02 July ‘20

MMK integrates Lysvensky Metallurgical Plant into its Oracle ERP based corporate information system

MMK Group has successfully completed the next stage of a large-scale project to transfer the Group's key organisations to a unified corporate information system (CIS) based on Oracle E-Business Suite. On July 1, 2020, MMK together with Oracle put MMK-Lysvensky Metallurgical Plant (MMK-LMP) into commercial operation on the system. Thus, MMK is gradually implementing a programme which modernises and expands its corporate system and will solve the task of integrating all information flows of MMK Group divisions.

MMK-LMP is the only Russian manufacturer of electrolytically galvanised rolled products and rolled products with polymer coatings. The plant's products are used widely in the automotive industry, construction industry, general engineering industry and for household appliances, etc.

As in other organisations of the Group involved in the project, MMK-LMP now has access to objective and timely data on production, the financial activities of the Company and the complete technological chain within a single information system. During the project, all business processes were digitalised, including those that were previously conducted outside the IT system or in separate IT systems.

The specifics of this stage of modernisation were affected by the coronavirus pandemic and the physical distance of MMK-LMP from MMK's main site: for the first time in MMK's history, the introduction and launch of a large industrial ERP was carried out remotely. Highly professional and well-coordinated work from the project team and effective project management made it possible to successfully launch the system on time and to a high quality. The project was implemented in the shortest possible time – 6 months.

"For any company, including metallurgical companies, digitalisation is the process of introducing the latest technologies and best practices into production and business processes. An ERP system with its accrued data is as much an asset to the company as real estate and material resources. Using this asset correctly, you can make more rational, high-quality decisions at all levels of management and increase the efficiency of the company. For this purpose, MMK has developed, and is successfully implementing, its digitalisation strategy," said Andrey Eremin, Director of Economics at Magnitogorsk Iron and Steel Works.

Oracle ERP is the core of the entire MMK Group’s corporate information system, as well as a source of the world's best business practices. For users, it provides unified standards of corporate governance in the Group and traceability of information, from inputting primary documents to tracking the impact of financial results.

"MMK management has always paid, and continues to pay, great attention to the development of information, and now digital, technologies. Almost all of the Company's initiatives have an innovative component, which brings significant results to the business," said Denis Smirnov, Director of Oracle Consulting in Russia and the CIS, "We congratulate MMK on completing the next stage of modernisation and are happy to support the tactical and strategic plans of one of the world's largest metallurgical companies with our best-in-class solutions and cloud services which are in keeping with the requirements of both today and tomorrow."




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