POSCO’s overseas employees participate in POSCO’s Global Mobility Program that includes seminars on Solution Marketing, POSTIM, POSCO’s values & culture, and a chance to get hands-on experience at the steelworks.

This year, the training took place from March 6 to 17 with nine employees from the following affiliates:

• POSCO-CSPC (China)
• Qingdao Pohang Stainless Steel Co., Ltd. (China)
• Zhangjiagang Pohang Stainless Steel Co., Ltd. (China)
• PT.KP (Indonesia)
• POSCO-Vietnam
• POSCO-TBPC (Thailand)
• POSCO-ICPC (India)
• PT Krakatau POSCO
• POSCO America

GMP participants just completed their two-week training program last week, which included on-site training and seminars on POSCO’s values, culture, and working systems. For the first week, participants learned about POSCO’s history along with different aspects of Korean language and culture. During the second week, there was a lecture on the work phases of a steel mill and participants visited the steelworks for a fuller understanding of the steel production process.

This year, POSCO made more of an effort to include material that would help participants have a greater understanding of POSCO’s management policies, such as solution marketing and POSTIM.  Additionally, participants were able to share their own unique work experiences and learn more about how POSCO operates around the world.

Participants continued their training, working with different departments. These included the Human Resources & Labor Relations Group of Gwangyang Works, the Plate Rolling Department, the Automotive Flat Products Exports Group, and POSCO Group University.

Through the GMP, POSCO Group University hopes to steadily foster the growth of future management leaders and experts with POSCO’s innovative DNA. The second training will be conducted in June.

The Steel Wire recently sat down with three GMP participants from POSCO China. Read their interview and find out more about the program and how it will impact their work in China. 

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Take a look back at the 8 biggest stories from The Steel Wire in 2016.

1. World’s Most Competitive Steelmaker for the 7th Consecutive Year

POSCO was once again named the world’s most competitive steelmaker for the 7th consecutive year by World Steel Dynamics (WSD). In addition, POSCO became the only steel company in the world to be simultaneously listed on both the Global 100 Most Sustainable Corporations in the World and the Dow Jones Sustainability Index (DJSI).

2. POSCO Earns More than KRW 1 Trillion in Profits and Improved Credit Ratings

For the first time in four years, POSCO’s consolidated quarterly operating profits exceeded KRW 1 trillion. POSCO also saw significant improvements in the overseas subsidiaries as operating profits for Mexico’s CGL, Vietnam’s cold-rolling factory, and India’s POSCO Maharashtra shot up considerably last year. In addition, CEO Ohjoon Kwon’s corporate restructuring initiatives helped pave the way for improved credit ratings.

3. POSCO Expands with Thailand CGL and other Overseas Endeavors

Thailand CGL (Continuous Galvanizing Line), Southeast Asia’s first automotive steel sheet plant was completed in August 2016. In addition, POSCO expanded its overseas presence by signing agreements with Iranian steelmaker PKP to construct a FINEX-CEM integrated steel mill capable of producing 1.6 million tons a year.

4. Taejoon Park’s Induction into the Korean Business Hall of Fame

POSCO’s honorary chairman, Taejoon Park, was inducted into the Korean Business Hall of Fame. He was recognized for transforming Yeongil Bay in Pohang from what was considered a wasteland into a steel mill that produces more than 21 million tons per year.

5. POSCO Strengthens its Foundations with its Unique Innovation Model

POSCO’s unique innovation program, QSS+, part of POSCO’s POSTIM, celebrated its 10^th anniversary. Compared to previous years, the number of ideas suggested by employees tripled, and six smart factory pilot activities were also promoted. A ‘special compensation system’ was also implemented to award outstanding IP projects.

6. A Culture of Shared Growth is Set into Motion through “Human Solutions”

In 2016, POSCO’s advanced Solution Marketing and World Premium Products reached new heights. At the 2016 POSCO Global EVI Forum, customers heard from experts and industry leaders about POSCO’s unique approach to building proactive steel solutions for its customers. And in 2016, sales of World Premium Products reached a record high and accounted for 48.1% of POSCO’s total sales.

