Posco and Quick Six Sigma

Abstract

POSCO was a South Korean company that manufactured and sold products such as hot-rolled and cold-rolled steel, stainless steel plates, wire rods, and silicon steel sheets. Along with other steelmaking companies, it faced the dilemma of the excessive waste inherent in its industry. In 2005, POSCO had initiated QSS (Quick Six Sigma or Quick and Smart Solution), which was extremely successful and had continuously contributed to waste reduction. Having achieved laudable goals, including overall efficiency in its workplace environment, was there a way that POSCO and Chung could use the QSS program to help the community and society at large? Excerpt UVA-E-0396 May 7, 2014 POSCO AND QUICK SIX SIGMA POSCO, along with other steelmaking companies, faced the dilemma of the excessive waste inherent in its industry. Byproducts of steelmaking included slag—waste matter that was separated from metals during the smelting or refining process—dust, and sludge. Depending on the specific process used, production of one ton of steel could result in anywhere from 440 to 881 kilograms of byproducts. In addition, industry waste included machine breakdown and malfunction (e.g., oil leakage, belt disconnects, and overloading). In 2005, POSCO had initiated QSS (Quick Six Sigma or Quick and Smart Solution), which was extremely successful and had continuously contributed to waste reduction. Since then, QSS had become the symbol of a culture of improvement in manufacturing. For instance, in 2012, POSCO's coking plant reduced costs by about $ 800,000 by improving machinery performance and reducing malfunction rates through QSS activities. In 2009, POSCO Chairman Joon-yang Chung, intrigued by the effectiveness of QSS within the company, expressed an interest in using it to help POSCO's various stakeholders, including employees, customers, investors, partners, and the community. How could QSS, which had been applied to the logistics and mechanics of the steelmaking factories, be applied to the local community, or even society at large? Could this tool be transferred successfully from the production line to the stakeholders beyond the factory walls? POSCO . . .