MMK continues to integrate its organisations into single corporate information system based on Oracle E-Business Suite v12
The transition of MMK-MRK to the use of this CIS was carried out as part of a wider programme of implementing a single CIS based on Oracle and follows its commissioning at MMK-Lysvensky Metallurgical Plant (MMK-LMZ).
Mekhano-Remontny Kompleks is the largest subsidiary of MMK, one of the leading enterprises in the machine-building industry, the main manufacturer of process equipment and metal structures, equipped with all the necessary equipment for the implementation of technological tasks of any complexity. The main activity of MMK-MRK is the production of replacement equipment and spare parts for the metals & mining and processing industries. MMK-MRK is one of the Russian leaders in supplying technological containers and non-standard equipment for non-ferrous and ferrous metallurgy enterprises and the mining industry.
The project team had the task of replicating MMK Group processes at one of the largest subsidiaries, and the team successfully coped with it. 95% of the business processes used and automated at MRK are standard, while the rest take into account the specifics of the company.
The integration of each MMK Group company into a single CIS will allow the Company to conquer new, previously undiscovered frontiers. The commissioning of the CIS at MMK-LMZ was achieved in a fully remote working mode. The main feature of MMK-MRK is a high production volume – 90 thousand individual and unique items of finished products are produced annually. Because of these production features, the launch of the Oracle-based system at MMK-MRK marked the largest implementation of a new discrete production functionality in the EMEA region (Europe, Middle East and Africa) in the past 3 years. Planning automation and production process accounting was implemented using standard Oracle e-Business Suite R12 modules for Discrete production: WIP, IPAC and BOM.
In the process of preparation for pilot operation, significant work was carried out on the development of regulatory reference information for finished product positions and the formation of resource specifications within the Oracle system. This task was achieved in a short time, thanks to the coordinated work of the Company's operational services and the project team.
As noted by Oracle project Manager Mikhail Mishin, "the system was implemented remotely during the COVID-19 quarantine period. The project team was tasked with providing distance learning to more than 450 end users. Video tutorials and online seminars were used for this purpose. Individual training plans were developed for each end user with daily monitoring of their implementation. In total, more than 4,000 training sessions were held and more than 70,000 practical tasks were completed in the single CIS. Thanks to this preparatory work, MMK-MRK employees will be able to use all the system's capabilities from the first days of pilot operation."
"With the introduction of a large-scale ERP system, MMK's machine-building complex has received a powerful tool for improving the efficiency of its operations by using the best international practices in business process automation," said Andrey Eremin, Director of Economics at 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 complex 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 2019, the company produced 12.5 million tonnes of crude steel and sold 11.3 million tonnes of commercial steel products. MMK Group had sales in 2019 of USD 7,566 million and EBITDA of USD 1,797 million.
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