Managing R&D at Nippon Steel

Abstract

Steel is one of modern civilization's essential basic materials, and Nippon Steel Corporation (NSC) considers its role to be one of supplying society with quality steels at reasonable prices. To realize this, we carry out state-of-the art RD the Process Technology Research Laboratories concentrates on iron and steelmaking processes and production processes for new fields; the Advanced Material & Technology Research Laboratories specializes in research on new materials, chemicals, biotechnology and related basic research; the Electronics Research Laboratories conducts research on systems, LSI, electronics equipment and devices. The Plant Engineering & Technology Center has been established to facilitate the translation of R&D achievements into commercial use. In fiscal 1989, the former Central Bureau's R&D expenditures were Y45 billion, 60 percent of NSC's annual R&D expenditures. After the organizational changes, R&D professionals in the Bureau numbered approximately 1200, including 150 Ph.D.s, making this one of the world's largest steel research groups. MANAGEMENT OF THE TECHNICAL DEVELOPMENT BUREAU R&D, at appropriate times during its progress, should receive reinforcement of its resources, a go or no-go decision, and evaluation of its results. For the purpose of efficient and effective R&D management, NSC employs what is termed the CREDIT system, explained below. Over 80 percent of the R&D programs carried out internally relate to the company's specific businesses. The rest involve advanced research in anticipation of market needs projected by the R&D department on its own, with approximately 10 percent of this being free research programs pursued on the initiative of the researchers. …