7. POSCO Completes its 4^th-generation Synchrotron Radiation Facility

POSCO completed its 4th-generation synchrotron radiation facility in September, the third of its kind in the world after America and Japan. With the accelerator, researchers can capture movements as brief as a femtosecond (1/1,000,000,000,000,000 of a second). POSCO has high hopes for the accelerator to play a role in future pharmaceutical research & development, biotechnology, clean energy, IT, new material technology, and semiconductors.

8. A Fresh Start as POSCO Daewoo

Daewoo International, incorporated by POSCO Group in 2010, announced its new name, POSCO DAEWOO, as a step towards establishing itself as a leading global trade company. Soon after, POSCO Daewoo signed agreements with a gas-fired powerplant in Myanmar, an Indonesia state-owned shipyard, the Ministry of the Interior of Peru, and the Brazilian navy.

“I hope that innovation will continue to develop through improved sharing and communication, enhancing our business performance and the cooperation of POSCO China subsidiaries,” said Yong-sam Song, head of the Management Strategy Division at POSCO China.

POSCO China subsidiaries and employees came together for Innovation POSCO Festival China (left). Several subsidiaries received special recognition for their work in 2016 (right).

During the presentations, HR Innovation Office Project Support Group leader Suk-mo Jeong discussed the results of PSS+ (POSCO Six Sigma Plus), QSS+ (Quality Stability Safety Plus), SWP (Smart Work Place), and the direction of future innovation with POSTIM in 2017. In addition, several POSCO China subsidiaries contributed with presentations on gaining a competitive edge with optimal equipment (Zhangjiagang Pohang Stainless Steel Co., Ltd.), standardizing factory management (POSCO-CSPC), maintaining safety in the workplace (POSCO-CFPC), and creating a standard model for factory construction (POSCO-CCPC).

Four subsidiaries (ZPSS, CSPC, CFPC, and CCPC) were awarded by POSCO China president Sung-hee Han for their excellent performance with POSCO-CORE receiving recognition for its breakout performance in 2016.

In his closing comments, Han said, “I want to ask POSCO China’s Innovation Hub to provide customized support unique to each subsidiary’s circumstances and characteristics. And I want us to make our best effort to identify and resolve all waste factors at the workplace.”

Using the “Innovation POSCO Festival China” to help boost performance, POSCO China plans to strengthen their own innovation & collaborative efforts in order to succeed despite the unfavorable business conditions expected in 2017.

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The IP Festival 2016 award winners, who made great achievements through POSTIM this year, pose for a photo with their families and POSCO CEO Ohjoon Kwon.

Held in Pohang with the theme “Let’s Innovate Together,” the event also took place simultaneously in Seoul, Songdo and Gwangyang through video connection. Over 1,200 POSCO Group employees attended the event, where they shared the achievements of the POSCO Total Innovation Methodology (POSTIM) and resolved to take the initiative in generating profitability by devoting themselves to innovation.

The event kicked off with President Eunyeon Hwang introducing the event with Tolmang, a robot operated by artificial intelligence. The video made by and featuring employees presented this year’s performance in innovative activities, and revealed that innovation can be attained through the cooperation and unison of those involved.

The participants then shared the achievements of POSTIM from the past year, such as its establishment, expansion and the foundation of its cause. They also listened carefully to learn about the target performances of POSTIM, such as POSCO Six Sigma Plus, Quality Stability Safety Plus and Smart Work Place, as well as next year’s direction for innovation.

In the presentation of outstanding IP projects, those that produced notable results were introduced among various differentiated plans for improvement, followed by a quiz about the contents of the presentation. The best idea contest was held in the form of a battle, where the participants explained their ideas to the audience and the audience voted for the best one onsite. Also, the unique video presentation of QSS+ best filmed by Group affiliates, global branches and outsourcing companies, captured the audience’s attention.

In the event, 35 successful projects from organizations and individuals this year received citations through POSTIM, with 7 receiving special rewards. Families of the award winners also attended the ceremony that day, which added to the excitement.

The video aired toward the end of the festival emphasized that “we” are at the heart of POSCO’s future innovation, and moved the hearts of the viewers with a wonderful presentation of POSCO’s mindset and plans for the next 50 years.

