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Digital Transformation in Metallurgy Discussed at INNOPROM

11 July 2019
Digital Transformation in Metallurgy Discussed at INNOPROM

On July 11, the final day of Tenth International Industrial Trade Fair INNOPROM-2019 operations, the exhibition's Business Program featured an inter-industry event Digital Transformation in Metallurgy. Session participants discussed the efficiency of IT solutions, in particular their application in production and quality management of steel products as the technological foundation for transitioning to business process digitalization at Magnitogorsk Iron and Steel Works (MMK).

In his presentation, Deputy Minister of Industry and Science of the Sverdlovsk Region Igor Zelenkin pointed out that the implementation of modern technologies, particularly digital technologies, would allow for taking the economy to a new level. "First and foremost, enterprise digitalization entails equipment modernization and implementation of digital components for production control. Undoubtedly, the future lies with Industry 4.0."

Head of MMK Project Office Valery Rybolovlev emphasized that the application of modern digital technologies could allow for an improvement in the quality of finished goods.

Felix Kaptsan, Deputy General Director of Ausferr, which specializes in the development and implementation of information systems at large enterprises, shared that MMK had had to engage in digitalization a long time ago due to dramatically changing market requirements. The company started to receive custom orders. "Over the past 10 years, MMK has almost completely updated its production equipment. For modern machinery to function properly, it does not suffice for an operator to press a button. Nowadays, equipment cannot work outside of a digital environment. In this context, process digitalization no longer entails the automation of human actions, but constitutes a method for enterprise management."

Andrei Kartunov, Head of MMK Scientific and Technical Center, stated, "Our priority is to ensure high quality of products, including the the products which we manufacture for our most demanding clients representing the automobile industry."

Director for Supply Chain Management at Deloitte CIS Alexander Oleynik also addressed the audience, "A digital strategy is not meant to replace corporate strategy or IT strategies, but constitutes their logical extension. According to our recent study, the human factor accounts for 80% of issues which arise during digital transformation. Employees require new knowledge and skills. 66% of those surveyed point out the importance of automation in metallurgy and mining, but only 23% feel that their company is ready for it. Professions are evolving as well. Some occupations become obsolete, but they are transforming into new ones. There is a set of basic skills essential for survival under the Fourth Industrial Revolution, i.e. the ability to make decisions, solve problems, and adapt quickly, PC literacy, and programming skills.”

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