Economic effect from introducing the Production System at UWC’s plants totals RUB 195 million

Railcar building plants of PJSC “Research and production corporation “United Wagon Company” (“RPC UWC” or “the Holding”) (MOEX:  UWGN) have assessed the aggregate effect from the implementation of the Production System over 2016. The application of lean manufacturing principles increased the productivity of the major production lines by an average of 25%.

The implementation of the Production System (PS) at the Holding’s freight car building located in Tikhvin allows to raise their efficiency, improve product quality, reduce time losses, and strengthen production standards and safety. The application of the PS involves the continuous improvement program implemented by the workers themselves at their workshop sections together with their supervisors, heads of workshop sections and shops.

In 2016, two RPC UWC’s enterprises, “Tikhvin Freight Car Building Plant” and “TikhvinChemMash”, implemented a total of 152 initiatives for a cumulative economic effect of RUB 195 million.

As a result of the extensive application of lean manufacturing principals, the productivity of the major production lines grew by an average of 25%. The daily output of the hopper car assembly line rose from 4 to 12 freight cars spurred by a combined application of the modernization and operational improvements aimed at eliminating production losses. The biggest savings, exceeding RUB 115 million, were brought upon by a variety of projects to raise the staff productivity focused on increasing and balancing the scope of useful work.

The lean manufacturing principles have been mastered at the enterprises of Tikhvin’s industrial site since Tikhvin Freight Car Building Plant was launched in 2012, and today are implemented at all RPC UWC’s plants: “TikhvinChemMash”, “TikhvinSpetsMash” and Tihvin Assembly Plant “Titran-Express”. Up to now, an aggregate of 680 kaizen-proposals and projects of A3 format for a total economic effect of more than RUB 250 million have been implemented. The total amount of remunerations paid to the authors of the implemented innovative proposals exceeded RUB 2.5 million.