“We must use POSTIM for all POSCO Group employees to communicate in a single language and constantly seek innovation,” said POSCO CEO Ohjoon Kwon. “With our potential, let’s promote PSS+ and QSS+ more quickly and robustly next year and prepare ourselves for POSCO’s next 50 years.”

Unlike previous events, this year’s festival also featured a robot to convey the image of the company’s smart innovation activities in a natural and friendly manner. Moreover, the presentation of the performance was not in the form of one-sided speeches but in more diverse and engaging styles that met the employees’ approval. These presentations won the empathy of the participants, and highlighted the performances that emphasized the role of innovation for the future.

POSCO’s 10th Anniversary of QSS+, the Innovation DNA for a Lasting Corporation

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1. CEO Ohjoon Kwon 

POSCO’s 8th CEO Ohjoon Kwon was officially inaugurated in March. CEO Kwon has shown a strong will to actualize POSCO’s vision, ‘POSCO the Great’ by enhancing steel competitiveness based on distinctive technological skills, wise decisions and concentration.

In pursuit of the group’s vision, CEO Kwon has been actively engaging in various activities. Visiting numerous global sites, he encouraged and applauded the accomplishments of all employees. Furthermore, as a member of the World Steel Association’s board of directors and an official member of the execution committee, CEO Kwon exchanged perspectives on the steel industry with leaders of fellow global steel companies. Through diverse opportunities of meetings, he has shown engaged and flexible communication with employees as well. Moreover, CEO Kwon visited client companies such as Hyundai Heavy Industries to inspect current status of solution marketing and announced POSCO’s new business strategy at an investor relations meeting for stakeholders and investors. Ever since his inauguration, CEO Kwon has been passionately leading toward ‘POSCO the Great’ by directly managing major topics of clients and investors.

More details are available here at Inauguration of Ohjoon Kwon and Vision for ‘POSCO the Great’ and POSCO the Great! CEO Ohjoon Kwon Speaks about POSCO’s Vision & Direction

2. Creative Economy
POSCO’s mutual growth activities for 2014 Creative Economy evolved in many different forms. Fostering venture business through ‘Idea Market Place’, POSCO took the lead of the creative economy in Korea. Especially, POSCO Partner’s Day event provided a platform for companies to share cases of mutual developments. Also at the event, POSCO announced the mutual growth vision, ‘Win-win for the Great’, inspired by ‘POSCO the Great’, to promote both POSCO group and SMBs to expand further in the future. As a result of POSCO’s contribution to creative economy, President Park Geun-hye visited No.3 FINEX plant and Pohang Creative Economy Innovation Center to encourage the notable performance. Officially opening in 2015, the Creative Economy Innovation Center is expected to promote POSCO’s creative economy activities and add more to revitalization movement for creative economy.

3. Solution Marketing

The key point of solution marketing lies in clients. By combining technology and marketing, POSCO has strengthened its competency by offering new and distinctive values to POSCO’s clients. With Steel Solution Center’s operation, POSCO provided preemptive actions to the clients and focused on the sales of strategic products such as marine and energy steel material. Moreover, the launch of Technical Service Centers has created opportunities to provide various solutions to clients more closely. Furthermore, other examples of successful solution marketing include POSMAC, an ultra-corrosion resistant alloyed steel plate, high-manganese steel LNG storage tank and a concept car ‘EOLAB’ which received spotlight at 2014 Paris Motor Show. As a result to many efforts, POSCO’s Global EVI Forum in October, was lauded as POSCO’s distinctive client-oriented marketing festival. POSCO’s solution marketing to enhance client value will continue in 2015 as well.

More details are available here at 2014 POSCO Global EVI Forum.

4. POSTIM
POSCO’s POSTIM is an innovative model developed and applied to achieve the corporate vision of `POSCO the Great’. POSTIM, which stands for POSCO Total Innovation Methodology, is designed to improve the previous innovation system by integrating employees, affiliates, tasks and innovation. POSTIM consists of PWS, QSS+, and SWP activities. Each activity act as an engine for implementation to practice the management ideologies. In fact, on the 4th of December, the Innovation POSCO Festival 2014 took place for the purpose of looking back on the efforts and traces of innovation throughout the year.

