Lu Hongjun: World Economy and Steel Informationization

August 22, Metallurgical Industry Information Center. The old house had not yet had time to take a closer look. After three or five quick trips, Director Lu saw him far away and waved his hand and gestured to meet and turn into a room without a house number. A large table occupied 2/3 of the room. Area, estimated that this is the legendary conference room. Sitting, three bottles of mineral water tables, bow thanks. A few greetings, cut into the topic...

Metallurgical Industry Information Process National CIO/CTO Club: Can you give us a brief introduction to the development of information technology in the metallurgical industry? What are their main tasks?

Director Lu: In 1976, the Information Center of the Ministry of Metallurgical Industry and the Information Center of the State Development Planning Commission were established. At that time, there were only two companies. It can be said that the metallurgical industry is the earliest industry in which information technology starts among all industries. Afterwards, due to structural reforms, the Ministry of Industry withdrew, and the Information Center of the Ministry of Metallurgical Industry was renamed the “Information Center of the Metallurgical Industry”, which was placed under the management of the State-owned Assets Supervision and Administration Commission of the State Council and was managed by the China Iron and Steel Association and was fully funded. The purpose of the business unit is to provide information services for the development of the metallurgical industry.

In the early days of establishment, our work was mainly to do statistics (statistics of all kinds of steel information in the country, including production information, technical and economic indicators, and equipment, etc.). At that time, we had daily, monthly, and annual reports; now the country implements macro-management, The statistical period has become the ten-year report, monthly report, and annual report, but the network system established in 1976 still exists. At the time, our business was relatively simple. It was internal computerization. It was also called the management information system. This process probably took more than 30 years.

Ten years ago, the reform of the state institutions, revocation of ten major ministries and commissions formed industry associations, including the revocation of the Ministry of Metallurgical Industry, the establishment of the China Iron and Steel Association. At present, there are 265 members including more than 70 large and medium-sized steel mills. The investment in metallurgical industry in informationization is very large. This aspect is supported by a very large amount of national support (such as discount coupons, support for science and technology projects, etc.), and on the other hand, the amount of funds raised by enterprises is also large, so each large and medium-sized The funds invested by enterprises in information technology are basically over 100 million, and many even reach 5,600 million.

Up to now, more than 80% of our steel plant members have done information construction. We call the four-level system, the ERP system. Since then, many companies have also developed customer relationship systems and supply chain systems. For example, Baosteel, Anshan Iron and Steel, Wuhan Iron and Steel Corporation, Shougang, private enterprises Shagang, Jinan Iron and Steel and other informatization have done very well, and they can all enter the world's top 500. enterprise.

National CIO/CTO Club: These large-scale steel mills have done a good job of informatization. What are the main ways to complete such a process?

Director Lu: Generally speaking, they mainly adopt two methods: One is a common and common business, such as financial management, personnel, resources, equipment, etc., adopt the method of package type (ie, system integrator), and directly use ready-made products. The kits are ready to use, which not only saves time but also guarantees quality.

Another kind of steel production and sales link, each steel mill compares the core defects, producing different brands of steel with different quality and different specifications. This set of technology has different metallurgical specifications. The metallurgical specification is for every enterprise. It is confidential and money can not be bought. Therefore, the information construction that is close to the production and sales must be completed by the company itself. How to do it? For example, like the Angang Steel System, we invite American friends to come to China to unite with Anshan Iron and Steel Technology to develop an integrated production and sales information system in the form of cooperation.

National CIO/CTO Club: How to deal with small and medium steel mills?

Director Lu: SMEs are relatively simple, we can buy them directly, and we can also find the information department of large companies to help them to construct them. For example, the company finds Wugang’s automation company to help establish a system, or find us to help him build the system. We also helped Wugang and Angang to do system integration of the three-tier system.

The information center has taken control of the industrial economy to the national CIO/CTO club: In the online review, you said that the information center has four tasks: statistics, industry data collection and distribution integration, consulting services, and system integration. Do not know if there is any change?

