The Kiev cardboard and paper plant manages the activity using Microsoft Dynamics AX

The largest pulp and paper mill in Ukraine - the Kiev cardboard and paper plant – implemented the solution for resource management of the Microsoft Dynamics AX enterprise. It allowed the enterprise to improve all business processes, to make the correct management decisions based on up-to-date and exact data to observe transparency of all transactions, to improve control over costs and also to raise the service level of clients.

KKBK – one of the largest enterprises in Europe, its share in the market of cardboard and paper products in Ukraine makes more than 30%. The plant consists of three main productions - cardboard, paper and the plant of a gofrotara. For production management the enterprise for many years used separate business applications which as a result ceased to meet his growing requirements.

"We could not create the unified information system and, respectively, any changes of business processes on consolidation of these our productions required considerable resources and time for adaptation of applications", - the IT director of plant of Dudarenko Alexander describes a problem. "Therefore we made a choice for benefit of Microsoft Dynamics AX as actively developing platform with the developed opportunities of adaptation and expansion".

Considering the unprecedented scale of the project designed to cover all fields of activity of the enterprise on some process steps of system implementation, about 50 people of consultants and programmers were at the same time involved. At the enterprise financial accounting, stock accounting, purchases, sales were automated and also for the first time in Ukraine it is implemented accounting and tax accounting according to the existing Ukrainian legislation with all changes of 2011-2012 Besides, within the project complex interfaces were developed for interaction with management systems cardboard and paper productions, gofroproizvodstvo schedule system and also integration with management systems railway is executed and automobile weight, the management system for transport logistics is implemented.

"It is one of my most large-scale projects as the Project manager, both from the point of view of management of a big project team, and from implementation process control: the variety of the automated business processes which entailed use in the large volume of functionality of all main system modules, considerable extent of initial automation of the enterprise, need of close integration with the management systems for production processes implemented by MES", - Vlad Berezin, the project manager and the director of the partner company of implementation of ERP PROFI tells.

"A large number of system modules was implemented, a large number of processes at the enterprise was automated and all this occurred at the same time. At the same time start happened in the mode of so-called "hot swap" – when during one time frame an old system completely stops and begins to work new", - Kirill Rudnev, the sales director of SMART business company, the partner in implementation explains.

On April 1, 2011 at 7 a.m. a system is successfully put into the round-the-clock operation and replaced the old programs used earlier at plant. For launch the number of the trained users of a system was about 100, and a year later – is 3 times more.

"This solution is applicable as well in other types of business because its key advantage – simplicity and convenience of the interface and also customizability. Except KKBK, Microsoft Dynamics AX helps to solve effectively business challenges to the largest retail networks, distribution companies and even the enterprises of public sector", - Vyacheslav Artamonov, the head of business solutions "Microsoft Ukraine" notes.

Advantages

Despite scale of the project, a year later after implementation of Microsoft Dynamics AX the plant's management already notes considerable effect which was reached at the expense of a scope of all fields of activity of the enterprise and providing a number of important advantages. Here only some of them:

• All document package on finished goods is written out automatically, including quality certificates of products, tax delivery notes taking into account requirements of the Tax law of 2012.

• Monthly the enterprise uses more than 28 thousand tons of waste paper. Before implementation of Microsoft Dynamics AX data on intake of raw materials were transferred in the manual mode from local programs of accounting. After implementing solution all operations are performed automatically, and these are about 2 thousand transactions a month.
• Cost value accounting algorithms are developed and implemented. Earlier cost accounting of paper-mill which issues more than 150 names of products (toilet paper, napkins, paper towels) took at least 10 days and calculation was made on groups of goods. Now this process can take no more than 2 days, calculation is made for each type of goods and calculation accuracy significantly increased.
• About 2.5 thousand orders on a gofroproizvodstvo are monthly produced. After implementation of Microsoft Dynamics AX order placement in production depending on a goods remaining balance in a warehouse and the financial relations on each of clients is automatically controlled. It significantly enhanced transparency of business processes.
• There was an opportunity to keep accounting and tax accounting in the Microsoft Dynamics AX system, including the changes connected with introduction of the new Tax Code in 2011. Thanks to the correct declaring of loads, the enterprise one of the first managed to be included in "white list" of customs service and to pass to electronic declaring of export sales.