"... (PPM) Chosen due to its flexibility, agility and accuracy of information, PPM has achieved a 25% efficiency improvement at ArcelorMittal by ensuring timely delivery, controlling costs and planning complex global budgets throughout the enterprise."
InovaPrime and Micro Focus, steel and mining giant ArcelorMittal has implemented Micro Focus Project and Portfolio Management (PPM) to manage 4000 business-critical capital projects in 60 countries. Chosen due to its flexibility, agility and accuracy of information, PPM has achieved a 25% efficiency improvement at ArcelorMittal by ensuring timely delivery, controlling costs and planning complex global budgets throughout the enterprise.
Challenge
Old solution was not robust enough to handle Group’s future strategic portfolio management requirements.
Support both global and local management of investment projects (past, current, new and future), to Improve cash-flow management, improve project management and follow-up (within budget, time and scope, and early warnings of deviations and overruns), and better manage portfolio of strategic future investments.
To build a reliable source of information over current and past projects, to improve benchmark analysis (Technical, financial & procurement), facilitate access to best practices, and to build dynamic dashboards to facilitate management reporting and follow-up.
To have one central tool for project management instead of different developments in the group.
Solution
With partner InovaPrime, steel and mining giant ArcelorMittal has implemented Micro Focus Project and Portfolio Management (PPM) to manage 4000 business-critical capital projects in 60 countries. Chosen due to its flexibility, agility and accuracy of information:
- Helps to govern portfolios of opportunities, projects and programs with effective collaborative processes.
- It standardizes, manages, and captures the execution of project and operational activities.
- Facilitates implementation of standard project management methodologies, across all types of projects, enabling the day-to-day work to be captured consistently and be relied upon for reporting.
- An easy-to-configure workflow engine underlies each of the HP PPM modules.
- Helps organizations automate and enforce business processes that support cross-organizational projects.
Project
The project covered the following key areas:
Financial Management and Purchasing
- Related to Project Portfolio Management, Cost Breakdown, Benchmark search & Reporting.
- Annual Budget & Follow-up.
Project Portfolio Management (PPM)
- Portfolio Management enabling segments to manage their Capex budget processes.
- And adding additional functionalities such as improved follow-up, monitoring, approval workflows and benchmarking.
Project Management (PM)
- Implementation of a Project Management module (Time Management, Scheduling, Resource Planning, Project Financial, Project Controls, etc.).
- Integration with other tools such MS Project, SAP ERP, etc..
- Eliminating manual or redundant data entry and getting up to date info on detailed, plant and/or corporate level.
Change Management & Training
- Support global release of the implemented solution through both onsite training and recorded videos.
- Documentation adapted to the distinct roles and local usage of the solution.
Results
Global overview and consolidation of all plants projects and investment plans, enabling portfolio decision making and follow-up of capitalized projects, achieved due to the consistency and reliability of information.
Enabling Plant Managers and Business Unit Managers to follow their critical resources to ensure that delivery and maintenance are timely, within budget and within approved scope.
The governance of this decision-making and control of the costs was another important benefit achieved with PPM solution by supporting the financial planning and approval process of investment budgets.
Project Management standardization and support of ArcelorMittal project methodology in a major industry business division in Europe.
Conclusion
This project achieved its goals thus enabling future expansion of Project Management scope throughout the enterprise to other parts of the world and business units.
Continuous improvement of current solution is a key competitor factor enabling agile delivery and decision-making, within local plants up to senior level at corporate, to make decision over capitalized projects even more precise.
About ArcelorMittal
ArcelorMittal S.A. is a Luxembourgish multinational steel manufacturing corporation headquartered in Luxembourg. It was formed in 2006 from the takeover and merger of Arcelor by Indian owned Mittal Steel.
>ArcelorMittal is the world's largest steel producer, with an annual crude steel production of 98.1 million tons as of 2014.
It is ranked 123 in the 2017 Fortune Global 500 ranking of the world's biggest corporations.
Producing finished, semi-finished, long and flat products, such as slabs, hot-rolled coil, cold-rolled coil, coated steel products, tinplate and heavy plate, as well as billets, blooms, rebars, wire rod, sections, rails, sheet piles and drawn wire.
Product: Micro Focus Project and Portfolio Management
Credits: Micro Focus and ArcelorMittal
