9 august 2011
Production and economic planning system based on JDA SCP has been commissioned at MMK
GMCS is reporting on the completion of one of the largest SCM-projects in the metallurgical industry.

The production and economic planning system based on JDA® Supply Chain Planner solutions was built and put in pilot-industrial operation at Magnitogorsk Iron and Steel Works (MMK) under time.

The production and economic activity optimization project which was launched in the autumn of 2010 is one of the key components of MMK's long-term strategy aimed at the consolidation of the company's leading positions on the Russian and global steel production market. The use of the system enables the complex to plan its production and economic activity in the most optimal manner with regard to demand-supply-price correlation. The tools provided by JDA SCP system allow MMK specialists to perform modeling of the complex's activity for the entire production cycle, compare a few planning scenarios between them and form a holistic comprehension of key factors affecting the final result of the complex's activity. Based on the obtained data, MMK may make timely adjustments in the sales and production processes by optimizing its order portfolio, product assortment while enhancing the efficiency of all managerial solutions.

Andrey Eremin, Director for Economics MMK, notes: "The use of innovative tools brings the planning process up to a cutting-edge new level, creating the required conditions for more close integration of the plants of the MMK Group. Up to now we have already achieved the first results of using the system (enhancement of the precision and quality of the existing process planning at its testing stage)."

The project has been implemented on a stage-by-stage basis, in close cooperation with the work teams at MMK and GMCS. When creating the system, we took the experience of the Russian metallurgical plants and the international practice of applying the solutions of JDA Software Group Inc, the acknowledged leader in developing and implementing supply chain management systems.

President GMCS Ekaterina Voropayeva says: "We started the SCM on a wave of crisis, and this direction has shown its dynamic growth proving the dedication of Russian companies to SCM solutions. Today, there are several solutions of the leading suppliers in this industry in our portfolio. We are glad that MMK has chosen us as their partner for this project. Therefore, we believe that this result will boost the development of supply chain management projects on the Russian market."

Razat Gaurav, Senior Vice President of JDA Software for EMEA Region, highlights: "JDA highly values the possibility of encouraging the leading global metallurgical companies in the management of supplies and major production processes. We are also hoping to continue our cooperation with MMK by exercising initiatives aimed at the transformation of supply chains by the company and improving the company's industrial processes."

About MMK

Magnitogorsk Iron and Steel Works is one of the largest global steel manufacturers, occupying the leading positions among other ferrous metal plants of Russia. The company’s assets in Russia include a large-scale metallurgical complex with a complete production cycle, from the treatment of iron ore raw materials to high-level processing of ferrous metals. MMK manufactures a wide assortment of metal products with a predominant share of HVA products. In 2010, MMK Group produced 11.4 million tonnes of steel and 10.4 million tonnes of commodity metal products. The MMK Group’s revenue in 2010 amounted to USD 7.719 billion, EBITDA – USD 1.606 billion; the net income for that period was USD USD 232 million.
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