CIO of Norilsk Nickel Yury Shekhovtsov About uniform ERP and perspectives of application of disruptive technologies

Yury Shekhovtsov: Key parameters of our strategy: basic informatization which consists in large programs of implementation of ERP for all perimeter of the company, and the Technology Break program. "Техпрорыв" more than 40 independent projects covering all fields of activity of the operational block include. A target status of production processes of the operational block of the program is the effective system of multiple planning and the automated operating control.

Main units of the Technology Break program, from Sergey Lukavy's presentation, Norilsk Nickel (the image is clickable)

Now, as for changes. We passed from a stage of implementation of the basic automation equipment which will end till 2021, and began to look at perspective in terms of investment projects. All new ideas which arrive are considered regarding whether they yield result in terms of investments.

It is, perhaps, a new element for the company.

One more important thing - we carry out large-scale reorganization of service IT, we centralize it based on the General Service Center (GSC) of Norilsk Nickel. It becomes for increase in controllability, standards and work with personnel. The active phase of this process passed in 2017 when we transferred to OTsO of people from the Kola MMC. And this year translated employees in the Norilsk industrial region there. Until the end of the year we should complete transfer of people to the uniform company with uniform understanding of tasks and are more whole than IT.

Yury Shekhovtsov: Already about 1.5 thousand people. But I cannot tell that it is final digit. It is only initial stage of consolidation, the target picture on people still is in a formation stage.

We inherited a large number of the different self-written systems and now based on ERP SAP we do more unified layer of systems. At us there are a lot of unique systems, knowledge, we take away people with this "inheritance" and further we watch how it is better to align an IT landscape.

Yury Shekhovtsov: All operating rooms and project services are located in OTsO. In the head company in DIT (Department of information technologies – the comment) remains only division of service of the customer and a small number of employees in the direction of strategy.

Yury Shekhovtsov: Surely will remain, but their quantity will be much less. Completely we will not get rid of them because the single platform does not solve all problems, kind of we did not want it.

Yury Shekhovtsov: The project of cost reduction, and IT not an exception works for the budget of all company. For the three-year period in IT we reduce nearly 25% of costs. But taking into account that we are consolidated in the uniform center, for us it does not look what - that an impracticable task.

The main directions of costs are set by two programs which I mentioned earlier: SAP ERP and "Tekhproryv". There are less expensive programs connected with document flow, an infrastructure part further and designate. One of the main expensive articles - licenses of SAP.

Yury Shekhovtsov: Increase in efficiency is the first part. And the second - due to centralization of contracts with partners and obtaining more advantageous conditions. Integrating IT service in the uniform organization, we also integrate all requests and we issue more complex requests. And, thus, we apply for more advantageous conditions for ourselves.

Yury Shekhovtsov: For example, we consider outsourcing of printing - payment for the number of copies. This project at us goes now in the form of inspection according to the results of which we will look, it will give something or not. Also in projects we "autsorsy" consulting, either implementation, or technology. At the same time, there is a number of categories which to give on outsourcing now is rather problematic as it requires change of culture.

Yury Shekhovtsov: We have an expensive infrastructure project – the fiber-optic communication line. We built the big fiber optic channel to Norilsk and we will consider investments into increase in reservation of this channel now. It is necessary to guarantee its availability with the smaller probability of idle time. It is technology very difficult project because of climatic and landscape conditions. Transition through the river under ice was executed (a bottom of Yenisei. - primas) the unique equipment which honor is also involved at anybody any more in the world is practically not present.

Yury Shekhovtsov: I, probably, will not give digit because in programs we, generally implemented basic automation. But only "Tekhproryv", by estimation, will give annual economy in millions of dollars.

For example, the Simulation modeling project allows to create 3D models of our mines, to enter technical and economic characteristics to models and to calculate, as a result, parameters for mining. Including, what number of units of the mountain equipment should be involved. It allows to optimize the number of underground transport.

