"KAMAZ" will replace Baan with "1C:Enterprise 8"?

The KAMAZ group consists of 104 organizations which general staff makes about 52 thousand people. The main products of the company are trucks, and the uniform industrial complex of group covers all fabrication cycle of production, from development, production, assembly of automotive equipment and autocomponents before sale of finished goods and service maintenance.

In April, 2005 the management of consolidation organized the tender for the choice of the partner in the planned project on the upgrade existing IT inftastruktury for the purpose of increase in controllability of group. Agreement signature about cooperation with Microtest company [1] (file) became result of the tender.

At the first stage it was supposed to develop the system project covering all enterprises of group and reflecting global development of IT infrastructure of the customer in the next several years. According to Victor Ganin, the director of the department of information technologies of "KAMAZ", the system project developed as a result "provides not only system implementation of accounting and tax accounting, but also implementation of a corporate information system, creation of a budgeting system and integration of all IT products and also technological support of all these projects".

As representatives reported to TAdviser Microtest, the created strategy covers a number of the enterprises entering into structure of "KAMAZ" now and contains the description of business processes "as is" and "as will be" and also automation options using several solutions, the description of architecture of systems, the schedule of implementations, an order of implementations. However information on project terms, its stages and on the considered platforms of automation by the companies does not reveal yet.

According to TAdviser, it is not the first attempt of the Russian automobile giant to make high-quality break in company management, based on information technologies. So, in 1998 at the KAMAZ-Diesel enterprise the project on implementation of the ERP system of Baan V which had to help the enterprise to recover fully the working capacity after major fire which in 1993 destroyed all property of the plant was begun. The project was performed by Fort Dialogue company. In December, 1998 the first stage of a system covering a part of problems of a subsystem Production management was put in trial operation, and at the end of 1999 also subsystems "Sales management and supply" and Finance were started. Based on the first months of operation of a system the project was considered successful, and after implementation of Baan at the separate enterprise "KAMAZ-Diesel" a system had to become the corporate standard of all consolidation gradually. Though it did not exclude use and other solutions, in particular at one of the enterprises of group the BEST Missile Defence system, development of Intellect-Service company was implemented.

However during the present project implementation of the priorities described within the global strategy of reorganization namely creation of an automated system of accounting, tax accounting, and also accounting according to the IFRS standards, will be performed on the 1C: Enterprise 8.0 platform.

In a project deliverable the basic standard solution for accounting services of all structural divisions of the customer regarding basic functions of accounting, including for reporting according to international standards, necessary for the IPO should be created. Also as a result of implementation the possibility of obtaining the consolidated statements on KAMAZ group of companies will be implemented. Implementation "1C: Enterprise 8.0", according to project participants, will allow to reduce cardinally a share of manual transactions, to raise accuracy of the data and transparency of information, to reduce costs of working time of heads for approval and document approval.

In Microtest reported that the implemented accounting system will interact with separate customized applications which are applied on "KAMAZ" to accounting of Inventories, maintaining production specifications, personnel management and payroll calculation, conducting internal calculations, support of the uniform qualifier of partners now. An ERP system was not mentioned in this list. In Fort of Dialog reported that the company ceased to be engaged in the products Baan, and it was not succeeded to receive data on the future of the project of TAdviser begun slightly less than 10 years ago.

Representatives Microtest claim that in the nearest future the company performance on "KAMAZ" will be connected only with implementation of the systems "1C:Enterprise 8". According to the plan implementation is going to be completed in the first quarter 2008.