The NLMK production system was audited to Toyota. Management system of large industrial enterprises on the example of NLMK OJSC - Coursework Production System NLMK

Introduction

1 Theoretical Aspects of Large Management industrial enterprises

1.1 Organization Management System

1.2 Organizational structure Firms

1.3 Mother's company as an organizational and economic management center

2 Characteristics of the management of OJSC NLMK

2.1 Organizational and economic characteristics of OJSC NLMK

2.2 Management Structure of OJSC NLMK

2.3 Structure of the NLMK Company Group

3 Organization of management in American, Western European and Japanese firms

Conclusion

List of sources used

Introduction

Organization Management is the implementation of interrelated actions of a certain type on the formation and use of organization resources to solve tasks facing it. Management is not equivalent to all the activities of the Organization to achieve the end goals, but includes only those functions and actions that are related to the formulation of tasks, with coordination and establishing interaction within the organization, with the prompting of workers to implement the necessary production and other activities.

The content and a set of actions and functions carried out in the management process depend on the type of organization (business, administrative, public, educational, army, etc.), its size, activity (production of goods, service provision), level in the management hierarchy (Higher manual, mid-level management, lower control), functional process inside the organization (production, marketing, personnel, finance) and many other other factors. However, for all these processes, management is characterized by the presence in general homogeneous activities.

The relevance of the topic of the course work is that the organizational mechanism of management of the company has many components, but must submit a unified system in which the functioning of individual elements is interdependent and interdependent. Especially many problems in the field of management are currently available in Russia due to the characteristics of the current state of its transition economy.

Organizational management presents a system of management actions, techniques and procedures aimed at implementing the organization's function, as well as on the theory and practice of management based on the priority of corporate principles and solving organizational problems. It includes: design, creation and improvement of organizational structures, clear distinction of functions, distribution of organizational tasks, duties, rights and responsibilities of structural units and individual performers, establishing relationships between them, strict compliance with the established rules of organizational behavior, adoption management solutions.

The goal of the course work is to consider the management system of large industrial enterprises.

To achieve the goal, the following tasks were allocated and solved:

consideration of the organization management system;

study of the organizational structure of enterprise management;

consideration of the parent company as an organizational and economic management center;

implementation of the analysis and study of the organization of enterprise management on a specific example.

The subject of the study of the course work is to consider the enterprise management system. The object is OJSC NLMK.

The information basis for writing a course work was the work of domestic authors on the subject under study.

1 Theoretical Aspects of Management of Large Industrial Enterprises

1.1 Organization Management System

The organization's management is a continuous process of influence on the performance of an employee, a group or organization as a whole for the best results from the standpoint of achieving the goal. "To manage - it means to conduct an enterprise to its goal, removing the maximum possibilities of all resources available at its disposal," the management process of the city of Fayol has described.

The management process provides concerted actions that provide ultimately implementing a common goal or a set of objectives facing the organization. To coordinate actions, there must be a special body that implements the control function. Therefore, the control and managed part is allocated in any organization. The interaction diagram between them is shown in Figure 1.

A - management information, b - performance information.

Figure 1 - Interaction of the management and managed part of the business organization

The control part includes the Directorate, managers and information units that ensure the work of the guideline. This part of the organization is customary to be called an administrative and administrative apparatus. Input and end product of the control part is information. The controlling link is the necessary element of any organization.

At this level, management decisions are made as a result of analyzing, forecasting, optimization, economic rationale and choosing an alternative from a variety of options for achieving the goal. The management decision is made to overcome the problem that has arisen, which represents nothing more than a real contradiction requiring its permission.

Note that the management decision is the result of collective creative labor. It is always generated. Even when the head independently decides, the collective intelligence in explicit or implicit form affects the process of developing an individual managerial solution.

The managed part is various production and functional units engaged in ensuring the production process. What enters the controlled part input, and what is its output depends on the type of organization. For example, if we are talking about a business organization that carries out financial management, let's say about the bank, then cash or their substitutes (securities, bills, stocks, etc.) arrive at its entrance. The output is information on managing financial flows and cash. In many cases, the Bank carries out cash payment.

To coordinate the action of the managed part, it is necessary to use the scientific management system, justified by F. Taylor in his book "The Principles of Scientific Management", published in 1911. F. Taylor first separated the labor planning process from the labor itself, aliating, thus one of the main managerial functions. The main provisions of the Taylor scientific department system are formulated as follows:

the creation of a scientific foundation replacing traditional, practically current working methods;

selection and training of employees based on scientific criteria;

interaction between the administration and the performers in order to the practical implementation of the scientifically developed system of labor organization;

uniform distribution of labor and responsibility between administration and performers.

Later G. Emerson formulated 12 principles of labor productivity relating to the organization's management link, identifying a true mission and the appointment of management work:

distinct goals;

common sense;

competent consultation;

discipline;

fair attitude towards staff;

fast, reliable, complete, accurate, constant accounting;

dispatch;

normalization of operations;

effective planning;

normalization of working conditions;

standard written instructions;

remuneration for performance.

The most clearly of the organization's management tasks was formulated by G. Fayal, student and follower F. Taylor and one of the founders of the scientific theory of management. He allocated 6 areas of the enterprise's activities that need to be managed: technical, commercial, financial, accounting, administrative and protective. In his opinion, the most characteristic tasks of the management link are:

planning of the general direction and foresight of the final result;

"Organization", i.e. distribution and management of material and human resources;

issuing orders to maintain the actions of workers in optimal mode,

coordination of various actions to achieve common goals;

development of the norms of the behavior of members of the organization and carrying out measures to comply with these norms;

control over the behavior of members of the organization.

File formulated the characteristic features of the management process at the beginning of the twentieth century. Since then, significant changes have occurred in the activities of organizations. Their structure complicated, the scientific and technical revolution in the field of natural sciences led to the emergence of new complex technologies, the rapid introduction of computing equipment in various areas of human activity significantly affected the technology of making management decisions and on the procedure that is called "control over the execution of the decision". Financial management technology has changed. Recently, many transformations in this area are associated with the introduction of electronic settlement systems and electronic money substitutes.

Thus, the management system of the organization includes a combination of all organizations of the organization, communications between them and processes.

1.2 Organizational Firm Structure

The organizational structure of the firm is aimed primarily on the establishment of clear relationships between individual divisions of the company, the distribution of rights and responsibility between them. It implements various requirements for improving the management system that are expressing in certain principles of management. Organizational management structures of industrial firms are distinguished by a large variety and are determined by many objective factors and conditions. These can be attributed, in particular, the size of the production activities of the company (large, medium, small); Production profile of the company (specialization on the production of one type of product or wide range of products of various industries); the nature of the manufactured products and the technology of its production (products of mining or manufacturing industries, mass or mass production); Firm's activities (local, national or foreign market orientation); The scale of overseas activities and the form of its implementation (the presence of subsidiaries abroad: production, sales, etc.); The nature of the association of the company (concern, financial group).

The organizational structure of the company and its management is not something frozen, they are constantly changing, improved in accordance with changing conditions.

The organizational structure of the firm determines its composition and the system of submission in the general hierarchy of the management of the firm.

Firms B. foreign countriesah can consist of one company, and may include a significant number of companies, the combined so-called participation system, i.e. By participating in the share capital of other firms. The essence of the participation system is that in order to control the joint-stock company, it is enough to own a certain share of its shares. From here different types Control:

Through full property, when all or almost all of the company's shares belong to one person, a group of individuals or one firm;

Through the majority of shares involving ownership of 51% of the issued shares;

Through the mechanism of coented, when the possession of a majority of a company of one company, in turn, which owns the test package of another company, entails and control over this company;

Through a minority of shares when the shares of the company are sprayed, and it is enough to have a small percentage of them in order to have control over the firm.

According to the estimates of UN experts, over 60% of foreign branches and subsidiaries belonging to American, English and Japanese firms are their full property and more than 30% are controlled companies with predominant shares. For other estimates of 80% of related companies, American firms and 75% of English are either fully owned by maternal companies, or they are monitored by ownership of the most part of the shares. In turn, 58% of direct investment of Western European TNCs in the United States falls on the subsidiaries that are fully owned by them and 34% on companies where they own more than 50% of the shares. At the same time, it should be noted that in recent years, the expansion of TNK ownership framework, in particular American and Japanese, was largely due to the acquisition of shares in mixed possession companies, especially in developing countries.

