Nlmk production system. Information technology at nlmk. Strategic management on the example of avtovaz

Following the old tradition, I present information materials that are published by client companies. I got hold of the NLMK Company magazine with a number of interesting articles. I would like to bring to your attention the first of them - an interview with the head of NLMK's production system development department.

NLMK Group is recognized as the most efficient steel company in the world. The key to global success was the implementation of a set of programs to improve operational efficiency within the framework of Production system NLMK. Ekaterina Yeletina, Head of the Development Department of the NLMK Production System, tells about what has been done and what remains to be done.

1. When and how did the implementation of the Production System at the Lipetsk site begin?

Work in this direction was started 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 largest reserves are hidden. We started with improving quality, stabilizing technology, and increasing equipment reliability. Then, as the system developed, the area of ​​distribution expanded, the consciousness of the personnel of enterprises was transformed, new approaches became “our method of work” for people. Currently, NLMK's production system covers the key enterprises of the Group: NLMK, VIZ-Steel, Stoilensky GOK, Altai-Koks, NSMMZ, NLMK-Kaluga. NLMK Pennsylvania is actively involved in new approaches.

2. What tasks do you face this year?

This year, the main tasks of the NLMK Production System are horizontal and vertical dissemination of knowledge (training of personnel of various competency levels) and their consolidation, as well as the autonomous functioning of the Production System tools.

Training in new principles and tools continues, both with the involvement of external consultants and trained “internal trainers” of the enterprise. In general, at the moment, taking into account training by internal trainers, more than 10 thousand employees of NLMK Group have been trained.

As for the consolidation of new approaches, we strive to ensure that the system is self-regulating, does not require “manual control”. This will ensure its sustainability in the future. Last year, for this purpose, departments for increasing production efficiency were created in the divisions, subordinate to directors for directions. The departments selected the most proactive employees from the shops and industries, who became the conductors of new approaches, driving force changes.

This year, a full diagnostics of the functioning of the Production System is carried out by conducting audits in the sinter-blast furnace, steel-making and rolling industries. During the audits, the main problem areas and further development of the system were identified.

3. How effective are the Manufacturing System tools?

Summing up the interim results of using the tools of the NLMK Production System, more than 130 A3 projects are currently being implemented, aimed at achieving target levels for equipment downtime, non-conforming products, material and energy consumption. More than 60% of ongoing projects have reached their target levels as of July 2014. Leading indicators in terms of project efficiency are achieved by steelmaking and repair production- more than 75%. The cost reduction effect from the implementation of a set of programs to improve operational efficiency based on the implementation of NLMK's production system at all sites of the Group amounted to USD 235 million in 2013 against the level of 2012, in the second quarter of this year - USD 63 million against the level of 2013 ...

New approaches became “our way of working” for people

4. Which of the instruments are being developed most actively?

The direction of mapping repairs and technological operations is actively developing. In July, based on the mapping results, a number of measures were developed to optimize the duration of technological operations and scheduled repairs without deteriorating quality by 10–20%. This releases additional time for the production of metal products.

The direction of activating production personnel is developing. So, in the production of cold rolled products in the area of ​​polymer coatings, thanks to the increased attention of the division's management, informing the staff about existing problems and methodological support of the departments for increasing the efficiency of rolling production, in July the personnel of blue-collar professions developed 10 initiatives - proposals aimed at improving product quality, ensuring stable work equipment, reducing the consumption of raw materials and materials.

It is important to note the expansion of the NLMK Production System not only to the main production facilities, but also to the functional areas of the enterprise, such as logistics, energy efficiency, health and safety. For example, the Directorate for Operational Efficiency and Logistics Services are jointly implementing a project to optimize the length of time that rolling stock stays on NLMK's premises. The goal of the project is to reduce the volume of work in progress. According to preliminary estimates, reserves for reducing the duration of transportation finished products inside NLMK are up to 30%.

5. What ideas and principles of lean manufacturing is NLMK primarily targeting?

First, I would like to clarify that the NLMK Production System does not copy any of the existing production systems, be it LEAN, 6 Sigma or something else. We select the principles and tools of the world's leading enterprises that are most suitable for solving specific problems in a given situation, and we adapt them to the conditions of the Group of Companies. As for the principles of the Production System, similar to the LEAN philosophy, this is, of course, transparency and objectivity of the information used, continuous improvement, consistent identification and elimination of all types of losses and, most importantly, the involvement of personnel of all levels and areas of activity in joint problem solving.

6. Is it difficult to promote the Japanese system at a Russian enterprise? Still, you can stumble upon a misunderstanding.

We are not introducing the Japanese system, but its principles, adapted to work in our enterprise. Regularly receiving feedback from the shops, we, of course, know that there is some kind of misunderstanding. Indeed, in any team there are always optimists who believe in the success of changes, and pessimists who are ready to blame a certain "Russian mentality" for failures. But with the experience of successful projects, people's attitudes gradually change, they have faith in the effectiveness of our methods and the desire for improvement.

We are not introducing the Japanese system, but its principles.

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

It cannot be said unequivocally which is better: revolutionary changes with a quick effect or evolutionary ones with a stable effect in the long term. It all depends on the specific goals. However, in my opinion, drastic changes can cause misunderstanding and rejection in people. The production system is slowly but surely changing the psychology of people and makes the process of continuous improvement a "formula for life."

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

Yes, this procedure does indeed resemble the Soviet innovation system. However, our option for submitting initiatives is simpler in terms of registration and faster in terms of incentives. Each employee, with an idea for improvement, can fill out a one-page form in the shift-meeting room and submit it to the department's technical council. If the council approves the initiative, then the remuneration is up to 2 thousand rubles. can be obtained immediately - only for submitting an offer. If the event subsequently gives a positive effect, then the employee will receive an additional remuneration of about 10 thousand rubles.

In any team, there are always optimists who believe in the success of changes.

9. It is believed that it will take 5-6 years for the system to be extended to the entire production. Will this justify itself in the current environment, when market conditions change every quarter?

A radical restructuring can be quick if we give priority to such tools of the Production System as A3, mapping, and the introduction of new materials. For a lasting effect, each new change must become a "way of thinking" and a "way of working." 5-6 years and even more is a normal period for the formation of "new habits" and embedding new philosophy into production.

10. A certain effect has been achieved, but it must not only be preserved, but also developed further. What else needs to be done to make the system work?

In 2015, it is planned to further transfer the principles and tools of the Production System to all the main processes of the Group's enterprises, to define within each main line of business a functional to improve efficiency, to adapt tools to increase efficiency to the specifics of areas. Further coordination of the Production System with the budgeting process will continue.

As for the long-term perspective, our main goal, of course, is to make the company truly effective: to make the customers, shareholders and employees of the company happy.

