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Big Data Yields Bigger Savings for Russia's MMK
07/19/2016 - A data science firm said it has helped Russia’s Magnitogorsk Iron and Steel Works (MMK) save more than 3 million annually in steelmaking costs by applying predictive analytics to years of production data.
£According to Amsterdam-based Yandex Data Factory, MMK is saving money on reduced consumption of alloying agents. The reduction, it said, was made possible by creating self-learning algorithms that comb seven years of production data to predict just the right of amount of additives that will be needed to achieve desired steel compositions.
As the firm explains: “Yandex Data Factory … receives data on the composition of the working mixture, compares it to the required chemical composition of the output steel, and then uses the data on MMK’s historical smeltings to make real-time recommendations on the amount of ferroalloy and supplementary materials needed to produce the necessary end products at the lowest cost.”
The result, the company said, is that ferroalloy consumption has dropped an average of 5 percent.
“Our work with Yandex Data Factory is a new wave in industrial automation with the use of big data analytics,” Sergey Sulimov, MMK’s deputy chief executive for finance and economy, said in a statement.
“We believe that the possibilities of mathematical models using big data analytics, as well as the rapid development of (Internet of Things) technologies, will reduce the costs of industrial companies by 5 to 10 percent over the next three to five years.”
As the firm explains: “Yandex Data Factory … receives data on the composition of the working mixture, compares it to the required chemical composition of the output steel, and then uses the data on MMK’s historical smeltings to make real-time recommendations on the amount of ferroalloy and supplementary materials needed to produce the necessary end products at the lowest cost.”
The result, the company said, is that ferroalloy consumption has dropped an average of 5 percent.
“Our work with Yandex Data Factory is a new wave in industrial automation with the use of big data analytics,” Sergey Sulimov, MMK’s deputy chief executive for finance and economy, said in a statement.
“We believe that the possibilities of mathematical models using big data analytics, as well as the rapid development of (Internet of Things) technologies, will reduce the costs of industrial companies by 5 to 10 percent over the next three to five years.”
