A new department of business optimization management was established within the framework of Dneprospetsstal’s structure. The main task of the department is to increase the plant’s effectiveness via ascertainment and further implementation of the potential of the enterprise activity results improvement, and via realization of the innovation program and business-process optimization.
Via the plan of the Total Manufacture Optimization the implementation of the reformation program in the DSS rolling mill is still in the process now. The reconstructions are aimed at the production costs reduction, increase in productivity, and output improving. In the course of the program well-defined and sequential aims are set, and report and control system is created. The aim is the reduction of the controlled costs by 40%.
First two steps of the program of the Total Manufacture Optimization were realized in the DSS steel melting shops 2 and 3 in the years 2004 and 2005 correspondingly. Within the TMO framework Dneprospetsstal (DSS) received about UAH 7 million investments during the year and a half. These investments have returned about UAH 5 million, and the return has a growth trend. Thus, if during the year 2005 the return was about UAH 1 million, then at the first quarter of the current year the return was the same and at the second quarter of the year the return increased three times and made up about UAH 3 million.
Such steelworks as Severstal, Vyksunsky metallurgical works, Nizhnedneprovsky tube-rolling mill (NTZ) and others have an experience of carrying out the programs similar to TMO program. The result of TMO program realization at those steelworks is reduction of production costs by 10%, and increase in efficiency by 20%. At NTZ increase in efficiency is even about 30%. The plan of the Total Manufacture Optimization was a success at all the enterprises which are part of NPIG INTERPIPE Corporation.