Interview: Natalia Sviridenko, Yana Larina

3 facts about the NLMK production system

• the implementation of the Production System is one of the factors that helped NLMK Group become the most efficient steel company in the world;
• in the second quarter of 2014, the effect of cost reduction from optimization programs at all sites of the Group amounted to USD 63 million compared to 2013;
• More than 10 thousand NLMK Group employees were trained on the principles of the Production System, taking into account training by internal trainers.

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

Who might be interested in this

Introduction

1 Theoretical aspects of managing large industrial enterprises

1.1 Organization management system

1.2 Organizational structure firms

1.3 The parent company as an organizational and economic center of management

2 Characteristics of the management of the activities of OJSC "NLMK"

2.1 Organizational and economic characteristics of OJSC "NLMK"

2.2 Management structure of NLMK

2.3 Structure of the NLMK Group of Companies

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 for the formation and use of the resources of the organization to solve the problems facing it. Management is not equivalent to the entire activity of the organization to achieve its ultimate goals, but includes only those functions and actions that are associated with the formulation of tasks, with the coordination and establishment of interaction within the organization, with the induction of employees to carry out the necessary production and other activities.

The content and 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, field of activity (production of goods, provision of services), level in the management hierarchy (top management, middle-level management, lower management level), the functional process within the organization (production, marketing, personnel, finance) and many other factors. However, all these management processes are characterized by the presence of generally homogeneous activities.

The relevance of the topic of the course work is that the organizational mechanism of company management has many components, but must necessarily represent unified system, in which the functioning of individual elements is interdependent and interdependent. There are especially many problems in the field of management organization at present in Russia due to the peculiarities of the current state of its transitional economy.

Organizational management is a system of management actions, techniques and procedures aimed at implementing the functions of an organization, as well as the theory and practice of management, based on the priority of corporate principles and solving organizational problems. It includes: the design, creation and improvement of organizational structures, a clear delineation of functions, the distribution of organizational tasks, duties, rights and responsibilities of structural units and individual performers, the establishment of relationships between them, strict adherence to the established rules of organizational behavior, management decisions.

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

To achieve this goal, the following tasks were identified and solved:

consideration of the organization's management system;

study of the organizational structure of enterprise management;

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

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

The subject of the course work is the examination of the enterprise management system. The object is NLMK OJSC.

The informational basis for writing a term paper was the work of domestic authors on the topic under study.

1 Theoretical aspects of managing large industrial enterprises

1.1 Organization management system

Organizational management is an ongoing process of influencing the performance of an employee, group or organization as a whole for the best results in terms of achieving a set goal. “To manage is to lead an enterprise to its goal, extracting maximum opportunities from all the resources at its disposal”, - this is how G. Fayol described the management process.

The management process provides for coordinated actions that ultimately ensure the implementation of a common goal or a set of goals facing the organization. To coordinate actions, there must be a special body that implements the management function. Therefore, in any organization, the governing and the managed parts are allocated. The scheme of interaction between them is shown in Figure 1.

A - control information, B - execution information.

Figure 1 - Interaction between the managing and the controlled part of the business organization

The management part includes the directorate, managers and information departments that support the work of the management team. This part of the organization is usually called the administrative apparatus. The input action and the final product of the control part is information. Controlling link - necessary element any organization.

At this level, management decisions are made as a result of analysis, forecasting, optimization, economic justification and the choice of an alternative from a variety of options for achieving the set goal. A managerial decision is made in order to overcome the problem that has arisen, which is nothing more than a real contradiction that needs to be resolved.

Note that a managerial decision is the result of collective creative work. It is always generalized. Even when the leader independently makes a decision, the collective intelligence in an explicit or implicit form influences the process of developing an individual management decision.

The controlled part is the various production and functional divisions involved in supporting the production process. What goes into the input of the managed part and what is its output depends on the type of organization. So for example, if we are talking about a business organization that manages finances, say, a bank, then cash or their substitutes (securities, bills of exchange, shares, etc.) are received at its entrance. The output is information on the management of financial flows and cash. In many cases, the bank makes a cash payment.

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

creation of a scientific foundation that replaces traditional, practically established methods of work;

selection and training of employees based on scientific criteria;

interaction between the administration and performers for the purpose of practical implementation of a scientifically developed system of labor organization;

equal distribution of labor and responsibility between the administration and performers.

Later G. Emerson formulated 12 principles of labor productivity related to the level of organization management, defining the true mission and purpose of managerial labor:

clearly set goals;

common sense;

competent advice;

discipline;

fair treatment of staff;

fast, reliable, complete, accurate, permanent accounting;

dispatching;

rationing of operations;

effective planning;

normalization of working conditions;

standard written instructions;

performance rewards.

The tasks of managing an organization were most clearly formulated by G. Fayol, a student and follower of F. Taylor and one of the founders of the scientific theory of management. He identified 6 areas of the enterprise that need to be managed: technical, commercial, financial, accounting, administrative and security. In his opinion, the most characteristic tasks of the management link are:

planning the general direction of action and anticipating the final result;

"Organizing", i.e. distribution and management of the use of material and human resources;

issuing orders to maintain the actions of employees in an optimal manner,

coordination of various actions to achieve common goals;

development of standards of conduct for members of the organization and implementation of measures to comply with these standards;

control over the behavior of members of the organization.

Fayolle formulated the characteristic features of the management process at the beginning of the twentieth century. Since then, significant changes have taken place in the activities of organizations. Their structure has become more complex, the scientific and technological revolution in the field of natural sciences has led to the emergence of new complex technologies, the rapid introduction of computer technology in various areas of human activity has noticeably influenced the technology of making managerial decisions and the procedure called "control over the execution of decisions." The technology of financial management has changed. Recently, many transformations in this area are associated with the introduction of electronic payment systems and electronic money substitutes.

Thus, the organization's management system includes the totality of all the services of the organization, communications between them and processes.

1.2 Organizational structure of the company

The organizational structure of the company is aimed primarily at establishing clear relationships between the individual divisions of the company, the distribution of rights and responsibilities between them. It implements various requirements for improving the management system, which are expressed in various management principles. The organizational structures of management of industrial firms are very diverse and are determined by many objective factors and conditions. These may include, in particular, the size of the production activities of the firm (large, medium, small); the production profile of the company (specialization in the production of one type of product or a wide range of products in various industries); the nature of the products manufactured and the technology of their production (products of the extractive or processing industries, mass or batch production); the scope of the firm (focus on local, national or foreign markets); the scale of foreign activities and the forms of its implementation (the presence of subsidiaries abroad: production, sales, etc.); the nature of the merger of the company (concern, financial group).

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

The organizational structure of a firm determines its composition and subordination system in the general hierarchy of the firm's management.

