MMK improves production process scheduling
Within the framework of MMK Group's Development Strategy up to 2025, one of the development objectives was "strengthening positions in priority markets". One of the key elements of this objective is the strategic "Just-in-time” logistics concept.
According to Pavel Shilyaev, CEO of MMK, the Company has put a lot of effort into modernising production, expanding its product line and improving its quality. However, today, the client is not only interested in the quality of products and the variety on offer, but also in the timely delivery of products. Therefore, according to Pavel Shilyaev, MMK can only increase its competitiveness and client focus by implementing best practices for production process scheduling.
An important milestone in the implementation of the strategic "Just-in-time" logistics concept was the development and implementation of an automated operational scheduling system in cooperation with ITC Ausferr. Thanks to the introduction of the automated operational scheduling system, it is now possible to calculate the shipment date at the time of accepting an order which is useful on both sides of the process. It is also possible to schedule the production and shipment of the order for the client and production personnel and to create a client portal, where the client can see all the relevant information and track the progress of their order through the plant online. With the introduction of the automated operational scheduling system, the "delivery window" – the period during which the order must be fulfilled – has been reduced. Thus, the plant is closer to the implementation of the "Just-in-time" logistics concept, which is fully coordinated with the Company's production work allowing it to produce and deliver any product to clients in a predetermined time, as well as to save money by reducing variable costs and warehouse maintenance. In 2018, the implementation of the automated operational scheduling system at MMK was awarded the gold medal at the international industrial exhibition Metal-Expo.
MMK continues to implement the 'Just-in-time' logistics concept. Among the additional measures to increase the OTIF indicator (On-Time-in-Full) are the development and implementation of a system for generating, approving and issuing daily production tasks to the dispatching departments of MMK and the development and implementation of the accounting functionality in calendar planning for emergency situations at MMK units. In addition, we have implemented a set of measures to optimise calendar planning and to improve production discipline.
MMK is also currently implementing a set of methodological, organisational and technical measures to achieve a set level of KPI for planning, managing production and shipping steel products. Projects for further development of the mobile sales assistant are under development.
Thanks to these and other initiatives, the Company has already significantly increased the discipline of order execution.
The target of delivering 70% of orders to the client within three days of the given "delivery window" was reached and even exceeded. In June 2020, the average figure across MMK was 72%. At the same time, a number of key divisions showed even higher results (90% at long product shop and 80% at sheet rolling shop No. 5).
There are plans for further implementation of the 'Just-in-Time' strategic logistics concept, which MMK hopes will allow the Company to achieve the world's best practices in terms of delivery window size and accuracy in meeting it, as well as significantly increasing its level of client focus.