Why the Digital Transformation Project Means Better Opportunities for YOU!

Supply chain constraints, quicker access, and ever-changing demands in manufacturing are challenges we’ve all felt at ArcelorMittal.

To help face those challenges and prepare our company for the next age in manufacturing, we’re excited to roll out the SAP/PSI Digital Transformation Project, a project that will replace our Legacy systems, which are no longer sustainable due to hardware obsolescence.

This project will help our team excel all across the company, from those on the manufacturing floor to the corporate office. PSI Metals will replace Legacy on the production floor, while SAP S4/HANA Cloud replaces Tandem Legacy within the office. Combined, the two systems provide us with a single solution ERP/MES across the division. 

Our locations in Shelby and Marion will be replacing Tandem, I2, and Smart Stream with SAP S4/HANA and PSI. The SAP processes that will be available to us are:

• Integrate to Plan
• Record to Report
• Order to Cash
• Plan to Manufacture
• Hire to Retire
• Procure to Pay

The production floor’s PSI system will use the modules PSI Production, PSI Quality, PSI Logistics, and PSI Planning.

The Digital Transformation Project Eliminates Security Risks

Because the old system is obsolete, new updates and security patches are no longer available, which puts our data at risk. At the same time, many of our IT folks who are familiar with the old platform will begin retiring in the next couple of years, leaving a void of experts on an outdated platform.

The Digital Transformation Project investment will greatly simplify the IT architecture and open up greater opportunities to find qualified IT workers who can support our systems while simultaneously eliminating security risks.

SAP/PSI Streamlines Production

No new technology is worth incorporating if it doesn’t actually make our lives and jobs easier. 

One of the greatest perks to our whole team is SAP and PSI’s ability to help us streamline our day-to-day operations.

This transition welcomes advanced built-in intelligent technologies, including AI, machine learning, and advanced analytics into our production process, both on the floor and in the office.

It also centralizes all the data that we have to gather as a company right now, instead of relying on multiple systems and spreadsheets to keep track of and crosscheck records.

The SAP Model Company is a pre-packaged, ready-to-use, end-to-end reference solution that is tailored to our industry. It comprises state-of-the-art applications and proven best practices that will help us reduce costs, decrease risks, and accelerate adoption.

SAP/PSI Simplifies Communications

If you’ve ever left a note on a crumpled up piece of notebook paper for the next shift worker or your boss, only for it to be reported as missing or never received, that won’t happen anymore.

The Digital Transformation Project will allow you to send, receive, and record important communications between team members across the company, without worrying about whether the message was received.

SAP/PSI Reduces Time Spent on Scheduling and Production Planning

It takes a lot of time, effort, and strategic thinking to plan out a production schedule, taking into consideration inventory, demand, equipment availability, and workers’ schedules.

With SAP and PSI, all of that will be significantly smoother, because the systems gather all of that information into one place, taking all factors into account. Integrated supply chain optimization will provide data presented in easy-to-read charts to inform demand and sales planning, flow and order planning, order and line scheduling, and material planning. 

That kind of information gathering maximizes efficiency and reduces scheduling conflicts, making our entire system more productive and profitable.

SAP/PSI Improves Production Execution

Data analysis doesn’t end once planning is done and the material hits the shop floor. 

With our Digital Transformation Project, the shop floor will have access to real-time information for material and stock management, management of line schedule execution, production tracking, and production order lifecycle management, again with easy-to-read charts and graphs that give the whole team valuable information to evaluate current and future production.

SAP/PSI Allows for Easier Quality Control and Exception Processing

When a production challenge or change happens on the floor, SAP technology will help all of us access real-time information and data to make informed decisions about our next steps. 

Integrated quality management supports the process of continuous improvement, from order dressing to quality control to exception handling. With one quick glance at a job’s current status, we can decide how to proceed with the issues we face on a daily basis.

SAP/PSI Supports Operational Warehouse and Transport Management

At any time, PSImetals logistics allow a user to access different material units no matter where they are, from the production floor to transportation and shipping.

This system will minimize the number of transports needed and increase throughput of material, help us manage the yard, assign materials automatically for shipping, and manage shipping orders.

SAP/PSI Helps Us Work Smarter, Not Harder

Ultimately, our goal is to help all of us work smarter, not harder. With the right tools in place, our team can spend more of their time and energy on the job they’re hired to do instead of dealing with the paperwork, miscommunication, scheduling mishaps, and indecisiveness.

Any new change takes time to adjust to. And, sure, there will be a few hiccups along the way. Any new technology takes a little time to get used to. So, give the Digital Transformation Project a chance to do what it's designed to do: to help all of us experience a more satisfying and efficient working environment.