JSC Novosibirskenergo (Microsoft Dynamics AX)

About the Customer

JSC Novosibirskenergo is one of the largest enterprises of Siberia. The company is engaged in production of electrical and thermal energy. Five thermal power plants and 35 local boiler houses are a part of its generating capacities.

The set electric power of JSC Novosibirskenergo is 2,522 MW, thermal - 6,782 Gcal/hour. The company provides power supply of the Novosibirsk region and the centralized heat supply of Novosibirsk and Kuibyshev, is a noticeable player of wholesale market of the electric power.

Prerequisites of the Project

"We needed the tool helping to predict a situation and to affect "advancing" on poor signals. The company delivered before itself and the partner a task to construct a common information space for all divisions", - Konstantin Shishkin, the First Deputy CEO on operational management, the director of economics and finance comments.

The project started in the spring of 2009 and lasted about two years. Together with AND Project the Novosibirskenergo company "connected" in a single system planning and budgeting with production processes. Such solution will provide full control of financial and economic activity of the enterprise and will support the strategy of cost optimization in new economic conditions.

Tender at the choice of the ERP system and the supplier of the solution for JSC Novosibirskenergo lasted several months, 11 companies integrators took part in it. AND Project reached the final and won the tender, having offered the complex ERP solution based on Microsoft Dynamics AX assuming the solution of all tasks of Novosibirskenergo in a single system

When choosing the ERP solution existence in the system of the specialized tool for integrated management of maintenance and repairs of the equipment was the mandatory requirement. The automation of a MRO planned during the project helps the company to manage effectively fixed assets and to perform high-quality preparation for a heating season.

Project Goals and Objectives

The lack of automatic communications between the software packages existing at the enterprise complicates work on adjacent sections – where functional duties of the worker mean work at the same time in several systems. Coordinate the existing software in a uniform information structure it was not represented possible as different programming languages were used. Using the ERP solution of AND Project based on Microsoft Dynamics AX of JSC Novosibirskenergo integrated business processes of the enterprise into a single system and created unified information environment of business applications.

Within joint work to AND Project there was both step-by-step, and simultaneous implementation of the following queues of business processes:

• Managerial, accounting and tax accounting
• Accounting according to IFRS
• Budgeting
• Production management and production planning
• Management of maintenance and repairs
• Personnel records
• Payroll

Project Results

During the project the main business processes of the enterprise, including budgeting, management of finance, personnel management, payroll, production management, sale and also maintenance and repairs of the equipment are automated.

In a new system the reporting of the enterprise according to the Russian standards of conducting accounting and tax accounting, the IFRS standards and corporate strategy of JSC Novosibirskenergo is prepared.

Automation objects also became: management of material flows, document flow, management of investment projects and others. Within the ERP system project it will also be integrated with the ASCAPC system – an automated system of commercial electricity metering. The organization of accounting and planning will be implemented within the uniform centralized database on the basis of the specialized solution "by AND Project: The distributed holdings for Microsoft Dynamics AX" which ensures functioning of a large number of branches and other separate divisions in a single system.

Within the project specialists of AND Project and an implementation team from Novosibirskenergo made adaptation of some business processes under features of Microsoft Dynamics AX and also adaptation of the ERP system under business processes which are unique for the company.