MMK implements concept ‘Industry 4.0’ in strategic partnership with Oracle

Magnitogorsk Iron and Steel Works (MMK) is expanding its innovative cooperation with Oracle, having chosen the corporation as its strategic partner for the next five years in the implementation of the concept ‘Industry 4.0’.

The optimisation and unification of MMK’s business processes on the basis of a unified Corporate Information System (CIS) will facilitate the increase in the business efficiency of a leading Russian metal producer. The large-scale cooperation programme also includes the possibility of industrial use of the cloud services Oracle Cloud.

2016 04 07 064954In the course of the project’s implementation, MMK will update its corporate information system to the latest version of Oracle E-Business Suite R12 and expand the ERP system to other companies of the Group, which will almost double the coverage of employees working in a single information field.

The large-scale modernisation programme will enable the completion of the ‘Industry 4.0’ tasks via the integration of all the company’s information flows. This unified information system includes the management of production (continuous and discrete), inventories, repairs, purchases (including an electronic trading platform), finances, personnel (including payroll), projects, orders and sales.

Strategic cooperation with Oracle will ensure the further innovative development of MMK, including the introduction of new tools and technological discoveries. The company is considering the possibility of industrial use of Oracle’s SaaS-services for management of the company’s performance (EPM Cloud), personnel (HSM Cloud), as well as e-commerce and sales management (CX Cloud).

Andrey Eremin, Director for Economics at MMK and the project manager, said: “The new environment demands new approaches to the development of information systems. The concept ‘Industry 4.0’ relies on end-to-end information flows as sources for the modelling of the enterprise’s processes and for forecasting the results of its activity. The modernisation of MMK’s corporate information system will enable the optimisation of business processes and guarantee the possibility of further development of the CIS, taking into account the new functional possibilities of the Oracle E-Business Suite.

“The corporate information system shows not only the results of the financial and economic activities of the company, but also the entire technological chain of production, whilst the operating status of all large mills and units, and delays and equipment repairs are monitored promptly. This real-time data about the enterprise's activity is shown in the system. The creation of a single information space for all organizations of MMK Group will allow managers to make more effective management decisions more quickly, and as a result, lead to an increased efficiency of the business of MMK Group. We see Oracle as a strategic technological partner capable of providing the most appropriate innovative solutions in line with our strategy.”

The launch of the pilot operation of the corporate information system, upgraded to the Oracle E-Business Suite R12 version, is planned for April 2019, and the start of the industrial operation is scheduled for the Metallurgy Day in July 2019.

Sergey Tabulin, Director of Oracle’s Department of Business Applications in Russia, said: "It is strategically important for us to expand cooperation with global industry leaders such as MMK Group. Our partnership has been successfully developing over the last 15 years and we are glad that we are entering a new innovative stage in the implementation of the ‘Industry 4.0’ concept. Today, enterprises around the world need to follow innovative trends and offer products and services that are better and faster than those of their competitors. We are happy to support the strategic plans of one of the largest metals & mining enterprises in the world, with the best cloud services and solutions in their class, to ensure the growth of productivity and business efficiency in conjunction with the requirements of the industry and the digital age.”

Additional Info

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 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 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

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