Ural Vagon Zavod to Cut Operation Costs by 60m RUR

11 April 2016 (09:25)

UrBC, Yekaterinburg, April 11, 2016. Electromachine (a member enterprise of Ural Vagon Zavod Corporation based in Chelyabinsk) intends to cut costs related to purchase of goods, work, and services while remaining financially stable this year, the company press service reports.

‘Our goal is to spend the company’s funds carefully and in the most efficient way possible and go down on operation costs. We must reduce our outgoings and inexpedient spending on a daily basis,’ says the company Economics Director Tatiana Potlova.

This year, an ad hoc committee chaired by Technical Director Pavel Romanov was set up to devise a program for the enhancement of operating efficiency and cost-cutting. The committee is also in charge of coordinating the measures needed and of controlling their implementation.

‘The development of the program has been nearly completed by now. The expected result is a 3% reduction in operation costs compared with the year 2015 and 60m RUR in reduced spending at all the functional levels,’ the press service says.

The key goals are to use the plant’s production facilities in the optimal way, to improve the existing staff motivation system, to introduce modern technologies and rely on innovations, to save energy resources, to make repairs and maintenance as well as the use of fixed assets and working capital more efficient, to improve existing purchasing and supply chain policies, to introduce a better organizational structure, to cut down on poor quality produce, and to save money through relying on lean production principles.

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