OREANDA-NEWS. December 20, 2007. IBS produced the concept of the corporate information system for Electrostal metallurgical plant. Before the end of 2009 the Electrostal plant will have one of Russia's first IT systems combining full-featured enterprise management and production management solutions, reported the press-centre of IBS.

Electrostal metallurgical plant was established in 1917. Now the plant supplies a wide range of high quality metal products to the domestic and foreign markets. In March 2007 the plant and IBS signed a master agreement providing for a full package of services to be provided to build and develop the enterprise management system in order to improve manageability and business efficiency.

IBS professionals have now completed study and review of the plant's business processes and used the results to produce the concept for building and developing the integrated corporate information system of Electrostal metallurgical plant for the period until 2011 and to assess the investment required.

The concept provides for a multi-level multi-component integrated IT system that would include ERP and MES solutions. In particular, management accounting and calculation of key indicators will be provided in the ERP system based on production accounting data passed from the MES system. In addition, the MES (Manufacturing Execution System) level implementation will enable solutions to a wide range of management issues related to production processes – this is especially important for the Electrostal plant, a facility with the complete cycle of production (steel making, forging and rolling).

Project managers of IBS and Electrostal have now proceeded to forming the joint project team and preparing for the project. Next, the system will be designed and first phase components of the integrated corporate information system will be implemented. The following subsystems will be implemented on the ERP level:

finance, tax accounting and bookkeeping accounting,
management accounting,
procurement management and materials management,
sales management,
reference information management,
quality management (pilot project), and
project management (pilot project).
The following subsystems will be implemented on the MES level:
on-line control of production orders execution,
on-line production planning, and
plant maintenance.

The first phase is expected to be completed before the end of 2008. IT infrastructure of the Electrostal plant will be upgraded concurrently to support operation of the integrated corporate information system. The second phase will comprise further development of the integrated corporate information system, including building a business information warehouse in 2009.

The ERP functionality will be based on SAP AG products. Production processes will be supported by a specialized metallurgy MES solution. The plant maintenance subsystem will be built on the Infor EAM Enterprise Edition platform (Datastream 7i). Best-of-breed software solutions will be used to provide the management system at Electrostal with the broadest functionality. The ERP and MES solutions within the integrated corporate information system will be implemented and developed concurrently to assure the highest level of integration.

The project will provide the Electrostal plant with a state-of-the-art management system on a par with the best western systems to manage close correlations between business and production processes and apply integrated solutions to issues of enterprise management.

Profiles of the companies
OAO Electrostal metallurgical plant
The Electrostal plant, located in a Moscow suburb, played an impressive role in the development of the Russian national economy and has a history that began on November 17, 1917. Professionals of the plant and metallurgy scientists designed and mastered over 2,000 steel and alloy grades including stainless, ball-bearing, high-speed, tool and structural steels and high-temperature, precision and titanium alloys.

In 1993 the Electrostal electrical and metallurgical plant was re-organized into an open joint-stock company (OAO). Now OAO Electrostal metallurgical plant maintains and further improves its production potential and supplies a wide range of high quality metal products to the domestic and foreign markets, including forgings, discs, hot-rolled and forged bars, press-works, cold-drawn wire, hot-rolled sheet and cold-rolled strip.

IBS is Russia’s leading player in the IT and consulting market. It was formed through the merger of IBS and Borlas Consulting Group. It is part of IBS Group Holding Limited, along with Luxoft and Depo Computers. Its core lines of business are management consulting, business applications implementation, IT outsourcing and IT infrastructure. IBS headcount exceeds 3,400 employees including over 1,500 certified consultants. 84 of Russia’s top 100 companies are customers of IBS.