UC RUSAL Sustainability report 2015

UC RUSAL business system


The Business System (BS) of RUSAL is based on the principles of TOYOTA Production System (TPS) which ensure continuous improvement of production and business processes in such a way that the Company can respond to the changing requirements of customers and remain effective in the global market.

The purpose of the Business System creation and development is to establish transparent supplier - consumer business chains whilst effectively managing their expectations and needs, as well as promoting a culture of continuous improvement at the enterprises. The BS is formed within the perimeter of the whole Company, including foreign holdings.

The introduction of the BS requires maximum participation, understanding and involvement of all Company employees, including senior management. Therefore, the obligatory element of the Business System management is employee development and training in all respective mechanisms and tools of the Business System, and theintroduction of the procedures to identify production leaders (BS 250 Program).

Model of the Business System in UC RUSAL




Structure of the BS Management



Goal setting within the Business System[14] is correlated with the overall strategic goals of the Company: key goals and quantitative targets for the following reporting period are set annually.

The Company practices establishing BS development KPIs for employees. Each key manager (chief foreman, shop manager, department head, director of operations, area director) must have their own Business System project and report on its implementation to the CEO of the Company.

Main Elements of the Business System

Management Committees

On-site Management Committee (MC) meetings are held several times per year with the purpose of developing the Business System at the enterprises and each such meeting is attended by representatives of the senior management: key members of the UC RUSAL Management are mandatory participants. In 2015, the Management Committee meeting was held for the first time in the Alumina Division, at the Achinsk Alumina Refinery. The Management Committee meeting was held in Sayanogorsk again in order to assess trends in key indicators.

Kaizen Workshops

Kaizen workshops are an effective tool allowing the Company to implement employee proposals to improve the production process. Kaizen workshops operate at all 10 aluminium plants in Russia; in 2016 this tool is planned to introduce in the Alumina Division.

Number of Kaizen-improvements on development of the Business System







Number of Kaizen workshops


Economic effect from implementation, USD mln



Improvement of the Year contest

Each year UC RUSAL holds the Improvement of the Year contest among its employees in four categories: Safety, Quality, Productivity and Cost Effectiveness. Employees’ proposals for improvement are accumulated in the internal corporative portal and located in public domain. The Company has significant social and economic effect from implementation of the proposals received each year: the economic effect in 2015 was almost USD 16.4 mln.

Number of employees participating in the contest



Training of the members of the Executive Board and Kaizen teams in the principles and ideals of the Business System at training sites and model areas of the Company key enterprises was also continued jointly with the HR Directorate. 3,996 employees underwent training in the principles and tools of the Business System in 2015.

Training of the employees in the BS principles and tools



Total number of trained employees, persons, incl.


internal training, persons


external training, persons


remote training, persons


Practical training sessions in various subjects related to the organization and improvement of the production process



The development of the BS Personnel Reserve (Talent Pool) ensures consistency of the approach to the Business System introduction process and accumulates experience of the Company. 113 employees were included into the Talent Pool in 2015, among which 19 persons were appointed or nominated to the positions of sales managers, department heads and senior foremen up to director for operations.

Training of the Talent Pool with BS 250 Program




Annual Program for Training Talent Pool “BS 250”

Development of the Business System in 2015

The Company continued to improve the safety and efficiency of production, ensure high-quality products, and develop human potential.

Increase in operating efficiency of equipment

Systematic work continues to improve the functional efficiency of industrial equipment, including work to reduce scheduled and unscheduled downtime. During the reporting period the technical availability ratio (TAR) of the Company’s main processing equipment increased up to 96.3%. However the more complex indicator of overall equipment effectiveness (ОЕЕ[15]) identified the equipment availability at a level below 67%. The Company analyses the data obtained to identify additional reserves in operation of the equipment.

Portal of the Business System

The Company currently has an internal web portal for the Business System, which contains the Company’s production methodology base. All the information is up to date and is in demand among the employees of various management levels of the Company. UC RUSAL professionals are currently working to create an external web portal, which main purpose will be to ensure that customers and suppliers have access to key information about the Company’s Business System.

Great attention is paid to the development of the system of dealing with suppliers and customers (see details in section "Supply Chain").

Indicators of the BS development in 2015



Number of projects aimed at developing the Business System in UC RUSAL (projects at the Company level – logistics operations, quality, supplier development, etc.)


Number of intraplant projects (projects at the plant level aimed at decreasing losses, optimizing the equipment operation, etc.)


Number of projects in А3 format[16] (projects at the department and site level – each employee can initiate and defend his/her project on any subject)


The aggregate economic effect of the initiatives on development and implementation of the Business System, USD mln.

34. 9

Plans for 2016

Long-term plans for the development of the Business System include improvements to the logistics system, supplier development in order to improve quality of the products and customer satisfaction, the reduction of delivery terms, and further training programs.

Special attention will be paid to the interaction with customers, analysis of their needs,development of suppliers through their involvement in cooperation on improving the technology, the optimizing costs and upgrading the quality of purchased products.