Green manufacturing is an effective way of realizing the sustainable development strategy. From the view of evolution of production chain and goods value, energy-saving, cleaner production and green manufacturing of iron and steel industry is discussed and the importance of system optimization of steel manufacturing process is stressed. Connotation of green manufacturing for the iron and steel was explained, the function of steel production process for green manufacturing was discussed and the content system of implementation of green manufacturing for the iron and steel enterprise was established. Finally the steel production process was optimized. The function of iron and steel manufacturing procedure are broaden-manufacturing function of steel product, function of energy conversion and function of waste recycling, which will enhance enterprise’s competitiveness and sustainability.