NLMK production system

NLMK Production System is a business management approach based on a combination of processes and optimization tools which maximize the use of existing resources and eliminate losses.

BUILDING A CULTURE OF CONTINUOUS IMPROVEMENT

NLMK Production System is based on the following principles:

  • Balanced objectives
  • Systematic achievement of results through process improvement
  • Transparency and objectivity of information, continuous improvement
  • Engagement of personnel at all levels in joint problem solving
  • Leadership support

42

production stages with 11 efficiency improvement tools and enabling online monitoring of 280 technical and financial indicators


The key elements of NLMK Production System are lean tools, training systems, visual efficiency control and feedback loops. The core of the system are the Company’s employees: their attitude, behavior, perceptions and engagement in processes.

NLMK Group began developing its Production System in 2009, bringing together the best practices of leading global manufacturers such as Toyota and BMG, selecting tools suitable as solutions for specific applications and adapting them for NLMK Group’s environment, or developing in-house ones where necessary. The challenge then was to develop an integrated system of tools like those we know so well today, such as 6S, A3, the control charts and the initiative system.

The development and roll-out of the NLMK Production System have quickly gone from strength to strength. Strategic goals have been defined, a set of effective tools established and a system of optimization programs launched.

Today NLMK Production System covers every company within the Group and 42 production stages, providing 11 efficiency improvement tools and enabling online monitoring of 280 technical and financial indicators, of which 95% are within 10% of their targets.

During the scale up of NLMK Production System it became clear there are areas which require improvement and further development.

The main objective of the new stage is to change the approach to production management, engaging employees of all levels in the continuous improvement process by changing their way of thinking and their behavior.