Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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MMK has adopted a quality management policy which determines the strategy and areas of activities for all
the employees.
MMK’s quality management system was first certified by RW TUV (Germany) in 2002, and in December of 2007,
following the certification and supervision audits with an expanded area of certification, TUV NORD auditors
recommended to issue the following certificates of conformity:
• ISO 9001:2000 for designing, development and production of coke by-products, limestone, lime, dolomite,
break-stone, clay, sinter, cast iron, continuously cast billets and slabs for hot rolling, hot-rolled and cold-rolled
coils, strip and sheets, cold-rolled strip, tin plate, galvanized rolled metal and colour coated rolled metal,
electric-welded steel and galvanized pipes, roll-formed steel sections;
• ISO/TU 16949:2000 for designing, development and production of cold rolled metal in coils, hot dip galvanized
rolled products , cold-rolled and hot-rolled strip from low-carbon and carbon steel for automotive industry
plants.
In 2006 the MMK Quality Management System passed a certification audit of the “Transcert” voluntary
certification system (Moscow) for compliance with GOST R ISO 9001:2001 requirements in manufacturing products
for pipe industry plants.
OJSC MMK has received 22 certificates of conformity for its products issued by such certification bodies as
Mosstroycertificatsiya, Russian Maritime Registry of Shipping, Russian River Register, Lloyd Register, Germanischer
Lloyd and the certificate of TUV NORD for the right of use of “CE” identification marking on long products and
structural shapes, hot rolled strip and sheet according to EN 10025-2.
MMK has set up a department which monitors compliance with ISO 9001:2000 standards. . The quality of some
types of products such as shipbuilding steel and hot rolled sheet for the Chelyabinsky Pipe Rolling Mill is controlled
not only by MMK’s in-house inspection systems but also by the consumer’s representative at MMK prior to the
products shipment.
Apart from MMK, the quality management system has been adopted by a number of large companies within
the MMK Group ( MRK, MMK-METIZ, RMK, Stroitelny Kompleks, Magnitogorsk Cement & Refractories Plant,
Ogneupor, Shlakservice, Electroremont, NPO Avtomatica, etc.
Goals in the Field of Quality Assurance
for 2007 and Their Achievement
In line with the Company’s Quality Policy and approved budget for 2007, MMK established and attained the
following goals in 2007:
Goals Planned value Actual value
Produce not less than 12,200 thousand tons (kt) of
commercial products
Achieve a share of slabs in the total volume of
commercial steel products not exceeding 7.1%
Ensure a “crude-to-rolled-steel” consumption ratio not
exceeding 1,083 kg/ton
Ensure pre-determined yield performance in the
production divisions
Achieve consumer satisfaction degree of not less than
0.79, and for the automotive sector, not less than 0.81
Achieve a level of fulfilling orders accepted for delivery
of steel products to the export and domestic markets of
not less than 97.6%
12,200 kt 12,203 kt
7.1% 8.0%
1,083 kg/ton 1,081.1 kg/ton
Performance targets
specified in Orders # А-
78 dated 01.03.2007 and
# А-247 dated 20.07.200
Achieved in all shops except:
BOF Shop - 97.8%(target:
98.50%);Rolling Shop
– 99.47%(target:
99.50%);Rolling Shop # 5:
97.69%(target:r98.50%)
Not less than 0.79 0.87
Not less than 0.81 0.83
97.5% 95.6%