Here are some key figures* and facts about the project that our SAP PaPM Cosultants in Russia were working on – the project that led to massive improvements in business processes, their quality and controllability, and made Polyus the platinum winner of SAP Value Award 2020.
About Polyus
Industry – gold mining
Headquarters – Moscow, Russia. Production sites in Krasnoyarsk Region, Irkutsk Area, Magadan Area
Revenue (2019) - $ 4 bln
Purpose of the project:
- transformation and integration of business processes and information flows - for better decision-making at all levels,
- introduction of unified methodology and controls – for improved accountability, planning agility, real-time and predictive insights.
“Our previous ERP system was in line with Russian accounting standards and tax legislation. But it lacked the tools to support end-to-end processes in the areas of production, procurement, construction, maintenance and repairs. Information needed for decision-making process was often prepared in MS Excel and further exchanged in Excel files. Managers were naturally concerned about conflicting figures and discrepancies. In fact, it could turn out that a certain piece of equipment was scheduled for a year-long repair work, whereas it also appeared in the production plan. Working this way, with lots of manual operations and data inputs, was inefficient and labor-intensive, and entailed a high error rate. Besides, we needed a quantum leap in controlling and reporting to be able to react proactively and catch up with our ever-increasing production volume and investment volume.”
Ivan Makarenko, Finance Director, JSC Polyus Verninskoye
SAP solutions implemented
SAP S/4 HANA PP, SAP S/4 HANA PM, SAP PaPM, SAP MII, SAP BI, SAP BO/ SAP Lumira
Project stages
2018-2019 – blueprinting, 2020 – implementation (pilot project), 2021 - rollout
Scope:
- production planning and inventory accounting,
- asset management,
- procurement (materials and services),
- supplier relationship management,
- warehouse and transportation management,
- sales of gold-containing products,
- construction project management, investment activities,
- labor protection, safety arrangement and precautions,
- cash flow management,
- financial and tax accounting, IFRS, management accounting,
- risk management and internal controlling,
- access and authorizations,
- analytics and dashboards,
- master data management.
Key figures:
- 164 project meetings and 45 organizational changes,
- 31 standard operating procedures newly developed, 59 documents updated
- more than 450 figures and metrics for flexible reporting analyzed,
- more than 3000 analytical values revised,
- 60% of business processes automated,
- 28% of control procedures automated,
- 17 integrated systems,
- 1893 business users got access to SAP systems.
Business outcomes (as of 2020):
- accelerated production planning and reduced time on developing monthly production programs - from 5 days to 4 hours,
- reduced technical reporting time and faster period-end closures in production - under 3 days,
- a 15% decrease in annual requirements for heavy duty truck tires in 2020 due to the automation of requirements planning and tire inventory control.
* Information provided by SAP CIS