ArcelorMittal – Materials and Product Lifecycle Management
Imagine finding a tool that fits as a puzzle piece to the already existing scope in SAP, being SAP and solving those recurring complaints of users:
“I can not create new fields; I do not have workflow for approval; It’s difficult to use; I have to go through screens to fill out just 1 field; I have no visibility of where my request is.”
So it was our story with BRO and HKS. Nowadays our process is more robust and easy to maintain and with sustainable gains.
Very satisfactory delivery, combining cost, friendliness and collaboration.
Thank you HKS team.
Maria Thereza Ortiz – Purchasing Intelligence Manager
ArcelorMittal is the world’s largest steel producer and in 2016 was ranked no. 123 on the Fortune Global 500 list of the world’s largest companies. Present in more than 60 countries employs about 280 thousand professionals.
ArcelorMittal Brasil Needs
In 2015 ArcelorMittal Brazil, due their needs linked to the quality of the information and processes improvement, identified that the improvement of their materials and products master data could generate great benefits for the company:
– Increase the information accuracy for decision making.
– Rationalize the master data avoiding duplication.
– Materialize the tacit knowledge.
– Provide better process traceability, governance and agility.
– Rework reduction with validations between the process’ steps (avoiding passing the error to the next area).
– Increase efficiency in Procurement and Logistics processes.
– Minimize negative impacts on services provided to internal and external customers.
– Reduce inventory levels.
– Mitigate tax and fiscal risks.
The Project Beginning
The work began with the TRs (Taxonomy Rule) unification of the different plants reducing by 82% the number of existing TRs. The material data review and enrichment work reduced the number of materials by 71%, reaching a total of 287 thousand standardized materials.
Following the success of the first project phase ArcelorMittal started to choose the solution that would guarantee the master data process governance and would perpetuate the standardization done in the 1st phase. The acquisition process was done based on the technical and business requirements identified by the team involved with constant support from the IT area and involving the largest players in the Master Data Management market.
After the selection process, akquinet HKS Brazil consulting was selected to support ArcelorMittal on this important project with MDM+ BRO solution. Specialized knowledge in master data processes and SAP technologies, in addition, the official reseller of a SAP integrated solution, has led ArcelorMittal to choose for the akquinet HKS.
The main points that led to the choice of akquinet HKS and MDM+ BRO solution were:
– Native integration with SAP® technologies (add-on).
– Flexible solution focused on the process simplification and automation totally based on business rules – not requiring specific developments.
– Solution consolidated in the market with success cases and proven gains.
– Consulting team knowledge in master data processes, not only in technology.
The 2nd Wave – Process Governance and Simplification
The 2nd wave of the project started with the Material and Product master data process design (TO-BE) and business rules mapping. These definitions were based on existing processes, consultant’s know-how and best practices. The potential that the MDM+ BRO solution could add to the future processes (simplifications, automations, validations, etc.) also was considered.
The new processes made the master data simpler. Before BRO all requests were made through email or telephone. Within the solution all process flows are orchestrated through BRO Workflow. Reports and dashboards delivers better visibility and enabled the complete master data management, ensuring their governance.
The processes implementation based on the best practices and using a standardized and SAP integrated solution provided a gain in performance and quality of Materials and Products master data at ArcelorMittal Brazil.
Numbers and Facts
Solution implemented in 17 companies and 331 plants in Brazil.
38 master data processes implemented.
More than 400 users trained.
12 business areas involved.
More than 2,200 new master data per month.
More than 12,000 business rules implemented.
Higher quality in the material master data information.
Process simplification – Materials before: 10 screens and 98 fields, now: 4 screens and 18 fields | Products before: 25 screens and 180 fields, now: 5 screens and 30 fields.
Costs reduction with master data.
Easy and centralized process management through the dashboard of indicators.
Master data governance.