Kazakhmys expands cooperation with IFS

The Kazakhmys corporation, one of the largest suppliers of copper in the world, signed at the beginning of 2011 the new agreement with IFS company on replication of the solution on automation of supply and inventory management on all enterprises of Corporation. Within this contract providing purchase in addition more than 1000 user licenses at the end of 2010 implementation on two industrial zones of Kazakhmys is already complete.

IFS and Kazakhmys have the long-term history of cooperation. In the middle of 2010 system implementation of inventory management and warehouse stocks based on IFS Applications at the enterprises of Corporation in the East Kazakhstan region was complete: on Zhezkentsk and Belousovsk GOKAKH, Copper chemical plant and also in Trading house of Kazakhmys in Almaty and its Ust-Kamenogorsk branch.

Within the new contract in December, 2010 through joint efforts of the parties completed solution deployment on the Balkhash and Karaganda industrial zones of Corporation including, in particular, such enterprises as the Balkhash copper-smelting plant, the Karaganda steel works and coal mine of Barla. Besides, implementation is complete also in the Karaganda and Balkhash branches of Trading house of Corporation and also in the Investment management of the central office.

IFS Applications functions in the mode of commercial operation at all stages of a production cycle: from extraction of copper ore before production of finished goods. Unification of the business processes connected with supply, all enterprises of Corporation, the organization of a common information space allowed to provide flexible and exact requirements planning in Inventories on the basis of MRP mechanisms, to expand planning horizon about one year. In addition the important place in the project was allocated to solving of tasks of control of actual balances in warehouses and availability of Inventories, to automatic maintenance of level of safety stocks and processing of deficit on the most significant nomenclature positions and also status monitoring of deliveries.

In general, the new contract provides replication of the solution on all remained enterprises of Kazakhmys Corporation and will cover about 60 balance sheet units in all regions of Kazakhstan. The works are going to be completed in the middle of the current year.

In addition to control automation logistics and stocks based on IFS Applications in Kazakhmys Corporation conduct preparatory work for replication of the solution on personnel management and payroll on all industrial zones of Corporation. This project will cover the enterprises and the organizations, in total more than 60 thousand employees.

In the middle of 2010 pilot implementation of inventory management and warehouse stocks based on IFS Applications at all enterprises of Kazakhmys Corporation in the East Kazakhstan region was complete: on Zhezkentsk and Belousovsk GOKAKH, Copper chemical plant and also in Trading house of Corporation in Almaty and its Ust-Kamenogorsk branch. After a successful completion of the project replication of the solution on all other industrial zones of Kazakhmys was begun.

Replication on the remained three industrial zones: Zhezkazgan, Balkhash and Karaganda – provided purchase in addition more than 1000 licenses and covered over 100 enterprises entering into Corporation. Besides, implementation is complete in branches of Trading house of Corporation in each industrial zone and Management of investments of the central office.

The management system for logistics based on IFS Applications functions in the mode of continuous operation at all stages of a production cycle: from the enterprises which are engaged in extraction of copper ore to manufacturers of finished goods. Business processes of supply are unified. The special place in the project was allocated to solving of tasks of control of availability of Inventories and also operating control of a status of deliveries.

Feature of replication was that during a pilot project the company trained key users who could support afterwards independently replication with the minimum involvement of consultants of IFS. It allowed to increase quality of training of users, both key, and final which continue to work and support a system on places. Such approach allows corporation to reduce significantly costs and in the shortest possible time to pay back costs for implementation of an information system.