Magnitogorsk Iron & Steel Works increases the efficiency of production and economic planning
Magnitogorsk Iron and Steel Works (MMK) PJSC and GMCS have launched an important project to modernize the system of optimization planning of production and economic activities of MMK PJSC and the companies of the MMK Group.
The aim of the project is to build a new model of optimization planning based on a single IBM ILOG and IBM Planning Analytics platform and obtain additional business benefits from improving planning processes.
The modernization of the optimization planning system will allow to reduce the business cycle of planning, ensure seamless integration with the budgeting system and other MMK subsystems, and provide an opportunity to quickly generate analytical reports with drill down type details.
"The synthesis of highly intelligent mathematical tools with improved business processes provided during the project will increase the efficiency of the production and economic activity of the enterprise," notes the curator of the project, Director of Economics at MMK Andrey Eremin. "In turn, increasing the efficiency of production and sales inevitably leads to an improvement in the financial performance of the company."
The project is designed for 12 months. The launch of the modernized system of optimization planning of production and economic activities of MMK PJSC and MMK PJSC Group companies into commercial operation is planned in the fall of 2022.
"The project to modernize the optimization planning system is another milestone of our more than ten-year cooperation with the flagship of the ferrous metallurgy – Magnitogorsk Iron & Steel Works. The implemented project is a logical continuation of the development of optimization practices at the plant, including a project to optimize repairs of power equipment, carried out with the participation of our company earlier. With the transition to optimization planning considering cast-iron production, the optimization of which we are also implementing in a parallel project, MMK will build comprehensive optimization planning of processes at different levels in one digital ecosystem," emphasizes Ilya Kornilov, Head of GMCS Optimization Planning Direction.
About Magnitogorsk Iron & Steel Works PJSC
Magnitogorsk Iron & Steel Works PJSC (https://mmk.ru/en/) is one of the world's largest steel producers and holds a leading position among the ferrous metallurgy enterprises of Russia. The company's assets in Russia are a large metallurgical complex with a full production cycle, starting with the preparation of iron ore raw materials and ending with the deep processing of ferrous metals. MMK produces a wide range of metal products with a predominant share of products with high added value. In 2020, MMK Group produced 11.6 million tons of steel and 10.8 million tons of commercial metal products. MMK Group's revenue for 2020 amounted to $6.4 billion, EBITDA - $ 1.492 billion.