The Ukrainian Metal

Russia: MMK increases efficiency of its innovative activity

At Magnitogorsk Iron and Steel Works (MMK), the total economic impact of the introduction of innovative proposals amounted to 269 million rubles in the first half of 2018.

In the first six months of the 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 concerned issues of labor 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 was 269.1 million rubles.

MMK’s management sees rationalization 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 the year nearly 800 people submitted ideas, of which around half submitted ideas more than once. In H1 around 10 million rubles worth of royalties were paid, on top of further 10 million rubles paid as remunerations for facilitating the introduction of rationalization proposals. The highest involvement of personnel (the percentage number of people who submitted ideas divided by the number of employees) in rationalization activities was seen in the power plants of the works, which led by 13%. The second place was occupied by the chief steelmaker departments.

In order to optimize rationalization, annual competitions for “The best young Innovator and Inventor of MMK” and “The best rationalization proposal of MMK” are held annually, and winners are awarded diplomas and monetary prizes. At the meetings the most promising ideas and rationalization proposals are highlighted, and the winners of the quarterly competitions for the best rationalization proposals designed to solve problematic issues are commended. The promo event “New Idea” was held on the Day of the Innovator and Inventor on June 29, and winners were presented with souvenirs with the images symbolizing “event”.

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 rationalization 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 rationalization activities of PJSC MMK, more convenient. (MMK/Ukrainian metal)

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