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ThyssenKrupp CSA partnered with Accenture to enhance its manufacturing execution system (MES) and understand slab production costs, providing key insight into the production cost of its steel slabs.
ThyssenKrupp Companhia Siderúrgica do Atlantico (TKCSA) is an integrated steel mill complex inaugurated in June 2010. Located in Rio de Janeiro, Brazil, the company produces high quality steel slabs and has the capacity to manufacture up to 5.5 million tons of steel per year.
TKCSA was challenged with slab production costs exceeding the fair market value for slab, contributing to revenue loss. Seeking to better understand its slab production costs, TKCSA embarked on the Seven Stages and PCI project (a project to define operating costs for TKCSA’s steel plant and blast furnace), and hired Accenture to implement an enhancement for its MES in order to improve cost insight.
Accenture was selected to assist on the engagement due to a proven track record of previous SAP and MES implementations at TKCSA. With an SAP and MES outsourcing team onsite since the construction of TKCSA’s steel plant, Accenture’s familiarity with the client’s facilities made it the provider of choice for the engagement.
TKCSA partnered with Accenture to implement the agreed-upon MES solution, in order to provide accurate visibility into production costs for TKCSA’s controlling team. Working together, TKCSA and Accenture:
Defined the scope, effort and cost of TKCSA’s Steel in Transition program projects, of which the Seven Stages and PCI project was a major component.
Analyzed, designed, built, tested and supported a new MES solution, implementing changes to SAP and MES applications as necessary.
Defined and implemented a monthly closing simulation solution, where real data was sent from the new MES application in the steel plant to SAP, simulating the new system’s behavior.
Successfully executed three monthly closing simulations and identified and adjusted production situations not foreseen during the design and test phases.
TKCSA and Accenture successfully completed the project on time and according to plan.
Close collaboration between TKCSA and Accenture during the engagement, as well as an understanding of the client’s business needs by the Accenture team, resulted in a low number of bugs identified during the integrated and user acceptance tests and the post production support phases. In addition, proactive teamwork between TKCSA and Accenture helped define and develop a monthly closing simulation solution which raised important business awareness and technical situations that could jeopardize the solution go-live.
Working together, TKCSA and Accenture implemented a high quality MES/SAP solution, which will allow for greater cost control and production visibility in TKCSA’s steel plant.
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