Magnitogorsk Metallurgical Plant increases efficiency of production and economic planning

2021: Improving efficiency of production and economic planning

Magnitogorsk Metallurgical Plant (MMK) and GMCS have embarked on a project to modernize the optimization planning system for MMK's production and economic activities and MMK Group companies. This was announced on December 29, 2021 by GMCS.

The purpose of the project is to build an up-to-date optimization planning model based on a single platform IBM ILOG and IBM Planning Analytics and obtain additional business benefits from optimizing planning processes.

The modernization of the optimization planning system will reduce the business planning cycle, provide seamless integration with the budgeting system and other MMK subsystems, and provide an opportunity to quickly generate analytical reports with drill down details.

"The synthesis of highly intelligent mathematical tools with optimized business processes provided during the project will increase the efficiency of the enterprise's production and economic activities. In turn, increasing the efficiency of production and sales leads to an improvement in the financial performance of the company, "- notes project curator, MMK Director of Economics Andrei Eremin.

The project is designed for 12 months. The launch of the modernized optimization planning system for the production and economic activities of MMK and MMK Group companies is planned for industrial operation in the fall of 2022.

"The project to modernize the optimization planning system is another milestone in our more than a decade of collaboration Magnitogorsk metallurgical with the mill. The project under implementation is a logical continuation of the development of optimization practices at the mill, including the project on optimization power of equipment repairs, completed earlier. With the transition to optimization planning taking into account production cast iron at MMK, integrated optimization planning of processes at different levels in the same digital ecosystem will be built, "- emphasizes the head of GMCS optimization planning, Ilya Kornilov.

2020: Updating the budgeting system

On February 4, 2021, the company GMCS announced that PJSC "" Magnitogorsk Metallurgical Plant is expanding the opportunities in the field analysts and budgeting. The company has introduced a budgeting system based on, in IBM Planning Analytics which more than 400 users work as of February 2021.

The strategic goal of the project is to combine the large companies of MMK PJSC Group into a single budgeting loop in order to significantly reduce the planning time and carry out instant budget restatements in order to optimize them taking into account the volatility of raw materials and metal products markets.

The project began in 2019, and in the 4th quarter of 2020 the system was put into industrial operation. The system implements a complete budgeting loop, integration with the ERP system based on Oracle and the system of optimization planning of production and economic activities. As of February 2021, the system covers the budget processes of almost all large companies of the MMK PJSC Group.

IBM TM1-based Planning Analytics is an integrated planning solution with artificial intelligence, automation and forecasting capabilities that enables enterprises to quickly, easily, and more accurately create financial, sales, supply chain, and so on. Using the joint project team of MMK and GMCS specialists, when choosing and using IBM Planning Analytics as a solution, the functionality of the budgeting system was significantly expanded and the number of its users was increased.

MMK improves the efficiency of management decisions, develops and improves business processes, extends high corporate standards of planning and analytics to all companies of the Group. Improving the automated budgeting system is another step in this direction. The transition to IBM solutions allowed not only to optimize and unify budget planning processes, but also to increase their transparency and make them more controlled by integrating all processes on the basis of a single information platform, "comments Andrei Eremin, Director of Economics, MMK PJSC.

The implemented project is the next step in the development of analytical applications based on IBM Planning Analytics solutions in MMK.

Despite the difficulties of 2020, when most of the work on the project was carried out remotely, we were able to implement the project on time. This was made possible thanks to the high culture of project management adopted at the Magnitogorsk metallurgical plant, and the high professionalism of the project team, "notes the Bela Temirkanova project curator, GMCS.

2015

In 2015, with the participation of the company GMCS financial , planning and consolidation systems were created on the IFRS basis IBM Planning Analytics of and a system for automating the collection of actual reporting according to IFRS standards on the basis of. IBM Cognos Controller