It is important to keep in mind that by itself the fact of the participation of one company in the share capital of the other does not always indicate the availability of control and subordination relationship. Control over another company is provided only by the ownership of the controlling stake. In the practical activity of joint-stock companies, a certain minimum of a controlling stake in shares is established, which, in connection with the spray of shares between the mass of small and medium-sized shareholders, decreased significantly. Usually, 10% of its shares are enough to control the large industrial corporation, and sometimes even less shares.

However, the concept of control is not simple and is not exhausted by the concentration of shares in the hands of one or several companies. Control the activity of the company is to identify its strategy, policies, the choice of long-term goals and programs, to have a decisive influence or power.

Methods and the degree of control depends on the set of many factors, among which the forms of connections and dependencies from the parent company and connections with other related companies are important. It is characteristic that management control on the part of the maternal company for the activities of related firms is largely under the establishment of production, financial, technological, scientific and technical, economic, and other types of ties.

The presence of control over a company is usually judged on the basis of a combination of various signs, including financial, personal and other ties. Using the participation system, the largest firms have formed the most complicated complexes related to industrial, financial, trade and other companies. However, not only for large, but also for small and medium-sized companies, participation in the share capital of another enterprise remains the most convenient way to attract other people to establish control of a stronger company over weaker.

An important role in modern conditions is played by holding companies, i.e. Der-calamity companies created with the purpose of ownership of the control packets of securities, mainly industrial firms. Controlling an industrial company that has participation in a number of other firms and credit and financial institutions, you can fully or partially monitor the entire chain of these companies.

The participation system is usually bonded by personal, or personal, unia. Personal significance manifests itself in the fact that the same persons occupy senior posts (chairmen and members of the Board, directors and managers) in various companies and banks. Personal significance was extremely widespread. It serves as one of the main methods of expanding the sphere of influence of large companies. Often it is used not only as a supplement to the participation system, but also as an independent means of establishing control over other firms. Personal significance also acts as one of the main ways of increasingly active splicing of banking capital with industrial.

The firm controlling the activities of other companies is usually called the parent company or the parent company. Depending on the size of the capital belonging to the parent company, as well as the legal status and the degree of submission of the company in the field of the influence of the parent company, can be divided into the following types of: branches (Branch); affiliated companies (subsidiary); Associated companies (Associated Company - in England, Affiliated Company - in the USA).

The branch does not use legal and economic independence. It does not have its own balance, the charter, acts on behalf of the name and on behalf of the parent company, is usually the same name with it. The decision of the affiliates of the branch depends on the head firm. Almost all of the share capital of the branch belongs to the maternal company.

Subsidiaries are legally independent. Conclusion of transactions and all documentation of subsidiaries (drawing up balances) are conducted separately from the maternal company. They have a sufficient financial base and property necessary to implement independent economic activities. Subsidiaries are carried out separately with the head company of the Board meeting and general meetings of shareholders. Maternal society is not responsible for the obligations of its subsidiaries. At the same time, the parent company carries out strict control over the activities of subsidiaries belonging to it, which provides the ownership of a controlling stake. This control consists not only in the observation and coordination of economic activities, but also in determining the composition of the Board, the appointment of directors, which in turn are obliged to take instructions from the controlling firm and report to it.

Subsidiaries can own shares of other companies - grandchildren in relation to the parent company. The grandchildren in turn can also own shares of other firms, etc.

The associated company is legally and exercising independently and is not under the control of the company owning its shares.

Using the participation system, the largest firms create the most complicated multistage complexes related to companies.

Joint firms (enterprises) in the practice of foreign countries are referred to in the company with the participation of one or more foreign partners - investors. In developed countries, as a rule, there are no special legal norms governing the creation and operation of joint firms (enterprises). These issues are governed by the norms of national legislation applicable to all registered companies, or laws on foreign investment. In addition, in individual countries, they are subject to regulation within the framework of antitrust legislation or laws on the protection of competition.

In international practice, a joint firm in the broadest sense is understood as a firm whose participants carry out coordinated activities aimed at achieving a common goal or a specific end result. The creation of a joint firm is always based on the contract (written or oral), which are determined by the rights and obligations of partners in relation to each other and before third parties.

The main sign of a joint firm (enterprise) is the property to the final product. This feature is distinguished by a joint firm from other types of joint venture activities. This feature is based on and determines the procedure for calculating partners.

The activities of joint companies are carried out in a variety of legal forms, depending on the objectives of the activities, the size of the authorized capital, the number of founders.

1.3 Mother's company as an organizational and economic management center

Strengthening the processes of concentration and centralization of production and capital on a national and international basis, which is happening under the influence of an objective trend towards the internationalization of economic life and the Scientific and Technical Revolution, leads to an increase in international production and economic complexes - TNK, which have huge financial, industrial and scientific and technical resources and the widest overseas production and sales base. They are characterized by a complex system of internal connections and interdependencies between individual divisions of

lines of manufacturing, financial, scientific and technical, technological, sales and other types of relations subordinate to single intrafigress planning.

The organization of intra-profit management is a constantly developing process, which corresponds to changes occurring in the material production of TNCs, which entail the bonds between its individual units. This is accompanied, in particular, changes in the organizational structure, development and deepening of management functions, improving the entire mechanism of functioning and development of TNC. At the same time, new, more complex organizational forms appear for a more complete implementation of the most important management functions and designed to contribute to the establishment of such an interaction between the TNC divisions that would ensure the tasks facing it.

The leading role in determining the forms and the nature of the relationship between individual divisions of TNC is owned by the parent company and depends on the species and characteristics of its activities as an organizational and economic center of management.

The parent company carries out a purposeful, continuous, organizing impact on all divisions of the international structure of the company, which are related, subordinates (branches, subsidiaries, grandchildren) and associates, combined with the parent company title and the control mechanism.

As the organizational and economic center of the Office, the Maternal company develops specific goals and general areas of functioning and development of the company as a whole and its structural units; determines the means, forms and methods that ensure the achievement of these purposes; monitors the execution of its installations and makes adjustments to them; Controls the financial activities of all divisions. Therefore, the main purpose of the management activity of the parent company is to ensure consistency, relationships and interaction between the various structural units constituting the part of TNK as a whole. This is achieved by the application of such important management functions, such as marketing, planning, control, management, organization that contribute to the maintenance of sustainable functional relationships between all units of TNK. The mentioned functions are carried out by a special apparatus of the management of the parent company, the structure and functions of which depend on the nature and features of the company as a whole.

The objective economic basis for the parent company is the role of the Organizational and Economic Center for Management TNK, is its property to the means of production.

Socio-economic relations, which add up inside TNK, are primarily associated with the type of ownership of private nature, with the order and possession of material values \u200b\u200bfrom the parent company, serving a single management center and disposal of this property. It is the property that binds all economic or production relations within the framework of TNC into a single whole. It performs in the form of the share capital of the parent company and its participation in the share capital of subsidiaries.

The parent company, serving the Organizational and Economic Center for the Management of TNK, invests capital into subordinate companies by purchasing packets of their shares. Having a test package of shares ensures the parent company the right to control the activities of the subordinate company. Methods and degree of control may be different and depend on the totality of many factors, among which the form of links and dependencies of related companies from the maternal is important.

Management control by the maternal company for the activities of related firms is largely in scientific and technical, industrial, technological and other lines. The means and methods of centralized management of TNC activities are largely dependent on the form of the organization of the parent company, which acts as an operational production or holding. These forms of its organization have fundamental differences.

The Maternal Operational Production Company is engaged in economic activities and, in this case, centralized management covers all parties to the production process since the development of new products and ending with its implementation. Thus, in the manufacturing company the management facility is the production of material values \u200b\u200band everything connected with it. At the same time, financial activity serves as a means of management and control. Management methods used by the parent manufacturing company cover all parties to the economic activities of the TNC subsidiaries.

The parental holding company is not engaged in manufacturing activities, but only concentrates control packets of shares of manufacturing companies that have legal and economic independence, but are subordinate to the holding financially. It operates in the framework of TNCs mainly by financial impact methods, establishing the main financial indicators for each related company: the amount of profit, production costs, the size and methods of translation dividends, the transaction methods of profits. Along with financial leverage, other means are used. The centralized management tool can serve, for example, technical policy, i.e. Focusing scientific research and technical developments in the Unified Center of the Head Company and the targeted provision of its results to subsidiaries. Often, the distribution between subsidiaries of the products of the products produced is used as such tools, the section between the markets of sales markets.

The creation of maternal companies in the form of holding is largely due to the fact that many of these companies have formed by merging two or several large firms, and the form of the holding provides greater economic independence in this case and at the same time makes it possible to carry out financial activities control.

