Transmash of MTZ (HCM SAP ERP)

'JSC MTZ Transmash is the enterprise coming to the forefront in the market of developments, production and deliveries of the highly effective brake systems ensuring traffic safety of the rolling stock of the railroads and the subway. At the enterprise the SAP solution ERP HCM is implemented and there is ERP system implementation. About the system implementation project course on personnel management on the basis of the HCM SAP ERP platform and its results, in an interview to the TAdviser portal Dmitry Volkov, the head of department of information technologies of JSC MTZ Transmash told.

: Why you decided to automate tasks of HRM on the SAP platform?

Dmitry Volkov: Our solution for benefit of SAP was based on several main factors. First, need for improvement of the existing self-written systems on personnel records and payroll ripened. Secondly, we approached a stage of automation of a broad spectrum of processes at the enterprise and to ERP system implementation. Having communicated to partners in the industry and having studied foreign experience, we stopped the choice on the SAP platform as it was already successfully used by some of them that guaranteed us implementation of business processes on the basis of the best industry the practician, a compliance with law and huge potential for growth sew IT of infrastructure. The HR module of SAP was selected as the trial first step on the way to ERP. We wanted to understand as far as we are ready to implementation of a heavy ERP system. It was important to us to begin process of business process automation of the enterprise and to move further in the necessary direction, building processes, including project management, with the smallest costs.

TAdviser: How personnel functions in JSC MTZ Transmash prior to the beginning of the SAP project were implemented? What served as premises of implementation of a new system? What for you was the most important at a project definition phase?

Dmitry Volkov: Before implementation of the SAP platform our own programs written under us worked at the enterprise. In parallel the systems of maintaining the staff list and the salary developed in accounting and personnel records in personnel department. In each program there was the DB on personnel. On the one hand it was necessary to trust data which were available in one division, but they not always correlated with the data which are in other division. It turned out that in each of departments employees did separate work on maintaining the file connected with personnel. Naturally, questions on their synchronization appeared. Therefore, consolidation of data in one place and providing requirements of their reliability and relevance was one of the purposes of implementation of the module SAP HR. However it was very important to us not to miss what was already implemented at the enterprise earlier, not to lose that good functionality which managed to be created in due time. I consider that we managed to make it.

TAdviser: What tasks were automated first of all? What features of personnel records and payroll whether there are some specifics? As far as it was succeeded to implement them in a new system?

Dmitry Volkov: JSC MTZ Transmash is more than 1200 employees, the production site in Tula region, a logistic warehouse in Moscow area. If to speak about features, then it is better to begin with the fact that we have a non-tariff wage system. To create the amount which is charged to the worker it is necessary to create at first fund for division, then the head of department considers participation of the employee in current month in activity of the plant or department. Further on the basis of participation the coefficient which creates the relative salary is appropriated to it. At the same time we have also a piece-work pay, and she on ourselves very difficult when forming its fund to distribution. In fact, it is a certain symbiosis of a tariff system and piece-work pay. We have something average. The scheme is rather uncommon, but it is convenient to us. Especially in cases when there are changes connected with the legislation. It works for us long ago and we are happy with it. At SAP implementation we managed to consider all features of salary accrual at our enterprise. It is really interesting thing, some kind of know-how which we completely managed to implement.

TAdviser: Tell, please, in more detail about the project course: what occurred consistently on key project implementation phases? What moments seemed to you the most difficult?

Dmitry Volkov: Difficulties were. Not everything at us turned out safely from start. Seeing in the long term problems of implementation of ERP, we initially were guided by the company providing a full range of services, beginning from HR, finishing implementation of ERP. But it turned out that for special tasks, the special companies specializing in specific knowledge domain are necessary. I already said that we at the enterprise have a non-tariff wage system. Formation of fund for division becomes on the basis of the staff list taking into account qualification groups of our employees. Therefore, formation of funds for workshops of the main production, then distribution of fund for divisions goes the first step, and after that heads of divisions distribute the selected fund for the employees. These digits were supposed to be transferred to SAP where there is a charge, tax withholding and so on. The main problems which arose on start of the project were at the level of the organization of data transmission from one system in another. Unfortunately, there was a question of change of integrator. We were traded to two the companies, known on the market of the solutions HCM, held the tender and selected EVOLA company which was ready to customize a system under our processes, without changing logic. The proposal which to us was made by EVOLA company meant a combination of two schemes – a non-tariff wage system and SAP. The functionality of Cost Planning and Budgeting (Compensation Management component) is taken as a basis of calculation of FOT. This scheme was implemented within three months and liquidated problems of data transmission of the previous scheme. After the first stage, we could begin to deal with setup of the module of the salary under ourselves. It is the work connected with maintaining data on the average salary with the holiday period and other issues which at our enterprise are resolved unconventionally.

TAdviser: What was still implemented within the SAP project? What moments seemed to you the most important and interesting?

