Deloitte CIS has completed an assessment of MMK’s digital maturity and transformation potential as part of MMK’s digitalisation strategy. The joint team applied Deloitte’s global experience to analyse MMK’s current digital initiatives and future potential.
Currently, as part of the Company’s Industry 4.0 initiative, MMK is implementing more than 20 projects, dozens have been completed and the results are already visible. Digital solutions are being implemented at every stage of production.
For example, when purchasing coal concentrate, an optimisation model is used to assess the quality and volume of supply, which takes into account economic, logistical and other parameters. In production, Optimal Iron, an automated information system is being created to determine the requirements for the quality of coke and sinter, the structure of iron ore raw materials and the parameters of hot air blast.
At the sales stage, an optimiser is used to load shipments in ports, this is synchronised with the formation of calendar production plans and also the development of the demand forecasting model for finished goods.
Power engineers use the digital twin turbine to sel ect the optimal operating parameters and continue to improve the energy management platform, allowing it to personalise the contribution of employees to energy savings.
To improve the efficiency of maintenance and repairs of equipment, an intelligent project life cycle system was launched to simulate and plan control, monitoring and management of the equipment’s life cycle.
All divisions of MMK are actively involved in the study and implementation of digital solutions. The result of this work is more than 250 initiatives in 20 functional areas that will improve the effectiveness of MMK’s strategy.
"MMK is committed to improving the efficiency of its core business, so among the selected initiatives is the dominance of solutions that digitalise labour and asset management. At the same time, the potential for transformation is acknowledged and valued by all supporting units. This indicates a readiness for balanced development and use of cross-functional digital solutions," says Alexander Oleynik, Director of Strategy and Operations at Deloitte’s Consulting Department.
Director for Economics at MMK Andrey Eremin said, "The use of modern technologies at MMK is already an established practice. An extensive list of digital initiatives was formed in almost equal parts from what was previously discussed at MMK, and from what Deloitte proposed in terms of new products from their cross-industry global digitalisation experience. It contains solutions of varying complexity – from a digital twin blast furnace to advanced analytics on predictive models. In the future, we will carefully monitor the accessibility and efficiency of these initiatives, as well as identify the ones of the highest priority and determine the order of their implementation accordingly within the framework of MMK’s digitalisation strategy."
MMK is one of the world’s largest steel producers and a leading Russian metals company. The company’s operations in Russia include a large steel-producing unit encompassing the entire production chain, fr om the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.
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