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What are the major businesses of Doosan
Heavy Industries and Construction Co., Ltd.? |
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What are the production capacities
for major products? |
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Doosan Heavy Industries and Construction
Co., Ltd. is participating in the KEDO
project in North Korea, what are the areas
it is working on? |
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6 sigma activities at Doosan Heavy
Industries and Construction Co., Ltd.? |
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What is the business target for this
year? |
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What are the main business objectives
for this year? |
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What is the desalination facility?
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What are the major businesses of Doosan
Heavy Industries and Construction Co., Ltd.? |
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Since its establishment in 1962, Doosan Heavy
Industries and Construction Co., Ltd. has been developing
technologies for power generation facilities and various
industrial plant facilities. As for power generation facilities,
Doosan has a capability to construct a whole range of power
plants, from nuclear, thermal, hydroelectric, combined cycle,
and co-generation power plants to diesel power plants on
a turnkey basis. It is leading the technological independence
of Korea with the development of the Korean standard nuclear
power plant and the Korean standard thermal power plant.
Moreover, Doosan has opened a new era of nuclear power plant
technology export by exporting nuclear power facilities
to China and the U.S. Doosan will manufacture and supply
Korean standard nuclear reactors and turbine generators
for the KEDO project in North Korea. As for the industrial
facilities, Doosan is engaged in the desalination, cement
production, material handling, environmental protection,
steel making, and chemical engineering facilities businesses.
Especially worthy of note is the desalination business.
Doosan is the no. 1 desalination facilities manufacturer
in the world. Doosan is in the process of constructing desalination
facilities in Saudi Arabia and the United Arab Emirates
and it is promoting the business in Korea, where severe
water shortages are expected the in near future. In addition,
Doosan is engaged in the construction, casting, and forging
businesses. In recent years, it has been converging its
investments in the instrument & control business, which
is a highly profitable area of power generation and plant
businesses, and the service sector. |
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What are the production capacities
for major products? |
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The production capacities for
major products are as follows |
Classification
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Production
capacity |
NSSS |
1,500MW |
Turbine/Generator |
4,300MW |
Boiler |
4,000MW |
Heat Recovery Steam
Generator |
3,700MW |
Gas Turbine |
1,600MW |
Casting |
15,000Tons |
Forging |
75,000Tons |
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Doosan Heavy Industries and Construction
CO., LTD. is participating in the KEDO project in North
Korea, what are the areas it is working on? |
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Selected as a main equipment supplier for
the KEDO project, Doosan Heavy Industries and Construction
Co., Ltd. signed a contract with the main contractor, Korea
Electric Power Corporation in 1999. The equipment to be
manufactured and supplied by Doosan is the Nuclear Steam
Supply System (NSSS) including the reactor, steam generator,
pressurizer, reactor piping, and coolant pump and the Turbine
Generation System, including the turbine casing & rotor,
and generator. Doosan will manufacture the products according
to a separate agreement to be signed between the KEDO and
North Korea. Doosan will design and manufacture the equipment
at the Changwon Plant, using its own technology. Part of
the equipment will be manufactured in the U.S. and Japan
according to the principle of cost sharing and industry
participation agreed upon between the members of the KEDO.
The reactor to be supplied is a 1,000 MW class Korean standard
reactor, developed by Doosan based on the System 80 model
of ABB-CE Nuclear Power of the U.S, adapted to suit the
circumstances in Korea. It is a large cutting-edge piece
of equipment that takes 4 years to build, is 14 m long,
and has a diameter of 4m. It is the same model as the reactors
installed at the first Korean standard nuclear power plant,
Ulchin Nuclear Power Plant Units 3 & 4. Successful operation
of Ulchin Units 3 & 4 has proved the efficiency and
reliability of this reactor. |
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6 sigma activities at Doosan Heavy
Industries and Construction CO., LTD. |
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Doosan Heavy Industries and Construction
Co., Ltd. introduced the 6 Sigma Management in April 1997
and it is in operation throughout the company. The 6 Sigma
Management system has been grafted into the Management Action
Plan, and management innovation activities, and has taken
firm roots. Doosan is actively carrying out 6 sigma activities
with the target of achieving 4.3 sigma this year and 6 sigma
by 2004. "I am confident to say that Doosan has the
best infrastructor to carry out the 6 sigma management system.
We already have many specialists and we are providing training
for all employees." Doosan President Young-suk Yoon
boasts that it will be difficult to find a company, be it
a public corporation or a private company, that has a better
infrastructor for 6 sigma activities than Doosan
Doosan has a plan to produce 250 Black Belts in order to
promote 10% of its managers to Master Black Belts and Black
Belts by the end of this year. The rest of the employees
will participate in 6 sigma activities as Green Belt certificate
holders. "I know a lot about 6 sigma but I am going
to take regular 6 sigma training with GE executives this
fall," said President Yoon. Since last September, he
has pushed ahead with the MAP, a management innovation movement.
