart factory incorporates artificial intelligence to enhance safety and efficiency.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

In 2016, POSCO established its Smart Solution Council in order to research AI, big data and IoT applications. In the same year, POSCO ICT’s smart factory platform, PosFrame, was completed and installed in POSCO’s Gwangyang Steel Mill. PosFrame allows engineers to collect and monitor big data. So far, the company has saved over USD 14 million by incorporating the new technology in its production practices.

Here are some other features of POSCO’s Smart Factory.

POSCO’s Smart Blast Furnace

The Pohang Blast Furnace No.3 became a smart furnace in 2017, following a 102-day repair period. The furnace is now equipped with automated sensors that monitor and control its internal conditions using AI technology. Smart sensors monitor the blast furnace for factors like raw material quality and ventilator status, preventing breakdowns and ensuring a much longer lifecycle.

SEE ALSO: Will Artificial Intelligence Lead to Breakthroughs in the Steel Industry?

Worker Safety

Smart sensors can be used for more than just process monitoring. The company is working toward a full implementation of smart sensors for safety purposes, using IoT to create a better working environment.

Steel manufacturing involves high temperatures and high pressure levels, which is dangerous for workers who come in close contact with the equipment. With smart sensors monitoring all of the factory information, workers will instead be monitoring operation from a safe distance.

Workers in POSCO’s smart factory wear smart sensors for safety.

Wearable sensors, in conjunction with factory smart sensors, will be able to detect if and when workers are approaching potentially dangerous areas, and will alert them. These sensors will also detect and alert with regards to any impending accidents, or life-threatening situations like gas leaks, explosions, or fires.

Also, dust, sulfur, and nitrogen compounds will be removed via a high-plasma method, creating an eco-friendly steel plant and a healthier environment for workers.

POSCO will continue to add more smart features to its steel mills to increase efficiency, safety and sustainability. In efforts to learn and implement new technologies, POSCO CEO Kwon Ohjoon visited GE’s smart factories to learn about their technology earlier this year. POSCO also held the 2017 Smart POSCO Forum to share its insights with clients and affiliates, all as part of its expanding smartization efforts.

CIAPE is the largest automotive parts expo in China, and has been sponsored by China’s Ministry of Commerce since 2008. As many as 200,000 people participate in the event, including over 2100 companies around the world to exhibit various automotive products. On display this year were various electric vehicles, components, electronics and automotive parts and manufacturing facilities.

POSCO actively promoted POSCO GIGA STEEL at its exhibition booth where visitors browsed various automotive parts made of GIGA STEEL. Visitors were especially impressed with POSCO GIGA STEEL’s lightweight, cost-efficient and high-performance qualities, as well as POSCO’s production technologies.

Throughout the expo, POSCO introduced practical applications of its products including wire rods for automobiles, electrical steel sheets, stainless steel for various uses as well. Various automakers and parts makers could also experience POSCO’s steel mills and production processes through VR technology.

A total of 1,583 people visited POSCO’s booth over the 3-day period to browse the electrical sheets, wire rods and stainless steel products as well as automotive steel plates. In particular, as many as 1,020 people flocked to the GIGA STEEL Experience Zone where they could compare the hardness, weight and thickness of aluminum and GIGA STEEL.

POSCO also held 71 meetings with 188 potential customers from various sectors, including automakers and parts makers in China and promoted its GIGA STEEL and automotive World Premium Products (WPP) to potential business partners.

One of the visitors was Lee Jeong-hae, CEO of Sungwoo Hitech Yancheng. He said, “I was able to learn that GIGA STEEL is more effective in reducing weight than aluminum. I am truly looking forward to seeing more automakers use GIGA STEEL instead of aluminum.”

This was the first time POSCO attended the event, and hopes to use it to create momentum for increasing the sales of its World Premium steel products and automotive materials, and to expand its network of partners in China.

Cover photo courtesy of CME Shanghai.

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Why Should People Care About Autonomous Transportation?

Autonomous transportation is emerging across the world, from personal vehicles to Tesla’s proposed semi trucks that drive in convoy with a lead vehicle handling autonomous follow trucks. Intel is also planning to test a fleet of one hundred autonomous cars and Hyundai’s planning to showcase its self-driving technology at the biggest winter sports event of 2018.

While many have heard of self-driving cars and other road-based vehicles, it may come as a surprise to learn just how far technology has advanced in autonomous transportation. The Swiss bank UBS, suggests that autonomous airplanes could be in place by 2025, a feat that would save airlines $35 billion a year. Clearly, the benefits are drastic and it is becoming essential for companies to invest in making autonomous travel work.

