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11 September 2015

NLMK Group companies recognized leaders in labour productivity in their regions

NLMK Group companies recognized leaders in labour productivity in their regions


To compile the rating, the Russian Productivity Center analyzed data from 5,000 industrial companies with a total revenue in excess of 55% of Russia’s GDP; and a total of 5.5 million employees.



NLMK Group companies recorded the best results in their respective regions:



NLMK Kaluga (Kaluga Region): labour productivity – 12.64 million rubles per employee per year;


Novolipetsk (Lipetsk Region): labour productivity – 9.15 million rubles per employee per;


Altai-Koks (Altai Territory): labour productivity – 7.83 million rubles per employee per.


Productivity accomplishments are the result of the implementation of the NLMK Production System that includes a set of work tools; a system for setting and cascading targets; a motivational system; and a unique database that forms the basis for NLMK’s operational efficiency programmes.



In 2014, gains from operational efficiency programmes at Novolipetsk alone totalled around 7 billion rubles. The Group as a whole achieved in excess of 11.5 billion rubles.



About NLMK Production System



Work on the creation of NLMK’s Production System began in 2009 with analysis of other production systems that were successfully functioning around the world at the time, including Toyota’s Lean Manufacturing, Motorola’s Six Sigma, and others.



Using the selected systems and own insights as a basis, the NLMK Production System was established to include a set of work tools; a system for setting and cascading targets; a motivational system; and a unique database that forms the basis for NLMK’s operational efficiency programmes.



NLMK Production System is universal. It enables full use of production reserves, production process improvements; and minimizes losses across the process chain, from mining to delivering finished products to clients; thus ensuring additional profit.



NLMK Production System covers not only the key operations; but also the company’s functional areas, such as logistics, energy efficiency, occupational health and safety, etc.



In 2014, over 400 employees undertook training in Lean Manufacturing, including with the participation of experts from Toyota Engineering Corporation.



NLMK Production System currently covers the Group’s key companies: Novolipetsk, VIZ-Steel, Stoilensky, Altai-Koks, NSMMZ, and NLMK Kaluga. The Group’s international companies, and particularly NLMK Pennsylvania (USA) are taking an active part in implementing new approaches. Further expansion of the principles and tools of NLMK Production System in key processes at NLMK Group companies worldwide is planned for 2015.