Annual Report 2017
Efficiency improvement
and sustainable development
Annual Report 2017
Production Management
TVEL Fuel Company has always been concerned with special approaches to production and management processes in order to implement the strategic goals of ROSATOM with regard to the orders portfolio expansion, to maintain efficient production under conditions of severe and ever-growing competition on the global markets

ROSATOM Production System

ROSATOM Production System (RPS) is the culture of lean manufacturing and continuous improvement of processes aimed to reveal and reduce all losses in production and business processes, and to ensure competitive advantage on a global scale.

RPS is based on five principles which encourage the employees:

  • to be attentive to customer's requirements;
  • to respond the issues as they emerge;
  • to incorporate quality into the process and produce no defective products;
  • to identify and eliminate any losses (excess inventory, decoupling stocks, downtime, unnecessary movements, etc.);
  • to set an example to colleagues.

For details please refer to http://www.rosatom.ru/about/system/.

These principles were formulated on the basis of the best examples of domestic and foreign experience, especially, the system of scientific organization of labor, production and management of the USSR Ministry of Medium Machine Building and Toyota Production System of Toyota, the Japanese automobile company.

RPS implementation is aimed to integrate the idea of diligence and optimality into administrative decisions-making logic at production site, and through production - into other processes and structural subdivisions of the company. Implementation of RPS projects is focused on performance gain, costs reductions and improvement in the products quality. Knowledge of RPS tools and competence in applying these tools are a guarantee of professional growth of employees engaged in the nuclear industry.

Starting from 2015, ROSATOM applies the system-based approach to deploy RPS at the pilot enterprises of the industry.

Enterprises - RPS Leaders receive the package of privileges including the following: business-trainings at the enterprise, possibility to share experience with the advanced Russian and foreign enterprises, family tickets, certificates for training in ROSATOM Corporate Academy, participation in Workspace Design project, etc.

The Company included into ROSATOM management system can receive the status of RPS enterprise only subject to system-based application of RPS. According to the concept of RPS development, all RPS nterprises implement the integrated package of RPS arrangements, and are subdivided as follows:

  • RPS Leader,
  • RPS Candidate,
  • RPS Reserve.

The integrated package of RPS arrangements provides for:

  • setting clear objectives to the employees to the level of small group leaders based on scope definition of the enterprise, division, sector;
  • RPS methodology training of the managers of the enterprises, participants of the projects;
  • development of the product flows of the enterprise;
  • implementation of RPS projects in office and at production site under a single methodology;
  • incentive and development programs for different level employees.

In 2017 seven enterprises of TVEL Fuel Company - MSZ PJSC, UEIP JSC, KMZ PJSC, SGChE JSC, PA ECP JSC, ChMP PJSC, NCCP PJSC confirmed their RPS Leader status, maintained the achieved level and continued application of RPS tools and principles.

Following the results 2017 AECC JSC was granted the status "RPS Candidate" with inclusion into the RPS application contour in 2018.

The work within the framework of the branch program "Complex manufacturing optimization of nuclear industry enterprises" and divisional program "Transfer to operating models based on control over the whole supply chain" is aimed to improve performance of TVEL JSC and the companies included into TVEL Fuel Company management system.

In the reporting period TVEL Fuel Company opened and implemented more than 1027 RPS projects intended to address the issues in the product flows and to improve efficiency of all business processes. More than 80% managers of TVEL FC enterprises were involved in the project activity.

In 2018 TVEL Fuel Company intends to focus on the following areas of efficiency improvement: product quality improvement, logistics improvement, production flow efficiency improvement, forming of branch RPS samples. It is also planned to develop the client-to-supplier principle within the supply chain and the functions in relation to the material flow.

Suggestions for Improvement

The Company maintains regulated payments for suggestions for improvement (SFI):

  • payments equal to 300 / 700 / 1.000 rubles for submitting SFIs of various categories and economic value;
  • after SFI introduction - payment of interest from economic benefit received from SFI introduction;
  • for assistance in implementation of SFIs with technical solutions (rationalization proposals): up to 30% of the amount paid to the authors.

Personal and team RPS contests are also held at the level of enterprise or structural subdivisions and the whole TVEL Fuel Company. The contest winners are awarded with diplomas, valuable gifts and participation in corporate divisional and branch events.

The best SFIs take part in annual Industrial contest of suggestions for improvement and projects on implementation of ROSATOM Production system, held among the workers of the companies of ROSATOM State Corporation. Following the result 2017 Trofimov S.V. - the maintenance technician of UEIP JSC, became the leader in the number of implemented 174 SFIs.

To increase involvement of the workers in continuous improvement in 2017 KMZ PJSC organized the pilot Kaizen team with the purpose to reduce the time of SFI introduction. In 2018-2019 it is planned to organize similar Kaizen teams at other companies of TVEL Fuel Company.

In 2017 there were filed more than 114 thousand SFIs. Efficiency indicator of the SFIs process is the quality indicator; it is calculated as the ratio of the adopted SFIs to the submitted ones. Thus, in 2017,93.8% SFIs were accepted for realization (in 2016 - 93.1%), 95.4% of accepted SFIs were implemented (in 2016 - 91.6%), which is illustrative of SFI quality growth.