Even further into the future, companies like Next Future Transportation are envisioning pod travel, through which individual vehicles will autonomously transport people from point A to point B.

Next Future Transportation’s autonomous pod (Source: Next Future Transportation)

No matter the type, the economic impact of autonomous transportation technology is unavoidable. Boston Consulting Group expects that the driverless car market will be worth $42 billion by 2025 and $77 billion by 2035, and IHS suggests driverless car ubiquity will hit around 2050.

In terms of what these automated vehicles offer to the public, the Eno Centre for Transportation reports that if 90 percent of American roads were autonomous, accidents would drop from 6 million a year to 1.3 million; deaths would fall from 33,000 to 11,300. Add in better traffic conditions, higher fuel efficiency and extra time gained from not driving, and it’s easy to see why companies are taking notice of this tech sector.

Who is Investing in Autonomous Transportation?
Autonomous transportation entails investment from various industries from materials to technology, and major players are making early moves. Tesla is a good example of a specialty vehicle company determined to see autonomous transportation become a worldwide reality.

Big names in traditional transportation are also jumping aboard. General Motors purchased Cruise Automation, and Ford has invested in an AI startup, Argo AI. Audi has created a subsidiary, the SDS Company, focused on self-driving technology, and BMW has formed an alliance with Intel and Mobileye.

There are also auto suppliers getting into this market, such as Magna, a supplier that is manufacturing vehicles as well as providing the parts to help more traditional companies jump into automated vehicles.

Tech giants like Microsoft are getting involved, too, collaborating with automakers to include their own technology in self-driving vehicles, as well as to research and develop automated transportation technology.

Whether companies are involved in creating the actual vehicles that will be automated, providing security and safety features, pursuing further research, or providing the materials needed to create these vehicles of the future, it is safe to say that this industry is growing rapidly.

Autonomous Transportation and the Steel Industry
A shift toward autonomous transportation is good news for the steel industry. At first glance, it seems steel consumption will decrease as fewer car accidents will lead to less demand for repair parts and more room to use other materials for aesthetic purposes. However, demand for high-strength, premium steels that are highly sought after in traditional cars will continue to increase.

Materials like POSCO GIGA STEEL provide greater strength and safety for automated vehicles, an important consideration when one considers a road full of cars driving themselves. While people may no longer be behind the wheel, they will want to know that their cars, and the cars around them, are made to the highest safety standards. Safety regulations for traditional cars are only getting tougher, and that won’t change with autonomous vehicles.

POSCO’s PBC-EV made with POSCO GIGA STEEL

High-strength steel allows car makers to lightweight their vehicles without compromising safety. POSCO GIGA STEEL’s lightweight properties make it a sustainable solution for automated vehicles that aim to leave a minimal carbon footprint and maximize fuel efficiency. Even better, it is affordable; an important factor considering the overall cost of the technology and hardware that goes into automated vehicles.

The steel industry will also see a boost in the need for accompanying facilities for automated transportation, including manufacturing plants, parking structures, charging stations, smart roads and so on. While automated transportation may be high tech, there will be plenty of opportunities for those in the steel industry to provide material solutions to a rapidly growing market.

Cover photo courtesy of Auto Evolution.

According to research by McKinsey, approximately 51 percent of all job-related activities in the U.S. can be replaced by robots. Another recent research conducted by PwC shows that 40 percent of jobs in the U.S., 31 percent in the UK, 35 percent in Germany and 21 percent of the jobs in Tokyo are vulnerable to replacement by robotics or other artificial intelligence (AI).

An imagined image of an all-robot workforce (Source: Digital News Asia)

The figures are daunting, but in practice, companies have yet to realize a fully-automated system that matches human labor. The truth is, humans need robots to take over mundane and physically demanding tasks, while people take on creative and innovative roles in the workplace. What is more likely is a shift in workplace dynamics, not a decrease in the overall number of jobs available. Today, most companies have automated their systems to varying degrees, and robots are continually being upgraded.

The Human-Robot Collaboration

Last year, the International Organization for Standardization (ISO) published ISO/TS 15066, the safety standards for collaborative robots, or cobots that work in the same workplace as humans simultaneously. Before, it was common to find robots restrained in cages, or shut off while human workers loaded equipment onto the robots. Now, with enhanced sensors and diverse power settings, the safety risks of working with cobots are low. To add, many industries are embracing cobots over traditional industrial robots that work alone, because cobots are less expensive and require much less energy to operate.     

