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24 August 2018

Gains from NLMK Kaluga's employee-initiated improvements exceed RUB 230 m

Over the first seven months of the year, 753 efficiency improvement initiatives have been adopted at NLMK Kaluga, a new generation EAF plant, part of NLMK Group's Long Products division. Economic gains from employee-initiated improvements exceeded RUB 230 m.

Initiatives are one of the tools of NLMK's Production System, rolled out at NLMK Kaluga since 2014. Each employee can come up with and submit a proposal aimed to optimize equipment operation, cut energy costs, improve quality, reduce production costs, or improve working conditions.

The mechanism is very popular among the plant employees, as this is the simplest way to present and implement ideas to improve operations, and receive rewards. At the end of each quarter, those employees who were actively involved in the improvement process get rewards.

For instance in Q2 2018, Viktor Ivakhniuk, an operator of the continuous casting machine, submitted as many as 14 initiatives, more initiatives than anybody else. One of the most significant was the initiative to reduce the width of the billet cut at a continuous casting machine.

"We reconfigured the equipment, determined the optimum height of the gas cutting machine's cutter and installed a smaller nozzle. This reduced the width of the cut, allowing to save more than
RUB 6 m and more than 200 tonnes of useful concast billets per year,” – says Viktor Ivakhnyuk from NLMK Kaluga's EAF shop.