Dmitry Volkov: Except the accounting which is engaged in payroll two more divisions are involved in implementable processes - it is personnel department and economic department. For economic department the hierarchical structure of the staff list was made. It is very convenient. We consider one more of pluses introduction to the staff list of the main workers. Earlier they were a certain quantitative index on workshop. With SAP implementation, the staff list the structure of the enterprise reflects all. As for personnel department, there the automation which completely replaced paper document flow was carried out by 100%. As a result of the implemented project in personnel department the possibility of maintaining T-2 form in electronic form appeared. Orders on acceptance and dismissal of personnel get to settlement department in electronic form. But also the hard copy of course is stored. The program allowed to improve work of personnel department on preparation of the holiday period. We have a feature - all plant goes on leave at the same time. One summer month only those who provide shipment work: workshop of implementation and contract division. And it is rather serious as on each person it is necessary to prepare the order. A system allows to implement this our unique feature for smaller time and smaller human resources. Besides, we could resolve such issues connected with the holiday period as a reserve of holidays. The new features connected with a reserve of holidays were published in the legislation quite recently. Thus, we began to adhere to the scheme which to us is offered by the legislation of the Russian Federation, and those business processes which already were at our enterprise. Transition to the second stage is now planned - it is works on personnel department – on competences and business trips.

TAdviser: You mentioned competences. Whether you did personel assessment of the enterprise? How you are going to develop and implement this module in already working scheme SAP HR?

Dmitry Volkov: This direction now at a conceptual stage. We gathered with colleagues and the moments, relevant for us, which are connected with acceptance and dismissal of employees discussed that. More we are interested in acceptance. The matter is that it is very difficult to estimate the person according to documents which he with himself brings – the summary, characteristics, the list of the previous positions and company names in which it worked. Yes, it gives the flavor about the person, but it is not always adequate. During the interview it is difficult to understand too the person for a vacant post approaches or not. All questions connected with acceptance and dismissal of the person very responsible. Therefore we decided that the first step it is necessary to describe a profession. JSC MTZ Transmash is the engineering enterprise which is engaged in development and production of the brake equipment with the production base, and we were going to begin this process with assessment of professional skills of personnel. First, it is preparation and retraining. We constantly provide personnel training both ITR, and personnel. We did it on the basis of the experience and the knowledge. And it would be desirable to receive a system which would allow us to build a ladder of professional growth for the person. Then the employee would be is more clear by his perspectives, and in this system it would be simpler to employer to estimate as far as the person corresponds to that position which he holds. We put it as a basis. Now consultants of EVOLA company prepared to us the list of questions which we need to cover at this stage. Issues are already handled with the head of the HR department. It turns out very interestingly.

TAdviser: How many employees support the SAP HR system? Who works with people on their training? As far as did a system get accustomed in labor collective?

Dmitry Volkov: Now in a system 5 people work. It is economic department, personnel department, settlement group and accounting. These are those people who are responsible for maintaining time keeping, distribution and salary accrual, maintaining the staff list – the main source of information for calculations. Naturally load of employees became more. The matter is that from people other knowledge and skills connected with maintaining such serious system as SAP were required absolutely. Something works well at once, something requires time for mastering. The human factor is very important for the project. And work with collective which is engaged in maintaining this module goes constantly. There are custom courses which we conduct together with EVOLA company for personnel of the enterprise. In an internal command we have a consultant who is engaged only in the module HR. This employee is engaged in training of specialists in the enterprise and renders the employee assistance in the departments working in this sphere. Now personnel management processes work correctly and without failures therefore we have no irrational use of a human resource on such routine transactions as, for example, information input in several places. A large number of approvals consigned to the past. When everything is accurately described and regulated – to work much more simply, both to employees, and the management. Therefore it is obvious that implementation of the next stages will go more simply. Now we have an experience, there are notable results and support of the management.

TAdviser: What your impressions of SAP during the time which passed after start of a system in commercial operation? Whether you are going to develop the begun solution and how?

Dmitry Volkov: At once I can tell that interaction between personnel department and settlement group in accounting improved. Became more transparent and clear both parties as information passes on a system. The general output on personnel department: with input of a system in operation JSC MTZ Transmash personnel department can safely be called department of personnel management - human resources. The first stage of process automation of personnel management was completed – we provided support of those business processes which worked at the enterprise. Thus, thanks to SAP HR system implementation at us the good modern HR division grows. At the moment we approach SAP implementation in those divisions where our processes were computerized, but are not involved in the general scheme of work of the enterprise. The issue of integration of HR with ERP as we have a working productive SAP HR is relevant and implementation of ERP comes to an end.

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a HRM system?
• Russian market of HRM systems: volume and trends of 2011
• Industry specifics of implementations of HRM in Russia
• Yana Kudryavtseva IBS: Manage a human capital under laws of Wall Street
• Severstal: "Business start" on personnel management process automation
• The perspective HRM tools for the Russian companies
• Talent management (talent management)
• Cloud HRM systems
• Social HRM tools
• Systems of corporate training
• Recruitment automation
• Biometric systems of accounting of working time
• Igor Gubanov IBS: We provide requirement of the market on a step forward
• Andrey Li of I-Teco: Even more often SAP HCM is implemented by method of "Big Bang"
• Methods, approaches and problems of implementation of HRM systems
• Legislative changes in HRM
• Main errors HRM of projects
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
• Volume, dynamics, structure of the world market of the automation equipment of HR services
• Top trends of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• SAP implementation of HCM with I-Teco
• The industrial solution Recruiting based on SAP HCM