The form of the organization of the parent company imposes an imprint on the intra-ammable management structure, especially if it is decentralized. In those TNK, where the parent company acts as an operational production, industrial offices are usually created in the form of subsidiaries. They are endowed not only economic, but also legal independence and more free to identify strategic plans for their development. This is most characteristic of American oil companies, where production activities are carried out by subsidiaries specialized in the production of certain products (oil, gas, chemical goods) or by the regional principle. In those firms where the parent company is a purely holding, operational and holding companies can be created for managing the activities of manufacturing subsidiaries, the appointment of the shares of the production firms of a certain region or industry, coordinating their economic activities, financing, the provision of consulting and technical services.

The formation of multistage holdings is characteristic of companies of Western European countries.

The role of a maternal company as an organizational and economic center of management depends largely on whether it is on the ownership of capital one-nosed or multinational. In one-demonstric TNC, the organizational and economic center of the Office is the parent company, national capital and control. This means belonging to the controlling stake in the parent company to entrepreneurs of the country of basing, i.e. Countries of registration of the maternal company. Belonging to a certain part of the shares by entrepreneurs of other countries in principle does not change, since the parent company does not divide control with them.

A feature of multinational TNC is the belonging of the controlling package or the entire share capital of the parent company of the entrepreneurs of two or several countries.

The specific organizational structure of multinational TNK depends on the form of their education. In cases where the shape of the union is the exchange of shares between the two multi-national firms that preserve their legal and economic independence, two parent companies remain at the head of TNC, each of which is registered in their country and is subject to its legislation. The organizational and economic center of such a company is a specially established collaborative management body, which is formed by appointing administrators on each Party and sharing the shares of controlled companies in the prescribed ratio. Such a body carries out centralized operational management mainly by financial control methods and makes the distribution of profits between the controlled firms of both maternal companies. It also acts as a focal point for coordinating and developing general policies and operational management throughout the company. These forms of the organization are often intertwined, as well as complemented by various kinds of agreements: on the distribution of total profits, the section of the markets of the sales or field of activity, on the exchange of patents, trademarks, technical knowledge and experience, financial and scientific and technical cooperation.

When the full fusion of the capital of two multi-national companies occurs, one joint parent company registered in the country of one of the founders is formed. In this case, the shares are distributed between them on the parity principle, and the organizational and economic center of the Office is the parent company itself.

Each of the multinational TNC, headed by two parent companies, has its own characteristics that are primarily manifested in the nature and methods of forming a single property, as well as in management methods.

Each subsidiary, located in the country's country's content or abroad, should receive approval for any important event that she wants to hold within the framework of the overall strategy of the concern. Financial control is carried out by observing production costs and profit level of each subsidiary. However, the responsibility for making a profit is also imposed on managing groups - commodity and regional, which carry out control over all companies of the Group. The profits received by subsidiaries are redistributed by the parent companies on the basis of the agreement between them, which provides for the payment of these companies equal dividends to shareholders.

The presence of two holding companies, each of which is registered in their own country makes it possible to maintain operational independence, to have the Board of Directors who report to the shareholders of their country, and at the same time effectively use differences in national legislation in different countries, in particular, on tax issues, export of capital and redistribution of profits.

In each TNC, where the result of the association was the creation of a multinational on capital of the parent company, the organizational and economic center of the Office, there are specific features in organizing management and control.

Subsidiaries are practically autonomous in solving the most important issues of production activities, in particular, the specialization of production, renewing the range of products, hiring labor. Control over their activities is carried out by the parental holding company methods of financial influence aimed at obtaining outlined profits.

2 Characteristics of the management of OJSC NLMK

2.1 Organizational and economic characteristics of OJSC NLMK

Novolipetsky Metallurgical Combine "One of the largest metallurgical plants of the world, the third largest manufacturer of steel in Russia. The company specializes in the production of steel and sheet rolled products.

Open Joint-Stock Company Novolipetsky Metallurgical Combine is registered by the decision of the head of the Administration of the Left Bank district of Lipetsk on January 28, 1993 No. 50 (certificate of state registration No. 5 g of January 28, 1993).

OJSC NLMK is a commercial organization, authorized capital which is divided into a certain number of shares certifying the obligatory rights of shareholders in relation to the joint-stock company and the Company in relation to shareholders.

The society is established for an unlimited period of activity. OJSC NLMK can be liquidated in accordance with the provisions of the Charter of NLMK OJSC or the current legislation.

Location. OJSC NLMK is located in the center of the European part of Russia, in the city of Lipetsk, near the largest iron ore basin of Europe - Kursk magnetic anomaly (KMA), as well as in close proximity to the main regions of steel consumption. The plant is located in the region with the most developed transport network in Russia and has a strategically advantageous location for consumers.

Legal address of OJSC NLMK: Russian Federation, 398040, Lipetsk, pl. Metallurgists, 2.

The authorized capital of the Company is 5,993,227,000 rubles, it is divided into 5,700,916 ordinary shares with a nominal value of 1000 rubles and at 292,311 preferred shares of type B nominal value of 1000 rubles.

The number of shareholders registered in the registry is 22,347, including 49 legal entities. Large shareholders owning more than 5% of the Company's voting shares:

CJSC "Credit Swiss Ferst Boston Sejurniz", Moscow;

AKB "INTERNATIONAL FINANCIAL COMPANY", MOSCOW;

CJSC Eastern Investment Company, Moscow;

LLC Rosinterbiznes, Moscow;

CASSET CJSC, Moscow;

AGRISTALL LLC, Moscow;

LINCHER LLC, Moscow.

OJSC NLMK is an enterprise of a full metallurgical cycle. The composition of production facilities includes: agglomeration, coke-chemical production, domain production, steel-smelting, production of hot rolled and cold rolled rolled products, rolled with zinc and polymer coatings.

The mission of NLMK OJSC is to be the main supplier of high-quality products for consumers and a leader in profitability in the world steel industry.

The main purpose of the activity is to receive profits. The strategic goals of OJSC NLMK are:

Preservation and strengthening of the leading positions on profitability among steel companies;

Maintaining and strengthening the leading position in our main markets, as well as the further development of the spectrum of products with high added value;

The use of the main competitive advantage of the company concluded in low-cost steel production, by increasing and upgrading existing capacities;

Search for opportunities for the development of the company due to the further implementation of the strategy of vertical integration in the commodity segment and in the segment of high-quality steel rolling assets;

Maintenance and further development of high standards of corporate governance, social responsibility and protection ambient.

Production of OJSC NLMK is aimed at meeting demand in various fields of consumption of ferrous metals. This determines a wide range of products to produce NLMK. The main rate of the Novolipetsk Combine makes it possible to improve product quality, improving consumer properties and expanding the range of products.

Currently, the products manufactured by the Novolipetsk Combine includes: anterior cast iron, slabs, hot rolled and cold rolled rolled products, galvanized rolled steel and steel with polymer coatings, hire for enameling, electrical steel and other products. Sheet rental is made of low carbon, carbon and low-alloy stamps of steels of various chemical composition, strength groups and categories of stamps.

The production of metal products is carried out in accordance with the main domestic and foreign national standards: ASTM, EN, DIN, JIS, BS, API, SAE. The share of products produced by foreign standards exceeds 70%.

The quality of NLMK products is confirmed by certificates of Russian and foreign certification organizations.

The main activities of the company is:

    production and sale of ferrous metallurgy products;

    internal and foreign trade;

    disposal, storage, travel, placement, disposal, destruction of industrial and other waste;

    production, housing and communal construction;

    production of building materials, structures and products and MN. Other.

Currently, NLMK is a highly efficient company with a balanced development strategy.

In addition to expanding its own production base, the company's strategy provides for strengthening positions in key sales markets by purchasing high-quality rolling capacity on them.

The NLMK group produces a wide range of high-quality products. The parent company group, being an enterprise with a full metallurgical cycle, produces cast iron, slabs, hot-rolled and cold rolled rolled rental in sheets and rolls, galvanized rental and steel with polymer coatings, as well as electrical rental.

2.2 Management Structure of OJSC NLMK

The fundamental principles and procedures of corporate governance are formulated in the Corporate Governance Code of NLMK. The Code complies with the basic principles recommended by the Organization of Economic Cooperation and Development (Corporate Governance Principles, 1999), and the provisions of the Corporate Conduct Code approved by Russian regulatory authorities.