Launch of the project "Production planning with the supply chain"; introduction of "easy" decisions at the first stage of the project allowed to reduce PT of supply chain planning by 30.5% (from 82 days to 57 days.)

By 2018 the project provides for mapping of the planning processes, analysis of the current planning problems, determination and implementation of arrangements for planning organization in SAP, achievement of goals of planning PT reduction and "just-in-time" production.

Table 29

Major RPS Projects implemented in 2017

Enterprises

Project

Results

TVEL JSC
MSZ PJSC
NCCP PJSC
ChMP JSC
PA ECP JSC
UEIP JSC
SGChE JSC
AECC JSC

Project group for optimization of through product flows

  • PT reduction for the key flows by 31%
  • Stock reduction in key flows by RUB 9.6 billion

TVEL JSC
MSZ PJSC
NCCP PJSC
ChMP JSC
KMZ PJSC

Industrial stability improvement (Fabrication + KMZ)

  • Industrial stability improvement by 29 points (from 60 to 89%)
  • "Just-in-time" production improvement by 20 points (from 50 to 70%)
  • RIP reduction at enterprises MSZ PJSC, NCCP PJSC, ChMP JSC, KMZ PJSC by RUB 772.1 mln
  • Economic benefit under the project in 2017: RUB 39.6 mln

TVEL JSC
PA ECP JSC
UEIP JSC
SGChE JSC
AECC JSC

Perfect turn (SSC enterprises)

  • Reduction by 118 thousand man-hours (from 2,986 thousand man-hours to 2,868 thousand man-hours)
  • Interoperability increase by 29.5% (from 6.9 to 9.05 skills and competences per 1 worker)
  • Reduction of time of response to deviation offset by 38.7% (from 21.6 min. to 13.2 min. per process deviation)
  • The project benefit - reduction in production costs by 66 million rubles / year

TVEL JSC
ChMP JSC
NCCP PJSC
MSZ PJSC

Adjustment of zirconium products delivery for the client's requirements

  • PT Reduction by 30% (from 133 days to 83 days)
  • RIP reduction by 29% (from 193 tZr to 140 tZr)
  • Warehouse reduction by 1742 m2
  • Economic benefit under the project: 525.8 RUB mln

TVEL JSC
ChMP JSC
NCCP PJSC
MSZ PJSC
KMZ PJSC

Increase of the value of work of production personnel

  • Labor intensity reduction by 167.4 thousand hours.
  • Increase in labor efficiency by 4.35 %
  • Economic benefit under the project: 87.3 RUB mln

MSZ PJSC

"Increase of RBMK flow efficiency"

  • PT Reduction by 20% (from 101.7 days to 81.4 days)
  • RIP reduction by 25.4% (from 131 tZr to 97.6 tZr)
  • Increase in labor efficiency by 7.2% (from 2.34 tU/person to 2.51 tU/person)

NCCP PJSC

"Optimization of lithium stock supplies planning process"

  • PT reduction by 7.4% (from 95 days to 88 days)
  • Reduction in labor intensity of the process by 25% (from 600 days to 450 days)
  • Increase in "meeting deadline" discipline from 25% to 75%
  • Economic benefit under the project: 29.776 RUB mln

KMZ PJSC

"Improvement of the process of instrumental support of the GC production"

  • Decrease in tool circulation at production site by 25%
  • Tools and equipment costs saving in the cost structure by 0.2%
  • Economic benefit under the project: 68.7 RUB mln

536 SFIs were found to be efficiency suggestions. 86.8% were accepted for realization, 89.7% - implemented.

In average, in TVEL Fuel Company one worker submits 5.6 SFIs. 80% of personnel of the Company participate in the improvement process through SFI submission.

Economic benefit from SFI implementation following the results of the year made RUB 289.3 mln.

Amount of the paid personal bonuses for the benefit from efficiency suggestions and SFI made RUB 40.8 mln, amount of the operating bonuses paid to minor groups for contribution to efficiency improvement made RUB 96.0 mln.

In 2017 enterprises of TVEL Fuel Company for the purposes of the labor efficiency improvement carried out the work to reduce the time spent to solve the production problems, this allowed to manage the time of the personnel. The organizational arrangements were carried out to eliminate the works that bring no value, the measures were implemented aimed at improvement of labor efficiency. All measures were evaluated in terms of safety, compensatory measure were implemented.

Among TVEL FC enterprises the most SFIs per one employee were registered at AECC JSC - more than 12 suggestions, and at SGChE JSC - more than 10 suggestions.

Diagram 15

Work with suggestions for improvement in TVEL Fuel Company

Table 30

 

 

SFI per 1 worker

5.6

Operating bonuses paid to minor groups for contribution made to efficiency improvement

96.0 RUB mln

Personal bonuses paid for the benefits from efficiency suggestions and SFI

40.8 RUB mln

Workers who submit SFIs

80%

Economic benefit from efficiency suggestions and SFIs

289.3 RUB mln

This resulted in increase of labor efficiency in TVEL Fuel Company by 4.35%, and increase in interoperability by 29.5%. Increase in labor efficiency of production functions personnel made 4.4%.