Vorkutaugol, Severstal (SAP ERP)

The Vorkutaugol company entering into the Severstal Resource group (a raw division of Severstal holding) completes process of system implementation of management on the SAP ERP platform.

The project which received the name "Business standard" provides automation and improvement of control functions at the Severstal Resource enterprises. Implementation of the ERP system in Vorkutaugol company is regarded by the management as a pilot project within which a system will be tested in working conditions in the company with complex, branched structure and big number of employees.

On the data which are available for TAdviser, the project was begun in August, 2007. Implementation is performed by forces of joint project team of Severstal Resource and SAP consulting companies. By this moment the main part of preparatory work is already complete, and it is expected that a system will be brought into operation since July 1 of this year, and about 1000 users will work in it. In the fourth quarter 2008 replication (roll-out) on other Severstal resource enterprises should begin.

Within the project business procurement processes of materials and the equipment, including approval, carrying out the tender, signing of the contracts were automated. In Personnel Management and Finance blocks transition to use of a uniform ERP system, by calculations of the customer, will allow to avoid the errors connected with "a human factor" and to make process less labor-consuming. At the same time a system should help to integrate and structure all information separated before.

According to the chief financial officer Vorkutaugol Valery Borisov, the company intends to be guided not only by increase in prices for coal, but also for economy of means in the enterprise. In these conditions the ERP system is designed to provide increase in efficiency and quality of production, procurement processes, the investment managements, with personnel and financial flows of the company.