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Business System

Business System of Severstal (BSS) is a series of projects and initiatives aimed at achieving long-term competitive advantage through operational and  organizational excellence, and customer care. The Business System of Severstal (BSS) is the logical development of more than ten years of ongoing efforts to  optimize production and standardize internal processes through many projects striving to achieve maximum efficiency of labor and production. In 2010 we integrated and formalized these into a united improvement system, which also  includes projects for corporate culture change – The Business System of  Severstal.

The five major development lines of the Business System are as follows:

  • Continuous improvement
  • Safety
  • Customer care
  • People of Severstal
  • Business standard

By August 2013, the Business System has been distributed all over the company. It covered 108 areas at Severstal Russian Steel, 31 areas at Severstal Resources and 16 areas at Severstal International.

In 2013, the Business System projects resulted in saving approximately 171  mln dollars for the Russian Steel. The ingredients for this success: reduction of production cost for cast iron, saving in consumption coefficient costs, increase in generation of own electric power and cancelling to use a part of purchased electricity, reduction of administrative costs, etc. Thousands of  employees contributed to the success of the company through implementing own  ideas, using new instruments and approaches.

In August 2013, the following projects joined major development lines of  Business System of Severstal: cross-functional projects and projects on  unblocking of bottlenecks, replacing a goal-setting system with lean KPIs. The  following cross-functional projects are top priority in 2014:

  1. Projects with key promising customers aimed at developing new products, reducing time of delivery and increasing Severstal’s delivery share in  compliance with customers demand rate;
  2. Equipment reliability control;
  3. Flow projects focused on enhancing delivery performance and developing the  lean system of motivation, which provides support to improvements in the flow;
  4. Energy efficiency;

Quality flow control means end-to-end flow quality control of products and  manufacturing process. In 2015 the Business system will still deal with cross-functional projects. New BSS projects are intended to develop brand new  quality control instruments, determine minimum level of expenses to get high quality final products with required physicochemical characteristics, reduce variability in manufacturing, speed up production and improve relationship between customers and suppliers.

OAO Severstal News
January 19, 2018

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world’s leading vertically integrat¬¬ed steel and steel-related mining companies, today announces its operational results for Q4 2017 & FY 2017.

December 29, 2017

PAO Severstal, one of the world's leading vertically integrated steelmaking and mining companies, has launched a production line for polymer coated rolled steel products at Cherepovets Steel Mill Metal Coating Workshop number 3 (“MCW#3”).

December 20, 2017

Alexey Mordashov, the Chairman of the Board of Directors of PAO “Severstal” and the Company’s leadership team visited production departments of the Yakovlevsky mine, and approved next year’s business plan , while meeting employees of the plant.

November 29, 2017

Alexey Mordashov, Chairman of the Board of Directors of Severstal, one of the world's largest vertically integrated steel and mining companies, has been named Chairman of the Board of Directors: development of corporate governance at the Director of the Year Awards.

November 29, 2017

PAO Severstal, one of the world’s leading vertically integrated steel and steel-related mining companies, and Nord Gold SE, the internationally diversified gold producer, announce that they presented at the 2017 UN Forum on Business and Human Rights on November 27−29 in Geneva.

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