A welder gets help from a cobot

Not only are they a sustainable solution for companies, they increase workers’ productivity. According to Business World, Julie Shah and her team at the Massachusetts Institute of Technology conducted a study looking at human-robot collaborations at a BMW plant. She found higher levels of productivity, efficiency and performance when humans and robots collaborate in comparison to all-human or all-robot systems. Collaboration also reduced human idle time by 85 percent. Many argue that this increase in productivity will lead to more business and eventually create more jobs that revolve around working with cobots.

The International Federation of Robotics (IFR) found that robot-driven productivity accounted for 10 percent of total GDP growth in OECD countries from 1993 to 2016, and that number will continue to grow in the coming years. The IFR predicts worldwide usage of industrial robots to reach 2.6 million by 2019. That’s one million more robots than in 2015.

Cobots are already making their way into factories and warehouses, and human workers are learning to work with their new counterparts.

Auto Industry

The automotive industry is one of the most common places to find cobots as major automakers were early movers in incorporating robotics into the workforce. That’s why it’s the perfect place to observe the changing dynamics of the workplace with cobots. At Ford’s new production facility, cobots work shoulder to shoulder with the production team in what they call a blended solution. Mostly, cobots have taken over repetitive tasks, physically demanding or dangerous tasks and freed up workers to focus on new innovations and creative projects. The facility runs 21 hours a day, 6 days a week thanks to around 550 cobots and robots.

Take a look at the new working dynamics at Ford below:

Food Industry

The food industry is another sector ripe for human-cobot collaboration, especially in the packaging sector. However, pizza restaurant Zume is changing the delivery pizza experience with automated technology. Cobots have taken over tasks such as spreading the sauce and lifting the pies into the oven. They will be implementing more robot technology to free up kitchen staff to work in their offices for business expansion. Another addition to come is a delivery truck equipped with 50 ovens that will start cooking the pizzas based on exactly calculated arrival times.

Watch the video below to find out more about what Zume is working on:

E-Commerce Industry   

Amazon is another early mover that introduced 15,000 cobots named Kiva to their warehouses in 2014. Two years prior in 2012, they bought Kiva Systems, a robotics company, for USD 775 million. Since then, the number of cobot employees has tripled.

Here’s how it works. Human employees scan items and place them into the shelf-like pods. Instantly, the scanned item is available to purchase online. Kiva’s software keeps track of where each item is so that it can easily be found at the picking station, where a human employee retrieves the product for shipping. Amazon managed to rapidly increase efficiency and speed up delivery times with Kiva. They continue to incorporate AI into their services, including their drone delivery system.

Take a look at Kiva in action in the video below:

Healthcare Industry

In the healthcare industry, cobots are being incorporated to assist doctors in surgery and lighten the burden of caregivers by taking over mundane tasks. Pairing cobots and their software technology with doctors has several benefits including minimized invasiveness, exactness and reduced mistakes in surgical procedures. To date, AI and cobots have allowed doctors to access new parts of the human body for surgery, and achieve breakthrough feats the way they examine, monitor and operate on patients.

Take a look at the most innovative cobots to date in the healthcare industry:

Steel Industry

POSCO is a leader in applying AI to the steel production systems. In 2015, they developed an exoskeleton cobot designed to enable workers strength beyond their own. The cobot is made of carbon fiber, aluminum and steel, and was first tested with Daewoo Shipbuilding and Marine Engineering, at their facility in Okpo-dong. The cobot enabled shipyard workers to easily lift heavy pieces of metal weighing around 70 pounds, and researchers are working to allow workers to lift up to 200 pounds effortlessly.

Watch the video to find out more:

Aside from cobots, POSCO also incorporates AI and IoT into their smart factory, the first smart steel factory in the world, and continues to research and develop smart solutions to optimize the production processes.

Continued automation and the incorporation of cobots in the workplace is inevitable, and governments and institutions will have to provide resources for people to fill jobs tailored to working with cobots or those that cannot be replaced in any way by robots and AI. What’s ahead is figuring out how to think of cobots as coworkers that will only enhance one’s work. Also, companies have to figure out how to fully realize the potential for increased economic productivity through this type of cobot co-work that will lead to the development of more innovations, technology and ultimately, new business ventures.

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POSCO’s smart safety features

As a steelmaking company, POSCO has been working towards becoming a “Smart POSCO”, or incorporating the implementation of AI into their production practices. In 2016, POSCO established a Smart Solution Council to research AI, big data and IoT applications. To date, the company has achieved a cost reduction of USD 14 million with the new technology. Even as one of the first steel producers in the world to implement a smart factory for production, the road ahead is a long one. Members of the discussion panel at the 2017 Smart POSCO Forum offered their expert opinions on how companies should move forward with AI research and applications.