Firms in foreign countries may consist of one firm, or may include a significant number of companies united by the so-called participation system, i.e. by participating in the equity capital of other firms. The essence of the participation system is that in order to control a joint-stock company, it is sufficient to own a certain share of its shares. Hence the different types of control:

Through full ownership, when all or almost all of the shares of a firm are owned by one person, group of persons or one firm;

Through the majority of shares, implying ownership of 51% of the issued shares;

Through the mechanism of subordination, when the possession of a majority of the shares of one firm, which in turn owns a controlling stake in another firm, entails control over this firm;

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

According to UN experts, over 60% of overseas branches and subsidiaries owned by American, British and Japanese firms are fully owned by them, and more than 30% are controlled companies with predominant shareholdings. According to other estimates, 80% of related companies of American firms and 75% of British ones are either wholly owned by the parent companies or controlled by them through the majority of shares. In turn, 58% of direct investments of Western European TNCs in the United States are in their wholly owned subsidiaries and 34% in companies where they own more than 50% of shares. At the same time, it should be noted that in recent years the expansion of the ownership of TNCs, in particular American and Japanese ones, was largely due to the acquisition of stakes in mixed-ownership companies, especially in developing countries.

It is important to keep in mind that the mere fact that one company participates in the share capital of another does not always indicate the existence of a relationship of control and subordination. Control over another company is provided only by owning a controlling stake in its shares. V practical activities joint-stock companies set a certain minimum for the controlling block of shares, which, due to the dispersion of shares between the mass of small and medium-sized shareholders, has noticeably decreased. Usually, to control a large industrial corporation, it is enough to own 10% of its shares, and sometimes even less.

However, the concept of control is not simple and is not limited to the concentration of shares in the hands of one or more companies. Controlling the activities of a firm means determining its strategy, policies, the choice of long-term goals and programs, and having a decisive influence or power.

The methods and degree of control depend on a combination of many factors, among which the forms of ties and dependences on the parent company and ties with other related companies are important. It is characteristic that the management control on the part of the parent company over the activities of related firms goes largely through the establishment of production, financial, technological, scientific and technical, economic and other types of ties.

The presence of control over a particular company is usually judged on the basis of a combination of various indicators, including financial, personal and other connections. Using the participation system, the largest firms have formed the most complex complexes of interconnected 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 foreign funds to establish control of a stronger company over a weaker one.

Holding companies play an important role in modern conditions, i.e. holding companies created for the purpose of owning controlling stakes in securities, mainly of industrial firms. By controlling an industrial company that has participation in a number of other firms and financial institutions, it is possible to fully or partially control the entire chain of these companies.

The system of participation is usually held together by a personal, or personal, union. Personal union is manifested in the fact that the same persons occupy leadership positions (chairmen and members of the board, directors and managers) in various companies and banks. Personal union has become extremely widespread. It serves as one of the main methods of expanding the sphere of influence of large companies. It is often used not only as a supplement to the participation system, but also as an independent means of establishing control over other firms. Personal union also acts as one of the main ways of increasingly active merging of banking capital with industrial capital.

The firm that controls other companies is usually referred to as the parent company or head office. Depending on the size of the capital owned by the parent company, as well as the legal status and the degree of subordination, firms that are in the sphere of influence of the parent company can be divided into the following types: branches; subsidiary companies; associated companies (associated company - in England, affiliated company - in the USA).

The branch does not enjoy legal and economic independence. It does not have its own balance sheet, charter, acts on behalf of and on behalf of the parent company, and usually has the same name. The resolution of business issues of the branch depends on the parent company. Almost all of the share capital of the branch belongs to the parent company.

Subsidiaries are legally separate. The conclusion of transactions and all documentation of subsidiaries (preparation of balance sheets) are kept separately from the parent company. They have sufficient financial base and property necessary for carrying out independent economic activities. Subsidiaries hold meetings of the board and general meetings of shareholders separately from the parent company. The parent company assumes no responsibility for the obligations of its subsidiaries. At the same time, the parent company exercises strict control over the activities of its subsidiaries, which ensures the ownership of a controlling stake. This control consists not only in overseeing and coordinating economic activities, but also in determining the composition of the board, appointing directors, who, in turn, are obliged to accept instructions from the controlling company and report to it.

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

The associate is legally and economically independent and not under the control of the firm that owns its shares.

Using the participation system, the largest firms create the most complex multistage complexes of interconnected companies.

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

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

The main feature of a joint venture (enterprise) is ownership of the final product. On this basis, a joint firm is distinguished from other types of joint business activities. This characteristic forms the basis and determines the order of settlements of partners.

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

1.3 The parent company as an organizational and economic center of management

The strengthening of the processes of concentration and centralization of production and capital on a national and international basis, which occurs under the influence of an objective trend towards the internationalization of economic life and the scientific and technological revolution, leads to the growth of international production and economic complexes - TNCs with huge financial, industrial, scientific and technical resources. and the broadest foreign production and sales base. They are characterized by a complex system of internal connections and interdependencies between individual units for

lines of production, financial, scientific and technical, technological, sales and other types of relations, subordinated to a single internal planning.

The organization of in-house management is a constantly evolving process that corresponds to the changes taking place in the material production of TNCs, which entail the strengthening of ties between its individual divisions. This is accompanied, in particular, by changes in the organizational structure, development and deepening of management functions, improvement of the entire mechanism of functioning and development of TNCs. At the same time, new, more complex organizational forms appear, designed for a more complete implementation of the most important management functions and designed to facilitate the establishment of such interaction between TNC divisions, which would ensure the achievement of its tasks.

The parent company plays the leading role in determining the forms and nature of the relationships between the individual divisions of TNCs and depends on the type and characteristics of its activities as an organizational and economic center of management.

The parent company carries out a purposeful, continuous, organizing influence on all divisions of the international structure of the company, which are related, subordinate (branches, subsidiaries, grandchildren) and associated companies, united with the parent company by the title of ownership and the control mechanism.

As an organizational and economic center of management, the parent company develops specific goals and the general directions of the functioning and development of the company as a whole and its structural divisions; determines the means, forms and methods to ensure the achievement of these goals; monitors the fulfillment of its instructions and makes adjustments to them; controls the financial activities of all divisions. Therefore, the main purpose of the management activities of the parent company is to ensure consistency, interconnection and interaction between the various structural units that make up the parts of TNCs as a whole. This is achieved through the use of such important management functions as marketing, planning, control, management, organization, helping to maintain stable functional relationships between all divisions of TNCs. These functions are performed by a special management apparatus of the parent company, the structure and functions of which depend on the nature and characteristics of the firm as a whole.

The objective economic basis that provides the parent company with the role of the organizational and economic center of TNC management is its ownership of the means of production.

The socio-economic relations that develop within TNCs are primarily associated with the type of property, which is of a private nature, with the disposal and possession of material assets by the parent company, which acts as a single center for the management and disposal of this property. It is property that binds all economic or production relations within the TNC into a single whole. It acts in the form of the parent company's share capital and its participation in the share capital of the subsidiaries.