More details are available here at POSTIM.

5. Financial Structure Reformation
The financial structure reformation is one of the innovation agendas suggested by CEO Kwon. In April, POSCO successfully won project financing for Australia’s Roy Hill Mine project. By this means, POSCO, holding 12.5% of the mine’s stake, will be provided with at least 11 million tons of high-quality iron ore every year for the following 27 years. Moreover, POSCO promoted to sell its LNG Terminal, Posfine and POSCO-Uruguay while signing a MOU with SeAH Group and sold specialty steel affiliate to SeAH Besteel. In addition, POSCO has secured financial liquidity by selling Vietnam’s Diamond Plaza (POSCO E&C) and Masan city’s Daewoo Department Store (Daewoo International). As shown, this year was a significant time period for POSCO, considering that POSCO pursues to secure its steel business competency by achieving financial solvency.

6. Working Process

Experiencing a series of innovation throughout the year, POSCO has stepped forward in working method as well.

[Applying ‘Project-based Working Process’]
The ‘Project-based Working Process’ identifies projects that will help to improve profitability and accomplish qualitative goals. Also, this work method puts heavy emphasis on creating outcomes.

[Specialist and PCP-oriented Project in Progress]
Specialists and PCPs are promoting projects by drawing issues from their vast array of knowledge and experiences.

[IP Project Counsel]
Last July, the IP Project Counsels were held simultaneously in Seoul, Pohang and Gwangyang to share the results for the first half and plans until the yearend. At the event, CEO Kwon monitored projects in process and provided his ideas to project managers.

[IP Project Special Reward System]
POSCO established the ‘IP project special reward system’ for employees to be encouraged to challenge themselves to take on new projects and concentrate on excellent performance. This system gives substantial rewards to teams or individuals with outstanding results.

More details are available here at Project-based Working Process and IP Project.

7. POSCO the Great!

POSCO has been named the world’s most competitive steelmaker for the 7th consecutive time during the past five years by World Steel Dynamics (WSD). Moreover, POSCO was selected as a global sustainable leading company in the SAM-Dow Jones Sustainability Indices (SAM-DJSI) and was named as the ‘Most Respected Companies in Korea’ by the Korean Management Association Consultants (KMAC). Also, in July, POSCO was named as the 177th world’s largest corporations by the Fortune’s global 500.We hope POSCO will continue to create further accomplishments in 2015!

More details are available here at World’s Most Competitive Steelmaker and Most Respected Companies in Korea.

8. Future Competency

In 2014, POSCO focused on preparations to attain future competency. Three FINEX plants have started operation since January and POSCO-Thailand’s CGL has started its construction in August. Also, POSCO has been building a large demo plant in South America as a prelude to the entry in the global market for world’s first lithium extraction technology, developed by POSCO. In November, Gwangyang Steelworks’ hot rolling plant No.4 was completed. Now indeed, high-quality steel production is capable purely with POSCO Family’s technical ability. This production system supplies 3.3 million tons per year. Lastly, POSCO-Krakatau which has initiated its iron-making in January, also appears to be making pleasant results. 2014 was surely a year of productive and diverse constructions. We expect for more remarkable activities in 2015!

More details are available here at POSCO’s Global Competency.

9. Safety
This year, safety has been a very important keyword to everyone in Korea. Through safety exercises like POSCO center fire drills, Pohang and Gwangyang group fire trainings, POSCO Family Safety and Disaster Prevention Resolution Conference, POSCO has been engaging in preemptive activities in safety to stress the importance. Also, POSCO has enhanced inspection in Seoul, Pohang and Gwangyang for sites that are prone to fatal accidents while conducting customized emergency response trainings to reduce risk factors beforehand. In addition, POSCO has created curriculum for safety professionals and conducted cross audits for each steelworks.

