Business game for young specialists , TOP-managers and OPTIMUS team. April 2009

1. Business game for young specialists, TOP-managers and OPTIMUS team.April 2009

2. Business game. 23 April 2009 Formula of success - together to the future

3. Preparation stages 23.04

4. Aim Realization of the creative potential of young specialists, enlargement of their view concerning the enterprise work, strengthening the feel of involving to the enterprise activity, development of management and leadership qualities Business game Task Proposal of improvement ways of the priority spheres of the enterprise activity and development of presentations for optimization of these spheres • The priority spheres of enterprise activity • for optimization: • Work and Fire safety • Environmental protection • Quality of the products • Working assets (current capital) • Production cost The teams were formed by the priority spheres of optimization

5. Business game Key issues for presentation development 1.Concept and proposals of the team for improvement of enterprise activity in the selected sphere; 2.The general task for all teams: Development of decision by the concrete production task – open-pit filling in No.1 of M&BC. Each team has task – according to the selected sphere of enterprise activity to prepare the optimization proposals.

6. Business game Steps for task realization: • Review the existing situation at OJSC ArcelorMittal Kryviy Rihin the selected sphere of activity; • Defining the level of satisfaction by this situation; • Analysis of data and factors, influencing on the selected sphere of activity: а) identification of the useless tools; b) increase of effectiveness of useful tools; c) reduction of surplus expenses; d) development of new effective tools. • Development of the unique strategy of optimization of production and economy activity by the selected sphere of activitytaking into account the existing methods and approaches, which are used by the OPTIMUS project’s members.

7. Business game Technical task - filling in of open-pit – 1 of M&BC • The possibility has emerged since 1985 as a result of open-pit mining No.1to storage of overburden rocks into the mined-out space Since this period the filling in by the overburden rocks is performed around the perimeter of open-pit No.1. However, to the definite moment, taking into account some circumstances, such an opportunity can be excluded, namely: - open-pit No.1 is half-filled with water, but in native and world practice today there is no experience of filling in the high piles into the water with the level of under flooding more than 170 m; - during the process of open-pit No.1 filling in the enlargement of prism width occurs of the possible rock falls to the limited points, after which the work of loading operations is not safe; - the size of the open-pit by the brow of upper level is 900х900 m. • At the moment delivering the overburden rocks is performed by the railway transport to the waste dumps at the distance of up to 18 km. The mentioned dumps of the overburden rocks will not provide the storage of all required volume of stripping the overburden by the residual capacity of open-pit No.2-бис, it is necessary to use the significant expenses for railway transportation. • The mined space of open-pit No.1 is close to the open-pit • No.2-бис, for this reason the decision of the safe storage of • the overburden rocks of open-pit No.1 is economically profitable. • The residual capacity of open-pit No.1 is enough for storage • of barren rocksfor alltime of mining the open-pit No.2-бис.

8. Business game Requirements to the preparation of the presentation • The presentation should consist of slides inPowerPoint; • The use of different visual effects, animation, photos, pictures is welcome; • Time duration of the presentation – no more than 20 minutes; • The evaluation of presentation will be carried out by the following criteria: • actuality (significance of the proposed ideas and decisions); • progressiveness (use of modern science and technology achievements in the proposed decisions); • originality (ability to present your decision effectively); • reasonableness (advantages and strengths of the proposed decision); • reality (ability to implement and practical use of the proposed ideas).

9. Business game • Participants • 5 teams of young specialists • The expert committee of TOP-managers: - Sheremet Vladimir – COO - Konopatskiy Vitaliy – Director for Economy - Baygush Anatoliy – Director for HR and Labour - Kucher Vasiliy – Director for Quality - Kirilenko Vladimir – Work Safety Director - Chelombitko Aleksandr – Director for Production - Chikalo Oksana – Director for Corporate communication and PR - Kozenko Georgiy – Director of M&BC - Drashko Vladimir – Deputy Director of testing – Chief metrologist - Karaman Tatyana – Deputy Finance Director – Head of Department of finance - Lisovenko Aleksandr – Deputy Director of economy – Head of planning and economic department - Kudrich Elena – Deputy head of planning and economic department - Savitskiy Vitaliy – Deputy Director – head of department of water protection, waste and chemical things use and land protection - Ostapenko Sergey – Head of MD of M&BC - Uchitel Aleksandr – Pro-rector of the National Metallurgical Academy of Ukraine, D.Ing. • The support groups of the teams • The consultants, who worked with the teams: > OPTIMUS members: > by departments: - Shorokhov Oleg - Kuzmenko Elena, Gerasimov Roman (Service of Environmental protection) - Efremov Aleksandr - Kostenko Vitaliy, Zadesenets Evgeniy (Service of Director of Quality) - Moroz Andrey - Yaroshenko Natalia, Boyko Elena (Department of Finance)

10. The 1st place – team No.3 Business game Topic of the 1st issue – Current assets (working capital) Team members: Makarenko Maksim (Open-hearth shop) Podgalniy Aleksandr (Central Electrical technical laboratory) Koptev Denis (Foundry-forging production) Kucher Denis (Shop of repair of metallurgical furnaces) Evpak Artem (Service of Automated technical processes) Shubin Igor (Department of technical control) Terehov Dmitriy (Mechanical repair complex)

11. The 2nd place – team No.1 Business game Topic of the 1st issue – Work and Fire safety Team members: Zozulya Aleksey (Steelmaking department) Kononenko Ivan (Division of project planning, confirmation, monitoring and reporting) Karpechenko Gennadiy (Technical department) Rudnitskiy Evgeniy (Blooming shop - 1) Irhin Evgeniy (Mine administration, M&BC) Vitryak Evgrniy (Blast-furnace shop - 1)

12. The 3d place – team No.4 Business game Topic of the 1st issue – Production cost Team members: Klimov Igor (Service of automated technical processes) Vysochin Leonid (Work and Fire safety department) Nechiporuk Aleksandr (Sintering shop – 2, M&BC) Istomin Igor (Blooming shop - 2) Dashko Nikita (Sintering shop – 1, M&BC) Ratushnyy Yuriy (Section rolling shop - 1)

13. Teams, won in the nominations: Team 4 Team 3 Team 2 Team 1

14. Quiz of expert committee’s members:

15. Thank you!