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The Company has successfully finished implementation of 1С:ERP Enterprise Management-2, Volgaburmash management and experts shared their experience at the 4th 1С:ERP business forum. The Company experts spoke about the background and the targets of changing the accounting system, as well as implementation peculiarities with consideration of specific character of business processes.
New ERP system helped to improve planning of release of product, to optimize procurement management and ensure timely supplies of materials and parts; also it sped up contracts approval process and getting permission for startup of manufacturing. The orders are put in production much faster; day-to-day control over their performance is organized. The order completion is strictly on time, which increases the customer loyalty.
Earlier, the Company’s production planning was not automated. To put an order in production, a written management order was necessary and approval of orders was often slow, several days could pass from order receipt to putting it in production. It was difficult to control product release. Inventory control was manual; purchase orders for raw materials and parts were recorded in paper form. All these aspects slowed down the Company’s operation and extended production period.
The Company required an information system, which could organize efficient management of order completion at each – starting from purchase of materials and parts to release of finished products. It was necessary to ensure accurate inventory control, increase procurement efficiency, speed up putting the orders in production, and improve planning of operation for all business units.
To achieve these goals, the management chose 1С:ERP Enterprise Management-2. The partnering company during implementation was Samara office of 1С-Rarus. New system integrated management of two plants of the enterprise; 400 workstations were automated in the course of the project.
The key result of the project was a significant increase of efficiency of production management: order completion time was almost halved; inventory carrying was automated; each work stage is assessed using KPI.
Marat Matevosyan, Volgaburmash CEO, emphasizes, - "Optimization of production processes logically turned into their automation. With the assistance from 1С-Rarus we have passed the first large stage of implementing the system which already produces effect. 1С:ERP enabled us to solve a gravest problem – that is timely completion of orders. I would say timely filled orders amount to 95% (versus 50% earlier). At the same time, we managed to cut the order completion period from 10-16 to 8 weeks. This has become possible due to our switch to a unified management and accounting system for Volgaburmash and Uralburmash plants, flexible warehouse management and strict control of the goals of the business”.
Implementing 1С:ERP Enterprise Management-2, alongside with introducing a PLM-system, online sales system, engineering and analysis software, is one of the largest business process automation projects targeted at efficiency improvement and competitive recovery of the Company.
Volgaburmash and Uralburmash are Russia’s largest companies producing rock-cutting tools