Director Lu: Yes, this is indeed our pillar work. It is still these four big blocks. We all rely on this to eat. Although we once tried to think of something else, I always think that "we should do what we do best." Based on the iron and steel industry, we do not do anything outside the loop.

Like consulting this piece, we have always paid more attention to it. In the past few years, when China's economy was good, everyone thought of China to make money. I felt that China was gold everywhere. Therefore, consulting foreign companies was particularly large. We have done more than ten copies. According to China’s market report, some foreign companies have entered China, including joint ventures with China’s steel companies to establish special materials processing and production lines.

Second, we also have many senior economic analysts who can provide consulting reports for the industry, such as regularly publishing some of the more authoritative reports in professional journals, data analysis, and so on.

In addition, this piece of data statistics is also our strength. Because all data like the steel industry are concentrated here, all data are first-hand data statistics, so we want to stand at the height of the industry, build steel data distribution centers, provide to various functional departments, and also use data mining technology to do more Something with added value.

National CIO/CTO Club: As an industry information center, it is necessary to take a high degree of control over the industrial economy. In using information technology, you just mentioned a lot of specific business. So, is there any problem with this?

Director Lv: The information center is a public institution. The work it does is not a forced management work, but a service, consultative, supportive, and promotional work. The iron and steel industry is the industry with the most fierce market competition mechanism. When the Ministry of Metallurgy was in the past, sending a document could allow companies to implement it. Nowadays, enterprises are not on the system. What kind of system is the company itself has the final say, we only have Responsible for guidance, advice, advice, and advancing.

In other words, our people often need training and need to always stand at the forefront of informationization. In terms of concepts, we need to reverse our thinking, and we must have a sense of marketization. While doing a good job of statistical obligations for the country, we should also serve the enterprises in consulting and project management.

Iron and Steel Informatization and the CIO/CTO Club of the World Economy: Now that the world economy is sluggish, and China's economic growth is slowing down, what is the next direction of development that we have been advocating for the integration of the two industries? Has information technology helped companies reduce costs in the end?

Director Lv: From the integration of the two industries to today's in-depth integration, the era of low labor costs has passed. If industrial modernization cannot reach a certain level, it will be difficult for the economy to advance to a higher level. So, the so-called deep integration of the two is mainly energy saving and emission reduction, reducing costs, and promoting the transformation and upgrading of the iron and steel industry. This is a problem that is easy to say. It is difficult to reduce costs and increase efficiency without information.

Frankly speaking, after decades of development, companies have standardized production standards, so how can they save costs in a very regulated environment? This requires the use of more optimized technologies, such as internationally-accurate "Management management", from Japan to the United States everyone is doing this thing, the key point is the data, only to grasp all the company's data is very clear, you can do fine management, it can be said that all the fine management is from the data Starting, leaving the data, fine management is very empty. This is also a direction in which informatization goes deeper.

For example, like the steel industry, there are many steps that need to be taken from steelmaking to finished products. The convergence between each step requires a very quantifiable consideration of how to quantify it and rely on data. It's like a piece of steel. It takes three or five minutes to put it out of the oven. If the temperature doesn't reach a certain height, it needs to be warmed up and consumed again when it enters the mill.

In addition, reducing costs also requires reducing logistics costs. Because the logistics cost of steel is very large, there are many problems in the entire logistics link from ore mining, transportation, steel sheet forming, and delivery. Therefore, the supply chain system is a good solution to accurately control the operation of each link and seek efficiency for efficiency. At present, the Information Center is also cooperating with the Ministry of Commerce, hoping to provide more channels for enterprises to reduce costs and increase their competitiveness.

National CIO/CTO Club: Informatization construction is a process of investment. Will it be affected by economic factors in the present?

Director Lv: The weak world economy is an opportunity for the construction of enterprise information. If we can take this downturn and build equipment, energy management, supply chain management, and customer relationship management all in a good way, and wait for the economy to recover a bit, enterprises There will be very strong competitiveness.

