Karina Muromtseva, Norilsk Nickel: We transfer production planning from Excel to Knowledge Space
In May 2024, PJSC Norilsk Nickel began an automation project for production and economic planning on the Knowledge Space platform. How the complex and large-scale implementation is moving, what unique methodology the team preferred to comply with strict deadlines and what results have already been achieved, says Karina Muromtseva, project manager "Implementation of the production and economic planning system in the Norilsk Nickel Group of Companies."
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Muromtseva
Why did you need to automate production and economic planning? How was the planning process carried out before the project?
Karina Muromtseva: Norilsk Nickel is the world's largest producer of non-ferrous and precious metals. The product line consists of 13 metals, among which the leaders are nickel and palladium. The main part of the raw materials base and production facilities is located in Taimyr - the northernmost part of mainland Eurasia. The logistics there are extremely limited: neither roads nor railways. Cargo is mainly imported by sea, a little in the summer along the Yenisei River, and if something is urgently needed, then by air. This is difficult and expensive, so production planning processes require careful analysis and a detailed approach.
In addition, our company specializes in the field of non-ferrous metallurgy, which means that you need to manage many complex, energy-intensive and knowledge-intensive processes, unlike, for example, ferrous metallurgy - more standardized and scalable.
A large number of internal and external changes (changes in the mining plan, repair schedule, investment program, changes in market conditions), which need to be constantly taken into account, force us to adjust and update plans more often. Therefore, the quality and speed of production planning, the calculation of the economic efficiency of each solution are critical for us.
Until recently, the integrated planning process in the Company was carried out through the use of a complex of scale models Excel. The calculations are large-scale and complex: there is rework, redistribution of ore between alterations, respectively, cyclic references and other difficult formulas are used. Difficulties were added by the fact that Excel models from different functional blocks could contain conflicting data, errors were not excluded due to the large volume of Excel files. There were difficulties in updating the methodology on a regular basis, and there was no opportunity to quickly respond to data changes. At some point, it became clear that the Excel models did not meet the requirements for organizing integrated planning in a large industrial holding.
What are the goals of the project?
Karina Muromtseva: We set ourselves five key goals:
- Improve the quality of planning - increase the number of options and scenarios, calculate their cost-effectiveness.
- Increase efficiency - the formation of the program within a few days instead of three months, as it was before.
- Creation of a unified methodology for formation of plans between the Main Office of the Company and production sites and unification of processes.
- Integrated approach to planning with the possibility of further scaling of the system for procurement, logistics, auxiliary production.
- Change planning culture - Move to cross-functional interaction, respond quickly to changes, and improve forecast reliability.
How is this project related to the long-term goals of PJSC Norilsk Nickel?
Karina Muromtseva: The project directly affects the achievement of the Company's long-term goals. We create a unified system of economic production planning, which allows you to quickly make management decisions based on a single toolkit. Everything we are doing now will allow Norilsk Nickel to get tangible business effects in the future.
The project is strategic and the Company's management is actively involved in its implementation. The curator is the first vice president and financial director of MMC Norilsk Nickel. Vice Presidents for Economics, Production and IT also participate.
By automating production planning, we capture and preserve the unique experience of specialists working at Nornickel for 15-20 years, who are well aware of all the subtleties of production and understand how each step affects the economy and business processes of the entire Company. This is, without exaggeration, strategic work.
How did you choose the contractor and IT system?
Karina Muromtseva: The process of choosing a contractor took place in accordance with corporate procedures and took several months. We evaluated applicants in terms of technological maturity. Factors such as sanctions independence, system performance, as well as experience in the implementation of such products were important to us. Initially, 9 systems were evaluated. After a detailed assessment of functionality, technological maturity and information security, as well as an assessment of the total cost of ownership, two platforms became finalists. According to the results of the procurement procedure, the leader was the Knowledge Space platform, the implementation of which we are now engaged in.
Tell us more about the progress of the project. What has already been done, what is in work now? What are the interim results?
Karina Muromtseva: We started working in May 2024. The project is large, and we immediately divided it into blocks: first - the Enrichment block, then - Metallurgy. In parallel, we are developing an optimizer - a special unit for choosing the best production plan, based on the specified criteria: for example, maximizing margin profit or the greatest utilization of production capacity. At the same time, all proposals can be further checked through the simulation model by reproducing the proposed production scenario.
The calculation of the Enrichment chain is already in pilot operation. Colleagues made the first calculations, and they coincided with the forecasts, which was very pleased. Integration with the regulatory and reference information system has been set up, information security requirements have been implemented. At the moment, a metallurgical chain is being developed in the active phase. The optimizer is also preparing to launch.
We plan to complete the development of the basic functionality of the system by the end of 2026. Next, we plan to expand the processes to logistics, sales and distribution and auxiliary units. There are also many nuances: for example, the seasonality of supplies along the northern sea route.
How is project management built? Are there any specifics in the methodology?
Karina Muromtseva: Yes, the project management methodology is a separate interesting element. We have a hybrid approach. Upper-level management - classic waterfall with clear stages: design, development, testing, commissioning. This is necessary both for internal regulations and for manageability.
But inside we work on Agile: we use Scrum, Kanban. There is a backlog of tasks, there are sprints, there is a board with priorities. But the sprints are not filled "to capacity" - we leave space to be able to quickly respond to business needs, add tasks for new introductory ones in real time, and not postpone until the next iteration. The business is involved in the project on an ongoing basis: it is engaged in setting tasks and priorities, actively participates in discussions.
This approach allows you to flexibly respond to changes, while maintaining a common vector of development. At the end of the stage, we always return to the classics: documentation, acts, checkpoints.
Plus, we initially laid down the possibility of updating design and technical documentation. This is important: if changes appear in the process - and they appear constantly - we can quickly make adjustments and agree on them officially. Thus, by the time of completion, we will not have a formal "set of documents," but an up-to-date, reality-reflecting description of the system.
What is the most valuable lesson you have learned from this project?
Karina Muromtseva: Looking back and analyzing the work done, I would like to note our overall success, which would be impossible without strong involvement and well-coordinated interaction between IT experts and business representatives of Norilsk Nickel.
The project has its own specifics: many introductory, constant changes, non-standard tasks. 150 people participate in the project, of which 30 are the vendor team, plus architects, infrastructure, representatives of the sites. And precisely due to the fact that we are all involved, there is trust, dialogue, the desire to find the best solution, we are moving forward.
We do not restrict anyone in the proposals. If someone from the team comes up with an idea, we are considering it. Some sentences were born right in the process: "And let's check like this." Great, let's check. This openness gives a very strong result.
Well, the second point is the approach. When we first started, the timing seemed elusive. But we decided not to follow the path of increasing them, but to restructure the approach, to introduce a hybrid methodology. And so far everything is on the schedule.
So the most valuable lesson that we have learned is to work together, work for the result and always control the time!
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