Developing Recommendations for Evaluating the Expected results of Inventory Management Automation Project in Metallurgical Company

In the context of the need to reduce costs in companies interest in the question of the validity of investments in IT projects is increasing. The lack of a universal method of evaluating the projects effectiveness makes it necessary to develop proposals for the evaluation of the expected technical and economic effects on inventory management automation project in the steel company. The paper proposes an approach to the estimation of the expected technical and economic effects of the project based on the use of elements of the NPV method, BSC, TEI and REJ. The approach includes a system of indicators to measure the expected effects of the project and recommendations for the evaluation and further use of the results. The developed system of indicators includes indicators characterizing the subject area of the project, the indicators reflecting the impact of inventory management automation for various divisions of the company, the indicators that determine the operational improvements, the indicators NPV and ROI. In assessing the financial performance is adjusted for the impact of project risks. For the identifying and qualitative risk assessment used expert estimates method. The developed approach is used to assess the expected results of the project of automation of inventory management in the steel company, provides guidance on the interpretation and use in various phases of the project. The novelty of the work is to provide a comprehensive campaign to evaluating the technical and economic effects of the project inventory control automation, which allows to consider features of the steel company and the specifics of the project. The recommendations can be used when evaluating similar projects in other steel companies.