EVRAZ, EVRAZ plc. (formerly EVRAZ Group S.A., EVRAZ Group) (IT outsourcing projects)

2023:

On May 22, 2023, KORUS Consulting announced that it helped EVRAZ to introduce and put into commercial operation a large-scale систему PPM Evraz (Planning & Performance Management system). It will help the business to unify the methodology of reporting, optimize the transparency of data collection, the speed of planning, and also connect strategic planning with operational planning.

According to the company, before the introduction of the system, the budget process was not unified and automated sufficiently. The financial service received more than two thousand files in Excel format, access to detailed budget indicators was difficult. In addition, current tools did not allow proper support implementation of the company's ambitious strategic goals. Therefore, it was decided to combine financial, strategic and operational planning within a single system in order to optimize the speed and quality of these processes.

The specialists of the department of ERM "KORUS Consulting" on the project adapted the existing methodology of material balances and the production program, ensured the construction of an architecture and the development of a physical model of the system. They also carried out the technical implementation of the project and accompanied all stages of testing.

The integrated PPM Evraz system was implemented and put into commercial operation at the consolidated level and for the Siberia division. It will provide the company with the formation of an annual budget, Rolling Forecast for 2 years, an operational monthly plan, a forecast until the end of the year, KPI calculation and a plan-fact reporting in a single information space. The system helps to link the company's strategic plan with the operational planning of the division and is an important link in the complex digitalization chain - from the production planning system to the consolidated financial result.

As a result of the unification of the methodology, the use of a single data model and flexible reporting mechanisms, the number of introductory and reporting forms in PPM was reduced from several thousand to 600. For the first time in the company, this business process was structured and automated on the basis of a single system.

The system ensures that the company generates data according to RAS and IFRS standards, which helps to avoid additional labor costs to transform the plan. The calculation of the main KPIs and the reporting plan is carried out in a single information space, taking into account the management deconsolidation.

The system is built using the regulatory driver principle, which makes it possible to predict different scenarios of business development and quickly recalculate various options based on assumptions and prerequisites. This is especially important for those enterprises where any change in the range of products requires the redistribution of raw materials between different production streams, and timely adjustments to the budgets of departments.

The RMP automatically collects production volume data for the main products from the production planning system and generates production budgets based on them. Calculates the demand for auxiliary materials, based on the production program, is built into the calculation of the planned cost using integration with ERP.

KORUS Consulting specialists have set up methodological and technical controls in the system that ensure the possibility of checking abnormal deviations from the standards, the convergence of the balance sheet, and the correctness of permissible combinations of analysts. The solution implements an investment planning model with details up to structural elements A project plan that is positioned as the basis for the Dashboard CAPEX analysis tool. The foundation is laid for the implementation of the balance of generation, transportation, transformation, distribution and consumption all types of energy resources.

EVRAZ uses 700 people from 30 responsible divisions and 80 functional business units. Within the framework of the project, a budget campaign and several cycles of operational monthly planning were completed with the delay of strict corporate deadlines.

Automation will optimize the speed of planning and the actual plan of analysis. The performance of the system exceeded the planned indicators of the terms of reference, despite the scale of the model. Data collection in the company has become more transparent due to the transition to a single information space of production, sales and economic divisions for both the division and the management company. Data interconnection and identification of gaps in calculations are ensured.

The thoughtful methodology and architecture of PPM will allow the company to develop the system in the future: automate factor analysis, achieve deeper data analysis (data driven approach), optimize analytical data visualization systems for users of all levels in the company. And also extend the experience to other EVRAZ divisions.

We are grateful to the EVRAZ team for their expert and professional approach to the project. We managed to jointly implement a budgeting system in industry, despite the complexity and detail of the model, different time zones and geographically distributed responsibility centers. added Yuri Orlyansky, Director of the ERM Department of KORUS Consulting Group

{{quote 'author
= noted Sergey Markov, Director of Marketing, Operational Planning and Controlling of EVRAZ LLC|The complex complex project has become a real test of strength for us. Its implementation happened thanks to the well-coordinated work of the cross-functional team of experts, operational management changes and risks of the project. We thank KORUS for the high level of expertise, focus on the result and a flexible approach to solving complex problems.}}