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Case study: development of corporate ERP system of West ...


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Case study: development of corporate ERP system of West ...

  1. 1. Case study: 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- national market.
  2. 2. 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; tions: ● 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 software development. management system; «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». 2
  3. 3. 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 requirements». 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». 3
  4. 4. Further cooperation «This project is the first implementation of Competence HP and OAO ZSMK keep working together. In March, Center on the basis of a customer enterprise, where it is 2005 a new industry IT competence center has been possible to see actual performance and efficiency of IT opened at the plant. The main purpose of the Center will solutions for the main business» — said Owen Kemp, be the demonstration of new perspective hardware and Vice President and CEO of НР in Russia. «Until today software solutions and participation in industry standard such centers have been operated by partners of the com- development. pany. However, high competence of ZSMK specialists allows them not only to solve their own IT development «A polygon of latest IT technologies at ZSMK will help to tasks, but also to participate in industry standard deve- improve corporate management system and to increase lopment». the efficiency of company management even more», Elmurod Rasulmuhamedov said. Challenges: Solution: Results: ● Creation of an efficient manage- ● Deployment of mySAP-based ● A modern mySAP-based ERP- ment system for OAO ZSMK, corporate ERP system; system providing executives of which would cover all its areas OAO ZSMK with all informa- of activity and business proces- ● Using 16-way Intel® Itanium® tion needed for efficient plant ses; 2-based HP Integrity management; Superdome server as the ● Step-by-step replacement of hardware platform; ● HP Integrity Superdome pro- legacy corporate ERP systems vides functioning of SAP used at the plant; ● Smooth transition of ZSMK system, process control corporate applications from systems and corporate appli- ● Providing the required level of RISC to Intel® Itanium® 2 plat- cations; performance, flexibility and scal- form. ability with consideration of ● Optimal price/performance future hardware and software ratio and possibility of grad- development. ual system upgrade in nearest years. © 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. HP SS ZSMK-1302-4A4-0805-MOW