In accordance with the Corporate Governance Code, the basic principles in this field are:

1. The desire to implement effective and transparent mechanisms to ensure the rights and interests of shareholders;

2. equal to all shareholders;

3. The desire to ensure the implementation of the rights of shareholders to participate in the management of the company;

4. Compliance with the rights of third parties;

5. The commitment to a single corporate policy regarding subsidiaries and affiliates and other legal entities, a member, founder or a member of which is NLMK;

6. The policy of information openness and transparency;

7. Policies compliance with business ethics when doing business;

8. Ensuring compliance with the norms of existing legislation and international standards of corporate governance.

Conscious of the importance of corporate governance as a factor in the investment attractiveness of the company, OJSC NLMK is constantly improving the corporate governance system to meet the best global practices.

The production and management structure of OJSC NLMK is very extensive (Figure 2).


Figure 2 - Management Structure of OJSC NLMK

The highest governing body of OJSC NLMK is the general meeting of shareholders. The general management of the activities and determination of the company's development strategy for the long term is carried out by the Board of Directors. Executive bodies - President (Chairman of the Board) and Board, carry out operational management of current activities.

An independent auditor and the audit commission monitor the company's financial and economic activities. The audit of financial statements is obligatory in accordance with the requirements of Russian legislation and generally accepted in the US auditing standards.

Along with the Corporate Governance and Charter Code, the Company has corporate documents regulating the activities of management and control bodies: the Regulations for the General Meeting of Shareholders, the Regulation on the Board of Directors, the Regulation on the Management Board and the Regulation on the Audit Commission.

Major workshops of OJSC NLMK: Domain Workshop 1 (DTS-1); Domain shop 2 (DC-2); Oxygen-converter workshop 1 (CCC-1); Oxygen-converter shop 2 (CCC-2); Agro production (AGP); Cocks and chemical production (QCP); nitrogen-towled production (ATP); sheet rolling shop 1 (LPC-1); Leaf rolling shop 2 (LPC-2); sheet rolling shop 3 (LPC-3); ListGrow Production (LPL); sheet rolling shop 5 (LPC-5); Electrostalville shop (EPC); ferroalloy shop (FSC); steel workshop (slop); Kipia (measuring instruments and automation) and other.

2.3 Structure of the NLMK Company Group

OJSC "Stalensky GOK". The supplier of iron ore raw materials is located 350 km from NLMK OJSC, in the area of \u200b\u200bthe Kursk Magnetic Anomaly (KMA) deposits. The close location of the source of iron ore allows minimizing the cost of delivery of iron ore products to the main production site.

OJSC Altai-Coke. The coke producer is located near the sources of coal raw materials (Kuznetsky coal pool), in the Altai Territory.

"Zhernovskoe-1". Coal coal deposit is 70 km from Altai-Cox.

Visa-Steel LLC. Steel Rolling Company and the main production facilities acquired at the end of 2007, the Maxi-Group companies are located the Urals Region of Russia. Visa-Steel LLC is a leading producer of cold-rolled electrical steel and the largest manufacturer of transformer steel in Russia. The share of visa steel in the global production of transformer steel is about 11%. More than 80% of products shipped to export

Open Joint-Stock Company "Studenovskaya Joint-Stock Company" (OJSC Stagotdock) is an enterprise of the mining industry. Currently, the company is developing the Sith plot of the Sokolsko-Sith flux deposit of limestone. The career length is 1.5 km, the width is 0.5 km, the average depth of 46 m. \u200b\u200bAccording to the results of 2007, the share of OJSC Stagdock in the total volume of limestone produced in Russia amounted to about 24%, which allowed the enterprise to take the 2nd place in Industries. The main types of products are flux and technological limestone with small, medium and large fractions.

JSC Dolomit. The leader among Russian manufacturers of metallurgical dolomites and the only manufacturer of this type of product in the Central Black Earth region. The company is developing Dankovsky Dolomites deposit (Lipetsk region) since 1932. The product manufactured by the company includes flux and converter dolomite, dolomite flour, construction crushed stone and crushed stone for road works. The location of the enterprise near the developed transport infrastructure makes it strategically beneficial for product consumers.

LLC "Independent Transport Company". Provides timely supply of raw materials for metallurgical production and delivery finished products consumers both in Russia and abroad.

Dansteel A / S. Dansteel is located in Denmark. Equipped with the most modern equipment, its production volume is more than half a million tons of hot-rolled tolstolic rolled products. This acquisition (in 2005) has become an important step to strengthen the positions of NLMK in the global market of metal products. Currently, the company produces more than 0.5 million tons of tolstolic rolling per year. The main production assets of the company include sheet rolling production, the shipping site and its own maritime port for receiving slabs and shipment of finished products. The company's products are shipped to consumers in Germany, Denmark, Sweden, Great Britain, Norway, France, and others. Dansteel A / S is one of the significant players in the steel sheet market for shipbuilding. So, in particular, 25% of the needs of the North Bochier market of the shipbuilding sheet is covered by deliveries with Dansteel A / S. Dansteel A / S constantly strengthens its main competitive advantages due to:

reducing the timing of the order production and shipment of goods to consumers through the introduction of a new system of planning and managing production, optimizing the internal logistics and updating of the enterprise transport park;

increase the production of sheet with special requirements and tests, leaf for pressure vessels;

extensions of the product range due to the development of steel grades of increased strength, the production of large-sized sheets with a total weight of up to 20 tons, production of high-value-added sheet steel sheets (segments for wind power, workpieces for large engineering products) and increasing the share of heat-treated rolled products in total production with 50 to 60%.

Since the end of 2006, NLMK has 50% of the share in Steel Invest & Finance - a joint venture with the Duferco Group registered in Luxembourg.

Production group.

Carsid S.A. - manufacturer of slabs that are consumed by the companies group.

Duferco Clabecq S.A. - Manufacturer of the sheet of medium thickness and thick sheet.

Duferco La Louviyre S.A. - manufacturer of hot rolled, etched, cold-rolled rolled, as well as rods.

Duferco Coating S.A., which includes two production asset: beAutor, manufacturer of electrocumbed leaf used in the automotive industry; Sorral S.A., manufacturer of galvanized rolls and sheets and hire with coatings for the construction and automotive industry.

Duferco Farrell Corporation is a hot rolled steel manufacturer, and cold rolled rolls and sheets.

Sharon Coating LLC is a galvanized rental manufacturer. Sharon Coating entered the SIF in June 2007. The capacity of the company, including 3 units of continuous hot galvanizing with a total capacity of 1.2 million tons per year, are located in a single production site in Pennsylvania.

Verona Steel S.P.A. - Manufacturer of thick sheet and ingots.

Distribution group.

DUFERCO TRANSFORMATION EUROPE S.A., FRANCE. DTE Group includes 9 service centers located in France, Belgium and the Czech Republic. Companies included in DTE Group carry out pre-sale processing, and also deal with product distribution.

Steel Invest Trading S.A. (SIT), Switzerland - a trading company that sells SIF companies raw materials, consumables and semi-finished products and implements the finished products of these companies.

SIF Group companies produce products used in automotive, construction and industrial production. The main markets are the EU countries. In 2007, SIF enterprises produced 2.1 million tons of steel, 4.8 million tons of finished products.

The creation of a joint venture corresponded to the development strategy of NLMK, providing for the expansion of the presence on a strategically important European market, as well as an increase in sales of products with higher value added. In 2007, 329 thousand tons of slabs were delivered to SIF enterprises. In the future, NLMK plans to expand its interaction with SIF enterprises and increase the supply of slabs by 2012 to 3,600 thousand tons. In addition, in 2007, the NLMK Group has implemented 147 thousand tons of coke at SIF enterprises (Carsid, Steel Invest Trading).

2010 turned out to be another favorable year for world manufacturers became, despite the fact that he was characterized by some

the slowdown in the growth rate of the visible consumption of metal products (6.8% against 8.8% in 2009).

NLMK is actively involved in integration with foreign companies. Thus, in 2007, NLMK and the Chinese company TEBIAN ELECTRIC APPARATUS STOCK CO., LTD, (TBEA) launched a project to organize a joint Russian-Chinese center for the processing and sale of electrical steel, as a result of which NLMK was able to strengthen his position on the largest and A strategically important market that consumes about 30% of the world production of transformer steel, and Twue is a stable supply channel of main raw materials for the production of transformers.

In the future, OJSC NLMK will strengthen its position in the global market, as a supplier of high-quality metal products that meet the requirements of our customers.