The parent company, which acts as the organizational and economic center for managing the activities of TNK, invests capital in subordinate companies by acquiring blocks of their shares. Possession of a controlling stake provides the parent company with the right to control the activities of the subordinate company. The methods and degree of control can be different and depend on a combination of many factors, among which the form of ties and dependences of related companies from the parent is important.

Management control on the part of the parent company over the activities of related firms is largely carried out along scientific and technical, production, technological and other lines. The means and methods of centralized management of TNCs' activities largely depend on the form of organization of the parent company, which acts as an operational-production or holding company. These forms of its organization have fundamental differences.

The parent operating-production company itself is engaged in economic activities, and in this case, centralized management covers all aspects of the production process, starting from development new products and ending with its implementation. Thus, in a production company, the object of management is the production of material values ​​and everything connected with it. At the same time, financial activity serves as a means of management and control. The management methods used by the parent production company cover all aspects of the economic activities of TNC subsidiaries.

The parent holding company itself does not engage in production activities, but only concentrates its controlling stakes manufacturing companies, which have legal and economic independence, but are financially subordinate to the holding. It exercises management within TNCs mainly by methods of financial influence, setting for each related company the main financial indicators: profit margins, production costs, amounts and methods of transferring dividends, methods of transferring profits. As well as financial leverage impact, other means are used. A centralized management tool can be, for example, technical policy, i.e. concentration of research and technical development in a single center of the parent company and targeted provision of its results to subsidiaries. Often, such tools are used to distribute the product range between subsidiaries and divide the sales markets between them.

The creation of parent companies in the form of holding companies is largely due to the fact that many of these companies were formed through the merger of two or more large firms, and the form of the holding provides in this case greater economic independence of the merged companies and at the same time makes it possible to exercise financial control over their activities.

The form of organization of the parent company leaves an imprint on the internal corporate governance structure, especially if it is decentralized. In those TNCs where the parent company acts as an operational-production company, production departments are usually created in the form of subsidiaries. They are endowed not only with economic, but also legal independence and are more free in determining the strategic plans of their development. This is most typical for American oil companies, where production activities are carried out by subsidiaries specialized in the production of certain products (oil, gas, chemical goods) or on a regional basis. In those firms where the parent company is a purely holding company, operational holding companies can be created to manage the activities of manufacturing subsidiaries, the purpose of which is to concentrate shares in manufacturing firms in a particular region or industry, coordinate their economic activities, finance, provide consulting and technical services.

The formation of multistage holdings is typical for companies in Western European countries.

The role of the parent company as an organizational and economic center of management also largely depends on whether it is single-national or multinational in terms of capital ownership. In single-national TNCs, the organizational and economic center of management is the parent company, which is national in terms of capital and control. This means that a controlling stake in the parent company belongs to the entrepreneurs of the home country, i.e. country of registration of the parent company. The ownership of a certain part of the shares by entrepreneurs of other countries, in principle, does not change the matter, since the parent company does not share control with them.

A feature of multinational TNCs is that a controlling stake or the entire share capital of the parent company belongs to entrepreneurs of two or more countries.

The specific organizational structure of multinational TNCs depends on the form of their formation. In cases where the form of association is the exchange of shares between two different national firms that retain their legal and economic independence, two parent companies remain at the head of the TNC, each of which is registered in its own country and is subject to its legislation. The organizational and economic center of such a company is a specially established joint management body, which is formed by appointing administrators on each side and exchanging shares of controlled companies in the established ratio. Such a body exercises centralized operational management mainly by financial control methods and distributes profits between the controlled firms of both parent companies. It also acts as a focal point for the coordination and development of overall policy and operational leadership throughout the firm. These forms of organization are often intertwined, and are also supplemented by various kinds of agreements: on the distribution of total profits, on the division of sales markets or areas of activity, on the exchange of patents, trademarks, technical knowledge and experience, on financial and scientific and technical cooperation.

When there is a complete merger of the capital of two different nationalities, then one joint parent company is formed, registered in the country of one of the founders. In this case, the shares are distributed among them on a parity basis, and the parent company itself acts as the organizational and economic center of management.

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

Each subsidiary, located in the home country of the parent companies or abroad, must obtain approval for any important event that it wishes to carry out as part of the overall strategy of the group. Financial control is exercised by monitoring the production costs and profit levels of each subsidiary. However, the responsibility for making a profit is also assigned to the management groups - commodity and regional, which exercise control over all the companies of the group. The profits received by subsidiaries are redistributed by the parent companies on the basis of an agreement between them providing for the payment of equal dividends to the shareholders of these companies.

The presence of two holding companies, each of which is registered in its own country, makes it possible for production subsidiaries to maintain operational independence, to have a board of directors reporting to the shareholders of their country, and at the same time to effectively use differences in national legislation in different countries, in particular, on issues of taxation, export of capital and redistribution of profits.

Each TNC, where the result of the merger was the creation of a multinational parent company in terms of capital, acting as the organizational and economic center of management, has its own specific features in the organization of management and control.

Subsidiaries are practically autonomous in dealing with the most important issues of production activities, in particular, specialization of production, updating the range of products, hiring work force... Control over their activities is carried out by the parent holding company by methods of financial influence aimed at obtaining the projected profits.

2 Characteristics of the management of the activities of OJSC "NLMK"

2.1 Organizational and economic characteristics of OJSC "NLMK"

Novolipetsk Metallurgical Plant is one of the largest metallurgical plants in the world and the third largest steel producer in Russia. The company specializes in the production of a wide range of steel and sheet products.

Open Joint Stock Company Novolipetsk Metallurgical Plant was registered by the decree of the Head of Administration of the Levoberezhny District of Lipetsk dated January 28, 1993 No. 50 (certificate of state registration No. 5 G dated January 28, 1993).

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

The company was founded for an unlimited period of activity. OJSC NLMK may be liquidated in accordance with the provisions of the Articles of Association of OJSC NLMK or 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 in Europe - the 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.

NLMK's legal address: 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 par value of 1,000 rubles and into 292,311 type B preferred shares with a par value of 1,000 rubles.

The number of shareholders registered in the register is 22,347, including 49 legal entities. Major shareholders owning more than 5% of the voting shares of the company:

CJSC Credit Suisse First Boston Securities, Moscow;

JSCB "International Finance Company", Moscow;

CJSC "Eastern Investment Company", Moscow;

LLC "Rosinterbusiness", Moscow;

CJSC "Kasmet", Moscow;

LLC "Agristall", Moscow;

LLC "Lincher", Moscow.

NLMK OJSC is a full-cycle metallurgical enterprise. The production facilities include: sinter production, coke production, blast furnace production, steelmaking, production of hot-rolled and cold-rolled products, rolled products with zinc and polymer coatings.

NLMK's mission is to be the main supplier of quality products to consumers and a leader in terms of profitability in the global steel industry.

