August 20, 2009. Magnitogorsk Metallurgical Works has deployed a new information management system, “MMW OJSC Business Processes”. The solution is a uniform registry of business processes that will be used to ensure comprehensive management and monitoring of the enterprise’s business processes.
Borlas Consulting Group (a.k.a. IBS Borlas upon its amalgamation with IBS in 2007) began its cooperation with MMW OJSC in the 1990s. In 2005, Oracle recognised the corporate information system developed specifically for MMW on the basis of Oracle E-Business Suite as the best in Europe, Middle East, and Africa. Upon completion of the project MMW continues its cooperation with IBS Borlas in further development of the system.
In December 2008 the enterprise decided to expand the system’s functionality and deploy a new information system, “MMW OJSC Business Processes”. At the time the enterprise managed its business processes using various control and monitoring systems designed on the basis of the company’s own standards. Those systems were unable to ensure a uniform degree of automation of data collection and processing which did not meet the requirements of the enterprise’s senior management.
Vyacheslav Kazakov, the Director of the IBS Borlas Department of Oracle business applications and technologies, advised as follows: “In the course of the project we managed to design a uniform registry of business processes. Users are able to access this information in compliance with their roles within the system. The solution brings together the existing management and control systems, i.e. this new single resource enables the enterprise’s managers to operatively obtain data on any business processes: risks and problems, schedules, owners and participants of processes, auditors’ recommendations, etc.”
According to Oleg Zorin, the Senior Consultant-Developer of the IBS Borlas Department of Oracle business applications and technologies, the complexity of the project had to do with its non-standard nature (in particular, no ERP-module was available to implement the terms of reference), and a number of technical aspects became more specific only as the project progressed. In this connection the IBS Borlas experience in the deployment of the Internal Financial Controls System and the Comprehensive Risks Management System at MMW (2006-2007) proved especially useful. Based on this experience, the company deployed the new system using the following scheme: the “Oracle Internal Controls Manager” module was used to store and manage data, whereas the user web-interface was almost entirely custom-made. This enabled IBS Borlas to meet the MMW requirements and complete the project on time without compromising the performance quality.
The system was launched in trial operation in April 2009. Submission of information to its industrial version began on July 1. It is planned that full-scale operation of the system will begin in September 2009. The system will be used by the leaders of the MMW structural subdivisions, internal auditors, and representatives of the functional subdivisions. Senior MMW managers will be the principal information users.
According to Alexey Kosarev, the Head of the MMW OJSC Department of systemic analysis and risks management, “The system’s deployment will improve the management efficiency of the MMW business processes by ensuring timely provision of information on identified risks and inconsistencies, as well as compliance with regulatory documents and corrective actions, and enhance responsibility of the plant’s managers for performance of their respective duties and results of the business processes. It should be noted that this system has no analogues in the Russian metallurgical industry”.
In 2010 MMW and IBS Borlas plan to further develop the project by expanding the analytical applications of the “MMW OJSC Business Processes” and improving the system’s integration with the Internal Financial Controls System and the Comprehensive Risks Management System.
Companies’ Profiles
Magnitogorsk Metallurgical Works OJSC is one of the world’s largest steel manufacturers and one of the leading metallurgical enterprises in Russia. The enterprise is a large metallurgical complex with a full production cycle starting with preparation of iron ore and ending with profound processing of ferrous materials. MMW manufactures a broad assortment of metal products dominated by profoundly processed products with the highest added value. In 2008, the enterprise manufactured 12 million tons of steel and 11 million tons of metal commodities. The MMW Group proceeds in 2008 amounted to $10,550 billion USD.
IBS Borlas is part of IBS and specializes in building management systems based on Oracle E-Business Suite applications and other products of Oracle Corporation. An Oracle Master Partner, IBS Borlas has the strongest Oracle E-Business Suite team in the Russian market, with over 500 consultants and professionals having a track record of more than 50 projects. IBS Borlas is the only first-line technical support centre among Oracle partners, for both Oracle basic products and Oracle business applications, and the Competence Centre for Oracle's four core technology areas. For more information on the company please visit http://www.borlas.com/.
IBS is the leader in the Russian IT and consulting market. Along with Luxoft, it is part of IBS Group Holding Limited. Its core lines of business span management consulting, implementation of business applications, IT outsourcing and IT infrastructure. IBS headcount is about 3,000 employees including over 1,500 certified consultants and professionals. IBS customer base includes 34 of Russia’s top 50 companies. For more information on IBS, please visit http://www.ibs-company.com/.
For further information about the company, please contact Lada Scherbakova, PR Director at 007 (495) 967 8080, or by e-mail at lada@ibs.ru.
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