He said the MAP is a Korean version of 6 sigma and 6 sigma
is an English version of the MAP. Doosan officially adopted
6 sigma as an implementation tool of the MAP this year and
applied the 6 sigma technique for the first time as a public
corporation in Korea. "The 6 sigma management is a
scientific management method of problem solving by actively
using statistical methods. Process oriented thinking is
very important, but we have had a lot of trouble in making
it a habit." Since he took office last April, he started
quality management based on statistical thinking, and Doosan
is continuously carrying out 6 sigma training. He explained
the reason why Doosan is carrying out the 6 sigma management
so actively is that Doosan has to compete just like other
private companies and its product range is wide. "Public
corporations as well as government agencies and other companies
should adopt the 6 sigma management and make it a national
movement," said President Yoon. He emphasized that,
as Japan carried out national mentality change through TQC,
it is time for us to innovate our ways of thinking through
6 sigma. Excerpts from this article appeared in the Korea
Economic Daily on June 9, 2000 |
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What is the business target for this
year? |
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For this year, Doosan Heavy Industries and
Construction Co., Ltd. has set the business target for orders
at 4,322.5 billion won, sales at 2,650.9 billion won, ordinary
profit at 132.4 billion won, quality innovation at 4.3 sigma,
and productivity increase by 15%. Especially, Doosan is
focusing on overseas sales activities and is working to
obtain orders worth $ 190 million. This is 47% of the total
order target, 4,322.5 billion won. The business results
of the last 5 years are as follows. |
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Classification
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1996 |
1997 |
1998 |
1999 |
2000
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2001(target)
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Orders |
30,095 |
28,670 |
21,082 |
31,592 |
33,134 |
34,812 |
Sales |
28,022 |
30,070 |
23,700 |
22,108 |
24,091 |
25,527 |
Net profit
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1,507 |
453 |
768 |
265 |
Ordinary
profit:24.8 |
Ordinary
profit:1,156 |
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What are the main business objectives
for this year? |
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Doosan Heavy Industries and Construction
Co., Ltd. became the only power generation facilities manufacturer
in Korea through business restructuring last year. However,
Doosan's position in the power generation market is not
getting any easier. The domestic market is already open
to competition and the world market is being restructured
around the 3 biggest industry leaders, GE, Siemens, and
Alstom, through acquisition and merger. This means Doosan
can not survive without adapting to the market trend of
globalization. Therefore, Doosan is pushing ahead with privatization
as well as setting the year 2000 as the first year of becoming
a globally competitive company of the 21st century by setting
goals for each business. To achieve the vision of 2000,
"A globally competitive company of the 21st century
equipped with the highest quality and technology",
Doosan is making efforts in diverse areas. The focus is
placed on the reinforcement of core businesses including
power generation facilities, desalination plant, and engineering,
diversification of service and I&C businesses, and participation
in IPP and IWPP projects. A negotiation with until 2004
GE for the supply of components worth $1 billion is underway
and Doosan expects a long-term stable order. To increase
the competitiveness of major businesses, along with active
sales activities, Doosan has increased investment in production
facilities and technology development by 260% from the previous
year. In addition, the investment in R&D has been increased
by 51% to secure high value-added technology and to increase
product competitiveness. To achieve these goals, Doosan
is continuing the Management Action Plan, management innovation
activities that started in 1998. This year, Doosan is establishing
an information management system, which is to collect and
organize the company owned information and turn it into
a company asset. Doosan is carrying out quality innovation
activities with a view to achieve the 6 sigma level for
all areas by 2004. To increase the competitiveness of its
products, Doosan is working to reduce cost by 130.7 billion
won through the improvement of the cost structures of 10
strategic products. Doosan is also working on process innovation
and standardization for the effective and systematic implementation
of management strategies. Unlike other public corporations,
Doosan has strengthened its competitiveness through fierce
competition to win contracts and it had carried out business
restructuring. This year, Doosan is pushing ahead with privatization
more effectively to bring this to fruition as well as increasing
its international competitiveness through the implementation
of a quality first policy and the maximization of technology.
What is the result of last year's business restructuring?
Last year, the Korean government carried out restructuring
of seven leading industrial sectors to strengthen the international
competitiveness of Korean industries by removing overlapping
investments and fortifying core businesses. According to
the government's restructuring plan, Doosan negotiated with
Hyundai Heavy Industries and Samsung Heavy Industries on
power generation facilities and marine engine areas. As
a result of these negotiations, the power generation businesses
of the two companies were merged into Doosan and Doosan
became the only power generation facilities manufacturer
in Korea. For the marine engine business, an independent
engine corporation, HSD was established in alliance with
Samsung and Daewoo. |
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What is the desalination facility?
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The desalination facility is a plant to convert
seawater into portable and industrial water. Most of these
desalination plants have been constructed in the Middle
East, but it is expected that demands for this facility
will increase in Korea and South East Asian countries, where
water shortage is expected in the near future. There are
three desalination methods, MSF, MED, and RO. Of these,
the MED is used most often. With the MSF, seawater is heated
to produce steam, and the steam is condensed into water.
At this time, the condensed steam is reused to heat the
seawater that runs through the pipe, thus this method is
highly energy efficient. As this method operates in a vacuum
status, it has the advantage of producing more water in
less time. The Al-Shoaiba Desalination Plant in Saudi Arabia,
constructed by Doosan produces 100 million gallons a day.
Doosan is exporting these MSF desalination facilities on
a turnkey basis by carrying out the whole process from design
and construction to start up. At present, Doosan 's world
market share is about 25%. The projects HANUNG is working
on at the moment are the Al-Taweelah project in the United
Arab Emirates and the Ax-Zour project in Kuwait. |
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