Integrated management: experiences and perspectives

July 23. Kazpravda


Integrated management: experiences and perspectivesSuch concept as integrated management systems recently entered domestic economic lexicon. Meanwhile, there is already experience in the Kazakh companies in the use of this management algorithm that provides high level of social responsibility, safety, environmental protection and quality of product. In his interview executive secretary of the Council for economic policy of the NDP «Nur Otan», MP, Doctor of Technical Sciences, Professor Victor Kiyanskiy told about achievements and problems of its introduction.

– Not so long ago, the issues of integrated management system and its introduction were discussed at the thematic «roundtable». The discussion revealed that the topic is an equal concern of labor teams, ministries and trade unions. What is the reason for such attention?

– The event that you have mentioned, considered experience in the introduction of integrated management systems in the coal and steel industry. The discussion was attended by Deputy Minister of Industry and New Technologies Albert Rau, senior officials from several ministries, representatives of employers, workers of branch trade unions, as well as of the bodies of conformity assessment.

The actuality of the topic, in my opinion, is that the integrated management system is a versatile tool to enhance competitiveness of domestic enterprises and to simultaneously address the issues related to improvement of quality, environmental protection, occupational safety, and certainly social responsibility.

This is a real mechanism for implementation of President’s ideas to move to a «green» economy and to the Society of Universal Labor.

It was very interesting to know experience of companies in the mining and metallurgical industry, which increased productivity, reduced costs and waste, improved energy efficiency through energy savings due to systematic approach.

– At the meeting you proposed to hold an annual competition in Kazakhstan «Zhasyl el» with awarding the prize «Zhasyl el …»

– That’s right. In my opinion, this should be an analogue of prizes «Altyn Sapa» in the area of quality and «Paryz» — in the area of social responsibility, which are proposed to establish for achievements in the field of environmental protection and introduction of principles of «green» economy. In this case, I think the winners of the competition can be businesses, schools, universities, community organizations, and even towns, confirming commitment to sustainable development and having real achievements in the use of innovative technologies.

Also, they may be organizations and enterprises producing goods with a mark «ECO», also those which introduce the international standard ISO-14001 and implement key environmental slogan, «Think globally and act locally!»

On the basis of a new paradigm of development of our country, set in the Strategy «Kazakhstan-2050?, we are to increase ecological component in all aspects of life, to update production, modernize our education system. And of course, every Kazakhstani should recognize his responsibility for protection of environment and natural resources.

Using experience of some countries we must encourage the creation of «green» clusters in the cities, which will include kindergartens, schools, universities, businesses, government organizations united by a common goal: to support sustainable development in the region based on a single environmental policy.

– Is there any statistics on the process of international standards and integrated management systems’ introduction?

– According to the Ministry of Industry and New technologies, more than 6,000 companies and organizations in Kazakhstan have already introduced the system of management based on international standards. State agencies and universities are also actively involved in this process: 5,547 companies are working on the quality system ISO-9001; 1084 – on the environmental management system ISO 14001; 632 -on the system of Industrial Safety OHSAS 18001, and 4 enterprises -on the system of  Social Responsibility SA 8000.

It is noteworthy that 44 of the abovementioned number of businesses that introduced the standards in the field of industrial safety, supply products for export. Among them are the subjects of economic activity from the East Kazakhstan, Pavlodar and Karaganda regions.

41 companies in the steel industry also introduced and certified management system. Twenty of them (48%) are export-oriented (UMP, Aksu Ferroalloy Plant, JSC «Titanium-Magnesium Plant», JSC TNK «Kazhrom», «Kazzinc»).

In the mining industry there are 69 such companies, among them are the branches of JSC «Shubarkol»,  LLP » Mining Company “Mineral resources of Kazakhstan”,  LLP, «Arcade Industry».

Statistics shows that traumatism and injuries decreased, occupational safety improved, as well as working conditions in the industries which introduced the quality management system and OHSAS 18001.

At present, the programs and plans for energy efficiency and conservation, and energy audits are actively implemented within the frames of management systems’ introduction. In this context, impressive figures were cited at the «round table». For example, due to the program the total costs of «Kazakhmys» and «Aluminium of Kazakhstan» will reduce by one billion kw / h of power per year. This is despite the fact that today the republic annually produces 100 billion kW / h of electric power.

By the way, the UMP — one of the winners of the contest «Altyn Sapa», has been implementing a new management strategy since 1996, when the key strategic suppliers and consumers of steel enterprises include in contracts increased demands on compliance not only to quality management, but also to requirements of environmental protection, social responsibility and safety at work.

Today, the integrated system works effectively and gives positive results. Now the plant’s leadership is introducing the system of energy management that meets requirements of the Law «On energy saving and energy efficiency.» Unfortunately, addressing of this problem is hampered by the lack of sufficient number of accredited organizations to conduct energy audits. This is one of the sore points marked at the «round table».

– What were other problems discussed at the meeting? After all, the purpose of the event was not only to mark the achievements…

– Despite the fact that the approaches to the subject of the participants were different, they all agreed that the processes of CES formation, participation in the Customs Union and the planned accession of Kazakhstan to the WTO require more efforts on harmonization of national legislation in the field of non-tariff regulation and harmonization of technical regulations based on international standards.

Therefore, the Government was recommended to summarize accumulated experience of introducing management system of standards OHSAS 18001, ISO 14001, of environmental management, and social responsibility ISO-26000, and to develop practical recommendations for companies in other industries.

It was also proposed to update the legislation in the field of technical regulation and metrology, and the evaluation of effectiveness of CU technical regulations. Many speakers also noted the need to amend the procedure of preparation of expert auditors in new areas of management to ensure equal competition with foreign authorities. Unfortunately, today there are many barriers at different levels to domestic applicants. In particular, the JSC «National expertise and certification center» had problems with verifying compliance with the ISO 27001 standard for information security. Ineffective training of expert auditors in this area also hampers the process.

In general, the legislation in the field of technical regulation and metrology must be changed and adapted to the integration process.

– There is information in media that some companies are not eager to establish social partnership. How can this process be encouraged?

– At present, the coal, steel and other industries with high occupational risks widely use practice of so-called voluntary reports on sustainable development offered by the international leadership of the Global Reporting Initiative (GRI). De facto it is a recognized reporting standard in the field of sustainable development.

These annual reports in accordance with the established structure, systematize all the information on corporate governance, health and safety, environmental protection, investment, personnel development, contribution to economic development of the region, the interaction with the local population.

All interested parties can easily get an idea about the company and the level of its social responsibility from such reports. These figures are key indicators for the evaluation of the national contest «Paryz.» And such approaches, I believe, will provide Kazakhstan’s joining thirty most developed nations.