Seyed Mehdi Naghavi, Mobarakeh Steel’s Vice President for Technology, in an interview with Pardazesh Monthly, referred to the plan, which will start this year in the form of a five-year trip and is expected to be presented in 1404 by Mobarakeh Steel with smart concepts worldwide. Naturally, points are defined for this issue, each of which is related to parts of the company. Currently, Mobarakeh Steel Company is at the zero level of intelligence, and during the years 1400 to 1404, we will have access to Mobarakeh Smart Steel One, Two, Three and Four.
In recent years, Mobarakeh Steel has been a leader in the implementation of special projects in the steel industry and has been able to play a major role in steel production by entering the implementation of projects such as Hot Rolling No. 2 and Digital Transformation Project. Specifically, what are the goals of the digital transformation plan in this industrial enterprise?
The project of digital transformation plan in Mobarakeh Steel is not comparable with other projects that have been done in this company in recent years. The main reason is that in other projects, production and quality improvement can be increased to a certain extent; But the Digital Transformation Plan, which is planned and implemented this year, is a comprehensive plan that ensures the company survives in the world class. Therefore, the digital transformation project should not be considered a normal project. It is important to note that a project such as Hot Rolling No. 2 is a very large project in terms of investment volume, but neither this project nor other similar projects will bring about the volume of change that the Digital Transformation Project will bring to Mobarakeh Steel. That is why this project is very important now for Mobarakeh Steel Company as a leading domestic manufacturer and exporter in the international arena.
For further explanation, a comparison can be made; As a first step to enter the domestic and international arenas in the field of steel, the country established the Mobarakeh Steel Company to provide the necessary conditions for this; So, Mobarakeh Steel was inaugurated. Now, the digital transformation plan is a plan that is necessary for the survival of Mobarakeh Steel Company as an effective and large steelmaker in the domestic and foreign arenas, and is being planned and implemented with the aim of keeping the company in line with current and future global changes.
How much will the implementation of this plan and the implementation of the fourth revolution project in Mobarakeh Steel affect production? Is this plan really necessary in the current situation as much as you mentioned its importance?
If we always assume the situation in the country in such a way that sanctions are in place and foreign companies are not allowed to enter it, and on the other hand, the level of needs of domestic consumers remains the same and no new and additional costs are incurred in the production process, and Finally, we produce coils and steel products in the country at any price we want and sell them to our domestic customers under any circumstances, we must definitely continue our current path. However, these assumptions are incorrect.
If we imagine that these are things that will be corrected in the future and new conditions will be created, we will definitely need to implement this plan. Especially now, given that the country’s political economy will not remain like this and Iran’s relations with other companies in the world may change at any moment and Mobarakeh Steel will be removed from the sanctions list, surely Mobarakeh Steel’s domestic customers may need the products they need. From other companies in the world and in such circumstances, competition will be a very meaningful issue. So in order to be in the competition, to move towards becoming more productive and to use new concepts and new conditions, it is certainly an undeniable necessity. For example; You know that at the same time as the Second Industrial Revolution, electricity was produced and the use of electricity became popular.
Suppose a company was built during the First Industrial Revolution and did not use electricity for its factory. When the Second Industrial Revolution came, could that company survive without following it? Mobarakeh Steel Company also has these conditions. This company and any other company, if it can not keep pace with digital developments in the next few years, will certainly not have a place among the main players in its industry.
Mobarakeh Steel is the largest steel producer in the Mena region and must maintain this position, both in terms of number and number of production, as well as in terms of quality and propulsion in this space, and observe and apply new processes, programs and new movements to Follow in the footsteps of the greats of this industry.
Will the level of production change with the implementation of this plan?
The goal of the digital transformation plan is not to increase production. During this process, we have no plans to increase and measure production at Mobarakeh Steel. Our goal is to be more productive; This means that the same amount of goods that are produced must be produced using new concepts, lower cost and more productivity. Can you imagine how much the customer costs would increase if a new Internet service like Snap was used in a telephone taxi? The cost does not seem to be rising, but if the agency does not move in the direction of this digital transformation, it will not be possible for it to continue, as telephone taxis are already booming. It is a matter of whether or not we are in a 100% competitive world steel market.
So you mean the productivity level is going up?
