MMK nearly doubles financial impact of efficiency proposals
In the first half of 2023, Magnitogorsk Iron and Steel Works (MMK) achieved savings of RUB 264.2 million through its implementation of efficiency proposals. This represented an 84% increase compared with the same period of the previous year and was only slightly less than the savings from efficiency proposals for all of 2022, which amounted to RUB 276 million.
The Company takes a systematic approach to its innovation and efficiency efforts. MMK holds annual conferences aimed at encouraging employees to conduct research and development work, where young engineers can present their projects and innovations. The Company’s business divisions hold quarterly competitions focused on finding the best solutions to problematic issues. The Company also holds annual competitions to identify its top young innovators and inventors, as well as its best efficiency proposals. Fresh Ideas, an annual campaign timed to coincide with Inventor and Innovator Day, also promotes innovative thinking among staff. This year, 549 ideas were submitted in response to the campaign.
In the first six months of 2023, MMK’s expert commissions reviewed 3,966 ideas (compared with 3,285 ideas in the same period of 2022). Some 3,083 ideas were approved for implementation (compared with 2,525 ideas in the first half of 2022), which represents 77.7% of all the ideas submitted (up from 76.9% last year). Some 2,284 efficiency proposals were implemented in the first half of 2023 (compared with 1,804 in the same period of 2022). These proposals have resulted in savings of RUB 264.2 million since the beginning of 2023 (up from RUB 143.9 million for the same period of 2022). The leading divisions in terms of the number of ideas submitted and approved for implementation were those headed by the superintendent of the rolling mill, the chief power engineer and the chief metallurgist. The leading divisions in terms of cost savings were the blast furnace shop and the coke and by-product plant.
Personnel are also becoming increasingly engaged in the Company’s efficiency efforts. In the first half of 2023, 9.7% of MMK employees took part in efficiency effort (compared with 8.1% for the same period of 2022). Since the beginning of 2023, 1,665 of the plant’s employees have been involved in innovation and efficiency activities, up from 1,380 staff members in the same period of 2022.
Innovation and the development of technical creativity among staff are two of the key aspects of MMK Group’s scientific and technical activities. The ideas put forward by MMK’s innovators and inventors have made it possible to use existing technologies more efficiently in today’s industrial environment.