MMK upgrades its corporate information system
The previous version of Oracle e-Business Suite (EBS) has been used by MMK since 2004. MMK's incorporation of Oracle EBS into its corporate information system, has been recognised by Oracle as the most successful example among similar initiatives in Europe, the Middle East and Africa. Over time it has become necessary to upd ate to a new version of Oracle EBS and particularly, to optimise business processes by replacing our own IT developments with the more standard and newer version of Oracle and to create a single IT platform to be used by all enterprises in MMK Group.
In February 2018, MMK signed an agreement with Oracle for the incorporation of the 12th version of Oracle EBS into MMK’s corporate information system, as well as those of the United Service Company (USC) and MMK Metiz. The project requires the participation of both management and specialists from all structural units of the companies involved. The project manager from MMK is its Director for Economics Andrey Eremin.
“Since the start of 2018, the team has been working hard alongside Oracle consultants on the transition to the new corporate information system - on its configuration, data conversion and user training. Progress has also been made towards the optimisation of MMK Group's business processes by adopting a unified corporate information system. The new CIS will alter management of production (both continuous and discrete) inventories, repairs and purchases (including an e-trading platform), finances, personnel (including payroll), projects, orders and sales. Information streams have also been se t up in order to provide data for modelling the enterprise’s processes and for predicting the results of its activity. We have successfully reduced the number of old customisations and the updates have significantly increased the Company's efficiency,” says Andrey Eremin.
All preparations for the transition to the new version of Oracle EBS were completed on time and as of 1 April we are conducting a test run of the new system. Thus, the first part of the project has been completed. We anticipate that the second stage of the project, during which MMK Metiz and USC will start to use the CIS supported by the new version of Oracle EBS, will be completed in July of this year. The Company also has plans to introduce this CIS into the machine-building division of MMK Group, Mekhanoremontny Komplex, as well as into a number of other enterprises in the Group.
The corporate information system will not only record the Company's business-related activity, but will also monitor the entire chain of production processes, the condition of all large mills and units, and equipment idleness and repairs. The system presents real-time data on the activity of the enterprise in question, allowing company management to make informed decisions based on readily-available information.
About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.
Investor contacts:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru
Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru