27 october 2005
GMCS starts implementing Oracle E-Business Suite based project at AK SIBUR

AK SIBUR, the Russia's largest petrochemical holding, and GMCS set out to implement Oracle E-Business Suite system at two enterprises of the AK SIBUR Group, i.e. Kemerovo AZOT and Tomskneftekhim. 

The work is aimed at integrated automation of the Holding's enterprises according to a corporate IT-strategy approved. AK SIBUR's IT development strategy involves creation of a unified information environment for the whole geographically-distributed structure. The initiative to create the Holding's came both from the parent company and from holding's companies. For example, Kemerovo AZOT had a lot of CNC computer workstations while data were consolidated at the most diverse levels. According to Roman Khlamkov, CIO of IT Development and Telecommunication Department (SIBUR Holding), "all this cannot even be called "patchwork automation".

Kemerovo AZOT became the first enterprise in the SIBUR Holding which developed a corporate information system creation concept. 

According to SIBUR's strategy, a coordination procedure for interaction of production units and the parent company in the process of automation of Holding's enterprises. A decision was made that Oracle E-Business Suite system complies with the corporate strategy.

IT Development and Telecommunication Department (SIBUR Holding) became a direct executor and a general contractor responsible for creation of corporate information systems of the Holding's daughter companies. The Department also developed uniform corporate requirements for information systems of the daughter companies. All projects are run by a uniform organizational structure, design documents are agreed on a centralized basis and stored in the archives of a multi-project office. In the long view, as project management knowledge is accumulated in the daughter companies, a Holding's IT Competence Center shall be created on the basis of IT Development and Telecommunication Department of SIBUR Holding.

Kemerovo AZOT became the first daughter enterprise of the Holding to start a project involving creation of an integrated factory information system on the basis of Oracle E-Business Suite. As Kemerovo AZOT had planned to build a factory integrated system on the basis of a Russian developed enterprise management system, a decision was made to send to Kemerovo AZOT consultants who possessed practical skills both in Russian developed system and in Oracle E-Business Suite. 

"GMCS is the only consulting company which possesses practices in these both products and which we approached with an offer to run at Kemerovo AZOT express diagnostics and problem analysis of automation equipment available at the factory. Based on results of the express diagnostics a report was made containing an enterprise problem tree with the analysis of tree coverage by the both systems. To elaborate a decision a board was called involving all business units of SIBUR Holding interested in creation of a AZOT corporate information analytical system. We noticed weak points of the Russian system, while Oracle covered the whole functionality required. Prices differed about by 25-30%. A decision was clearly in favor of Oracle with additional funding allocated for this project," Roman Khlamkov tells. 

GMCS was told to proceed to the project on the basis of Oracle E-Business Suite at the first Holding's site, i.e. Kemerovo AZOT in April 2005. 

In February 2005 another enterprise of the Holding – Tomskneftekhim – developed IT development concept according to standards approved by that time in the Holding. After the concept was approved in June 2005 senior management of Tomskneftekhim was to sel ect an Oracle E-Business Suite introduction contractor. As a result of a tender conducted the contract was awarded to GMCS. 

Goals of the projects at Kemerovo AZOT and at Tomskneftekhim works are similar: introduction of a functionality including purchasing management, warehouses, sales, accounting, production components, integration with the SIBUR Holding's corporate Automated Planning and Maintenance Tracking System. The system at Kemerovo AZOT is scheduled to be commissioned for pilot operation in March 2006. A similar milestone at Tomskneftekhim is planned for Quarters 3-4 2006.


AK SIBUR is the Russian Open Joint Stock Company of the Siberia-Ural petrochemical company with a vertically integrated structure that processes considerable volumes of hydrocarbon stock in Russia starting from primary treatment and to consumer product manufacturing. The enterprises of the SIBUR produce over one hundred petrochemical products.

Today SIBUR is the largest Russian manufacturer of petrochemical products, namely, synthetic rubbers, tires, polymers and liquefied gases. The company's share in the Russian production of synthetic rubber is about 47%, tires – 48%, liquefied gases – 23%, polyethylene – 25%.

Follow MAYKOR on Linkedin