Magnitogorsk Iron & Steel Works : MRK implements discrete production

19.11.2020

MMK Group is implementing a large-scale project to transfer the Group's key organisations to a unified corporate information system (CIS) based on Oracle E-Business Suite.

A CIS based on Oracle e-Business Suite V. 12 (OeBS) was put into operation in July 2020 at Mechanoremontny Complex (MRK) (part of MMK Group).

To organise production accounting and calculate production cost, MMK Group decided to use the Oracle discrete production module, while the organisation of the production programme planning process remained in MRK's own, by this time significantly upgraded, system called Planner. Information exchange channels were created between Planner and the CIS.
Mechanoremontny Complex's main feature is its high variety of products, the enterprise produces 90 thousand pieces and unique finished products annually. In preparation for the implementation of the discrete production module, a lot of groundwork was carried out on the development of normative reference information for the position of finished and semi-finished products, the formation of technological maps and resource specifications in the Oracle system. All work on the establishment of a new MRK nomenclature and the development of normative reference information was performed in the Planner system.

Using the new product in conjunction with its own programmes provided functionality for maintaining and forming:

- nomenclature of materials, assembly units, services and works;

- specifications of products and assembly units and technological maps for their production, standard norms of resource consumption for technological operations;

- production plans and production tasks included in them;

- calculating the cost of products and services, as well as accounting and tax reporting.

The implementation of the discrete production module in conjunction with other modules within a single CIS made it possible to organise the complex work of most of MRK's structural divisions in the CIS. For the Company, the result of its implementation will be a reduction in the operating cycles of important business processes, such as closing the accounting period, forming the enterprise's production plan, etc., as well as an increase in the efficiency of production processes and the competitiveness of the enterprise as a whole.