Integrated Plant Magnezit
Creation of Investment and Capital Construction Management System and Its Integration into Enterprise Information Structure
Enterprise Profile
Integrated Plant Magnezit OJSC, located in Satka, Chelyabinsk Region, is the world's largest producer of highly resistant refractories based on crude magnesite. The enterprise has a full technological cycle and produces more than 100 items of magnesian and carbon containing refractories, as well as a wide range of unshaped refractory materials. The integrated plant's customers are 700 domestic and foreign enterprises of ferrous and nonferrous metallurgies, of concrete, chemical, wood-pulp and paper, sugar industries, of machine building, power industry and agriculture.
Project's Prerequisites
In November of 2003, the Board of Directors of Integrated Plant Magnezit OJSC approved the enterprise's development strategy until 2008. It is aimed at strengthening the integrated plant's positions on the refractories market and transforming the enterprise into public one. Within the frames of the approved strategy, an investment program scheduled for implementation until 2006 was developed. The total amount of planned investments made up about 3 billion rubles.
The management of Integrated Plant Magnezit OJSC has made a decision to create an investment and capital construction management system based on the SAP business application operating at the enterprise. According to the results of a tender, IKT-CONSULT Company was chosen as a general contractor. Implementation of the project on expanding the functionality of the corporate information system of managing Integrated Plant Magnezit in the investment and capital construction management sector was started on April 01, 2005.
Project's Objectives and Tasks
The project's objective is to provide efficient management of investments into the following main activities: construction of units producing new kinds of production, replacement of obsolete equipment to cut costs, increasing the production quality and providing the environmental safety, and development of social infrastructure objects.
The investment and capital construction management system being created at Integrated Plant Magnezit must be integrated into the enterprise's information structure.
Solution
Performed by specialists from the IKT Company at the first stage of the project's implementation were the following kinds of work:
- Conducted was a survey of Integrated Plant Magnezit in relation to the investment and capital construction management sector.
- Together with specialists from the enterprise, developed and agreed on was a requirements specification on building and implementing investment and capital construction management information system.
- Conducted was a training of from the enterprise on investment and capital construction management in mySAP Business Suite.
At the second stage, specialists from the IKT Company began to develop conceptual design solutions. They are adjusted in parallel with their development.
Result
Implementing the investment and capital construction automated management system will allow Integrated Plant Magnezit OJSC to:
- Optimize investment construction processes with unambiguous and consistent information and efficiently manage them.
- Plan for an investment outlay in real time and lower amounts of time used unproductively.
- Provide a clear interaction between participants of a process to implement a construction investment project.
- Provide control over all the stages of an investment cycle.
Success Factors
- Active participation of the management of Integrated Plant Magnezit OJSC in managing the project and implementing the decisions made.
- Creating in the course of the project's implementation a powerful design team from the Contracting. Party that solved organizational and technological issues and performed the main amount of work. Highly qualified specialists from the enterprise were invited to design teams.
- That the IKT Company - the project's general contractor - has the field experience in implementing management information systems based on SAP software at large industrial enterprises.
