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ArticleName Labor rate setting as a framework for the effective risk management
DOI 10.17580/gzh.2023.06.06
ArticleAuthor Gerasimenko O. S., Balyasnikova O. V.

NorNickel’s Polar Division, Norilsk, Russia:

O. S. Gerasimenko, Head of Labor Engineering, Development and Rating Management,
O. V. Balyasnikova, Head of Construction and Repair Standardization Department at Labor Engineering, Development and Rating Management


Norilsk Nickel fruitfully develops and improves labor rating and management. The Company pursues an integrated policy of labor rate setting, identification of losses of working hours and development of a system of corporate standards and regulations toward increase in performance. NorNickel implements the long-term Technological Breakthrough Program, and one of the project challenges is the transition from planning and resources management in equipment maintenance and repair in terms of base values to planning and cost management using resources method. Since 2019, NorNickel’s Labor Engineering, Development and Rating Management has the Expertise Center for Labor Rate Setting. Labor rate setting is the main tool of the justified determination of the labor force requirement. After execution of an expert examination by the specialists of the Labor Engineering, Development and Rating Management, the operation flow chart clearly shows a decrease in the total labor intensity of repair work. At NorNickel, norms are the framework for the production planning and management, and for the remuneration of labor, and are the motivating tool to enhance productivity of labor and efficiency of production. Transition to the resource-and-index method brings the maintenance and repair planning and management to the next level, ensures transparency of business processes and promotes optimization of the cost/industrial assets efficiency ratio.

keywords Labor rate setting, resource-and-index method, maintenance and repair flow chart, resources management, operating efficiency enhancement

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