MMK saved half a billion rubles using digital model of a supply and consumption of coal raw materials

2019

Input in commercial operation of the program robot

On November 8, 2019 it became known that within the complex project of the innovative development "the MMK Industry 4.0" commercial directorate of Magnitogorsk Iron and Steel Works together with competence center of RPA and innovations of MMP-Informservice LLC put into commercial operation of the program robot on collecting and systematization of quotations on raw materials allowing to bring analytics of the purchased raw materials to higher level.

This software solution saves time of specialists of commercial directorate, gives them the chance to focus on formation of expert evaluation of a status and also trends of a raw component of ferrous metallurgy in Russia and in the world.

The robot collects data from different sources in the uniform report on each group of raw material resources: to coals, ferroalloys, iron ore raw materials, fire-resistant materials, electrodes. He is able to read the PDF files and other electronic formats, analyzes information of online editions with the personalized access. At the same time the program checks correctness of data on quotations: at detection of discrepancies the user of a system receives the corresponding message.

The done work allows to start the solution of such tasks as the code and systematization of data retrieveds with an output in the ready analytical report, in the automatic mode^[1].

MMK implemented 16 program robots within digitalization

On Magnitogorsk Iron and Steel Works already 16 program robots imitating actions of real employees successfully function. Until the end of the year the company is going to robotize in total 32 production processes.

The chief of project office "MMP-Informservice" Rybolovlev Valery told about it in July, 2019 during the "Digital Transformation in Metallurgy" conference which took place within the business program of a forum Innoprom in Yekaterinburg.

MMK brought the first program robot into operation last year in commercial directorate of plant: the robot created based on the innovative technology of RPA (Robotic Process Automation) is responsible for scrap metal vendor interaction. In particular, it processes e-mail, independently executes search in Russian Railway bases and creates reports for profile services of the company. In the current year MMK is going to analyze in details 69 more production processes regarding a possibility of their robotization.

Development of RPA technologies – one of the directions of the concept implemented on MMK "the Industry 4.0" which provides complex digitalization of business processes for the purpose of increase in production efficiency. According to Valery Rybolovlev, mathematical models and digital doubles will become key technologies of a didzhitalization in the next five-ten years. For their development and deployment in MMK scientific and technological center the group of mathematical modeling and system and analytical researches is created.

In three years the group did a great job: several software solutions working at Big Data technologies and artificial neural networks are developed and implemented. So, for example, the mathematical model of optimization of purchases and consumption of coal raw materials thanks to which according to the results of last year the company saved more than 500 million rubles is developed. The recommendatory service "Snayper" developed by MMK together with Mechanica AI company, allowing to optimize a consumption of ferroalloys and additional materials when smelting steel is put into trial operation.

MMK in partnership with Deloitte prepares the road map of digitalization of plant for the medium-term period. She will turn on the most effective projects which will help MMK to achieve quicker strategic objectives and it is essential to increase business performance.

MMK saved half a billion rubles using digital model of a supply and consumption of coal raw materials

On June 11, 2019 Magnitogorsk Iron and Steel Works reported that in 2018 it saved more than 500 million rubles thanks to a mathematical model of optimization of purchase and consumption of coal raw materials. This economic effect managed to be reached due to improvement of structure of a coal blend and quality of coke.

This model is a part of large-scale strategy of digitalization of MMK. Creation of the complex multiple model of aglokoksodomenny production designed to optimize production processes of the first repartition is the cornerstone of the program.

The model of optimization of a supply and consumption of coal raw materials is based on studying of work of coke-chemical and domain productions and is own development of MMK. Development, implementation and development of model are performed by group of mathematical modeling and system and analytical researches of PJSC MMK scientific and technological center. The model allows to optimize process both at the level of the technologist, and at the level of the procurement expert. The purpose – to receive required quality of coke at the minimum costs.

For June, 2019 it is used in business procurement process of coal concentrates, integrating knowledge and requirements of all services of PJSC MMK involved in this process: among them management of category purchases (owner of model), scientific and technological center, coke-chemical production, management of economy. Monthly within business procurement process of coal concentrates calculations are executed:

• the forecast of quality of coke at the set structure and volumes of coal raw materials;
• optimization of structure of a supply and consumption of a coal blend;
• sensitivity analysis of calculation of optimization to the prices and calculation of the recommended effective prices for purchase of coal concentrates.

All calculations are executed in the multi-user web interface – the AIS "Model of Optimization of a Supply and Consumption of Coal Raw Materials".

It is not the first successful project of mathematical modeling of optimization of production processes of the first repartition (the contribution of the first repartition to product cost is about 80%). Also mathematical model of optimization of delivery and consumption of iron ore raw materials is developed, automated information system "Optimal cast iron" is created. In developments are used Big Data technology and artificial neural networks, but also also traditional physical and chemical models, in particular, the response characteristics of blast-furnace process allowing to consider are applied.

2018: Implementation of the first program robot

In Group of PJSC MMK the first program robot allowing to perform operations of the real person during the work at the computer is developed. The robot is created by specialists of Competence center of RPA and innovations of MMP-Informservice LLC (society of Group of MMK) based on RPA technology (Robotic Process Automation). On September 18, 2018 reported about it in group of MMK.

The program robot is developed for the organization of interaction of commercial directorate of Magnitogorsk Iron and Steel Works with suppliers of scrap metal and already implemented in commercial operation. It processes the entering e-mail from suppliers, executes search in Russian Railway bases for check of the status of sending freight cars to PJSC MMK, informs specialists of commercial directorate on results of check, creates reports for profile services of PJSC MMK. The program copes with assigned tasks, minimizing runtime of transactions and also excepting the errors connected with a human factor.

The main task of Competence center of RPA and innovations of MMP-Informservice LLC which developed a product is design and implementation of the program robots allowing to execute routine business operations, releasing at the same time time of profile specialists for the solution more difficult, requiring experience and creative approach of tasks.

One of priorities of development of the Center – further increase in efficiency of divisions of MMK due to implementation of program robots and the maximum employee involvement of plant in robotization process.