10. Pride
Establishing the world-class training process for technical professionals, POSCO has been striving to maintain as a company where employees hold pride in their hearts. In fact, through ‘Great Work Place’ activities, POSCO has been providing a working environment of flexible commuting time and improved work engagement. Also, POSCO has prepared a 5-level job competency level system to foster technical workforce while also selecting employees with professional knowledge and colleagues’ respects as ‘POSCO Master Craftsmen’ and providing exceptional rewards to them. Lastly, through ‘IP Concert’, which was held 19 times in Pohang, Gwangyang and Seoul, employees and executives shared new business philosophy and reinforced the pride in POSCO.

More details are available here at ‘The Great Company to Work At’.

11. POSCO Family News

[Daewoo International]
The hottest issue of 2014 Daewoo International would be about Myanmar Gas field. Starting in June 2013, the field has been enlarging supply ever since its first production which was approximately 500 million cubic feet. It now has become the main source of profits at Daewoo International.

[POSCO ICT]
In the smart energy sector, 2014 was a fruitful year for POSCO ICT. For instance, energy storage system ESS and energy efficiency system for factories and buildings have achieved outstanding outcomes. Including Building Energy Management System (BEMS), which is currently applied at POSCO ICT Pangyo office and Portable Emissions Measurement System (PEMS) at Gwangyang Steelworks’ oxygen plants, POSCO ICT’s various energy-related business will continue to advance in 2015.

[POSCO Energy]
‘Beyond Energy, Better Life’! Acquired by POSCO Energy, TONGYANG Power has marked its new start with the new name of POS Power. Thus, it is gaining many people’s expectations as they expand abroad into private development business. Furthermore, POSCO Energy has secured a license for 450MW power coal cogeneration plant which is the biggest in size in Mongolia. As a result, POSCO is now the largest shareholder of the fifth power plant business in Mongolia.

[POSCO E&C]
The Northeast Asia Trade Tower is a landmark in Songdo City and the tallest building existing in Korea. 305m in height and 68 floors in total, the building was under construction for approximately eight years. Besides its office and accommodation, the building features many additional facilities. In fact, Daewoo International will soon be joining the office space. Please look forward for POSCO E&C’s activities to become one of the top 10 global construction companies in 2020!

More details are available here at Northeast Asia Trade Tower.

Today, we took a look back on the keywords of 2014 in POSCO. Among the keywords above, we wonder which word stays in your memory the most. As a closure to 2014, we would like to thank you and all employees who trusted POSCO group for the sincere support!

What’s POSTIM?
POSTIM is an innovative model developed by POSCO and applied in August 2014 to achieve the corporate vision of `POSCO the Great’. At the event, participants looked back on the efforts and traces of POSCO Family to implement `POSCO the Great`, and shared the progress results and best practices from POSTIM, which spans PWS (PJT-based Working System), QSS+ (Quick Six Sigma plus), and SWP (Smart Work Place). In addition, through the `Contest for an Excellent Project Idea`, they shared creative ideas from the shop-floor that can contribute to improving profitability, with a special awards ceremony to recognize the most promising ideas.

PWS (PJT-based Working System)
Many global companies such as Google, GE, 3M and more, are practicing various projects as they consider projects to be the key to efficiency. Through ‘Innovation POSCO 1.0’, POSCO has drawn a number of lucrative projects in each corresponding sector of production, sales, research, finance, new business and management support. By creating exclusive teams and members for projects, POSCO provided an optimal circumstance where project participants could concentrate on their tasks.

QSS+ (Quick Six Sigma plus) 
Ever since its completion in 1937, the Golden Gate Bridge in San Francisco carries a hundred thousand cars every day without facing any problem. Such durability is achieved by annual maintenance activities and recovery with adequate investments.

With 24-hour operating facilities older than two decades, POSCO also requires consistent management and investment in order to maintain its competitive edges. Accordingly, POSCO developed QSS+, innovative activities compatible for steel mills and has been strengthening its facilities in pursuance of a safe working environment. As POSCO deploys customized innovative activities by upgrading its core facilities, QSS+ plans are expanding with a plant manager’s lead. As QSS+ plans are settled, plants go through a major reconstruction or plan an independent activity that is appropriate to each department’s characteristic.

SWP (Smart Work Place)
From winning the 2014 UEFA Championship and 2014 World cup championship, Germany’s football teams are leading the paths of the world football. Behind such achievements, there were IT infrastructure and leadership that created positive atmosphere to the players.

