Corporations are so clever in coining all sorts of terminologies that it is difficult to tell one from another but Pohang Iron and Steel Co.(POSCO) is quickly clarifying what it means when it says ``process innovation (PI).''
Innovating all processes associated with procurement, manufacturing and distribution is obviously important but POSCO believes it must be a ``win-win'' strategy for both POSCO and its customers.
To POSCO, PI covers the entire scope of business, from production, sales, administration and financial management to procurement and human resource management.
``PI and enterprise resource planning (ERP) are an essential part of improving productivity and profitability with transparency,'' explained POSCO Chairman and CEO Yoo Sang-boo.
He said there have been many instances in which foreign companies have refused to invest in Korean corporations, mainly due to the lack of transparency and practices that are in line with international standards, and POSCO's PI is designed to specifically address this issue.
``It is a matter of increasing predictability as well as simplifying all related procedures. These are combined to enhance efficiency,'' Yoo said at a meeting with POSCO executives.
Under POSCO's PI program, the master plan was adopted last month with the plan being implemented by June 2001 toward program stabilization at the end of that year.
It has signed agreements with Price Waterhouse Cooper and Oracle for implementing the program and has adopted the ``to-be'' plans from the ``as-is'' situations on schedule and beyond. …