HSE Integration into Production System Practices. NLMK Experience

HSE and Operational Efficiency: Finding the Balance

Integrating Health, Safety, and Environment (HSE) processes into the production system is a natural development stage for large industrial enterprises. In her presentation, Maria Siritsa, Head of the HSE Development Project Office at NLMK, discusses how to combine safety and operational efficiency goals, avoiding conflicting priorities at the line manager level.

Using the example of a company with 45,000 employees, the speaker demonstrates that lean production and HSE tools do not contradict but organically complement each other when a proper interaction system is established.

"Idea Bank": Engaging Employees in Finding Improvements

One of the key tools for operational efficiency is utilizing the potential of the employees themselves. Every employee knows their processes best and can identify bottlenecks and potential risks.

• Collecting initiatives: NLMK has implemented the "Idea Bank" process, where any employee can submit a process improvement proposal — with or without an economic effect.
• Motivation: Financial rewards are provided for ideas with an economic effect, while other methods of encouragement are used for the rest of the initiatives.
• Safety expertise: All submitted ideas pass through an HSE filter. At the level of shop technical councils, HSE specialists evaluate initiatives to eliminate risks and refine proposals if necessary. Systemic ideas are scaled to other departments.

Cross-Functional Teams: How to Avoid Conflicting Priorities

A common problem when implementing new standards is overloading the line manager. When operational efficiency and HSE specialists simultaneously approach a foreman with their requirements, an artificial conflict arises.

To avoid this, NLMK took the path of creating dedicated combined teams. They included production managers, HSE specialists, and operational efficiency representatives. For the duration of the project, participants were relieved of their core duties to jointly seek improvements and implement initiatives directly at the workplaces. This allowed for the informal implementation of tools (such as 6S, A3, mapping) and gaining real support on the ground.

Mutual Integration of HSE and Operational Efficiency Tools

The presentation details the approach to the mutual enrichment of the practices of the two functions:

• Integration into daily routine: Safety issues are built into shift-meeting briefings. Practices such as "safety contact," discussion of high-risk work, dynamic risk assessment, and pre-shift briefings are used.
• Standard Operating Procedures (SOP): Not only the sequence of actions to eliminate time losses is prescribed, but also safety requirements (use of PPE, safe work practices).
• Visualization: Visual management boards and dashboards (Power BI) are used to monitor key indicators and identify problem areas.
• Adapting lean production tools: The "Five Whys" method is used to investigate the root causes of non-conformities (for example, cluttered aisles due to a lack of storage layouts). Checklists are used for focused walk-throughs on top risks and evaluating the effectiveness of implemented tools.

Results and Overcoming Resistance

The speaker emphasizes the importance of considering the change adoption curve: any innovation initially faces resistance. Successful project implementation requires clear goal setting, defining levers of achievement, consolidating results (post-support), and regular monitoring at all management levels.

A comprehensive approach and work in joint teams allowed NLMK not only to improve employee competencies but also to reduce the injury rate by almost 50% (compared to 2020), while ensuring the achievement of operational efficiency goals.

What you will learn from this webinar:

• How to combine HSE and operational efficiency goals without conflict at the foreman level?
• How does the "Idea Bank" system work, and how is the expertise of safety proposals organized?
• Why are dedicated cross-functional teams needed when implementing changes?
• How to integrate safety issues into standard operating procedures and daily meetings?
• How to adapt lean production tools (e.g., "Five Whys") for HSE needs?