Since the 1970's, the Middle East has become an important region of the world with regards to the steel production industry. Forbes recently published an article, entitled "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production," which explains that Qatar Steel, a forerunner among Middle Eastern companies in the production of raw steel, recently announced its plan to implement GE Intelligent Platforms Proficy(R) Software "to provide a complete production management solution designed to improve operating efficiency through a reliable and optimum production process" [1]. The software focuses on collecting data from various systems involved in the production process to allow Qatar Steel to more effectively monitor important measurements of performance.
Qatar Steel was named one of the top four steel producers in the Middle East in October 2008, and, according to its website, it has "garnered a reputation for unrivaled quality, flexibility and reliability" [2]. The article claims, "The Middle East is expected to produce over 60 million tons of raw steel by 2010" [3], which is supported by Director and General Manager of Qatar Steel, Sheikh Nasser Bin Hamad Al Thani, on the company website. Even as a forerunner in a growing and very profitable industry, Qatar Steel needs to find ways to stay ahead of the competition. That is why the company signed a contract with GE Intelligent Platforms to use IT in order help it gain a competitive edge in the steel production industry.
According to Malek Hamdieh, Manager of IT for Qatar Steel, the contract with GE was offered after "an exhaustive evaluation process including current and future requirements analysis, return on investment scenarios and implementation methodology" [4]. It is worth $2 million and spans 14 months, which is how long it will take to implement the software solution. The solution will solve the main problem in Qatar Steel's production plant, which is monitoring the input of raw materials into the plant, an essential aspect of maximizing efficiency. I like how the article gives details of the contract and lays out exactly what problem the Proficy Software will be solving.
The article does not stop at "what", however; it goes on to explain how the software will positively affect the production process. Quotes from various company executives and a short explanation of how the software works give insight into the specific ways in which the Proficy Software will increase production efficiency and decrease time spent locating and streamlining information.
At the end of the article, a brief synopsis of the functions of the Intelligent Platforms division of GE is given, which gives the reader a broader sense of the importance of IT, whether used in business or otherwise. For example, the United States Military uses "GE Fanuc vetronics solutions" in "ground combat vehicles" which allows them to be "more maintainable and more inexpensive" [5]. For Qatar Steel, the Information Technology provided by GE helps it keep a competitive edge, but for other clients, including those involved in protecting the environment, GE provides IT that is solving major world problems.
Link to the article:
http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html
References:
[1] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[2] "Qatar Steel Named in Top Four Steel Producers in Middle East." Qatar Steel. 19 Oct. 2008. Web. 11 Feb. 2010. <http://www.qasco.com/news/detail.php?ID=922>.
[3] Holman, Elli. "GE Intelligent Platforms Proficy Software Chosen By Qatar Steel For Plant-Wide Production." Forbes.com. 11 Feb. 2010. Web. 11 Feb. 2010. <http://www.forbes.com/feeds/businesswire/2010/02/11/businesswire135283213.html>.
[4] Ibid.
[5] Howard, Courtney E. "Warfighters call for innovative, responsive, and reliable vetronics in combat vehicles." Military & Aerospace Electronics Magazine Online. Web. 11 Feb. 2010. <http://mae.pennnet.com/display_article/367892/32/ARTCL/none/EXCON/1/Warfighters-call-for-innovative,-responsive,-and-reliable-vetronics-in-combat-vehicles/>.
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"Monitoring the input of raw materials into the plant" is a main concern for all businesses, no matter the size or nature. It is important to have foresight into the supply and demand of the materials coming in, and to ensure that you have enough, but not too many. No company wants to have too much inventory on their hands, which is why Just-In-Time inventory methods have been adopted by many companies, such as DELL for example. I found a service called Steelmaking Raw Materials Monitor, which analyzes trends in the key raw materials needed for steel-making. For example, for iron ore, this service provides an incisive view of what factors are driving the market and in which direction prices are heading. It is obviously a great adoption for Qatar in hopes of decreasing costs and increasing efficiency.
ReplyDeleteThis new production monitoring system is projected to provide a great benefit to Qatar Steel, in the fact that is will allow the business to funstion more efficiently and reduce bottom line costs. The goal of any company, regardless of its nature, is to increase profit, so reducing cost where possible is crucial. By consolidating all of its production information on one software program, all of the data Qatar Steel has collected can be more easily managed, accessed, and organized, so the company can use its resources at their maximum capacity, and get the most out of each piece of data collected.
ReplyDeleteQatar Steel will definitely benefit from the GE software since it will allow for more efficient management of the production process. I agree with the point that Qatar will gain “a competitive edge in the steel production industry.” From the implementation of this software, Qatar will have an easier access to data. As a result, costs will be reduced and productivity will most definitely increase.
ReplyDeleteI think implementing this GE software will be a great benefit for Qatar Steel. As the article states this software will help in collecting data from all of the businesses' many activities. By having the ability to better manage and organize this data the company will most likely become more efficient and effective. In the business world progress and innovation are very important and in order to stay as one of the leaders in their market this is a great step for Qatar to make. This software will help better utilize the businesses time, lower excess inventory, and overall increase productivity.
ReplyDelete