Problem Mining

“One of the biggest difficulties in applying AI to manufacturing companies is problem mining. The only way to solve a problem is to find it and define it.” Kim Byung-In, a professor at the POSTECH Department of Industrial and Management Engineering, started off discussions and added, “Along with problem mining, people can learn from the past with reinforcement learning. Reinforcement learning means learning through similar tasks from the past to apply to new assignments. Defining problems and solutions more precisely and systematically managing related keywords can be useful for future tasks.”

Professor Zhang Byoung Tak, an AI professor at Seoul National University and a distinguished professor for POSCO added, “Traditionally, people solve problems, but in the generation of AI, AI will be able to solve problems for us… People now have to focus on defining problems, implementing systems and getting the right kind of data.”

Cooperative Research and Investment

Along with defining the exact problems that AI can provide solutions for, the implementation of AI will also call for a new working culture for companies and industries.

Tech company VUNO CTO Jung Gyuhwan stated, “Each company has its own production or operation method, and different data formats and protocols, but product inspection and screen UI (User Interface) are common areas. If we can find such common areas that can be commercialized and continue to research ways to expand AI applications to different sectors, we can achieve meaningful results together.”

Researchers developing programming and coding technologies

Jung went on to highlight that most AI personnel are unfamiliar with manufacturing. In particular, steel production terms are so difficult that it takes a considerable amount of time to share and understand information. There are also numerous obstacles and obligations for startups entering an unfamiliar development environment full of regulations and restrictions on things like the use of codes.

“In other words, task efficiency is a trade off with information security. I believe that if there is such a process in POSCO where the risk of technology leakage is not high, it will speed up results through collaboration with start-ups. POSCO ICT in Pangyo is a good place for startup employees to work. If we can take advantage of the POSCO ICT databases, collaboration with start-up companies will be easier. As of now, there are not many AI companies in Korea that specialize in manufacturing. Most people don’t even know that there is a lot of data available in the manufacturing industry. That’s why fostering start-up companies specializing in manufacturing now, is a good idea.”

Google’s Fei-Fei Li announces Google’s acquisition of Kaggle. (Source: Venture Beat)

According to CB Insights, M&A (mergers and acquisitions) of AI startups have increased 700 percent since 2011, because they are more efficient and often more insightful when it comes to AI research. Besides investing in existing startups, members of the panel agreed that collaborative competitions such as Kaggle, a contest platform where data scientists from around the world participate in solving problems in industry and society, are a great place to find talent and foster them as start-up companies.

Tackling New Challenges

The flurry of activity around AI research shows just how new the sector really is. People are still finding ways to apply AI across different sectors and industries. In such a volatile environment, how do companies and researchers navigate their way forward?

According to Choi Heeyoul, a professor of computer science at Handong Global University, companies need to “start where the people, problem definition and data are ready. Whether it is in production, sales, distribution, etc., if there is the will to solve problems, then results will follow. Especially when collecting data, you need the help of data analysts. For example, classification data for different types of steel can only be analyzed if the history of the classification criteria is recorded. Speech recognition is not any better for AI application than other fields, yet the most active and productive research has been completed in this sector. This is attributable to the will to apply AI, the abundance of accurate data and close cooperation with data analysts.”

Obtaining accurate data is vital for AI research

Professor Zhang Byung-Tak had another approach to offer. “I hope people will boldly take on challenges. The dramatic increase in computing power can now enable attempts that were previously considered reckless…No matter how much data we gather, it will never be enough. We need to approach problems as experiments and just start. One way to go about it is to work in reverse instead of waiting for data to be accumulated. You can start the task to define the data that is needed and determine the coherence of the data to the task.”

Lee Jong-Seok, a Professor at Sungkyunkwan University added, “When we are defining problems, we need to separate them into ones that can be solved in the short term and ones that require long term solutions. Some problems can be solved with minor improvements, while other problems will persist. For the latter, it is important to have patience and invest in a solution over a long term.”

That’s exactly what manufacturing companies are doing. They are collecting data every stage of production all the way to sales and administration. Big data is now available to study and apply to boost companies’ efficiency, sustainability and performance. Those who come up with the optimal software and modeling systems for data analytics will win the competitive edge early on.

UNIST professor Choi Jaesik echoed the panel’s sentiment, in closing, saying, “It’s very uncommon for a manufacturing company to hold AI courses for all their employees. I think POSCO can take pride that…POSCO is a great place to apply AI and achieve results. There is already plenty of data on site and employees are continuously working to obtain more accurate data. I look forward to seeing what POSCO will bring to the advancement of AI.”

POSCO CEO Kwon Ohjoon plans on doing exactly that, by increasing investment in research and implementing AI technology where applicable. Read more on POSCO’s smartization efforts here.

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