MMK increases efficiency of its innovative activity
In the first six months of this year, 2,533 ideas were examined by expert committees. 1,857 ideas, or 73.3% of the submitted ideas (63.8% in H1 2017), were implemented. More than half (52%) of these ideas were concerned with questions of labour protection and industrial safety. 15% of ideas were devoted to savings on material and technological resources, 7% on energy efficiency, and 26% of ideas on other areas of the Company’s activity. The total economic impact of the introduction of innovative proposals in H1 2018 was RUB 269.1 mln.
MMK’s management sees rationalisation and innovation as a basis to facilitate the development of personnel and of competitive advantages for the enterprise. In 2018, the Company will continue its efforts to attract employees to the field of technological creativity. In the first half of this year, nearly 800 people submitted ideas, of which around half submitted ideas more than once. In H1 2018, around RUB 10 mln worth of royalties were paid, on top of a further RUB 10 mln paid as remunerations for facilitating the introduction of rationalisation proposals. The highest involvement of personnel (the percentage number of people who submitted ideas divided by the number of employees) in rationalisation activities was seen in the power plants of the works, which led by 13%. In second place were the chief steelmaker departments.
In order to optimise rationalisation, annual competitions for: ‘The best young Innovator and Inventor of MMK’ and ‘The best rationalisation proposal of MMK’ are held annually, and winners are awarded diplomas and monetary prizes. At the meetings, the most promising ideas and rationalisation proposals are highlighted, and the winners of the quarterly competitions for the best rationalisation proposals designed to solve problematic issues are commended. The promo event ‘New Idea’ was held on the Day of the Innovator and Inventor on 29 June 2018, and winners were presented with souvenirs with the images symbolizing ‘action’.
In order to encourage a high level of creative activity beyond the company’s walls, PJSC MMK holds an annual competition for the ‘Best Qualified work’ for students and university graduates (students, BA holders, specialists, MA holders and PHD students). The winners of the competition, besides the prizes and royalties, are highly recommended to the personnel department for employment at PJSC MMK.
Seminars for the exchange of experiences in the rationalisation sphere are regularly held, with the goal of achieving a cohesive team of innovators united by one idea: to solve production problems quickly and creatively. To simplify the submission of ideas instruments such as the ‘Evolution’ and ‘Energy management platform’ mobile applications are used. The mobile apps ensure that it is easy to submit and track ideas without needing to use a desktop computer. This works on the principle: ‘see an opportunity for improvement and submit an idea to fix it immediately’. The app is geared towards making group work between all specialists and external experts, who want to play a part in the rationalisation activities of PJSC MMK, more convenient.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.
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