Thanks to 1C:Enterprise 8 costs of the metallurgical enterprise Yunistil LLC are twice reduced

The Infors company successfully completed the project of complex automation of the metallurgical enterprise Yunistil LLC (Kryvyi Rih, Ukraine). System deployment "1C: Manufacturing Enterprise Management for Ukraine" in 50 workplaces was executed in only 4 months, in parallel with start of a new production line. As a result the newly created enterprise began work already with the unified information system allowing to manage quickly production, receivables, to reduce costs of the company, to increase labor productivity, to analyze, plan and manage all business processes of the plant.

The Yunistil limited liability company is the new enterprise of small metallurgy which opened in Kryvyi Rih in 2010. Specialization of the plant – production of flat-rolled galvanized steel. Production capacity of Yunistil LLC is 100 thousand tons of galvanized steel a year. Less than for 2 years the latest enterprise with advanced technologies and the high-tech equipment of South Korean company Dongbu Machinary Co., LTD was constructed of the preserved workshop

The management of the enterprise needed to minimize the inevitable risks connected with start of new production and already by the time of start to organize effective management of the enterprise.

The system allowing was for this purpose necessary:

• manage costs;
• calculate actual cost of finished goods;
• to quickly control a consumption of technology materials,
• display all operations on production of zinc galvanized steel in real time in the accounting system.

For the solution of these tasks the management of the enterprise made the decision on complex automation. After the analysis of existing solutions for manufacturing enterprises the company management stopped the choice on the software product – "1C:Enterprise 8. Management of manufacturing enterprise for Ukraine" (1C: Manufacturing Enterprise Management), as as its functionality and opportunities allowed to solve assigned tasks with the minimum completions in the shortest possible time.

The partner in business process automation of Yunistil LLC selected the Infors company having considerable experience of successful implementation of 1C: Manufacturing Enterprise Management at large manufacturing enterprises.

It was required to implement a new automated system in a short space of time, in parallel with start of a production line. Therefore development of methodology of accounting and setup of a system happened practically at the same time. Works on automation and study of accounting schemes were executed practically "a step to a step". As Yunistil LLC - the enterprise absolutely new, in it was not "historically developed" methodology of accounting and without problems assumed as a basis that which is implemented in the standard solution "1C: Manufacturing Enterprise Management for Ukraine". It allowed to reduce considerably project terms, having avoided long works on setup and completions of a system. As a result of everything in four months after signing of the contract the new information system was already brought into commercial operation in 50 workplaces and allowed:

• exercise continuous control over a production process of the galvanized sheet;
• cover the main production processes, since shift planning and finishing with transactions of certification of finished goods;
• reflect data of laboratory on quality of the galvanized sheet online;
• reveal deviations in a zinc consumption (an expensive component in production of the galvanized sheet);

analyze origins of deviations and compare to a standard cost without stopping of a production line.

As a result the management of the enterprise received:

• effective production management system. Thanks to an opportunity to quickly trace a production process and parameters of accomplishment of the production program risks of technology failures were reduced by 30% in comparison with the predicted risks at the beginning of the project on production start;
• an opportunity to interfere with a production process on any of its stages and to introduce timely amendments. Thanks to it the costs connected with start of a production line were reduced approximately twice in comparison with the settlement indicators approved at a business planning stage;
• the tool for tracking of production costs and calculation of actual cost of finished goods;
• an opportunity to quickly estimate a financial condition of the enterprise, to predict cash flows, to manage receivables.

The enterprise accounting works in the system which is completely conforming to all standards of accounting. Automation of formation of the regulated reporting minimized quantity of errors and significantly reduced time expenditure of accountants.

Curator of the project from Yunistil LLC Pliyev Artur Vladimirovich: "We are very happy with the received result. "1C:Enterprise 8. The management of manufacturing enterprise for Ukraine" allows to solve successfully all problems facing us with minimum risks and with high degree of comfort. As a result of implementation of a software package on all main divisions of the enterprise the management of Yunistil LLC had an opportunity to control activity of all enterprise, to make operational decisions, and, as a result, to pay more attention to strategic planning and business development".