Norilsk Nickel completed implementation of a standard industry information system based on SAP

The unique geographic location of the company and features of creation and business connected with it and also production, logistic and management processes which for years developed required a careful development approach of the corporate standard for implementing solutions of SAP. The first end-to-end information system is decided to be implemented within two child dependent societies: JSC Polar Construction Company and JSC Norilsknikelremont.

Considering that the software of SAP is used in JSC Norilsk Nickel MMC since 2003 for the Solution of Separate Business Challenges, as, for Example, Purchase Management and Financially Technical Resources, One of Main Objectives of Implementation for the Project TOIS there was a development of an optimal template for further replication within all MMC. Requirements for increase in controllability of separate divisions and the company in general, to identification and distribution of the best business processes, increase in efficiency of planning and improvement of quality of the reporting were an essential driving factor also.

The approaches implemented in "TOIS" will allow to reduce further costs for distribution of a system at expansion of an organizational scope of implementation.

Within "TOIS" the following solutions of SAP company were implemented:

• SAP FI (Accounting of settlings with partners and personnel, tax accounting, fixed asset accounting, cash and banking activities, reporting);
• SAP CO (Planning and accounting on cost types; planning and accounting in the places of emergence of costs (PEC), planning and accounting in the places of emergence arrived (PEA), internal orders);
• SAP SD (Order processing, offer to the client, shipment, invoicing, general logistics);
• SAP IM-PS (Project planning of capital construction and major repairs);
• SAP of MM (Material requirement planning, purchases, inventory management and inventory, accounting of receipts of invoices);
• SAP BW (Flexible analytical reporting).

The companies were external partners throughout all project: SAP CIS, I-Teco Ltd, Go-Life LLC, Sovinfokor LLC.

Implementation happened step by step within 19 months. In January, 2008 trial operation in the enterprises of the Norilsk Nickel Group began: JSC Polar Construction Company and JSC Norilsknikelremont. During this time in "TOIS" there was an advanced functionality and reliable system operation is checked.

As a result of implementation and start in commercial operation of "TOIS" the standard solutions providing a possibility of further effective replication on all organizational scope of the company are fulfilled, terms of preparation of annual accounts are reduced. At the moment in a system about 1500 users work.

"Today, implementing SAP products in our company, we at the same time solve several problems, including use (where it is possible) valuable experience of the business of the leading companies of our industry worldwide expressed in conventional industry business processes of the software, preserving of investments into earlier implemented projects and the purchased software of SAP. We consider that implementing a standard industry information system at the enterprises of the Norilsk Nickel Group we significantly will increase efficiency, transparency, controllability and, as a result, efficiency of our processes" — Bauman Gennady, the director of the department of information technologies of JSC Norilsk Nickel MMC noted.