MMK Proves Labor Productivity Leader

15 November 2016 (15:17)

UrBC, Magnitogorsk, Chelyabinsk Region, November 15, 2016. Magnitogorsk Iron & Steel Works (MMK) came 4th in the All-Russian Labor Productivity & Russia’s Industrial Leaders 2016 Prize Top80 rating for metallurgical enterprises. This is currently the best result among all of the country’s large-size integrated metallurgical plants. MMK also came 41st in the rating of Russia’s Industrial Leaders 2016 Top100 rating, with labor productivity at 15.63m RUR per worker a year in 2015, the company’s press service reports. This productivity figures exceeded those for a year earlier by 18%.

‘MMK Group paid special attention to improvements in business processes last year, which resulted in production costs dropping by $135m and prime cost dropping by nearly 3%. We focused on lean production principles in particular, as well as on encouragement of improvement proposals and invention applications from our employees. In fact, the plant saved some 470m RUR as a result of introducing a number of last year’s improvement proposals alone (this was 87% better than in 2014). What is more, our Board of Directors adopted MMK Group’s long-term development strategy for 2017-2025. In the next decade, MMK intends to concentrate on customer service and improving its business processes,’ says MMK Chair of the BOD Viktor Rashnikov.

This labor productivity prize is the annual event that has been held for the second time this year. The prize was set up by Production Management Portal’s Industrial Research Center to identify the country’s labor productivity leaders, both within federal constituencies and within key industries. Data of over 5,000 companies (total workforce: 5.6m people) are featured in the center’s research all in all, with their consolidated revenues making up 55% of the country’s GDP.

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