MMK Energy Department Works on Cost Accounting Program

UrBC, Magnitogorsk, September 5, 2019. Magnitogorsk Iron & Steel Works (MMK) Energy Department keeps working on a micro cost center/cost accounting program as part of the plant’s management’s strategic initiative on Personalized Resource Management.

According to MMK’s press service, the goal is to make the department’s cost accounting more efficient, to ensure competition in the field of resource efficiency, and, consequently, to reduce production costs within the department.

‘We started with the analysis of the tech process to define the key points where material and labor resource spending needs to be controlled, and developed a system of twenty micro cost centers that covers all of the department’s production sites (twenty shifting tech teams). Additionally, we determined the ‘points’ where additional meters and sensors that are not part of the program yet should get installed, and considered the potential of using existing meters. The additional devices are getting introduced at the department in gradual installments within the framework of ad hoc projects,’ says Deputy Head of the Energy Department Vassily Mogilnitsky.

The Energy Department is in charge of treating and supplying water to cool the core appliances at the Oxygen Converter Shop, Sheet Rolling Shop 10 and Sheet Rolling Shop 11; the department is also responsible for ventilation and air-conditioning systems at the Oxygen Converter Shop.

The micro cost center/cost accounting system is expected to get industrially commissioned at the department in the last quarter of the year.


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