POSCO held a kick-off event for its IP G-Project on October 30 to share project plans for six new projects

Eighty members attended, including CEO Ohjoon Kwon and Project Director of the IP G-Project, who shared the project plans for six new IP G-Projects and resolved to successfully complete the projects. CEO Kwon said, “Detailed plans for achieving the goals for the IP G-Project have been well established.” He also asked those in attendance to make effort to achieve their goals by working closely with other departments.

The IP G-Project integrates mutual IP projects, research assignments and programs into one strategy for efficiency, and started with the intent to expedite Innovation POSCO 2.0 by concentrating the capabilities of all its companies. Under the previous PWS (project-based working system), cooperation between companies and departments within the IP project was possible, but it was difficult to integrate with other activities. So POSCO renamed the projects which require cooperation between research assignments, IP projects and unique programs to the IP G-Project and decided to operate it at a group level.

IP G-Project facilitates the cooperation between all work areas, and is a top-down system that works by themes suggested by the board of directors, which is then approved by the CEO. The goal is to generate over 30 billion KRW in financial performance within the next three years. Unlike IP projects led by professional executives, IP G-Project is managed by c-level executives who operate as the project director.

By establishing a plan to complete each project, all related activities are integrated with concurrent engineering strategies, accelerating the performance outcome. Project progress is directly monitored and guided by the CEO. Through integrated VP (visual planning), the effect of cooperation is maximized.

At the end of the year, the continuation of the project will be reviewed by management and if necessary, performance will be constantly evaluated, even after completion of each project. POSCO plans to put all its efforts into creating outstanding results through the IP G-Project and to achieve Innovation POSCO 2.0 as soon as possible.

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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