Implementation of a corporate system of financial and economic management in the company "Tactical Missile Armament corporation

Development of defense industry complex of Russia is directed to improving competitiveness of domestic military production in the world market. For achievement of recognition at foreign and Russian customers of military products of the enterprise of military industrial complex increase reliability, utilization and technical characteristics of products, provide transparency of activity and optimize business processes, increasing profitability of the enterprises.

Information technologies provide modern instruments of support of management of military industrial complex of the enterprises — from design and product development before quality management of production and ensuring after-sale support. Process automation of corporate management — the next step of the enterprises of defense industry complex in increase in efficiency of the activity.

Development of defense industry complex of Russia is directed to improving competitiveness of domestic military production in the world market. For achievement of recognition at foreign and Russian customers of military products of the enterprise of military industrial complex increase reliability, utilization and technical characteristics of products, provide transparency of activity and optimize business processes, increasing profitability of the enterprises.

Information technologies provide modern instruments of support of management of military industrial complex of the enterprises — from design and product development before quality management of production and ensuring after-sale support. Process automation of corporate management — the next step of the enterprises of defense industry complex in increase in efficiency of the activity.

The enterprises of Corporation earlier untied among themselves were united in industrial complex a few years ago within the federal target program for reforming and development of defense industry complex.

Before the management of Corporation there was a need of the solution of an uncommon task — building of management of the geographically distributed enterprises within the general concept of development of a complex. Need of adjustment of new ways of interaction demanded use of the modern technology tools allowing to centralize managerial functions and to carry out the overview of current financial and economic status of the enterprises which are a part of Corporation.

The different levels of development of IT infrastructure of the enterprises, separation of the used information systems, differences in the applied account policy demanded standardization of business processes, regulations of accounting and the software supporting them. For development of the general corporate rules of accounting and system implementation of financial and economic management (SFEU) the Microtest company which repeatedly proved the competence of quality of the business consultant and having considerable experience of successful work with software products of SAP was invited.

In the KTRV head enterprise as the system of operational management SAP R/3 is used, and creation of SFEU based on SAP products allowed to save earlier made investments and to reduce the cost of ownership of a system due to consecutive commissioning of parts of SFEU, "seamless" integration into other modules of an end-to-end system of the enterprise and use of the customer of experience who is available for employees with SAP products.

Solution

The project on implementation of a corporate system of financial and economic management started in the middle of 2006. Instruments of implementation of a system selected the SAP BW software packages (SAP Business Information Warehouse) and SAP SEM (Strategic Enterprise Management). During the laborious and comprehensive analysis it was revealed that the SAP SEM and SAP BW tools allow to solve most fully and effectively the current and future business challenges of Corporation due to extensive functionality and high scalability of the SAP platform.

Within the first stage of the project of work are conducted at the same time in several directions:

creation of a system of financial planning of the corporation which is based on uniform methodology of budget planning, consolidation of plans and budgets of the enterprises in a unified plan and budget of Corporation; creation of a monitoring system of business activities of the enterprises of the corporation founded on methodology of a system of key performance indicators (KPI); creation of a system of management accounting of Corporation in which formation of the unified album of economic transactions, a unified plan of accounts, uniform account policy according to Russian accounting standards and IFRS will be carried out. The second stage of the project — direct implementation of a system of financial and economic management on a technology platform of SAP BW/SEM.

Within the project Microtest was necessary to adapt standard solutions of SAP to the unique requirements imposed by the management of Corporation to a budgeting system. In particular, within SFEU possibilities of planning of work in progress by orders and the product range, report generation by method of the marginal analysis within orders on units of production, formation and the analysis of indicators of profitability were implemented.

THE ACHIEVED RESULTS

Implementation of a corporate financial system in all divisions "Tactical Missile Armament corporations will allow the management of KTRV to keep track of current financial and economic status of the enterprises, increasing transparency of financial activities of consolidation. It will allow to make quickly weighed management decisions, minimizing the risks arising when operating by outdated or inexact information. The consistency of the entered data, reduction of total amount of paper work considerably will reduce number of the errors connected with "a human factor".

Quality improvement of financial management and effective solution of the current business challenges will allow Corporation to reveal and to quickly eliminate places of emergence of unjustified costs, to redistribute financial resources between the KTRV enterprises, optimizing financial business processes and increasing profitability of activity of Corporation in general.

Yury Semak, deputy CEO for corporate construction and investments of the JSC Tactical Missiles Weapons Corporation: "It is sure that as a result of cooperation with Microtest company we will receive the effective management tool of a financial component of business. We in details studied several large and difficult projects implemented by specialists Microtest for the different companies and were convinced that it is the professional command capable it is productive to solve uncommon business challenges".