This will happen by applying the concepts of digital transformation; So that if these concepts are properly implemented and their projects are implemented, productivity will definitely increase. So we expect to increase the quality and reduce the cost. Of course, the World Economic Forum has defined and announced eleven indicators for the subject of digital transformation, and companies that implement digital transformation and implement its principles in their organizations will see a serious improvement in these indicators, and as a result, it is predicted between 6 Profitability will increase by up to 8%.
Will Mobarakeh Steel reach this level of profitability?
Our plan is to control these indicators along the path and guidelines that have been developed. Our plan is to monitor these indicators, and our goal is to measure productivity when we achieve these indicators, and based on that, we expect to increase our productivity.
How long will Mobarakeh Steel implement the digital transformation plan?
Negotiations have been held with the relevant officials of the Ministry of Industry, Mines and Trade, and it has been decided that this work will be implemented as a pilot in Mobarakeh Steel. The fact is that this is an unknown thing in the Iranian steel industry, and especially in the field of heavy industry such as steel, has its own considerations; Therefore, it is decided that Mobarakeh Steel will implement this work as the main study and operational center of the fourth generation economy, and the results and experiences will be used for other industries and other steel producers in the country. This issue is considered as the first topic and based on it, measures have been taken and systems have been provided as basic prerequisites to use all our resources using the experiences of companies such as Imidro to guide the digital transformation plan in Mobarakeh Steel. This roadmap is a five-year journey that begins this year and is expected to be presented to the world in 1404 by Mobarakeh Steel with intelligent concepts. Naturally, points are defined for this issue, each of which is related to parts of the company. At present, Mobarakeh Steel Company is at the zero level of intelligence, and during the years 1400 to 1404, we will have access to Mobarakeh Intelligent Steel One, Two, Three and Four.
How will the position of Mobarakeh Steel at that time, ie Horizon 1404, differ from the current situation, and what step will it take in the world?
In this context, survival or non-survival should be considered. Today, we can still be a steelmaker who can produce steel with old concepts and using the concepts of the third generation, ie without a computer, but this is possible with great difficulty and cost, and the production volume will be very small. We can compare the second generation and third generation economies. In the second-generation economy, only electricity was the basis of production, and its motors were based on the propulsion and actuators of electricity, but the steelmaker, which uses the third generation in its production, was able to use the features of controllers and automatic conditions. Quality and quantity in the third generation are much higher than production with the second generation model. Of course, this is not to say that there will be no second generation, but over time, and given that both in terms of quality and cost, steelmaking in the previous generation of the economy can not compete with the next generation and will naturally be doomed. Was. Mobarakeh Steel, if it can not keep pace with changes in its external environment, is doomed in the future, and this is a natural principle that is considered in all concepts related to industry and man, and even during the growth of an industrial complex. If we can not move with change, we are doomed.
What is the role of knowledge-based companies and start-ups in this project?
Knowledge-based companies and start-ups in the Mobarakeh Steel Project have a much more open place to work than in other parts of the world. The reason for my claim is that we should pay attention to the fact that Iran is a sanction and does not have easy access to the external spaces and the acquired knowledge and experiences outside of Iran. Naturally, in this situation, using the collective wisdom that will be created in knowledge-based companies, startups and innovators, we will move towards digital transformation and the industrial revolution, and in this way, based on the studies done and the knowledge we have gained, we know that Most of these events cannot be implemented in Mobarakeh Steel itself. So in this way, with the calls made and the announcements that we send to all Iranian companies, elites and elites, we ask them to be with us; Especially since this way is not fully known to us and using collective wisdom in this way and applying the creative ideas of elite people and knowledge-based companies can be a way and create new concepts for us.
While in this area, it should be noted that the concepts used in digital transformation are very diverse and wide, and there are many empowerments in this project; So surely the internal resources of Mobarakeh Steel have identified and are aware of a number of these enablers. The rest of the tools are available to knowledge-based companies and startup groups, and with the programs we have, we will definitely use the resources that have been created in this field in the country and we will continue our way more smoothly. It seems that in October, the first webinar and event related to the topic of smartening project was held at the University of Tehran, and it was attended by almost 400 knowledge-based companies from all over the country. By the end of the year, another webinar will be held to raise other issues and use the wisdom of others.