The main purpose of the activity is to make a profit. The strategic goals of NLMK are:

Maintaining and strengthening the leading position in terms of profitability among steel companies;

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

Using the main competitive advantage of the Company, which is low-cost steel production, by increasing and modernizing existing capacities;

Search for opportunities for the development of the Company through further implementation of the vertical integration strategy in the raw materials segment and in the segment of high-quality steel-rolling assets;

Maintenance and further development of high standards of corporate governance, social responsibility and security environment.

NLMK's production is aimed at meeting the demand in different areas consumption of ferrous metals. This determines the wide range of NLMK's product mix. The main stake of the Novolipetsk plant is on improving product quality, improving consumer properties and expanding the range of products.

Currently, the products manufactured by the Novolipetsk Combine include: pig iron, slabs, hot-rolled and cold-rolled steel, galvanized steel and steel with polymer coatings, rolled products for enameling, electrical steel and other products. Flat products are made from low-carbon, carbon and low-alloy steel grades of various chemical composition, strength groups and stamping categories.

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 manufactured according to foreign standards exceeds 70%.

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

The main activities of the Company are:

production and sale of ferrous metallurgy products;

domestic and foreign trade;

utilization, storage, movement, placement, burial, destruction of industrial and other waste;

industrial, housing and communal construction;

production of building materials, structures and products, etc. other.

NLMK is currently a highly efficient company with a balanced development strategy.

In addition to expanding its own production base, the Company's strategy envisages strengthening its positions in key sales markets by acquiring high-quality rolling facilities there.

NLMK Group manufactures a wide range of high quality products. The parent company of the Group, being an enterprise with a full metallurgical cycle, produces pig iron, slabs, hot and cold rolled steel in sheets and coils, galvanized steel and steel with polymer coatings, as well as electrical steel.

2.2 Management structure of NLMK

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

In accordance with the Corporate Governance Code, the main principles in this area are:

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

2. Equal treatment of all shareholders;

3. Striving to ensure the exercise of the rights of shareholders to participate in the management of the Company;

4. Respect for the rights of third parties;

5. Adherence to a unified corporate policy in relation to subsidiaries and affiliates and other legal entities, of which NLMK is a participant, founder or member;

6. Policy of information openness and transparency;

7. Business Conduct Policy;

8. Ensuring compliance with applicable laws and international corporate governance standards.

Realizing the importance of corporate governance as a factor in the Company's investment attractiveness, NLMK is constantly improving its corporate governance system in order to comply with the best international practices.

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

Figure 2 - Management structure of OJSC "NLMK"

The supreme governing body of OJSC NLMK is General meeting shareholders. The Board of Directors carries out general management of activities and determination of the Company's development strategy for the long term. Executive bodies - the President (Chairman of the Management Board) and the Management Board, carry out day-to-day management of current activities.

The Independent Auditor and the Audit Commission exercise control over the financial and economic activities of the Company. The audit of financial statements is mandatory in accordance with the requirements of Russian legislation and generally accepted audit standards in the United States.

Along with the Corporate Governance Code and the Charter, the Company has corporate documents governing the activities of management and control bodies: the Rules 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.

The main shops of NLMK: blast furnace shop 1 (DC-1); blast furnace shop 2 (DC-2); oxygen converter shop 1 (KKTs-1); oxygen converter shop 2 (KKTs-2); sinter production (AGP); coke-chemical production (CCP); nitrogen fertilizer production (ATP); sheet-rolling shop 1 (LPC-1); sheet-rolling shop 2 (LPC-2); sheet rolling shop 3 (rolling shop-3); sheet-rolling production (LPP); sheet rolling shop 5 (rolling shop-5); electric arc furnace shop (ESPC); ferroalloy shop (FSC); steel workshop (SLC); Instrumentation and control (instrumentation and automation) and others.

2.3 Structure of the NLMK Group of Companies

Stoilensky GOK OJSC. The supplier of iron ore is located 350 km from NLMK, in the area of ​​the Kursk Magnetic Anomaly (KMA) deposits. The close location of the source of iron ore raw materials minimizes the cost of delivering iron ore products to the main production site.

OJSC Altai-koks. The coke producer is located near sources of coal raw materials (Kuznetsk coal basin), in the Altai Territory.

Zhernovskoe-1. The coking coal deposit is located 70 km from Altai-koks.

LLC "VIZ-Steel". The steel rolling company and the main production facilities of the Maxi-Group acquired at the end of 2007 are located in the Ural region of Russia. LLC VIZ-Stal is a leading manufacturer of cold-rolled electrical steel and the largest manufacturer of transformer steel in Russia. The share of VIZ-Steel in the world production of transformer steel is about 11%. More than 80% of products are shipped for export

Open joint-stock company "Studenovskaya joint-stock mining company" (JSC "Stagdok") is an enterprise of the mining industry. The company is currently developing the Sitovskiy area of ​​the Sokolsko-Sitovskiy flux limestone deposit. Open pit length - 1.5 km, width - 0.5 km, average depth 46 m industry. The main types of products are flux and process limestone of fine, medium and coarse fractions.

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

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

DanSteel A / S. DanSteel is based in Denmark. Equipped with the most modern equipment, its production volume is more than half a million tons of hot-rolled plates per year. This acquisition (in 2005) was an important step towards strengthening NLMK's position in the global steel market. At present, the enterprise produces over 0.5 million tons of heavy-plate products per year. The main production assets of the company include a rolling mill, a shipping area and its own seaport for receiving slabs and shipping finished products. The company's products are shipped to consumers in Germany, Denmark, Sweden, Great Britain, Norway, France, etc. DanSteel A / S is one of the significant players in the shipbuilding steel sheet market. Thus, in particular, 25% of the needs of the North German shipbuilding sheet market is covered by supplies from DanSteel A / S. DanSteel A / S continually strengthens its core competitive edge by:

reducing the time for order production and shipment of goods to consumers by introducing a new production planning and management system, optimizing internal logistics and updating the company's transport fleet;

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

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

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

Production group.

Carsid S.A. - a producer of slabs that are consumed by the Group's companies.

Duferco Clabecq S.A. - producer of medium thickness and heavy steel sheets.

Duferco La Louviiere S.A. - a manufacturer of hot-rolled, pickled, cold-rolled steel, as well as wire rod.

Duferco Coating S.A., which has two production assets: Beautor, a manufacturer of electro-galvanized sheets used in the automotive industry; Sorral S.A., manufacturer of galvanized coils and sheets and coated products for the construction and automotive industries.

Duferco Farrell Corporation is a manufacturer of hot rolled, pickled and cold rolled coils and sheets.

Sharon Coating LLC is a manufacturer of galvanized steel. Sharon Coating joined SIF in June 2007. The company's facilities, including 3 continuous hot-dip galvanizing units with a total capacity of 1.2 million tons per year, are located at a single production site in Pennsylvania.

Verona Steel S.p.a. - manufacturer of plates and ingots.

Distribution group.

