Oracle Corporatopm

POSCO Benefits by Managing Changes

"We needed a comprehensive and highly productive software development solution to automate a critical piece of our business where other approaches had proven inadequate. Oracle's Developer Suite delivered results better, faster and cheaper. "
--Kyeong Ryul Ryoo, CIO, POSCO

Key Benefits
• Lead time for hot rolled steel from order entry to product delivery shortened by 16 days (30 days to 14)
• New product development reduced from 4 years to 1.5 years
• Budgeting time reduced from 110 days to 30 days allowing annual budgeting to be adjusted quarterly
• Month end closing time reduced from 6 days to 1
• Standard costing time reduced from 15 days to 3.

Oracle Products & Services
• Oracle9i Designer
• Oracle9i SCM
• Oracle E-Business Suite

Corporate Profile
Established in 1968, Korea-based POSCO is the world's largest steel manufacturer. With an annual crude steel production capacity of 28 million tons, POSCO is considered by Morgan Stanley to be the most sustainable company in the steel industry. The company makes hot- and cold-rolled steel products (plate steel, stainless steel, hot strip, and wire rods), which it sells to the auto and shipbuilding industries. POSCO's subsidiaries also include POSCO Engineering & Construction (builds steel plants, steel-related infrastructure, and energy facilities) and POSDATA (systems integration).


POSCO's Software Configuration Solution
Established in 1968, Korea-based POSCO is the world's largest steel manufacturer. To meet its management's business strategy of raising efficiency and maximizing corporate value, POSCO had decided to implement Oracle 11i E-Business Suite. An important part of the implementation was to develop new and extended application capabilities to support specific high-value business requirements. Because of the potential impact of changes on the many elements of the software suite, POSCO needed a comprehensive and highly scalable software configuration management (SCM) capability to manage dependencies and assure timely completion of the implementation.

To manage all application development deliverables in the implementation process, POSCO stored the new application code and the Oracle E-Business Suite in a central repository managed by Oracle9i Software Configuration Manager (Oracle9i SCM), the software configuration management component of Oracle9i Developer Suite.

POSCO used Oracle9i Designer and Oracle9i SCM, both of which are included in Oracle9i Developer Suite, to support extension of the enterprise resource planning (ERP) applications in Oracle E-Business Suite. One central SCM repository 40GB in size was set up for POSCO's project, supporting a large collaborative team of 200 concurrent users.

High-Level Project Goals

Reduce new product development time
improved efficiency

Why Oracle?
Because Oracle9i SCM manages all information in the Oracle database, POSCO knew it could rapidly implement a cost-effective solution that would take advantage of the database's unmatched performance, scalability and security capabilities.

Implied Change
The resulting implementation enabled POSCO to eliminate redundancies while building a digital system to meet its business needs. By implementing new global business processes and standardizing on Oracle 11i E-Business Suite, POSCO reduced Budgeting lead time from 110 days to 30 days--a reduction of 80 days or 73%. Also POSCO's month end closing time has been reduced from 6 days to 1 day.
An immediate benefit realized by POSCO is the saving of development cost and time to market by using Oracle9i SCM. POSCO could avoid inefficient or high-cost software changes and additions through dependency management and impact analysis Oracle9i SCM offers. And Oracle9i SCM provided the scalability needed to support the activities of the large collaborative team.