For example, in the past, we had to rely on artificial labor for steel production. There were a large number of scheduled staff in each steel mill. The degree of optimization was not high. Nowadays, automatic scheduling software is already available internationally. It is optimized, it saves equipment and saves people. The Information Center introduced the technology to the company. Angang and Wuhan Iron and Steel had some feelings and started to plan this system. This is also a preparation for the fine management of the enterprise. In this way, when these systems are built, the competitiveness of the company is very strong, and later development will be different from other companies.

However, some privately-owned small enterprises are not paying too much attention to informationization. They are mostly peasants who are hired. They stop production when their profits are not good. Farmers go back to farming. When they come back, others are higher than you. The steel quality department produced by the original method was up to standard, and nobody wanted the product. It is still very difficult to talk about development.

Information-based advantage of latecomers and steel cloud planning National CIO/CTO Club: Western countries have informatized after the first industrialization, and China's informatization has appeared in the middle period of industrialization. Based on this status, how does the information-based advantage of late-generation information be reflected? What are the most direct benefits?

Director Lu: The advantage of late-coming is obvious. One can save time. One can use a very good system to use it. This allows us to take a lot of detours in informationization. Otherwise, it is time-consuming to build an informatization. It takes time. . Here, the United States is actually a good example. In the United States today's equipment and its old, including steel mills, four years of equipment can be seen everywhere, such as the United States Steel Association this information is very good company, aging equipment It is also a big problem.

For example, at the front end of the hot rolling process, there are seven finishing mills, each of which has very thick rolls to roll steel. The roll needs to be replaced after a period of use. In the process of changing, the crane must be used to hang the roll down. replace. In a certain year, I took the owner of a domestic steel factory to visit the U.S. Steel Association. A factory manager was very proud to say to the foreigner that we were the fastest in the world, and all got it in 12 minutes. The foreigner said I only spent 7 minutes. Seeing is believing, after the final scene of the table calculations, when the three Americans lazily walked past, the six-and-a-half roll was completely replaced.

This is the management and optimization of technology, complete software control, and the effect is very good. In fact, our hardware is much stronger than foreigners, but the quality of steel rolling is inferior to others, and poor control is poor, and the so-called control is information.

The National CIO/CTO Club: Nowadays, the informationization has begun to take shape. How much dependence does the steel industry have on information?

Director Lu: In terms of the country, this depends on the number one person’s recognition of informationization. Many companies do not understand information technology, do not understand where the added value, so we often say that information is to rely on advancing. In the Iron and Steel Association, the Information Center organizes business owner visits abroad every year to see how people's production and informatization are built. They see a deep impression of success, and the concept gradually changes.

In addition, some new CEOs today have different knowledge structures than before. Everyone learns some basic informationization frameworks in schools. With some concepts, he understands that informationization cannot be separated.

Frankly, like some big companies now, if they really stop running the information system, he can't really roll steel; if they leave the production and sales system, companies can't really play. For example, the automatic scheduling system mentioned above is completely controlled by computers, and people can only temporarily intervene. Well, if the system is down, the production cannot be scheduled, and orders cannot come. Therefore, the dependence of steel companies on informatization is very high.

National CIO/CTO Club: There is no end to information construction. What kind of plan will we have for the steel industry in the future? What do you think about cloud computing in the industry?

Director Lu: Information technology itself is updated very quickly. The annual maintenance cost is also very high. Equipment depreciation is gone for five or six years. Therefore, the best way to reduce costs from this piece is cloud computing. Now that cloud computing in the international community is developing rapidly, we now encourage large companies to build their own clouds on the one hand, and on the other hand, they are also actively preparing to serve as a public service platform for SMEs to use directly.

I think that cloud computing is a gradual process. Judging from the current cloud application situation in the United States, the popularization and application process of cloud computing in China will not be particularly lengthy, especially when you see a lot of cost savings, and he himself is still employed. A lot of IT staff and constantly updating equipment.

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