OAO Domostroitel

1. OAO Domostroitel Krasnaya Polyana, Russian Federation

2. DOMOSTROITEL is a furniture producing factory, one of IKEA suppliers of solid wood articles. The factory is situated in Russia, in the south of Kirov region, in a very picturesque place on the left bank of the Vyatka river – Krasnaya Polyana. OAO Domostroitel The Vyatka river The history of DOMOSTROITEL dates back to 1944, when a house-building factory was founded. This explains the name of the factory: in Russian “Domostroitel” means “house-builder”. Since 1967 the factory started to produce container-houses for the regions with winter temperature – 30 ºC. In 1981, due to development of oil and gas industry, the factory started to produce container houses for regions with temperature up to - 50 ºC.

3. The factory developed into a large-scale enterprise with 3 main directions of production: • - sawmilling and woodworking, • - house-building and • - production of soft fiberboard. • In 1992 the factory became an open joint-stock company. Panel production started since that year. Deliveries of different articles to domestic and foreign markets developed. OAO Domostroitel Logo - symbol of Domostroitel • In 2005 the factory has a log sorting line, two sawmills, own drying kilns, two woodworking factories: birch and pine, a lacquering line, a boiler station, a garage and a warehouse. Timber is delivered by suppliers from different regions of Russia.

4. The factory in 2009 went through re-organization when one production line have been cancelled and factory give main focus into the pine production flow. • We produce different furniture articles from glue-board panels: shelves, tables, bookcases, shelving units, stools and other. • They are delivered within IKEA net to different countries: Sweden, the USA, the Netherlands, Italy, Germany, France, China, Poland, Canada, Great Britain, Malaysia and to the Russian market as well. OAO Domostroitel Some of product’s range

5. There is a lot of modern foreign equipment in the factory, operators became good specialists who can operate and maintain machines to produce furniture under high quality demands. • We pay a lot of attention to quality of our products. Quality inspection is provided by operators and workers on every process step and independently by quality control from the beginning of the material flow and ending by final inspection (assembling products) and vehicles inspection. OAO Domostroitel Drilling machine

6. OAO Domostroitel Process Map

7. One of the biggest issues for the factory is wastes utilization. Earlier wood wastes were used for soft fiberboard production, but in 2006 this production was closed as it was not profitable and caused environment pollution. • There are installed two presses for production of wood briquettes which are very popular for houses heating. We sell briquettes to different countries in Europe. OAO Domostroitel Briquettes press Briquettes

8. For the last period, company increase dramatically volumes and product range have been changed by 70% and in the same time production area have been reduced. • Therefore we took opportunity to invite student who will be able to work at international company independently with focus on: • Efficiency improvement by inventory reduction by 80% • Ares to be investigated and included at final report: • Production planning vs customer orders • Sub-supplier capacities investigation & security • Material flow chart • Organization of buffer stocks • Proposal of traceability system to identify quickly root cause in case of NOK • Time period: Jan-May 2011 • Requirements: • - English on communication level • - Computers skills • - Analytic abilities, organization skills, problem solving, team • player, flexible, goal oriented, communicative • - Skills at planning and production technology • Application deadline: end of Jan 2011 • Contact: • SvyatoslavSarson (General director), office@domo.kirov.ru • Tatiana Gesvandtner, tatiana.gesvandtner@ikea.com OAO Domostroitel