3 Organization of management in American, Western European and Japanese firms

The structure of management of large industrial firms is formed under the influence of various factors. On the one hand, these are the requirements put forward by the growth of production, the strengthening of its diversification and complication of manufactured products; expansion as a result of the internationalization of the territorial disunity of production. On the other hand, she coats the imprint of the historical features of the formation and development of specific firms. Here directly affects the predominance of traditionally established types of companies; distinction in legislation regulating the economic activities of firms; Communication of firms with a military-industrial complex and others. Although each of these factors is independent importance, but it is their combination that determines the characteristics of the organizational structure of both a specific firm and firms of individual countries. Therefore, although there are many common features inherent in the management structure of large firms, the accounting and study of the specific features of the organizational structure established in specific conditions are nevertheless.

The very extent features of the management structure of modern TNC are determined by the historical conditions of their formation and development and carry the imprint of the type of enterprises, which has developed in the early stages of the company. This, in particular, finds an expression in the nature of the relationship between the production branches of the modern company and determines the place and role of production departments in the organizational structure of the company.

In modern conditions, Western European and Japanese companies acquired many common features in the application of the principles of decentralization in management. This is due to the strengthening of the concentration and centralization of production under the influence of the scientific and technical revolution and exacerbation competitive struggle on the world market. First of all, there is a growing size of Western European and Japanese companies, which are approaching American by turnover.

The growth of economic activity led to the reorganization of the management and the use of American experience in the formation of an organizational structure of management produced by the majority of Western European companies. Of great importance is the waste of both Western European and Japanese firms from a narrow specialization of production and transformation into highly diversified complexes. This was reflected in the management structure, as the framework of the companies created production branches or groups of departments on various types of diversified products and areas of activity.

However, along with many common features, American, Western European and Japanese TNCs have their own characteristics in the organization, which follow primarily from the historical conditions for the development of certain types of companies in different countries. American firms at an early stage of their development were created in the form of trusts. Therefore, in such companies, such as "General Motor", "Chrysler", Ford Motor, industrial enterprises included in production branches are deprived of any independence. Directors of such enterprises are completely subordinated to the orders of the management of the production offices in which they enter. This applies to the issues of removal from the production of old products and transition to the release of the new, prices, acquisition of equipment, etc. The production department in such companies distributes orders between enterprises, carries out material and technical supply, monitors the implementation of production plans, controls the execution of such Functions of factories as planning, quality management, equipment maintenance, provision of frames, etc.

In the companies of Western European countries and in Japan, production offices play a slightly different role. With the transition to the decentralized form of management, manufacturing offices fulfill the role of coordinators of the activities of subsidiaries that have operational and economic, financial and legal independence. At the same time, subsidiaries serve themselves not only in profit centers, but also responsibility centers. The latter means that they independently develop the strategic directions of production activities within the framework of the commodity nomenclature enshrined behind them, lead scientific research and development, reveal possible consumers of products, produce its production and sales, provide the necessary investments on the modernization of production, organize the logistics of their enterprises. As profit centers they bear full responsibility for the rate of profits established by it by the management of the concern, conduct independent balances and have separate accounts of profits and losses, which are compiled according to a single form and are included in the consolidated balance of firm. The function of the production department includes monitoring and coordination of the activities of the subsidiaries assigned to him usually in the following most important areas: scientific research, production, sales, finance.

Due to the close relations between individual companies that have a production nature, Western European concerns (especially Germanic, French, Swedish) are usually referred to as "industrial groups" or simply "groups", regardless of whether they are headed by operational and manufacturing companies or holdings.

The presence of a large number of legally independent subsidiaries with a high degree of operational independent independent subsidiaries, which have a high degree of operational independence, geographically dismissed and at the same time highly specialized on the production of products enshrined behind them requires coordination of their activities through the functions of centralized management, providing a unified and comprehensive management of subsidiaries Companies and subordination of their common goal, supplied by the highest administration.

The organizational structure of American, Western European and Japanese companies is distinguished by great diversity and almost every company has its own distinctive features.

In the 80s, there were significant changes in American management, which caused the transition to new management structures and redistribution of priorities when making management decisions. The foregoing in the largest companies now put forward the tasks of strategic planning based on the formulation and implementation of long-term goals. These goals and objectives are largely based on the development and implementation of fundamentally new products that not only meets the needs of the market, but also adapted to the requirements that put forward the legislation of their country and other countries in the field of price regulation, monitoring, environmental protection, security; In operation, energy saving, as well as numerous measures developed in the framework of international economic organizations and approved by national authorities. These and other trade and political measures led to significant changes in the economic policy of many American companies.

The characteristic feature of the entrepreneurial activity of American companies in modern conditions is the systematic restructuring of organizational structures as a result of strengthening the process of absorption and mergers.

As the purposes of such reorganizations, the following are nominated:

further diversification of production by absorbing the company that has accumulated significant scientific and technical and production experience that complements its own base;

the desire to improve the efficiency of the scientific and technical complex through the integration of specialized firms capable of optimizing the structure of the parent company;

changes in strategic priorities for consolidation in new markets, increase flexibility in the operational activities of the company.

The process of mergers and acquisitions required the restructuring of organizational management structures. In the first half of the 1980s, the change in the management structure produced 56% of American companies from among the 500 industrial giants.

It should also be noted that the American style of control differs significantly from Japanese. Thus, in American companies, the responsibility of each employee is clearly defined and each leader carries personal responsibility for the implementation of established indicators in terms of policy planning, while in Japanese companies provides for collective responsibility for developing, adopting and executing decisions. Another feature is that foreign branches of American corporations more freely use capital, technology, organizational and managerial experience of the parent company. In legal relations, the overwhelming majority of foreign firms of American TNK are subsidiaries, subject to local laws, while Japanese TNCs prevail branches with 100% participation of Japanese capital and full control over their activities on the part of the maternal company.

A feature of the management organization in Japanese companies is that they are paramount importance to improve style and management techniques. Japanese companies are usually more centralized than American and Western European. However, within the framework of high centralization, the principles of coordination, coordination of actions, developing and making decisions after their careful prior discussion and approval by the performing link are widespread. It is believed that the Japanese-based management style based on the adoption of group decisions is more efficient because it suggests:

the participation of mid-level management in the development of decisions by coordination and discussing draft decisions not only with leaders, but also with the staff of the relevant units;

compliance with the principle of unanimity in decision-making;

lack of clear job descriptions that determine the terms of the employee's responsibilities; It is assumed that the content of each employee can constantly change and they must be able to fulfill any work within their competence;

using a specific personnel management system providing mainly lifelong employees, promotion and promotion wages for long service, social security in old age and illness;

continuous improvement of the art of management, including product quality, the effectiveness of marketing activities; monitoring the progress of the production process.

Japanese TNCs are most focused on the functioning of the parent company, but they are characterized by a tendency to strengthen attention to the activities of the Corporation as a whole. Decisions on the appointment of governors to higher posts, identifying the range of products, investment and production volumes, the development of new products are accepted by the highest leadership of maternal companies or together with the highest leadership of the branch. The parent company and its top management also became more purposefully focused on the development prospects, boldly put forward and make strategic solutions that are implemented by the "top down" method. At the same time, there is an expansion of the use of economic methods in intra-profit control while simultaneously gaining centralized began. Thus, the parent company usually assumes the determination of the price levels, parts, components exported to their subsidiary foreign enterprises, provides a higher level of profit. The parent company carries out strict control over the transfer of the latest technology to its foreign branches due to fear of leakage of secrets through local partners. According to the law, Japanese TNCs are now obliged to publish consolidated financial reports, which will allow deeper and better understand the economic mechanism of Japanese management.

It is noteworthy that the Japanese transfer their management style and on the subsidiaries of foreign TNCs, based in Japan. So, in Japan, the subsidiaries of American corporations "IBM", "Xerox" use Japanese style and management experience, product quality control. This is ensured by the fact that Japanese management specialists are fluent english language, you know how to use the Japanese management style, and differ in high competence. The Japanese, managing branches, tolerate technological experience from the American parent company. They are regularly sent to the parent company for retraining. This is especially true of the highest managers, which in most cases are the Japanese. The number of American representatives in the Board of Directors is insignificant, which is due to the difficulties of the development of Japanese management methods and mastering by Japanese. For many countries, it is the Japanese, and not the American management system system has become an reference. Japanese workers are distinguished by a high level of education, technological experience and stability! Japan creates a unique infrastructure based on the most advanced technologies, is a leader in the quality of products, and in terms of the growth rates, all other countries overtook productivity.

Conclusion

The management system (SU) organization includes a combination of all organizations of the organization, all subsystems and communications between them, as well as processes that ensure the specified functioning.

The organization's management is a continuous process of influence on the performance of an employee, a group or organization as a whole for the best results from the standpoint of achieving the goal.