Duferco Transformation Europe S.A., France. The DTE group includes 9 service centers located in France, Belgium and the Czech Republic. DTE Group companies carry out pre-sale processing and distribution of products.

Steel Invest Trading S.A. (SIT), Switzerland is a trading company that sells raw materials, consumables and semi-finished products to SIF companies and sells their finished products.

SIF Group companies manufacture products used in the automotive, construction and industrial industries. The main sales 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 the joint venture was in line with NLMK's development strategy, which envisages expanding its presence in the strategically important European sales market, as well as increasing sales of products with higher added value. In 2007, 329 thousand tons of slabs were supplied to SIF enterprises. In the future, NLMK plans to expand its cooperation with SIF enterprises and increase slab deliveries by 2012 to 3,600 thousand tonnes. In addition, in 2007, NLMK Group sold 147 thousand tonnes of coke to SIF (Carsid, Steel Invest Trading).

2010 turned out to be another favorable year for global steel producers, despite the fact that it was characterized by some

a slowdown in the growth rate of the apparent consumption of metal products (6.8% versus 8.8% in 2009).

NLMK takes an active part in integration with foreign companies. For example, 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 its position in the largest and a strategically important market that consumes about 30% of the world's transformer steel production, and TBEA is a stable supply chain for the main raw materials for the production of transformers.

In the future, NLMK will strengthen its position in the world 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 management structure of large industrial firms is formed under the influence of various factors. On the one hand, these are the requirements put forward by an increase in the scale of production, an increase in its diversification and the complication of products; expansion as a result of the internationalization of the territorial disunity of production. On the other hand, it bears the imprint of the historical characteristics of the formation and development of specific firms. This is directly affected by the prevalence of traditionally established types of companies in individual countries; the difference in the legislation governing the economic activities of firms; the relationship of firms with the military-industrial complex, etc. Although each of these factors has an independent significance, it is their combination that determines the features of the organizational structure of both a particular firm and firms in individual countries. Therefore, although there are many common features inherent in the management structure of large firms, it is nevertheless important to take into account and study the specific features of the organizational structure that have developed in specific conditions.

To the greatest extent, the features of the management structure of modern TNCs are determined by the historical conditions of their formation and development and bear the imprint of the type of enterprises that took shape at the early stages of the firm's development. This, in particular, finds expression in the nature of the relationship between the production departments of a 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 have acquired many features in common with American firms in the application of the principles of decentralization in management. This is due to the intensification of the processes of concentration and centralization of production under the influence of the scientific and technological revolution and the intensification of competition in the world market. First of all, there is an increase in the size of Western European and Japanese companies, which are close to the American ones in terms of turnover.

The growth in the scale of economic activity led to the reorganization of management carried out by the majority of Western European companies and the use of American experience in the formation of the organizational structure of management. Of great importance is the departure of both Western European and Japanese firms from the narrow specialization of production and their transformation into highly diversified complexes. This was reflected in the management structure, since within the framework of the companies, production departments or groups of departments were created for 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 of management, which arise primarily from the historical conditions of 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 as, for example, General Motors, Chrysler, Ford Motor, industrial enterprises that are part of production departments are deprived of any independence. The directors of such enterprises are completely subordinate to the orders of the management of the production departments to which they belong. In particular, this concerns the issues of removing old products from production and switching to new ones, setting prices, purchasing equipment, etc. The production department in such companies distributes orders between enterprises, carries out material and technical supplies, monitors the implementation of production plans, controls the implementation of such functions of factories, such as planning, quality management, equipment maintenance, staffing, etc.

In companies in Western European countries and in Japan, production units play a slightly different role. With the transition to a decentralized form of management, production departments play the role of coordinators of the activities of their subsidiaries, which have operational, economic, financial and legal independence. At the same time, subsidiaries themselves are not only profit centers, but also centers of responsibility. The latter means that they independently develop strategic directions of production activities within the framework of the product range assigned to them, conduct research and development, identify potential consumers of products, carry out their production and sale, provide the necessary capital investments for the modernization of production, organize the material and technical supply of their enterprises. ... As profit centers, they are fully responsible for the rate of return set by the management of the concern, maintain independent balance sheets and have separate profit and loss accounts, which are compiled in a single form and included in the consolidated balance sheet of the company. The functions of the production department include control and coordination of the activities of the subsidiaries assigned to it, usually in the following most important areas: research, production, sales, finance.

Due to the close ties between individual companies of a production nature, Western European concerns (especially German, French, Swedish) are usually referred to as "industrial groups" or simply "groups", regardless of whether they are headed by operational-production companies or holding companies.

The presence in the majority of German concerns of a large number of legally independent subsidiaries with a high degree of operational independence, territorially disunited and at the same time highly specialized in the production of products assigned to them, requires the coordination of their activities through centralized management functions that provide a unified and comprehensive management of the activities of subsidiaries. companies and their subordination to a single goal set by the top administration.

The organizational structure of American, Western European and Japanese companies is very diverse and almost every company has its own distinctive features.

In the 80s, significant changes were outlined in American management, which led to the transition to new management structures and the redistribution of priorities in making managerial decisions. At the forefront in the largest companies are now putting 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, not only meeting the needs of the market, but also adapted to the requirements set forth by the legislation of their country and other countries in the field of price regulation, investment control, environmental protection, safety. in operation, energy conservation, as well as numerous measures developed within the framework of international economic organizations and approved by national authorities. These and other trade and political measures have led to significant changes in the conduct of the economic policies of many American companies.

A characteristic feature of the entrepreneurial activity of American companies in modern conditions is the systematic restructuring of organizational structures as a result of the intensification of the process of takeovers and mergers.

The following are put forward as the goals of such reorganizations:

further diversification of production through the takeover of a company that has accumulated significant scientific, technical and production experience, complementing 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;

changing strategic priorities to gain a foothold in new markets, increasing flexibility in the company's operational activities.

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

It should also be noted that the American management style differs significantly from the Japanese one. Thus, in American companies, the responsibility of each employee is clearly defined and each manager is personally responsible for meeting the established indicators in the context of directive planning, while in Japanese companies collective responsibility is provided for developing, making and executing decisions. Another feature is that overseas subsidiaries of American corporations are more free to use the capital, technology, organizational and managerial experience of the parent company. In legal terms, the vast majority of foreign firms of American TNCs are subsidiaries subject to local laws, while Japanese TNCs are dominated by branches with 100% Japanese capital and full control over their activities by the parent company.

