«YUZHNIY GOK» Mining and Processing Plant
Development
Continuous improvement

Continuous improvement

Since 2011, the «YUZHNIY GOK» Mining and Processing Plant has been gradually implementing a program to increase production efficiency. The project includes continuous improvement tools. It aims to reduce production costs, increase productivity, optimize processes and eliminate losses.

The Program of Operational Improvement measures has been implemented since 2011 and gets improved on an annual basis. It is aimed at reducing production costs and increasing productivity through the implementation of technical and organizational solutions.

From 2018, loss maps have been developed to improve the quality and systematize the approach to the development of measures and setting tasks for continuous improvement teams.

The Loss Map - is the main document in the development of measures for the Operational Efficiency Improvement Program. The loss map is also used when setting tasks for continuous improvement teams.
The potential for cost reduction in monetary terms is determined on the basis of identified opportunities and actually implemented organizational or technical measures in terms of existing production. This takes into account the current level of development of technology and automation tools.

Continuous Improvement Teams have been in place since 2015. The tasks of the teams are set on a quarterly basis by the committees of continuous improvement within the structural units. The focus is on key cost items as well as systemic issues and bottlenecks.
For proposals that cause a significant economic effect, members of the teams of continuous improvement get awarded with special bonus.

Since 2020, the Proposal Submission System. has been introduced. The project aims to motivate the participation of all employees in the submission of proposals that reduce costs, increase productivity and production efficiency, save labor, material and financial resources, improve labor protection, industrial safety and ecology, achieve key performance indicators. For proposals accepted for implementation, the initiators are rewarded with a monetary reward.

The following tools have also been introduced within the framework of the Operational Efficiency Improvement Program:

The 5S methodology has been implemented since 2013. The project aims to eliminate the loss of time spent on the search for goods and tools used in current activities, unnecessary movements and relocations, expectations and more. An annual competition for the «Best Workplace on the 5S methodology» is held. According to the results of the competition, the winners are rewarded with a monetary reward.

Standard Operating Procedures (SOPs) have been in place since 2014. The project allows to reduce time and to increase quality of service and repair works due to accurate sequence and the set time limit of performance of each technological operation. The SOP facilitates the understanding of the procedure performed by new employees and the clarity of the photographs used in each operation.

The implementation of the «Thrifty Enterprise» tools at the plant has a real effect on increasing production, reducing energy and production costs, as well as improving working conditions. Involvement of each employee in the process of continuous improvement contributes to the transition of the enterprise to a higher level of development, which allows it to compete successfully on the world market of the mining and metallurgical complex.