The organizational structure of the firm is aimed primarily on the establishment of clear relationships between individual divisions of the company, the distribution of rights and responsibility between them. It implements various requirements for improving the management system that are expressing in certain principles of management. Organizational management structures of industrial firms are distinguished by a large variety and are determined by many objective factors and conditions.

These can be attributed, in particular, the size of the production activities of the company (large, medium, small); Production profile of the company (specialization on the production of one type of product or wide range of products of various industries); the nature of the manufactured products and the technology of its production (products of mining or manufacturing industries, mass or mass production); Firm's activities (local, national or foreign market orientation); The scale of overseas activities and the form of its implementation (the presence of subsidiaries abroad: production, sales, etc.); The nature of the association of the company (concern, financial group).

Strengthening the processes of concentration and centralization of production and capital on a national and international basis, which is happening under the influence of an objective trend towards the internationalization of economic life and the Scientific and Technical Revolution, leads to an increase in international production and economic complexes - TNK, which have huge financial, industrial and scientific and technical resources and the widest overseas production and sales base. They are characterized by a complex system of internal connections and interdependencies between individual divisions through the production, financial, scientific and technical, technological, sales and other types of relations, subordinate to unified intra-report planning.

The predominance of certain types of economic relations inside TNK depends primarily on the nature of its activities as a whole, from the scale and complexity of production, as well as on the territorial disruption of individual units.

NLMK - one of the leading world steel producers, part of the largest metallurgical companies Russia. The main production facilities are located in Russia, the USA and the EU.

The NLMK Groups specialize in the production of sheet and varietal steel rolled products. The NLMK Group in 2010 carried out the supply of its products in more than 70 countries of the world, while about 63% of metal products were implemented for export. The share of NLMK in the global salab market is more than 11%, transformer rolled products - more than 16%.

NLMK is a vertically integrated group controlling the entire production and sales process - from the extraction of raw materials before the delivery of finished products to the end consumers. The optimal structure of the group, diversification of activities, competent sales policies, as well as high technological equipment allows minimizing the impact of negative trends in sales markets and achieve high financial efficiency.

The NLMK Group includes both Russian and foreign assets. The parent company of the group is located in Lipetsk, located in the center of the European part of Russia, 450 km from Moscow.

List of sources used

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2. Bovynkin V.I. New Management: Enterprise Management at the level of higher standards; Theory and practice of effective management. / I. Bovykin - M.: Economics, 2010. - 368 p.

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4. Vikhansky O.S. Management: Tutorial. / O.S.Vikhansky, A.I.Naumov - 3rd ed. - M.: Gardariki, 2006. - 528 p.

5. Vikhansky O.S. Management: Man, Strategy, Organization, Process: Tutorial. / O.S. Vikhansky, A.I.Naumov - M.: Moscow State University, 2006. - 366c.

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  • According to the old tradition, I present informational materials that publish clint companies. My hands got the magazine "Company NLMK", with a number of interesting articles. I bring to your attention the first of them - an interview with the head of the development of the production system of NLMK.

    The NLMK Group is recognized as the most efficient steel company in the world. The key to world success was the implementation of a complex of advanced operational efficiency programs within the NLMK production system. The fact that was done and what else remains is the head of the Development Department of the Production System of the NLMK Ekaterina Eletina.

    1. When and where did the introduction of a production system on the Lipetsk Square begins?

    Work in this direction was launched back in 2009. The introduction of new approaches was carried out from the production sphere - from there, where the main added value is created and where the biggest reserves are hidden. We started with improving the quality, stabilization of technology, improving equipment reliability. Then, as the system develops, the distribution area expanded, the consciousness of enterprises personnel was transformed, new approaches became for people "our work method". Currently Production system NLMK covers key enterprises of the Group: NLMK, Visa-Steel, Stalensky GOK, Altai-Coke, NSMMZ, NLMK-Kaluga. NLMK PENNSYLVANIA is actively involved in the application of new approaches.

    2. What tasks are you in front of you this year?

    In the current year, the main tasks of the NLMK production system are the horizontal and vertical dissemination of knowledge (personnel training of various levels of competencies) and their fixation, as well as the autonomous functioning of the production system tools.

    Learning on new principles and tools both with the involvement of external consultants, and the enterprises prepared by the "internal coaches". In general, on this moment, taking into account the training of internal coaches, more than 10 thousand employees of the NLMK Group are trained.

    As for the consolidation of new approaches, we strive to ensure that the system is self-regulating, did not require "manual management". This will ensure its sustainability in the future. Last year, for this purpose, departments were created in the divisions of improving the efficiency of production, subordinate to directors in the directions. The departments were selected the most initiative staff from shops and industries that became conductors of new approaches, driving power changes.

    This year, a complete diagnosis of the operation of the production system is carried out by conducting audits in aglodomane, steel-smelting and rolling industries. During the audits, the main problem areas and the further development of the system were revealed.

    3. How effective to the tools of the production system are?

    If you bring the intermediate results of using the tools of the NLMK production system, more than 130 A3 projects are currently implemented to achieve target levels on the downtime of equipment, inappropriate products, consumption of materials, energy carriers. More than 60% of the implemented projects reached their target levels for July 2014. The leading indicators in terms of project efficiency reaches steel-smelting and repair production - more than 75%. The effect of reducing the costs of implementing a set of operational efficiency programs based on the introduction of the NLMK production system at all sites of the Group was $ 235 million in 2013. in the level of 2012, in the second quarter of this year - 63 million dollars. 2013 .

    New approaches became for people "our work method"

    4. Which tools are developing most active?

    The direction of repairing repairs and technological operations is actively developing. In July, according to the results of the mappings, a number of activities have been developed that allow optimizing the duration of technological operations and planned repairs without deterioration of quality by 10-20%. Thus, extra time is released for the production of metal products.

    The direction of the intensification of production personnel is developing. So, in the production of cold rolled products on the plot polymer coatings Due to the increased attention of the management of the division, informing the staff on the existing problems and methodological support of the methods of improving the efficiency of rolling production in July, 10 initiatives were developed in July, proposals aimed at improving product quality, ensuring stable equipment, reducing the consumption of raw materials and materials.

    It is important to note the distribution of the NLMK production system not only on the main production, but also on the functional directions of the enterprise, such as logistics, energy efficiency, OTPB. For example, a project to optimize the duration of the mobile railway on the territory of NLMK is jointly implemented by the Directorate for Operational Efficiency and Logistics Services. The purpose of the project is to reduce the volume of work in progress. According to preliminary assessment, reserves to reduce the duration of transportation of finished products inside NLMK are up to 30%.

    5. What ideas and principles of leaning production are primarily aimed at NLMK?

    At first, I still want to clarify that the NLMK production system does not copy any of the existing production systems, whether Lean, 6 Sigma or something else. We choose the principles and tools of the world's leading enterprises that are most suitable for solving specific tasks in a particular situation and adapt to the terms of the group of companies. As for the principles of the production system, similar to the LEAN philosophy, this is definitely the transparency and objectivity of the information used, the continuity of improvements, the consistent identification and elimination of all types of losses and, the main thing, the involvement of the staff of all levels and activities in the joint solution of the problems.

    6. Is it difficult to promote the Japanese system in the Russian enterprise? Still, you can come across misunderstanding.

    We are not implementing a Japanese system, but its principles adapted to work in our enterprise. Regularly receiving feedback from the workshops, we, of course, know that there is some misunderstanding. Indeed, in any team there will always be optimists who believe in success of change, and pessimists who are ready to blame for failures of a "Russian mentality". But with the experience of successful projects, people gradually change the attitude, faith appears in the effectiveness of our methods and the desire for improvement.

    We are not implementing a Japanese system, but its principles.

    7. One of the main principles of the Japanese system is a continuous planned improvement in small steps. What, in your opinion, is it better global and sharp changes? Can you give an example in which NLMK service would be the most sensible in terms of efficiency?

    It is impossible to definitely say that it is better: revolutionary changes with a rapid effect or evolution with a stable effect in the long run. It all depends on specific purposes. However, in my opinion, sharp changes can cause misunderstanding and rejection in people. The production system is slowly, but correctly changes the psychology of people and makes the process of continuous improvement of the "life formula".

    8. Some experts believe that the form of submission of initiatives reminds the old good innovation system at industrial enterprises in Soviet times. Is it so?

