Transcript of "Case study: development of corporate ERP system of West ..."
development of corporate ERP system of West-Siberian
metallurgical plant based on HP Integrity Superdome solution
Modern industry is very complex and many-
sided. Today enterprises require not only
perfect production facilities, technical and
construction solutions, but also latest scientific
and technical innovations, of which new
IT technologies are of prime importance.
Implementation of modern IT systems helps
enterprises to expand their product ranges,
to improve product quality and to reduce
production costs. Efficiency of IT
infrastructure is one of the key requirements
to successful operation at Russian and inter-
Specifics of customer activities ZSMK IT infrastructure has been constantly growing, the
OAO West Siberian Metallurgical Plant (ZSMK) has number of workplaces and corporate applications has
shown a good example of efficient IT infrastructure deve- increased, and therefore the plant needed to optimize
lopment. OAO ZSMK, a part of EurasHolding group, is both the IT infrastructure management system and the
one of the largest full-cycle metallurgical plants in Russia. entire business process management system. For this pur-
ZSMK products are known by customers from more than pose, the IT management office has initiated a project of
thirty countries of the world. The plant specializes on long deploying corporate ERP system based on mySAP plat-
products for construction and machine-building industry form.
and is one of the most important players at Russian rolled
mySAP has been selected as the platform of choice
stock market. The share of the plant in total volume of
because many Russian metallurgical plants have
steel rolled stock production in Russia exceeds 10% and
valuable experience of using SAP ERP-systems. For exam-
ranges from 45 to 70% in some segments. In 2004 total
ple, Nizhnetagilsky Metallurgical Plant (NTMK), which is
steel production at ZSMK exceeded 5.6 millions tons.
also a part of EurasHolding group, has been successful-
OAO ZSMK has 29 thousands employees.
ly using SAP solution since 1997. Right now the project
West-Siberian metallurgical plant is one of the most of deployment of mySAP-based corporate ERP system
innovative metallurgical enterprises in Russia. Reliability has started at OAO ZSMK as well. The project has been
and availability of the industrial shops of the plant are implemented by IT specialists of ZSMK together with HP
provided by extensive usage of innovative information specialists. The main purposes of the project were:
technologies, a perfect process control system and a
● Implementation of mySAP-based solution for managing
well-developed corporate management system covering
all business processes of the company: Materials sup-
all areas of activity of the company.
ply, financing, costs, equipment repair and
Project history and customer expectations maintenance, production planning and management,
West-Siberian metallurgical plant has been a customer asset management;
of HP for many years. The plant has build a large IT
● Step-by-step replacement of legacy corporate ERP sys-
infrastructure based on HP hardware and software solu-
tems used at the plant;
● Achieving the required level of performance;
● The plant employs over 6000 computers and 300
servers of different level; ● Providing the required level of system flexibility and
scalability with consideration of future hardware and
● The company uses НР Open View-based IT resource
«The strategic goal of this project was to create a mod-
● The plant uses HP StorageWorks Enterprise Virtual
ern ERP-system, which would provide ZSMK
Array (EVA) data storage system.
management with all information necessary for efficient
Until 2004, the core of OAO ZSMK IT infrastructure con- management of the company» — said Elmurod
sisted of a high-performance cluster of two RISC-based Rasulmuhamedov, CIO of OAO ZSMK. «It was also nec-
servers НР 9000 N 4000. Such IT infrastructure provi- essary to get optimal price/performance rate, and the
ded normal operation of current applications and system also had to meet several technical requirements,
possibility of implementing new corporate applications. such as support of multiple operating systems and good
It also allowed to keep all IT systems of the plant in wor- flexibility and scalability, which would make it possible
king conditions. to develop the system in future».
The solution we have deployed a solution, which will provide us a
As the ERP-system would increase the loads exponential- way to increase performance and scale the system up in
ly, IT management office of OAO ZSMK faced the the future without large additional investments. Secondly,
necessity to upgrade the server infrastructure increasing HP Integrity Superdome supports several operating sys-
its performance and scalability. Current and future tems including HP-UX, MS Windows and Linux, thus
requirements of ZSMK IT infrastructure have been care- helping us to solve all main issues of the server group:
fully analyzed, when the hardware platform for mySAP provide operation of SAP solution, process control
ERP system was being selected. After comprehensive systems and corporate applications.
analysis and review of offers of the leading world's com-
«The uniqueness of our project at OAO ZSMK is that
puter system manufacturers, ZSMK selected HP Integrity
mySAP solution has been deployed at the most powerful
Superdome server based on 16 Intel® Itanium® 2 proces-
and high-performance Intel® Itanium® 2-based НР Integri-
sors as the hardware platform.
ty Superdome server for the first time in Europe» — said
HP Integrity Superdome solution provides the highest effi- Pavel Vlaskin, ESS BU Manager, Russia and CIS. —
ciency, high scalability and the required reliability. Intel® We had to develop and implement a comprehensive
Itanium® 2-based HP Integrity Superdome server has solution for optimizing main business processes and
1.5-2 times greater performance as compared to systems improving the efficiency of IT infrastructure at ZSMK.
based on classical RISC architecture used to provide High-performance Intel® Itanium® 2 platform and highest
operation of large-scale applications, such as SAP-based expertise of ZSMK specialists helped us to successfully
ERP systems. complete the project in accordance with highest require-
«We think that Intel® Itanium® 2-based HP Integrity
Superdome system is the best solution among currently
available at the market», said Elmurod Rasulmuhamedov.
«The experience of using HP Integrity Superdome in mis-
sion-critical areas shows high reliability, performance
and efficiency of this solution. We think that this solution
will help ZSMK server infrastructure to meet its business
Results of the project
The project of implementing mySAP-based ERP system
was the first implementation of mySAP solution on Intel®
Itanium® 2-based HP Integrity Superdome server in
Europe. Transition from RISC to Intel® Itanium® 2 platform
has been done in shortest terms — only in 3 weeks. Pilot
tests have shown that IT infrastructure performance has
increased by two, and in some areas even by 4 times.
However, HP Integrity Superdome is not only a high-per-
Elmurod Rasulmukhomedov formance solution, but also a cost-effective one. ments of modern metallurgical plants. Therefore, other
CIO ZSMK companies of the industry can use the results of this proj-
«We have immediately achieved several important ect as an example of the most innovative technical
results» — said Elmurod Rasulmuhamedov. — First of all, solution».