A feature of the organization of management in Japanese companies is that they attach paramount importance to improving the style and methods of management. Japanese companies tend to be more centralized than American and Western European companies. However, within the framework of high centralization, the principles of coordination, coordination of actions, development and adoption of decisions after their thorough preliminary discussion and approval by the executive link are widespread. It is believed that the Japanese style of management, based on making group decisions, is more effective because it involves:

participation of the middle management level in the development of decisions by agreeing and discussing draft decisions not only with managers, but also with the personnel of the relevant departments;

observance of the principle of unanimity in decision-making;

lack of clear job descriptions defining the scope of the employee's responsibilities; it is assumed that the content of the work of each employee may constantly change and they are obliged to be able to perform any work within the framework of their competence;

the use of a specific personnel management system, which mainly provides for life-long hiring of employees, career advancement and higher wages for seniority, social security for old age and illness;

continuous improvement of the art of management, including the quality of products, the effectiveness of marketing activities; control over the course of the production process.

Japanese TNCs concentrate most of their attention on the functioning of the parent company, however, they tend to increase their attention to the activities of the corporation as a whole. Decisions on the appointment of managers to senior positions, the definition of the range of products, the volume of capital investment and production, the development of new products are made by the senior management of the parent companies or in conjunction with the senior management of the branch. The parent company and its senior management have also become more focused on development prospects, more boldly to put forward and make strategic decisions that are implemented in a "top-down" manner. At the same time, the use of economic methods in intra-firm management is expanding, while centralized principles are being strengthened. Thus, the parent company usually takes on the determination of the price level for parts, parts, components exported to its subsidiaries overseas, securing a higher level of profit. The parent company maintains strict control over the transfer of the latest technology to its overseas subsidiaries for fear of leaking secrets through local partners. According to the law, Japanese TNCs are now required to publish consolidated financial statements, which will allow a deeper and better understanding of the economic mechanism of Japanese management.

It is noteworthy that the Japanese are transferring their management style to subsidiaries of foreign TNCs based in Japan. Thus, the subsidiaries of the American corporations “IBM” and “Xerox” located in Japan use the Japanese style and experience of management, product quality control. This is ensured by the fact that Japanese management specialists are fluent in English language, know how to use the Japanese management style, and are highly competent. The Japanese who run the subsidiaries are transferring technological expertise from the American parent company there. They are regularly posted to the parent company for refresher training. This is especially true for top managers, who in most cases are Japanese. The number of American representatives on the boards of directors is negligible, due to the difficulties of mastering Japanese methods control and mastery of the Japanese language. For many countries, it is the Japanese, and not the American, system of management that has become the standard. 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 product quality, and has surpassed all other countries in terms of labor productivity growth.

Conclusion

The management system (MS) of an organization includes a set of all services of the organization, all subsystems and communications between them, as well as processes that ensure the specified functioning.

Organizational management is an ongoing process of influencing the performance of an employee, group or organization as a whole for the best results in terms of achieving a set goal.

The organizational structure of the company is aimed primarily at establishing clear relationships between the individual divisions of the company, the distribution of rights and responsibilities between them. It implements various requirements for improving the management system, which are expressed in various management principles. The organizational structures of management of industrial firms are very diverse and are determined by many objective factors and conditions.

These may include, in particular, the size of the production activities of the firm (large, medium, small); production profile firms (specializing in the production of one type of product or a wide range of products in various industries); the nature of the products manufactured and the technology of their production (products of the extractive or processing industries, mass or batch production); the scope of the firm (focus on local, national or foreign markets); the scale of foreign activities and the forms of its implementation (the presence of subsidiaries abroad: production, sales, etc.); the nature of the merger of the company (concern, financial group).

The strengthening of the processes of concentration and centralization of production and capital on a national and international basis, which occurs under the influence of an objective trend towards the internationalization of economic life and the scientific and technological revolution, leads to the growth of international production and economic complexes - TNCs with huge financial, industrial, scientific and technical resources. and the broadest foreign production and sales base. They are characterized by a complex system of internal connections and interdependencies between individual departments in the line of production, financial, scientific and technical, technological, marketing and other types of relations, subordinate to a single internal planning.

The prevalence of certain types of economic relations within a TNC depends primarily on the nature of its activities as a whole, on the scale and complexity of production, as well as on the territorial dispersion of individual subdivisions.

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

NLMK Group companies specialize in the production of sheet and section steel. In 2010, NLMK Group supplied its products to more than 70 countries around the world, with about 63% of its metal products being exported. NLMK's share in the global slab market is over 11%, and that of transformer steel is over 16%.

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

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.

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Financial stability analysis enterprises heavy industry on the example OJSC QMS

Abstract >> Finance

... on the topic: "WAYS TO INCREASE FINANCIAL SUSTAINABILITY ENTERPRISES HEAVY INDUSTRY (on the example oao ... the largest metallurgical companies of the world - Novolipetsk Iron and Steel Works ( NLMK ... system ... 4) control sales; 5) control logistical ...

Strategic management on the example OJSC AVTOVAZ

Abstract >> Management

... on the they made good money. TO example, ... - the largest automotive company country, ... industrial enterprises... Rise in prices on the ... OJSC AVTOVAZ is constantly working to improve the structure of suppliers, systems quality, management ...

Accounting and analysis of finished products on the enterprise

Abstract >> Accounting and audit

The task industrial enterprises is an... OJSC « NLMK " 2.1. Brief description and technical and economic indicators enterprises Novolipetsk Metallurgical Plant, one of the the largest ... (on the example data ... deficiencies in the system management and material ...

NLMK Group, an international steel company with assets in Russia, the United States and the European Union, has been audited at the Lipetsk site for compliance with the criteria for the Total Toyota Production System (T-TPS), one of the world's most efficient production process control systems.

The purpose of the audit was to assess the effectiveness of the NLMK Production System (PS NLMK) and receive recommendations for its further development.

NLMK PS has been implemented at NLMK Group enterprises since 2013. The system includes a wide range of practical tools and techniques to improve the efficiency of production and business processes. Their use made it possible in 2014-2015 to achieve positive effect on EBITDA in the amount of $ 477 million even taking into account the impact of the negative price environment.

The audit of NLMK PS for compliance with the T-TPS criteria was carried out by leading experts from Toyota Engineering Corporation and the TPS Certification Center (Japan). The auditors checked the work of blast furnace, steelmaking and rolling production units, assessed the use of NLMK PS tools, analyzed the processes of supply, equipment maintenance and repair, personnel training, labor protection and industrial safety.

The auditors noted that the level of development of the NLMK Production System exceeds the average level of global metallurgical companies. In terms of manufacturing, NLMK's assessment is in line with the best practices of European and American metallurgical enterprises.

“The experts highly appreciated the use of the A3 tool by NLMK specialists to solve problems, the level of compliance with labor protection and industrial safety requirements. Separately, experts from Toyota Engineering Corporation noted the effectiveness of work to achieve the company's goals through the implementation of optimization programs. The auditors pointed out ways of developing the system to achieve the level of leaders - Japanese companies, for example, increasing the involvement of employees of enterprises in the process of continuous improvement. We intend to include the recommendations in the development program of NLMK's Production System for 2016-2017, ”commented Julia Venza, NLMK's Director of Operational Efficiency.