One more draft of the program – Balance of Metals – allows to increase the level of extraction of metal from ore. It is completely paid back project. Increasing extraction level by only 1%, it allows to pay back costs of the company for all program.

In a case with SAP ERP return on investment will bring management of material flows and a chance which this platform will give further - an opportunity "wind" on it the repair block, both mobile repairs, and increase in availability of the equipment.

Yury Shekhovtsov: We used many solutions, including 1C. In SAP (the program is installed on the Kola MMC and Bystrinsky GOKE) at us now about 4-4.5 thousand active users. About 9 thousand more after "circulation" in Norilsk will be added.

Yury Shekhovtsov: Technology equipment which to us is supplied, already, as a rule includes technologies of Internet of Things. For example: Sorso Atlas drilling rigs, mountain Sandvik equipment, dump trucks of Caterpillar. The various systems of indicators of pressure, in oil, - actually everything at us it is already present at buses, is delivered together with the equipment. Within, including, Tekhproryva, we just pass to purchases of units which would have all equipment. And further, through the systems of positioning, through infrastructure which we build in mines (as a rule, it is Wi-Fi plus optics) we are already capable to collect and analyze information from sensors which equip our equipment.

Still we have different auxiliary complexes, for example, power plants which are equipped with technologies of Internet of Things too. Now it is even difficult to tell what at us is not equipped with sensors...

Yury Shekhovtsov: The system of positioning, plus status of the mobile equipment is, probably, the most striking example. We see where it goes that happens to it, we see how it loads, we see (by means of sensors) parameters and a status, pressure in its nodes, oil level, etc.

In general it seems to me that Internet of Things is more likely the fashionable term. For production it is usual reality for a long time.

In our laboratory we look at opportunities of the equipment of turbine power stations which are heritage of the past. We look with the purpose it was possible "predict" the output of turbines out of operation, any non-staff situations.

Yury Shekhovtsov: We created laboratory this year based on IT for carrying out R&D. In its structure there are engineers and profile specialists from IT.

If there is a task, we watch what technologies could be applied to its solution. If it is visible that the solution is interesting and can bring benefit, then we move further: we create a prototype, we make the decision, to implement technology or not.

Now in laboratory about 40 different ideas in a different stage of study. Among them there is, for example, a short circuit of the cathode and anode in electrolysis workshop. Here we prototipirut three technologies which help to define short circuit in an electrolysis bathtub. The thermal imager, a laser ranging sensor and "digital sight" are involved. The thermal imager defines short circuit, the range finder defines the place, and "the digital sight" prompts to the operator where the person needs to leave that to eliminate this short circuit.

Still an example - we try to make optimization of flight between the oven and the converter. On converter production there are ladles which move between the furnace and the converter. A task simple - to raise a metal exit. Not by construction of the new converter, and by its correct loading through ladles. For this purpose we do a prototype of the digital double of this flight.

The digital double, in the presence of the plan for change, allows the operator to simulate ideal logistics of ladles and to make optimal operational solutions.

Yury Shekhovtsov: Creation, in this case, too loud word since UAVs are already created. Actually, by creation it was meant capability here to connect several technologies based on the drone which will be able to solve certain problems. Including, in the field of industrial security. We, in particular, pilot drones now with a lamp which do flight of the ore chute in places unavailable to the person. Thanks to the camera it is well visible whether there are dangerous sections where there can be collapses. If we see such section, then we can perform necessary works for increased security at once.

The next step - we want to try to make the drone independently piloted that he flew about the right places. Equip it with a certain intelligence, the training algorithm. In order that on the basis of received frames, a system could distinguish dangerous places on specific sections and "highlight" them for the person. It is a certain road map at which we aim.

Yury Shekhovtsov: We now actively do not use these technologies, but it is one of the directions which are interesting to us to study in laboratory. There is a number of the ideas and requests where virtual and augmented reality could be involved.

Virtual reality can help in all that concerns training, hints in different operational things. It is possible to apply this technology in all training programs which require visualization, especially, when the person never was earlier on real production.