Annual Report & Accounts 2013
Severstal Annual Report 2013 Home > Company overview > The Business System of Severstal: delivering benefits
 

The Business System of Severstal: delivering benefits

The Business System’s main target is to help maintain Severstal’s leading position and to build competitive advantage through developing and embedding a culture focused on our customers and on continuous improvement. The Business System is a key part of each of our divisions’ strategies to deliver their goals and guarantee long-term, sustainable development.

A key focus area of the Business System is removing bottlenecks at all levels of the organisation – from production to back office. We have cultivated a culture of continuous improvement and reward people who develop ideas that will improve our operations. As a business, we employ global best practice tools and methods such as Lean Production and CRM.

As a result of our Business System initiatives, we are already seeing an increased level of engagement from our employees and higher satisfaction levels from our clients, a trend that we are confident will continue.

In 2013, the total financial uplift from the Group’s Business System projects in 2013 reached US$389.8 million. Within this, the largest contribution was from the Severstal Russian Steel division, as in 2012, which created uplift of US$290.4 million.

We are now moving on to the next stage of the Business System’s roll out. Following several years of intense investment we are now entering what we call a “harvesting stage”, where we will see the benefits of the investment and hard work we have put in to date. Now our priority is to ensure that the results we are seeing are sustainable.

April 2010-July 2013
“INVESTMENT STAGE”

  • Pilot projects at the key sites
  • Extensive training at all levels
  • Lean tools
  • Customer Care
  • Leadership skills

Since August 2013
“HARVESTING STAGE”

  • Rising tangible contribution to the top-line
    and cost reduction
  • Growing engagement from all levels
  • The priority is to ensure that our strong
    performance is sustainable

The Divisions’ contribution into the efficiency uplift within the Business System projects

Key Business System’s projects and their contribution into Severstal Russian Steel financial uplift in 2013

 

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