Results of the Rostec conference on lean production

On October 17-18, 2013, at the head company of the UEC Engines for Military Aviation Division, Ufa Engine Industrial Association (UMPO), there was the All-Russian conference on sharing experiences on optimizing production systems and distributing best practice in using lean production tools.

The event, organized by Rostec, included more than 200 representatives of holdings and companies in the state corporation: Schwabe, Russian Helicopters, UEC, RT-Chemical Technologies and Composite Materials, NPO Visokotochnye kompleksy, Russian Electronics, NPO Izhmash, NPO Tekhmash, RT-AUTO, and others.

Aleksandr Kashirin, Managing Director for Strategy and Head of Department at Rostec, Vladimir Dovgy, Deputy General Director on Innovative Development and State Programs at OPK OBORONPROM, Sergei Pavlinich, Deputy General Director of UEC for Production, and Aleksandr Artyukhov, Managing Director of UMPO, spoke at the opening of the conference.

“Taking on the standards of lean production is today one of the most important conditions for creating an efficient company. All leading corporations in the world are using lean production technology. Without lean technology it is not possible to become a competitive business,” said Aleksandr Kashirin.

According to Aleksandr Artyukhov, “at UMPO the system of lean production has been in place since 2008 and since then it has more than doubled our efficiency. Improving production systems undoubtedly plays a role along with other micro and macroeconomic factors. I am certain that UMPO’s experience will be useful both to other UEC companies and to other Rostec companies.”

Conference participants were offered master classes by Rostec lean leaders on such topics as project management, attracting personnel to lean production, ‘lean office’, improving quality management systems, implementing 5C systems, and others. Sessions were led by leaders and managers on developing UEC production systems.

There was a great deal of interest in the seminar led by the head of the production system development department at UEC, Vladimir Chelpanov, and by the head of the department of technical re-tooling and organizational development at UEC, Valery Teplov, which covered systems of evaluating the level of development of production systems. There were many examples of lean leaders from UMPO’s practice, where they have already moved from implementing separate pilot projects to using lean production tools in situ, and that means working out criteria to evaluate the level of development of production systems.

Guests were also familiarized with the experience of optimizing production systems in the course of a trip to the production facilities of the Ufa company. On the assembly lines they saw the application of visualization principles, the 5C systems at each workstation, the practical implementation of universal production servicing of equipment and the organization of working under the U-cell method.

In the course of the second day of the conference, participants got the chance to try out the roll of presenter. Leaders formed seminar working groups to present team projects on the topics of their master classes, making a step towards establishing lean leaders. Just as interesting were the reports on the implementation of pilot projects from Rostec companies that recently joined the lean experience, such as the Ufa Agreggate Production Association (Ufa), Aviaagregat (Samara), NNPO Frunze (Nizhny Novgorod), Sergo Factory (Zelenodolsk), Semiconductor factory (Ioshkar-Ola), and ORPE Technologiya (Obninsk).

At the end of the conference, presenters from the working groups and lean leaders were presented with memorial souvenirs, and all guests received certificates of participation.

This week UMPO will hold the annual UEC companies lean audit, and in November there will be a lean workshop at OPK OBORONPROM.

JSC Ufa Engine Industrial Association (UMPO) is one of the largest producers of aviation engines in Russia. Its turnover in 2012 was 25,425 billion rubles. Its primary areas of business are the production, service, and repair of turbo-jet aviation engines and gas turbine units, as well as production and repair of helicopter technology units. UMPO is part of the United Engine Corporation, a wholly-owned subsidiary of OJSC OPK OBORONPROM handling engine-building assets. The Association is part of the Russian Engineering Workers Guild, which Bashkortostan regional branch is headed by A.V. Artyukhov, Managing Director of JSC UMPO.

The Engines for Military Aviation Division is a business unit of UEC including enterprises and design companies for production and development of military aviation engines. The main production programmes list of the Division include advanced engines for Prospective Airborne Complex of Frontline Aviation (T-5), engine AL-41F-1C (item 117C), family of products RD-33 and AL-31, as well as development, repair and maintenance of gas-turbine engines. The Engines for Military Aviation Division was created in 2011. It includes JSC UMPO (parent company) and its branches — Lyulka Design Bureau and Lytkarino Engineering Works, Chernyshev Moscow Machine-Building Enterprise JSC, JSC RPE Motor, Federal State Unitary Enterprise Gas Turbine Engineering Research and Production Center Salut with its branches (as agreed). Consolidated profit of the Division’s enterprises for 2012 amounted to 56,070 million rubles.

OJSC United Industrial Corporation OBORONPROM is a multi-faceted machine-building group founded in 2002. It is part of the Russian Technologies State Corporation. Its primary areas of business are helicopters (Russian Helicopters JSC), engine-building (UEC Holding), and other assets.

Russian Technologies State Corporation (Rostec) is a Russian corporation founded in 2007 to facilitate the development, production, and export of high-tech industrial products for civil and military applications. Altogether, Russian Technologies encompasses 663 organizations, eight of which are in the military-industrial complex, and five of which are in the civilian industry. The corporation works in 60 constituent entities of the Russian Federation and supplies products to more than 70 countries around the world. Its 2012 turnover amounted to 931 billion rubles, with net profit of 38.5 billion rubles. It paid a total of 109 billion rubles in taxes at all levels.