In 2019, the economic impact of rationalisation proposals implemented at Magnitogorsk Iron and Steel Works (MMK) amounted to RUB 585.4 mln, up 29% from 2018.

The importance of innovation in today's global industry determines the need for companies to pay special attention to the development of rationalisation and invention. In this regard, rationalisation activities are included in the list of priority areas in MMK's development strategy.

MMK has developed a system for submitting and implementing proposals that has proved effective. There has been an increase in the number and quality of proposals and a reduction in the time taken for their implementation.

In 2019, MMK innovators submitted 6,207 ideas for consideration by expert commissions (5,792 in 2018), of which 4,256 ideas were approved for implementation (3,872 ideas a year earlier).

The economic impact of the implemented rationalisation proposals in 2019 amounted to RUB 585.4 mln, up 29% compared to 2018. A total of RUB 22.2 mln was paid in remuneration to the creators of the rationalisation proposals.

In additional to material incentives, competitions, seminars, exhibitions and other events are organised by MMK management in order to develop employee's creative potential, showcase their initiative and also to motivate employees in the sphere of self-development.

Quarterly competitions are held within departments for the 'best idea for tackling problem areas' with the assignment of 1st, 2nd and 3rd places and financial rewards for the innovators.

Annual competitions are held to find 'MMK's best young rationaliser and innovator' with 15 awards for the best innovators in the under 30 age group; and to find 'MMK's best rationalisation proposal', where 1st, 2nd and 3rd places are awarded to determine the best innovations in the following categories: 'MTR Economy', 'Labour Protection, Industrial Safety & Ecology' and 'Energy'. In 2019, a new category was introduced in this competition for innovative proposals 'related to the reduction of consumption coefficients in production'.

To improve the efficiency of innovation and rationalisation activities, MMK conducts training in this area. In April 2019, the training programme 'Innovation Factory: from a one-off idea to an innovative flow' was held at Personnel, MMK Group's corporate training centre. In December, the training programme titled 'Improving the efficiency of rationalisation activity through the use of TRIZ-developments (Theory of Inventive Problem Solving) in the spheres of engineering and production' took place.

Another traditional and effective tool to inspire technical creativity in employees is the 'Fresh Idea' promotional campaign, dedicated to the Day of Inventors and Innovators. The campaign is aimed at promoting technical creativity in general and promoting 'Evolution', a specially developed mobile app for collecting ideas. The app, developed for both Android and iOS, allows users to submit ideas in a few simple steps, either on their phone or personal computer. The app also allows the user to track the progress of their idea, for example, they can follow the decision made by the expert commission.

The results of the approach to rationalisation that MMK has developed and implemented, indicate an increase in performance indicators and clearly demonstrate the Company’s commitment to the development of technical creativity among employees.