    Yes, this procedure really resembles the Soviet non-social system. However, our option is submitting initiatives easier in terms of design and faster in terms of encouragement. Each employee, having an idea to improve, can fill in a single-page form in the room of interchangeable-meeting meetings and submit it to the technical council of the unit. If the Council approves the initiative, then the remuneration of up to 2 thousand rubles. You can get immediately - only for the supply of the sentence. If the event subsequently gives a positive effect, the employee will receive an additional reward of about 10 thousand rubles.

    In any team, there will always be optimists who believe in success.

    9. It is believed that in order for the system to spread to all production, it is necessary for 5-6 years. Will it justify itself in the present conditions when the market conditions are changing every quarter?

    The root restructuring can be rapidly if we give priority to such instruments of the production system as A3, mapping, introducing new materials. To obtain a stable effect, each new change should be "way of thoughts" and "work method". 5-6 years old and even more - this is a normal period for the formation of "new habits" and embedding a new philosophy into production.

    10. A certain effect is achieved, but it should be not only kept, but also to develop on. What else to do to work the system?

    For 2015, the further transfer of the principles and tools of the manufacturing system into all the main processes of the Group's enterprises, the definition within each main activity of the functionality of effectiveness, adapting tools to improve efficiency to the specifics of the directions. The further coordination of the production system with the budgeting process will continue.

    As for the long-term perspective, our main goal is definitely - to make an enterprise truly effective: customers, shareholders and employees of the enterprise are satisfied.

    Interview: Natalia Sviridenko, Yana Larina

    3 facts about the NLMK production system

    • the introduction of a production system is one of the factors that helped the NLMK group to become the most effective steel company in the world;
    • in the second quarter of 2014, the effect of reducing the costs of optimization programs at all sites of the group was $ 63 million compared with 2013;
    • principles of the production system, taking into account the training of internal coaches, more than 10 thousand employees of the NLMK Group were trained.

    Reprinted with the permission of the publication: "Company NLMK", Corporate Journal of the NLMK Group of Companies, No. 5-6 (48) November-December 2014.

    Who can be interesting

    Over the past few years, the production system of NLMK has fixed significantly. Good results for a number of indicators allowed to obtain both your extent to improve production efficiency (SPEP), which started on NLMK in 2008. What exactly did you want to achieve with it? Which 2008 prevented the achievement of its goals to achieve a combine?

    Accordingly, we wanted to achieve an increase in production efficiency, but without capital expenditures, by identifying internal reserves.

    As for the obstacles to achieving the goals in the field of efficiency, we used to prevent us from mainly the inertness of human thinking.

    Today, the SPEP is the basis of the PS NLMK. And which sides first affected the implementation of the system? Why began transformation from them?

    The introduction of new approaches began with a production sphere - from there, where the main value added is created, and where the biggest reserves are hidden. We started with improving the quality, stabilization of technology, improving equipment reliability.

    - Please tell me about the startup mechanism SPEP . Did the introduction of specially created groups or was some other mechanism been chosen?

    Initial stages Implementation was the development of methodology and staff training. For these purposes, we have created the management of improving production efficiency (UEP). The development of new approaches was carried out on pilot projects at the stage of express operation under the guidance of UTSP.

    After the final debugging procedures, there was their transfer to industrial operation and control functioning through audits. The main mistake At our first steps, in my opinion, it was the introduction of the "bottom" system from the level of workers, masters, and not "from above" - \u200b\u200bfrom the president and general directors.

    Photo 1-2. Examples of the implementation of approaches "6C" in OJSC NLMK

    When was the direction "Operational Efficiency" (OE)? What is the responsibility of the head of OE?

    - The direction was created in 2009. The main responsibilities of the head of this area are the development of documented procedures of the NLMK manufacturing system, adapting them to the terms of the Group's enterprises, staff training procedures and principles of the production system in its implementation.

    The heads of NLMK have repeatedly stressed that the tools in the framework of the implementation of the SPEP are selected depending on the strategic goals and objectives. What would you say about this chain? What tasks did you decide by applying certain tools? What are the results of work?

    The NLMK production system is not based on any one ideology (Lin, 6 SIGM, etc.), and chooses and adapts the most suitable best practices depending on the target target. For example, to stabilize technology and quality, we use control cards (quality control cards), to increase the "useful" operation time of the equipment - timekeeping and analysis of the causes of simple equipment to search for ways to reduce costs - A3. However, there are no hard rules for the application of this or that tool. In each specific situation, the optimal set of tools is being searched.

    As for the results, they can be illustrated by the example of the implementation of the A3 methodology. We began to implement this tool in February 2013 with the development of documented procedures, training for pilot testing personnel (rolling production of NLMK OJSC) was selected as a pilot project. Then she was experimental exploitation, the distribution of the approach to other activities.

    By September 2013 economical effect From the implementation of projects A3 amounted to more than 1 billion rubles.

    Photo 3-4.Work on projects A3 in the production of OJSC NLMK

    The SPEP program includes three main directions, among them - improving the system of key performance indicators (KPE), as well as the distribution of KPE to the aggregate level. Could we give an example of cascading goals?

    You can illustrate the cascading of the goals in the following example.

    One of the KPE of the enterprise is the cost of production; KPE of the production director (for example, steel-smelting production) - inappropriate products and marriage on the workshops of its competence; KPE head of the shop - inappropriate products and marriage by product of products; KPE aggregate level (operator) - technology stability.

    As for the improvement of the KPE is the cornerstone of the entire NLMK production system.

    Without permanent work To involve personnel in improving the development of the PS is impossible. How do you behave? How involved today is NLMK staff?

    In order to engage in the involvement, we have developed a system of both material and intangible personnel motivation. Involvement is carried out by informing, visualizing goals and objectives.

    In 2013, more than 450 initiatives to improve the efficiency of processes were filed with linear staff, more than 130 A3 projects were implemented, more than 180 projects were implemented in engineering specialists in the framework of the implementation of integrated programs.

    SPEP is designed not only for production - the system concerns and functional directions. What approach is used when distributing SPEP to other directions?

    The process of distribution of the manufacturing system is not completed. He continues. The main approach used at the same time. The direction defines the responsible for operational efficiency. If necessary, a group is formed to introduce new approaches.

    Photo 5.Operational control Stability technology with control cards (SPEP IC) in the workplace

    The SPEP program has a third direction - the distribution of the training system and the transition to the autonomous use of spent tools. What is done to solve problems in this area?

    A multi-level learning system has been built. Top managers of enterprises are trained by attracted organizations (for example, Toyota Engineering Corp.). The average link and future internal coaches are trained by attracted organizations and UEP. An important step in the transfer of practical skills here is the internship of trainees in UEP. Masters and workers are trained in internal coaches.

    As for the transition to the autonomous use of the tools of the production system, it is carried out after the implementation of all the implementation steps mentioned above. An important stage here is the consolidation of personal responsibility for the use of worked practices.

    Photo 6.Training W.Toyota. Engineering Corp. on this topic"Universal Management System" (Total Management System., TMS.)

    - What directions will be implemented in 2014?

    The 2014 program is aimed at expanding the implementation of the NLMK production system, as well as the development and implementation of new tools.

    - Why would you advise the managers of other enterprises to come to Lin Summit in Gelendzhik? Do you think that they will get useful for themselves?

    The summit makes it possible to use accumulated experience to reduce the time of implementing operational efficiency systems. The question of the feasibility of this event is not even discussed.

    Article in Source: up-pro.ru/Library/Production_management/Systems/eletina-nlmk.html

    What helped NLMK to overcome the inertness of human thinking and how the foundation for the development of the production system, talk with Catherine Eletina, head of the direction "Operating efficiency" of OJSC NLMK.

    - Over the past few years, the production system of NLMK has fixed significantly. Good results for a number of indicators allowed us to obtain your production efficiency system (SPEP), which started on NLMK in 2008. What exactly did you want to achieve with it? Which 2008 prevented the achievement of its goals to achieve a combine?

    - Accordingly, we wanted to achieve an increase in production efficiency, but without capital expenditures - by identifying internal reserves.

    As for the obstacles to achieving the goals in the field of efficiency, we used to prevent us from mainly the inertness of human thinking.

    - Today the SPEP is the basis of the PS NLMK. And which sides first affected the implementation of the system? Why began transformation from them?

    - The introduction of new approaches began with a production sphere - from there, where the main added value is created, and where the biggest reserves are hidden. We started with improving the quality, stabilization of technology, improving equipment reliability.

    - Please tell us about the STEP launch mechanism. Did the introduction of specially created groups or was some other mechanism been chosen?

    - The initial stages of implementation were the development of methodology and training personnel. For these purposes, we have created the management of improving production efficiency (UEP). The development of new approaches was carried out on pilot projects at the stage of express operation under the guidance of UTSP.