Meanwhile, POSCO also embodies SWP (Smart Work Place) that promotes employees’ involvements through convenient IT infrastructure, advanced working method, and sharing gratitude. With the spread of mobile reporting system, working process has been expedited and video conference allowed meetings without limitations to time and space. Moreover, employees are using smart notes to immediately respond to client’s request and inconveniences on site. Improvements in reporting system extended task immersion and simplification in HR, training and innovation system also boosted employees’ focus on their accounts.

IP Festival 2014 Event Sketch
At the ‘IP Festival 2014’, executives and employees shared the outcomes and best practices from POSTIM. Groups and individuals who have displayed outstanding performance throughout the year were awarded at the event.

• Groups and individuals who had excellent project performance received awards

• Best cases of projects were introduced at the event

Let’s see what other interesting activities were shared at the IP Festival 2014!

• Employees are participating in a performance that they prepared during the break times

• Employees engaged in performances that induced participation in between each session

Successful companies have three factors in common: 1) A goal that all members share together, 2) empathy for a unified ideology, 3) sharing strategies to achieve a goal. POSCO has been sharing the vision of ‘POSCO the Great’ with all employees and striving to enhance its corporate value. Thus, based on their shared innovation agendas and management ideologies, ‘POSTIM’ was newly established as a powerful execution engine.

1. POSCO’s Unique Innovation Model, POSTIM

POSTIM, which stands for POSCO Total Innovation Model, is based on the participation of all POSCO employees and subsidiaries, as well as integration of work and innovation. By establishing a specific solution to the previous problems and systemizing the accumulated procedures and capabilities through POSTIM, POSCO will make its way to realize ‘POSCO the Great’.

2. Four Basic Principles of POSTIM

POSCO established four basic principles with the goals of increasing profitability, creating a Great Work Place, and enhancing job commitment. The specific principles are: 1) striving to generate profits by integrating work and innovation, 2) offering a reward corresponding to voluntary participation and employee performance, 3) creating a work environment in which employees are committed to creative activities and jobs, and 4) fostering and giving preferential treatment to talented individuals with technical and problem-solving skills.

3. POSTIM’s engine for implementation

POSTIM consists of PWS, QSS+, and SWP activities. Each activity will act as an engine for implementation to practice the management ideologies – One POSCO, Creative POSCO and Top POSCO – and fulfill POSCO’s innovation agendas. POSTIM is expected to contribute greatly to accelerating the fulfillment of ‘POSCO the Great’ by systemizing the accumulated organizational competences, such as innovation methodologies, human resources and systems within a unique innovation model

• PWS (Project-based Working System)A business method in which employees find new projects to increase profitability, attain qualitative goals, and concentrate on producing outstanding results

• ŸQSS+ (Quick Six Sigma Plus) in every corner of the siteActivities to improve Quality, Stability and Safety by evolving a unique method suitable for steelworks with a focus on operating facilities. Accordingly, steel mill sites such as STS steel manufacture and quality-technology departments, are accelerating the realization of ‘POSCO the Great’ by having proclamation ceremony for QSS+ and holding an information session in each department. POSCO expects QSS+ to root down firmly in every corer of the sites and contribute as a stepping-stone for unprecedented innovation activities.
• SWP (Smart Work Place)A series of activities carried out to enable employees to concentrate on their jobs by performing high value-added tasks and generating creative ideas based on a harmonious and positive organizational culture.

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Notes from CEO

 “Let’s develop POSTIM as POSCO’s unique innovation model”

If the innovation methodology that POSCO has been promoting was in a physically mixed condition, the new POSTIM is the result of chemical bonding of innovation methodologies. For example, we utilized TESAL and Six Sigma individually in the past. However, as TESAL’s good methodology is applied to Six Sigma, POSTIM is a systemized model that is not limited to a certain methodology and allows combined application. Through this new model, POSCO is able to apply the majority of the existing methodologies with further convenience and can choose the part to include in POSTIM if a better methodology is developed in the future. Let’s develop POSTIM as POSCO’s unique innovation model.

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