LUKOIL
Optimizing processes of material demand planning in LUKOIL Overseas
After acquiring the large oil field LUKOIL Overseas had to optimize the process of material demand planning by the company business units for maintenance and repair activities as well as planning of material procurement for non-core activities. By implementing a MRP module the company wanted to optimize and increase the quality of material demand planning processes to improve the service of the company divisions, thus ensuring that materials used for equipment maintenance and repair are always available.
Functionality of SAP MM-MRP enabled the company to achieve the following goals:
- Make procedures of material demand planning more transparent
- Make material demand planning more accurate
- Make the process of material demand planning more efficient
Achieving these goals required optimization/restructuring of the following business processes:
- Planning material requirements for core production and capital construction
- Planning material requirements for non-core activities
- Planning material requirements for divisions
The project was implemented in one step entailing the introduction of material demand functionality within a short space of time (from September to December 2012).
Result
System users no longer need to manually create material requisitions. The system generates purchase orders automatically by analyzing requirements and available stocks. In addition, the project brought about the following results:
- A common approach to material demand planning was developed in company divisions; the man hours required for routine procurement were reduced, in turn freeing up qualified personnel for non-routine procurement.
- Automated material demand planning processes for core and non-core activities
- Increased stock turnover
- Functionality to automatically keep a safe level of specified types of materials in stock was added.
Scheduling of procurement dates was implemented.
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