NLMK Group, a global steel company, presented its digital transformation projects, both already completed and those under development, at the international SAP Forum 2018.
Oleg Bagrin, Chairman of NLMK Group’s Board of Directors Strategy Committee spoke at the plenary of the Forum. He talked about the digital transformation projects that the company had implemented or launched over the last several years. One of these projects involved the implementation of a new mining and geological IT system at Stoilensky, which used a 3D model of the open-pit mine. The system enables simulation of the optimal mine development plan for 40 years ahead. This new technology makes mining ever more efficient with minimal costs.
NLMK Group presented several joint projects with SAP at the Forum, including those being developed by the first Co-Innovation Lab in the Russian steel sector, established in February 2017. Heads of the Co-Innovation Lab presented a 3D worker positioning system for production facilities, which reduced safety risks and improved work time efficiency.
NLMK also presented its “Cash Flow Forecasting” project, which could predict cash inflows from NLMK customers over a 30-day horizon, enabling the optimization of financial reserves. Specialists and managers from other Russian and CIS steel companies learned about a pilot model for predicting blast furnace replacement time, which would improve the efficiency of the furnaces and reduce unplanned downtime.
Oleg Bagrin said: “Established in 2017, the NLMK-SAP Co-Innovation Lab is taking its first steps. Yet major Russian steel companies are already displaying keen interest in its projects. The key for us is to cultivate a culture of innovation, to create a conducive environment for such projects, that will drive the digital transformation of such a conservative sector as steelmaking down the line.” (NLMK/Ukrainian metal)