UC RUSAL Sustainability report 2016


Quality control

Quality management system

Management approach

The Company has successfully established and implemented the quality management system (QMS), certified in compliance with the International Standard ISO 9001:2008.

QMS encourages for continuous improvement of all business processes, reduction of production and other risks, and effective interaction with stakeholders involved in the supply chain. High quality of management processes is the key to achieving and maintaining the high quality of products and services.

The main production facilities of UC RUSAL (Russian and foreign) have ISO 9001 compliance certificates (in total 27 production facilities). A plan for transition to a new version of the standard, ISO 9001:2015, has been developed. The plan was launched in 2016, and the full migration to the new version is planned for 2017.

In addition, four aluminium smelters have certificates of compliance with the international standard for automotive suppliers ISO/TS 16949. The foil rolling mill Sayanal has ISO 22001 compliance certificate  for Food Safety Management System.

There is a Quality Policy that establishes uniform requirements and principles for all production facilities of the Company. Each year, quality goals are set and evaluated through KPI of functional business units. Reports are submitted for review to the Executive Committee of UC RUSAL.

QMS management procedures affect the following stages of the product life cycle:

          analysis of customer requirements;

          development of new process and improvement of existing production processes;

          procurement of raw materials and supplies;

          production;

          customer related processes;

          storage and delivery of products.

Employees are regularly trained in the requirements of international standards and quality tools such as Failure Mode and Effects Analysis (FМEА), Statistical Process Control (SPC), Measurement System Analysis (MSA), Advanced Product Quality Planning (APQP), etc.

The effective system for internal audits deployed. It assess the status of QMS and indicates areas for improvement. An automated system to plan of audit, to document the fidings and to control the corrective actions is being developed.

Quality Management Directorate (QMD) is responsible for maintaining of RUSAL QMS and leading the impprovement initiatives. Divisional Quality Structures, reporting to the QMD, operate on production sites.

Main results of 2016

Quality Development Strategy

The Company's main areas of development in terms of quality are defined in the Quality Development Strategy for 2016-2019 (approved by the Steering Committee on Quality on June 21, 2016 and the Executive Committee on July 13, 2016). The deployment of Quality Strategy and objectives are documented in X-matrix. In order to achieve objectives, an action plan has been set up. The achievement of objectives and gaps monitored on weekly basis.

In 2016, QMD developed and implemented the following standards:

          Regulations on the Steering Committee on Quality (enacted on June 23, 2016);

          Claims Management Process (enacted on April 12, 2016).

          Internal non-compliance management. Requirements for process organisation (enacted on September 26, 2016).

In 2016, the reorganisation of divisional and corporate quality structure completed. Smelters have, which directly report to Managing Directors/General Managers and are independent from the production.

The functions of the QA departments include the control of incoming raw materials, in-proprocess control and product release. An important function is the risk analysis and quality planning during a product launch.

The Steering Committee on Quality is a management body to regulate the quality planning, quality assurance and quality improvement activities. The meetings of the Committee have been held monthly since June 2016. The topics reviewed by the Steering Committees include the quality issues, the RCCA plans, quality initiatives, resources required and changes to the QMS.

QMS development

'Perfect Process'

The Perfect Process Initiative has been established with the objective to improve the stability and capability of production processes focused on meeting and exceeding of the key customer requirements.

The main stages of the Perfect Process include:

          identification of key customer requirements;

          benchmarking on quality, defining of gaps and oppurtunities;

          identification of special product characteristics;

          identification of special process parameters in correlation with the characteristics;

          assigning the control methods and measuring sustem analysis;

          monitoring and evaluating the process stability and capability;

          development and implementation of corrective actions to improve the process and product;

          Customer evaluation on effectiveness.

Pilot projects started on Sayanogorsk and Krasnoyarsk aluminium smelters: they have become sites for training of the employees in this methodology. The Company plans to implement projects at all production facilities of the Aluminium Division, the New Projects Divisions, and the Packaging Division. In 2016, 21 perfect processes were launched for key customers, including:

          9 perfect processes by the Aluminium Division;

          8 perfect processes by the New Projects Directorate;

          4 perfect processes by the Packaging Division.

In order to provide methodology support and to monitor the progress, the mentors from QMD/quality assurance departments have been assigned.

Variability Reduction Team (VRT)

VRT under leading of QA Managers were organized to address the repeatable of quality issues in 2016. The root cause analysis and corrective actions on these problems are under the scrutinized attention of Senior Management. The effectiveness of the corrective actions monitored through the customer feedback. Lesson Learned reviewed at the Steering Committee on Quality.

Training of employees in quality

Training on quality related matters has been organized and included the following topics: 'Quality Strategy and Objectives', 'Customer Claims Management', 'Internal Non-compliance Management' and 'Root Cause and Corrective Action (RCCA)'.

Number of employees trained in quality

Type of training

Number of persons

2014

2015

2016

Internal

462

175

369

External

52

227

55

In the distance learning system

648

187

715

Total

1162

589

1139

Achievement

          Defined RUSAL Quality Strategy

          Set up RUSAL leveled Quality Management Structure

          Established VRT team

          Implemented the Pilots on Processes Certification in SAZ and KrAZ

          Initiated the Perfect Processes

          Started Focus Improvement Programs with Key Customers

          Streamlined the Customer Claim Management process

          Claim response time reduced from 67 business days in 2015 to 20 business days in 2016.

          Harmonized the quality control procedures with the buseness partners.

Plans for 2017

          To develop action plan and to implement the transition to the ISO 9001:2015 and IATF 16949:2016

          To build quality into production processes through automation, function changes and motivation system

          To reduce the claim reponse time through futher process streamlining and elimination of non-value added activities

          To build the Perfect Processes at each smelter

          To implement the Focus Improvement programs with Key Customers

          To ensure the uniformity in Incoming Quality Assurance

          To incorparate APQP

          To develop Cost of Quality Procedure.