April 16, 2010

Alcoa’s Russian Location Shares Best Practices of the Alcoa Business System

Metinvest Holding representatives visited Alcoa Metallurg Rus in Belaya Kalitva

On April 13, 2010, a delegation from Metinvest Holding’s (Donetsk Region, the Ukraine) Steel and Flat-Rolled Products Division  visited ZAO Alcoa Metallurg Rus (Belaya Kalitva, Rostov Region) to study the location’s best practices of the Alcoa Business System (ABS) implementation. The agenda also included a tour around major production areas as well as an overview of Alcoa’s upgrade results since 2005.

The delegation included representatives of Steel and Flat-Rolled Products Division of Metinvest Holding: Yury Zinchenko – Chief Engineer of Khartsyzsky Tube Plant; Sergey Zakharov – Deputy Chief Engineer and Head of Production Optimization Department, MK Azovstal; Dmitry Lippa – Head of Internal Consulting Group, Steel and Flat-Rolled Products Division; Alexey Goncharenko – Consultant of Internal Consulting Group, Steel and Flat-Rolled Products Division; Vladimir Efremenko – Head of Production Optimization Department, Makeev Metallurgical Plant; Nikolay Greinert – Human Resources Director, Steel and Flat-Rolled Products Division.

Victor Togobetsky, EHS Director, Alcoa Russia, acted as the coordinator of the visit actively by ABS specialists of Alcoa Metallurg Rus and ABS Center of Excellence in Samara. The agenda included an overview of ABS tools both in theory and in practice in the production shop.

Victor Togobetsky, EHS Director, Alcoa Russia: “The fact that external companies acknowledge Alcoa as a business leader and come to learn from us means that we are on the right path in our quest for being the best company in the world and that our business processes have excelled the existing practices of the global metals industry! Of course, we did not manage to highlight all the stability tools and their effect in detail. But we tried to make in the most comprehensible way. The interest that our ABS practices raised in our guests  confirms their effectiveness and extensive applicability.
I am assured that this meeting will help our Ukrainian guests implement the lean production system at their locations”.

Sergey Zakharov – Deputy Chief Engineer and Head of Production Optimization Department, MK Azovstal:
“Everything I have heard and seen today has made a deep impression on me, literary. Behind the today’s ABS implementation level Alcoa’s huge financial and labor investments in this Russian location are obvious. It is very nice to see people’s attitude in this area. Only those caring and engaged in the production can speak about their job in this manner.
There is a point of view that such systems are accounted for western production only. But today we received the evidence that we can learn to manage production systems just as efficiently”.

The Alcoa Business System, or ABS, is an integrated set of principles and tools to advance continuous improvement, cost reduction, and exceptional labor safety. ABS tools are used to organize and manage Alcoa businesses worldwide.
In January 2010 Alcoa Metallurg Rus opened an affiliate of the Russian Center of Excellence in Belaya Kalitva.

Centers of Excellence represent a united network of Alcoa training centers around the globe. They provide theoretical and practical training for Alcoa employees and facilitate implementation of lean production principles of the Alcoa Business System.
The Alcoa Business System has been implemented at Alcoa Russia locations (Samara and Belaya Kalitva) since 2006. In 2008 Alcoa SMZ opened Alcoa Russia’s Center of Excellence (COE) in Samara to train Alcoa Russia employees in ABS tools.

Metinvest Group is a leading metals and mining company in the Ukraine and one of the leading players of metallurgical industry. The company’s manufacturing facilities produce 10,8 million metric tons of steel a year, over 11 million metric tons of rolled metal, over 5 million metric tons of charcoal and over 40 million metric tons of iron ore. Metinvest fully covers the domestic demand and is a key supplier for steel smelting companies in the Ukraine and Europe.

Alcoa first entered Russia in 1993. In 2005 the company acquired two fabricating facilities in Samara and Belaya Kalitva. Since 2005 Alcoa has invested over $750 million to upgrade its Russian facilities.