Open / Close Advertisement

MMK Launches JDA SCP Based Productive-Economic Planning System

08/10/2011 - Magnitogorsk Iron and Steel Works OJSC and GMCS Co. announced the pilot commissioning of a productive-economic planning system based on the JDA® Supply Chain Planner.

Magnitogorsk Iron and Steel Works OJSC (MMK) and GMCS Co. announced the pilot commissioning of a productive-economic planning system based on the JDA® Supply Chain Planner.
 
The project is intended to optimize production and economic operations, and its main objective is to increase the efficiency of sales and production planning processes by implementing innovative mathematical simulation tools.
 
Prior to commencing the project, MMK tested the system’s effectiveness using a pilot project based on the Supply Chain Planner. GMCS, an IT consulting company and the official partner of JDA Software in Russia, was a contractor for this project.
 
The productive-economic planning system was built step-by-step. At the design stage, the means for simulating the plant's production facility was determined, and key organizational aspects were also discussed. While the project was being designed, a model of the plant's production cycle was implemented in the system, from sintering and blast-furnace processes to advanced ferrous metal processing workshops, including toll manufacturing. A different set of reference data was developed for medium-term planning.
 
The system should enable MMK to improve the quality of sales and production planning as well as the entire production chain. The system will also help the company assess production costs and optimize its portfolio of orders and product mix based on existing and long-term production and market opportunities.
 
After the system was launched, the plant switched to an integrated approach to medium-term planning. Today, all plant operations are in a single model based on the Supply Chain Planner, giving the company a more comprehensive understanding of key factors that can impact plant performance and allowing it to improve the efficiency of its decision-making process.
 
"Our use of this innovative tool will take our planning process to a new level and will allow for the closer integration of MMK’s business units,” said Mr. Andrey Yeremin, MMK’s Director on Economics. “At this stage, the system has already generated its first results for us, which, as early as at the testing stage, enabled us to improve the accuracy and quality of our planning processes."
 
Ms. Yekaterina Voropayeva, President of GMCS, added: "We discovered the SCM practice during the crisis, and since then this business line has enjoyed significant growth, reflecting strong demand by Russian companies for SCM solutions. Today, we have several solutions in our portfolio from leading suppliers in this sector. We are glad that MMK chose us as a partner to implement this project. We believe that the results achieved will give a new powerful impetus to the Russian SCM market."
 
MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from iron ore preparation to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. In 2010 MMK Group produced 11.4 million tons of crude steel and 10.4 million tons of commercial steel products. The MMK Group's revenue in 2010 totaled USD 7. 719 billion, with EBITDA at USD 1.606 billion, and the profit for the period at USD 232 million.
 
GMCS, a leading consulting company in the IT sector, carries out comprehensive projects aimed at improving business efficiency. Founded in 1997, GMCS now has significant experience in working with major businesses in various sectors of the economy and in different countries. Since 2005, GMCS has been a member of the Compulink group of companies. The GMCS head office is located in Moscow, and regional representative office is in St. Petersburg.
 
JDA Software Group, Inc., The Supply Chain Company® is a leading provider of innovative supply chain management, merchandising and pricing excellence solutions worldwide. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results.