    After the final debugging procedures, there was their transfer to industrial operation and control functioning through audits. The main mistake in our first steps, in my opinion, was the introduction of the "bottom" system from the level of workers, masters, and not "from above" - \u200b\u200bfrom the president and general directors.

    Photo 1-2. Examples of the implementation of approaches "6C" in OJSC NLMK

    - When was the direction "Operational Efficiency" (OE) was opened? What is the responsibility of the head of OE?

    - The direction was created in 2009. The main responsibilities of the head of this area are the development of documented procedures of the NLMK manufacturing system, adapting them to the terms of the Group's enterprises, staff training procedures and principles of the production system in its implementation.

    - The heads of NLMK have repeatedly stressed that the tools in the framework of the implementation of the SPEP are selected depending on the strategic goals and objectives. What would you say about this chain? What tasks did you decide by applying certain tools? What are the results of work?

    - The NLMK production system is not based on any one ideology (LIN, 6 SIGM, etc.), and chooses and adapts the most appropriate best practices depending on the targeted target. For example, to stabilize technology and quality, we use control cards (quality control cards), to increase the "useful" operation time of the equipment - timekeeping and analysis of the causes of simple equipment to search for ways to reduce costs - A3. However, there are no hard rules for the application of this or that tool. In each specific situation, the optimal set of tools is being searched.

    As for the results, they can be illustrated by the example of the implementation of the A3 methodology. We began to implement this tool in February 2013 with the development of documented procedures, training for pilot testing personnel (rolling production of NLMK OJSC) was selected as a pilot project. Then she was experimental exploitation, the distribution of the approach to other activities.

    By September 2013, the economic effect of projects A3 amounted to more than 1 billion rubles.

    Photo 3-4. Work on projects A3 in the production of OJSC NLMK

    - The SPEP program includes three main directions, among them - improving the system of key performance indicators (KPE), as well as the distribution of KPE to the aggregate level. Could we give an example of cascading goals?

    - You can illustrate the cascading of the goals in the following example.

    One of the KPE of the enterprise is the cost of production; KPE of the production director (for example, steel-smelting production) - inappropriate products and marriage on the workshops of its competence; KPE head of the shop - inappropriate products and marriage by product of products; KPE aggregate level (operator) - technology stability.

    As for the improvement of the KPE is the cornerstone of the entire NLMK production system.

    - without constant work to involve personnel in improving the development of the PS is impossible. How do you behave? How involved today is NLMK staff?

    - In order to engage in the involvement, we have developed a system of both material and intangible personnel motivation. Involvement is carried out by informing, visualizing goals and objectives.

    In 2013, more than 450 initiatives to improve the efficiency of processes were filed with linear staff, more than 130 A3 projects were implemented, more than 180 projects were implemented in engineering specialists in the framework of the implementation of integrated programs.

    - SPEP is designed not only for production - the system concerns and functional directions. What approach is used when distributing SPEP to other directions?

    - The process of distribution of the manufacturing system is not completed. He continues. The main approach used at the same time. The direction defines the responsible for operational efficiency. If necessary, a group is formed to introduce new approaches.

    Photo 5. Operational control of technology stability using control cards (SPEP IC) in the workplace

    - In the SPEP program there is a third direction - the distribution of the training system and the transition to the autonomous use of spent tools. What is done to solve problems in this area?

    - A multi-level learning system has been built. Top managers of enterprises are trained by attracted organizations (for example, Toyota Engineering Corp.). The average link and future internal coaches are trained by attracted organizations and UEP. An important step in the transfer of practical skills here is the internship of trainees in UEP. Masters and workers are trained in internal coaches.

    As for the transition to the autonomous use of the tools of the production system, it is carried out after the implementation of all the implementation steps mentioned above. An important stage here is the consolidation of personal responsibility for the use of worked practices.

    Photo 6. Training at Toyota Engineering Corp on the topic "Universal Management System" (Total Management System, TMS)

    - What directions will be implemented in 2014?

    - The 2014 program is aimed at expanding the implementation of the NLMK manufacturing system, as well as the development and implementation of new tools.

    "Why would you advise the leaders of other enterprises to come to Lin Summit in Gelendzhik?" Do you think that they will get useful for themselves?

    - The summit makes it possible to use accumulated experience to reduce the time of implementing operational efficiency systems. The question of the feasibility of this event is not even discussed.

    Ekaterina Eletina

    The NLMK Group, the international steel company with assets in Russia, the United States and the EU countries, was audited by the Lipetsk site for compliance with the criteria of the Universal Toyota production system (Total Toyota Production System, T-TPS), one of the most efficient production management systems in the world.

    The purpose of the audit was to assess the effectiveness of the NLMK production system (PS NLMK) and obtaining a recommendation for its further development.

    PS NLMK is introduced at the enterprises of the NLMK Group from 2013. The system includes a wide range of practical tools and techniques to increase the efficiency of production and business processes. Their application allowed in 2014-2015 to achieve a positive effect on EBITDA in the amount of 477 million dollars, even taking into account the influence of the negative price conjuncture.

    The NLMK PS Audit for compliance with the T-TPS criteria was held by the leading experts of Toyota Engineering Corporation and TPS certification authority (Japan). Auditors checked the work of divisions of the domain, steel-smelting and rolling industries, rated the use of PS NLMK tools, analyzed the processes of supply, maintenance and repair of equipment, training personnel, labor protection and industrial safety.

    Auditors noted that the level of development of the NLMK manufacturing system exceeds the average level of world metallurgical companies. In production, the NLMK assessment corresponds to the level of the best practices of European and American metallurgical enterprises.

    "Experts highly appreciated the use of NLMK tools A3 to solve problems, the level of compliance with labor protection requirements and industrial safety. Separately, the Toyota Engineering Corporation experts noted the effectiveness of work to achieve the company's goals through the implementation of optimization programs. Auditors indicated ways of development of the system to achieve the level of leaders - Japanese companies, for example, increasing the involvement of employees of enterprises in the process of constant improvements. Recommendations We intend to include in the NLMK production system for the production system for 2016-2017, "the director of operating officer commented on efficiency NLMK Julia Veza.

    Briefly about the production system NLMK

    The NLMK production system (PS NLMK) is a methodology developed by specialists, which includes a wide range of both world and unique production practices aimed at improving the efficiency of basic production, technological and business processes. This is a permanent self-sustaining process of finding and implementing improvements. The full-scale and systematic introduction of the PS on NLMK began in 2013.

    Based on tools, the NLMK PS is being implemented to improve operational efficiency. Thanks to the introduction of the manufacturing system, the NLMK Group has become one of the most effective steel companies in the world.

    Information about the NLMK group

    NLMK Group is a vertically integrated metallurgical company, the largest in Russia and one of the most efficient steel products in the world. NLMK Group Metal Production is used in various industries, from construction and mechanical engineering to energy equipment and offshore wind plants.

    NLMK production assets are located in Russia, Europe and the USA. The production capacity of steel companies exceed 17 million tons per year, of which about 16 million tons are located in Russia.

    NLMK demonstrates the most competitive cost of world manufacturers, and the company's profitability is one of the highest in the industry. The company's revenue of 2015 amounted to $ 8 billion, EBITDA indicator - 1.95 billion dollars, net profit - $ 967 million. The NET DEBT / EBITDA ratio is 0.56.

    Ordinary shares of NLMK are traded at the Moscow Stock Exchange (Ticker "NLMK"), global depositary shares - on the London Stock Exchange (Ticker "NLMK: LI"). The company has an investment credit rating at the BBB- level.

    Additional information about the NLMK group on www.nlmk.ru

    Information about the Novolipetsky Metallurgical Combine

    Novolipetsk Metallurgical Plant is the main production site of the NLMK group, the largest steel producer and metal producers in Russia with high value-added, one of the most effective metallurgical companies in the world. The plant is the core of the Unified International Production Chain of the NLMK Group with assets in Russia, the EU and the United States.

    The volume of steel production on the Lipetsk area is about 18% of the total steel production in Russia and about 80% of all steel products of the NLMK group. High-quality NLMK metal products applies in various strategically important sectors of the economy, from construction and engineering to the production of energy equipment and large diameter pipes. According to the results of 2015, the production of steel at the main production site of the NLMK group reached 12.9 million tons - the maximum indicator for more than 80 years of operation of the plant. The production of steel with 100% loading of steel-smelting capacity increased by 2.4% to the level of the previous year. Record indicators were achieved on all resellers of the Novolipetsky Combine.

     

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