VSW Production System Recognized Best in Global Metal Sector

Vyksa Steel Works (AO VSW, Nizhniy Novgorod Region, a United Metallurgical Company (AO OMK, Moscow) facility) has been given the highest grades among metal-making facilities globally for the development of its production system based on an audit by the Toyota Engineering Corporation (ТЕС, Japan). Based on the auditor's classification, the level of maturity of VSW's production system is commensurate with the Toyota Engineering Corporation Silver Medal.

The certificate and the Silver Medal evidencing the outcome of the audit were presented to VSW Managing Director Alexander Barykov by TEC CEO Toshihiro Yamada, at the Workshop on the History of Developing Efficient Production Systems in Russia being held in Vyksa on December 5 and 6, 2017.

"We believe that the level of maturity of Vyksa Steel Works' manufacturing system exceeds both that of the Japanese metal-making facilities and of the entire global metal sector. It is the first facility in the metal sector to attain such impressive results", stated TEC CEO Toshihiro Yamada.

"The status of the most advanced facility from the manufacturing culture standpoint is an indication that we are on the right track. VSW has become a fixture in the largest international pipeline projects and provides product of high quality as evidenced by the trust our customers from different industries place in us. This means that our production system produces tangible results not only for the facility itself but also for the economy of the region and the entire nation", noted VSW Managing Director Alexander Barykov.

"In the contemporary world, efficient production management is a very important component of having a competitive edge. As far as we are concerned, the introduction and the continuous improvement of the production system at all OMK facilities is what this component means. This helps us be successful, work efficiently, manage quality, costs, and productivity effectively. Current success is the result of teamwork by thousands of people. I thank the entire VSW workforce. There is no question that this is a grand achievement that makes us proud and serves as incentive for continued effort", noted OMK Governance Board Chair Natalya Eremina commenting on VSW being awarded the TEC Silver Medal.

Background

VSW Production System Assessment by Toyota Engineering Corporation.

In 2016, an audit by Toyota Engineering demonstrated a high level of production system development. VSW became the world's first metal-making facility to be recognized with a Toyota Engineering Bronze Medal, thereby proving that production system tools are applicable in a complex industry, such as the metal sector.

The Toyota Total Production System was developed between 1945 and 1975. This practice is known in Russia as "lean production". It is based on minimizing losses and continuous process improvement. In 2011, OMK proceeded to implementing the production system at the Vyksa Manufacturing Site. The first system audit took place at OMK facilities at the end of 2015.

Russia's First Conference to Exchange Production System Development Practices.

On December 5 and 6, Vyksa Steel Works is hosting a workshop on the history of developing efficient production systems in Russia. It is being co-sponsored by Vyksa Steel Works, the Toyota Engineering Corporation (TEC, Japan), and the Kaizen Center (Perm). The conference being held in the Town of Vyksa, Nizhniy Novgorod Region, is the first attempt for Russia to aggregate and analyze the history of Russian companies introducing lean manufacture. The conference is attended by representatives of over 35 companies, including OMK partners, such as Russian Railways, Metalloinvest, NLMK Group, etc.