Press Release

OMK Implements Advanced Production Planning System

United Metallurgical Company (OMK)) decided to implement system of advanced production planning. Installation and implementation of the system will be realized by company LOGIS. Project realization should promote further improvement of effective management of ОМК business processes.

Moscow 1.6.2010

United Metallurgical Company (OMK), one of the biggest Russian domestic producers of pipes, railway wheels and other metal production for power engineering, transport and general industry, and company LOGIS, provider of expert services and information technologies, focused on improvement of management quality and competitiveness of its clients, signed an agreement, according which LOGIS will implement advanced production planning system at Vyksa Steel Works, Almetyevsk Pipe Plant and Casting and Rolling Complex (i.e. three of six industrial plants forming the ОМК group). „ОМК aspires to become the most effective company on the Russian pipe market,“ stressed OMK Director for supply chain management, Mr. Alexey Sdobnikov, commenting the project importance. „Competition in our industry perpetually grows. Therefore we constantly have to improve production effectiveness, and be a flexible, reliable and quick supplier of our products to our customers. One of the key terms necessary for achievement of these objectives is without doubt the effective management“. In 2009 was completed project of master planning based on solution SCP of i2 Technologies. On monthly basis the solution is used for creation of balanced plans of sales, production, purchase and transportation of pipe and wheel production, flat metal production and raw material. Implementation of the fluent master planning processes enables to evaluate operatively different scenarios for forming and corrections of annual and quarter budgets, evaluation of cash flow need, planning of sales and purchase volume. In 2010 company begins the implementation of project production order planning based on solution Factory Planner of i2 Technologies. Project is focused to coordination of market and sales, purchase and production departments leading to timely fulfillment of customer orders. Implementation of the order management system enables to shorten lead times without increase of inventory either in raw materials as well as in finished production. Automated processes of the order planning will become especially important for the effective management and support of the operational start of the Mill 5000 at Vyksa Metallurgical Plant in 2011. „The choice of implementer and technology has been done very thoroughly,“ continues Alexey Sdobnikov, „and it was done with regard what is presently the best available on the world market“. „We really appreciate that we are allowed to apply our know-how and technology of advanced planning and cooperate with such a renowned manufacturer,“ said Dalibor Konvicka, CEO of company LOGIS. „We are glad to quote that OMK team is one of rare groups having experience with implementation of APS software: some years ago company implemented module Master Planning of i2 Technologies production. In APS area ОМК is a pioneer among Russian industrial enterprises. For the work with company team we dedicated our best specialists“. Operational use of the new system of production planning in OMK will start in 2011. There will be implemented products i2 Factory Planner (producer i2 Technologies, presently part of JDA Group) and LOGIS Campaign Planner.

About OMK

United Metallurgical Company (OMK) is currently one of Russia’s largest producers of pipes, train wheels and other metal production for power engineering, transport and general industry. OMK comprises six large metallurgical enterprises. Pipe division includes Vyksa Steel Works (Nizhni Novgorod Region), Almetyevsk Pipe Plant (Republic of Tatarstan) and Trubodetal plant (Chelyabinsk Region); Steel Works Division includes Chusovoy Metallurgical Works, Schelkovo Metallurgical Works (Moscow Region) and Casting and Rolling Complex (Nizhni Novgorod Region). In 2009 ОМК achieved more than 24% of production of pipes made by Russian companies, of that more than 50% of large diameter pipes, met 61% of Russian demand for railway wheels and about 70% of domestic need for car springs. In 2009 ОМК plants produced more than 1, 65 million tons of pipes of different diameter and also 433,1 thousands of railway wheels. Among key customers of ОМК production belong leading Russian and international companies: Gazprom, Russian railways, Lukoil, AK Transneft, Surgutneftegaz, Rosneft, TNK - BP, ExxonMobil, Royal Dutch/Shell, General Electric, Samsung. ОМК production is delivered to 20 countries worldwide. SOURCE: Press service OMK, phone 231-77-75, e-mail: press©omk.ru

About LOGIS

LOGIS (http://www.logis.cz) is a supplier of expertise services and information technologies. The deliveries are executed in the form of projects aiming at improvement of management effectiveness and development of business success at the customers' businesses. Within the framework of their solutions, LOGIS applies advanced managing and planning methods and procedures, including high-performance information technologies in the field of Supply Chain Management (SCM) and Advanced Planning and Scheduling (APS).

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