НАЗАД

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