Steel companies need to adapt to the ever changing needs of their target market by extending services to every link of the industrial chain, according to Li Xiaoliang, head of the general office of Jinrun Intelligent Manufacturing Plant of Nanjing Iron and Steel Co., Ltd. (NISCO).

With the help of technologies like Internet of Things, cloud computing and big data, NISCO has been promoting smart manufacturing that integrates scale production and customized manufacturing, transforming traditional manufacturing into flexible and intelligent production that adapts to customized requirements.

In the 9,000-square-meter Jinrun plant, 18 computer numerical control machine tools are installed, needing only three workers to monitor operating screens and occasionally adjust technical parameters.

"As long as the client's drawings are inputted into the production program, the machine tools can produce [parts] automatically," said Teng Da, general manager of the plant, adding that the factory can process over 2,800 kinds of steel parts per year and more than 2,000 tonnes per month.

Not all drawings can be directly fed into the control programs however, so repeated communication and testing are needed. For clients who don't have production drawings or need irregularly shaped parts, technicians from NISCO can assist to scan the parts to generate 3D models, and create drawings based on these models. A sample is later produced, and revisions will be made if the sample does not meet the client's requirement.

It is not uncommon to cooperate with clients in designing, processing and developing products in the NISCO production system. The company established a specific service group to tackle technological barriers when it provided high intensity steel plates, for hydropower purposes, to Baihetan hydropower station.

Another example of meeting customer requirements is the development of nickel-alloy cryogenic steel. When challenged by the welding performance of nine percent nickel steel, NISCO set up a research institute to conduct in-depth studies on the welding process compatibility between steel plates and welding materials.

The institute specifically compiled a product manual for nine percent nickel steel and provides customers with extended personalized services, including beveling, roll forming, specialized packaging and transportation.

Besides product development, the other links of the production and sales process have also become more intelligent.

NISCO has created a smart operation center featuring on-time delivery and smooth connection between end users and producers, Ru Jintong, director of NISCO's digital application research institute, said. The center shares systems data of each link from procurement to delivery, by connecting upstream and downstream enterprises in real time.

Zhu Dinghua, head of NISCO's marketing department, said the company integrated the data from its CRM system, ERP system and e-commerce system. This was used to create personalized customer profiles for each client based on sales data, the client's ordering patterns and the constant change of the market and the industry, so as to deliver more targeted and effective service.

Through digital synergy, the total cost of ownership of the industrial chain dropped by nine percent and the delivery cycle by 15 percent, Ru said.