The Russian division of ESAB implements 1C: Manufacturing Enterprise Management again

The joint Swedish-Russian venture "ESAB-SVEL" makes welding electrodes of the Russian and Swedish brands and also is engaged in sale of the equipment and rendering services in the territory of Russia and the CIS countries. The company is included into ESAB international concern. Need of transition to a new information system was caused by the fact that the system of accounting existing at the enterprise  did not allow to prepare the corporate reporting according to international standards IFRS. Having analyzed own business processes, the company management made the decision on use of the uniform ERP system covering accounting, production and operational accounting, formation of the corporate reporting and budgeting. A choice was made for benefit of the solution "1C: Manufacturing Enterprise Management 8". 

On  the data which are available for TAdviser,  the Russian divisions of holding already had an experience in the 1C: Manufacturing Enterprise Management 8 system.  In July, 2008 the Microtest company [1] (file)  announced implementation of the 1C: Manufacturing Enterprise Management 8 software product  in  the Moscow division   of ESAB concern.  Then  within  the project   accounting and nalogovogy accounting, payroll calculation was automated, and  financial accounting was brought to the IFRS (IFRS) standards. Also implementation of modules of purchase management, was planned by budgeting and money. Within the project as it was reported,  60 jobs were automated.

The new ERP project affects production company in St. Petersburg, one of major shareholders of which  is ESAB. The first stage of the project started in August, 2008. Its tasks included  accounting automation.  Reporting according to IFRS was called the priority direction.  These tasks were carried out by February, 2009. 30 jobs were as a result automated. Implementation was executed by specialists of Dialog Information Technologies company [2] (file).

Cost accounting of finished goods by the standard-kosting method belongs to features of a reporting preparation according to corporate standards of concern. As a result of automation there was an opportunity to analyze efficiency of use of resources, to control product quality and to calculate its cost on several components. Besides, calculation of deviations for cost and use of stocks, direct and laid on costs according to standards of the head company is optimized. The transparency of process of formation of cost of finished goods allows to trace all deviations from its standard value. As a result the company management has an opportunity to estimate cost efficiency of production.

Now in the ERP system accounting and tax accounting is kept, formation of the corporate reporting is configured, cost accounting according to the ESAB standards is automated. Further automation of calculation of a tax balance sheet according to IFRS and additional report forms is planned.

The second project stage on creation of a complex ERP system began spring of 2009. Specialists of the company integrator conducted examination of the business processes relating to production accounting and started works on automation of operational accounting. At the third stage implementation of a budgeting subsystem is planned. It will allow company management to use different scenarios of forecasting and to react quickly to a current economic environment. Project completion is planned for November, 2009.