Severstal has established a unified capital management system based on 1C:PM Project Management and 1C: Cost 3

2022: Implementation of 1C:PM Project Management and 1C: Cost Estimate 3 systems

As part of the digital transformation of the capital constructions PJSC "" function, a Severstal project was implemented to develop and implement information a project management system (), ICPS which includes automation of cost management processes (including cost estimates), time management (including schedule maintenance) and management of the closure of completed CIWs. This was announced ITLand by the company on August 15, 2022.

Illustration: armtorg.ru

The automation project was led by Severstal's Investment Directorate. The cross-functional project team included more than 40 experienced company experts responsible for management and planning, design, release of cost estimates and acceptance of works.

ISUP was implemented on the basis of solutions 1C:PM Project Management"" and "1C: Estimate 3," the development of the system was carried out by ITLand, GC "-Ericos CSP" and JSC Severstal-Infokom"."

Objectives and Objectives of the Automation Project

Within the framework of the project, it was required to create a single ISUP that provides:

• Management of capital construction investment projects of PAO Severstal, including design, project management, construction.
• Creation of a single cost and construction time management mechanism, including:
  • Cost tools (constructions start-up complexes, cost estimates).
  • A single tool for monitoring the timelines of all stages of the project and tracking the chronology of events (a single project schedule).

• Communication, operational exchange and storage of orderly data of capital construction projects.
• Operational communication between project participants.
• Automation of the document approval process.
• Minimization of the human factor. This required:
  • Automate typical calculations.
  • Template standard documents.
  • Ensure that data is captured in a single system, without the need for duplication.

Platform and Software Selection

During the selection of the platform for implementation and implementation, several vendors were considered. Since the system was supposed to include the functions of estimate functionality, activation of work performed, functions of calendars and networks and functions of classic ERP systems, as well as be able to maintain and integrate with related systems by its own IT departments, many of the solutions were eliminated at the preliminary stage.

After the preselection, the selection was conducted between two platforms:

• 1C: Enterprise platform and software products 1C:PM PROF Project Management, 1C: Cost Estimate 3 and 1C: ERP.
• SAP ERP/SAP 4 HANA Platform and Grand Cost Software.

As a result, the first option was chosen.

Project features

The design of the system was carried out in conditions of changing processes, the processes "as is" and "as will be" were described, the initial functional and technical requirements were formed. But detailed design could not be carried out due to the limited time frame, changing business requirements and the changing organizational structure of the Customer.

Thus, it was decided to include the list of FTTs as the initial backlog of the project and further sprint movement according to the Agile method. At the same time, the quality of implementation in the absence of detailed design was ensured by stabilization measures before the launch of each release into pilot operation.

The agile approach made it possible not only to implement the required functionality, but also to quickly deliver the developed functions of subsequent releases to the operated system.

Project Progress

During the project, the following tasks were implemented:

• 1. Define MVP, initial project backlog, schedule detail, and breakdown of requirements into releases.
• 2. Development of functional and non-functional requirements during sprints (from 2 weeks to a month for each sprint).
• 3. Development of the role matrix and its implementation in the System.
• 4. Adaptation and implementation of estimate and regulatory bases in the System.
• 5. Training of key and end users when starting the System.
• 6. Migration of data from the used information systems to the ISMS.
• 7. Preparation of instructions on automated processes and interfaces of workplaces with their continuous adaptation.
• 8. Set up user workstations, configure interfaces and profiles.
• 9. Support of users during pilot operation.

Agile's flexible approach made it possible not only to implement the required functionality in a timely manner, but also to quickly deliver the developed functions of subsequent releases to the system in operation.

During the project, 1,136 jobs were automated.

Project results

The system was implemented and put into operation in a short time (in one year). In total, about 1,000 users of PAO Severstal and managed companies were connected to the system, including 200 simultaneously operating.

As a result of the project, a unified project management information system was implemented based on the solutions "1C:PM Project Management PROF" and "1C: Estimate." The system includes projects of design, implementation of investment measures, as well as consulting, repair and internal projects of divisions.

With the help of ISUP, investment projects are managed, including construction and installation work, design and various service projects.

You can distinguish the following effects from starting the AMS:

• The progress of the project is monitored online;
• A completely transparent progress in the approval of KS-3 references in the system with the reflection of budget analysts;
• The dependence on the executors during the calculation and verification of the estimate documentation has completely disappeared;
• There is no loss of data in the documentation, which makes it possible to build any analytical reporting in the future;
• A completely transparent progress in the approval of certificates of work performed in the system, saving all comments on the closed volumes.

Since May 2022, the ISUP has been in industrial operation. The development of the system continues. In 2022, it is planned to connect external contractors performing construction, installation and design and survey work.