Inland Steel Uses Technology, Cost Control, and Employee Involvement to Improve Its Productivity

Introduction The ore mining industry has been successful because of technological progress and huge sums of capital investment. But new technology and plants have not come cheap. The problem now is companies will run out of money before they run out of ideas. Survival Strategies Industry survival strategies demand restructuring and new plans. Inland's prescription for the future includes: • Continued emphasis on technological improvements to upgrade pellet quality and lower costs; • Effective use of human resources resulting in employee satisfaction and improved planning and productivity; • Deliberate, well planned, and documented cost-control programs for the short- and long-term; and • Capital investments to support the first three initiatives. Technology Technological changes are not only required by the need for operational improvements, but by product quality improvement dictated by the user - usually the blast furnace operator. Established ambient measurements of pellet quality, such as tumble index, compression strength, porosity, size distribution, and chemical composition, are no longer considered meaningful in predicting pellet performance in a blast furnace. New specifications, called low temperature and intermediate temperature properties, have been recently introduced. Low temperature specifications are characterized by disintegration of pellets in the 500°C (930°F) range in the upper portion of the granular zone during the hematite-to-magnetite transformation in blast furnace stack. Intermediate temperature properties (measured by 1000°C or 1800°F) are characterized by swelling, reducibility, and compression strength after reduction, reflecting conditions in the lower portion of the granular zone of the furnace. These new parameters are being used for pellet quality evaluation at Inland, and will be introduced at its Minorca mine for more routine analysis and correlation with the pellet furnace operation. With increased emphasis on quality, effective communication between the blast furnace operator, research, and the pellet plant operator is critical. At Inland, this is accomplished through technical meetings where the opportunity is provided to solve problems, establish a common understanding on the value of quality, and develop future quality standards and programs. With the degree of sophistication in determining pellet quality as it affects blast furnace operation, the future pellet plant operator will actually be producing a custom pellet. Human Resources Technological change has been a strong point at Inland, and will continue to be. However, human resource management is equally important. Is management giving sufficient attention to employee motivation and involvement? It is a way to improve productivity, reduce costs, and enhance employee job satisfaction. The industry is beginning to understand the principles and the potential for tapping employee brainpower. The payoff can be handsome. Management has to be willing to share both information and power if participative management is to live up to its potential. It has to become more flexible and be willing to adapt to change on the human side. Management should embrace rather than fear employee involvement. Given time, joint problem solving will replace adversarial attitudes and pay dividends for both sides. Productivity and product quality will improve and new dimensions of employee job satisfaction will be achieved. But, it will not happen overnight. Attitudinal change must permeate the organization from top to bottom. This change is needed to support the working relationships and give everyone a sense of direct and meaningful involvement.