NLMK's production system at a glance

NLMK's production system (PS NLMK) is a methodology developed by the Group's specialists, which includes a wide range of both global and unique production practices aimed at improving the efficiency of key production, technological and business processes. It is an ongoing, self-sustaining process of finding and implementing improvements. The full-scale and systematic implementation of the PS at NLMK began in 2013.

NLMK PS tools are used to implement programs to improve operational efficiency. Thanks to the implementation of the Production System, NLMK Group has become one of the most efficient steel companies in the world.

About NLMK Group

NLMK Group is a vertically integrated steel company, the largest in Russia and one of the most efficient steel producers in the world. NLMK Group's metal products are used in a variety of industries, from construction and mechanical engineering to power equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe and the United States. The company's steel production capacity exceeds 17 million tons per year, of which about 16 million tons are located in Russia.

NLMK demonstrates the most competitive production costs among global manufacturers, and the company's profitability is one of the highest in the industry. The company's revenue in 2015 amounted to $ 8 billion, EBITDA - $ 1.95 billion, net profit - $ 967 million. The Net Debt / EBITDA ratio is 0.56.

Ordinary shares of NLMK are traded on the Moscow Stock Exchange (ticker “NLMK”), global depository shares - on the London stock exchange(ticker "NLMK: LI"). The company has an investment credit rating of BBB-.

Additional information about NLMK Group can be found on the website www.nlmk.ru

Information about the Novolipetsk Metallurgical Plant

Novolipetsk Metallurgical Plant is the main production site of NLMK Group, Russia's largest producer of steel and metal products with high added value, and one of the most efficient metallurgical companies in the world. The plant is the core of NLMK Group's unified international production chain with assets in Russia, the EU and the United States.

Steel production at the Lipetsk site accounts for about 18% of all steel production in Russia and about 80% of all steel products of the NLMK Group. NLMK's high-quality metal products are used in various strategic important industries economy, from construction and mechanical engineering to the production of power equipment and large-diameter pipes. At the end of 2015, steel production at the main production site of NLMK Group reached 12.9 million tonnes, the highest level in more than 80 years of the mill's operation. Steel output at 100% utilization of steelmaking capacities increased by 2.4% compared to the previous year. Record indicators were achieved at all redistributions of the Novolipetsk Combine.

Over the past few years, NLMK's production system has grown significantly stronger. Your production efficiency enhancement system (SPEP), which was launched at NLMK in 2008, also yielded good results in a number of indicators. What exactly did you want to achieve with it? What prevented the plant from achieving its goals until 2008?

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

As for the barriers to achieving efficiency goals, we have been hindered in the past mainly by the inertia of human thinking.

Today SPEP forms the backbone of NLMK's PS. And which parties were primarily affected by the implementation of the system? Why did you start transformations with them?

The introduction of new approaches began from the production area - from where the main added value is created and where the largest reserves are hidden. We started with improving quality, stabilizing technology, and increasing equipment reliability.

- Please tell us about the mechanism for launching the SPEP . Were specially created teams engaged in the implementation, or was some other mechanism chosen?

The initial stages of implementation were the development of a methodology and training of personnel. For these purposes, we created the Production Efficiency Improvement Office (UPEP). The development of new approaches was carried out on pilot projects at the stage of experimental-industrial operation under the guidance of the UPEP.

After the final debugging of the procedures, they were transferred to industrial operation and the operation was monitored by means of audits. The main mistake at our first steps, in my opinion, was the introduction of the system "from below" from the level of workers, foremen, and not "from above" - ​​from the president and general directors.

Photo 1-2. Examples of implementation of 6C approaches at NLMK

When was the Operational Effectiveness (OE) business launched? What are the responsibilities of an MA manager?

- The direction was created in 2009. The main responsibilities of the head of this area are the development of documented procedures for the NLMK production system, their adaptation to the conditions of the group's enterprises, training of personnel in the procedures and principles of the production system during its implementation.

NLMK managers have repeatedly stressed that the tools for the implementation of the SPEP are selected depending on the strategic goals and objectives. What would you say about the correspondence in this chain? What tasks did you solve using certain tools? What are the results of the work?

NLMK's production system is not based on any one ideology (Lean, 6 Sigma, etc.), but selects and adapts the most appropriate best practices depending on the goal pursued. For example, to stabilize technology and quality, we use control charts (quality control charts), to increase the "useful" operating time of equipment - timing and analysis of the reasons for equipment downtime, to find ways to reduce the cost - A3. but hard rules on the field of application of this or that tool is not. In each specific situation, an optimal set of tools is sought.

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 of personnel for pilot testing (as a pilot project, Rolling production NLMK OJSC). Then there was a pilot operation, the extension of the approach to other areas of activity.

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

Photo 3-4.Work on A3 projects at NLMK's production facilities

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

You can illustrate the cascading goals with the following example.

One of the company's KPIs is the cost of production; KPIs of a production director (for example, steel production) - inappropriate products and defects in the shops of his competence; KPI of the shop manager - non-conforming products and rejects by types of products; Aggregate level KPIs (operator) - technology stability.

As for improving KPIs, this 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 manage it? How engaged are NLMK personnel today?

With the aim of involving, we have developed a system of both material and non-material motivation of personnel. Engagement is carried out through information, visualization of goals and objectives.

In 2013, line personnel submitted more than 450 initiatives to improve the efficiency of processes, mid-level specialists implemented more than 130 A3 projects, engineering and technical specialists implemented more than 180 projects within the framework of comprehensive programs.

SPEP is intended not only for production - the system also applies to functional areas. What approach is used when extending SPEP to other areas?

The distribution process of the Production System has not been completed. It continues. The main approach used in this case is as follows. Responsible for operational efficiency is determined in the direction. If necessary, a group is formed to introduce new approaches.

Photo 5.Operational control of technology stability using control charts (IS "SPEP") at the workplace

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

A multilevel training system has been built. Top managers of enterprises are trained by involved organizations (for example, Toyota Engineering Corp.). The middle management and future internal trainers are trained by the involved organizations and EPEP. An important stage in the transfer of practical skills here is the internship of trainees at the EPEP. Foremen and workers are trained by internal trainers.

As for the transition to the autonomous use of the Production System tools, it is carried out after the implementation of all the stages of implementation I have mentioned above. An important step here is securing personal responsibility for the use of proven practices.

Photo 6.Learning fromToyota Engineering Corpon this topic"General control system" (Total Management System, TMS)

- What areas of efficiency improvement will be implemented in 2014?

The 2014 program is aimed at expanding the scope of implementation of the NLMK Production System, as well as developing and implementing new tools.

- Why would you advise the heads of other enterprises to come to LIN Summit in Gelendzhik? What do you think they will get useful for themselves?

The Summit provides an opportunity to use the accumulated experience to reduce the time to implement systems to improve operational efficiency. The question of the expediency of this event is not even discussed.