Network technology in the steel industry

Abstract

A commentary states that the speed and ease with which management information flows is enabling steel companies to break down old boundaries. A revolution in materials science and steel production technology is adding to efficiency and enabling steel makers to take more capital out of their processes, lowering the barriers to entry even more, and further accelerating competitive pressure. Network technology-supported product development, process knowledge, and more sophisticated metrics are speeding up improvements, which in turn are accelerating cash movement. Allegheny Ludlum has aggressively applied distributed network technology to become a world leader in specialty steel processing. Another North American integrated steel company has been able to reduce its base cost of $800 million by $70 million by redesigning its production, maintenance, procurement, order fulfillment, and energy management processes. Videoconferencing, electronic data interchange, and frame relay have been key to this initiative.