Pluses of implementation of the ERP system for power and utility company

<a name="_Toc195611694"></a><o:p></o:p>

<o:p></o:p>Several advantages from implementation of an information system have no accurately expressed industry binding. Among them it is possible to select, the following benefits.

Unity and data consistency in a system, operational obtaining information – single data entry in a system in real time and their repeated use, including for obtaining different reports and the analyst. Besides, there is personnel access isolation to information – everyone sees only that part of data, access to which to it we bypass.

The financial block allows to perform registration of all financial transactions, gives the chance of operational creation of all types of the reporting – accounting, tax, managerial. Besides, the set-up time and carrying out payment documents, settlings with suppliers, consumers and employees, etc. is reduced.

Process automation of drawing up and control of budget implementation allows to manage profitable and account parts of the budget almost in real time.

Automation equipment of document flow allows to control the movement and execution of documents, improves interaction between divisions and the staff of the company.

The module HRM provides rational personnel management – at the total number of staff of the power company in several thousands of people performance improvement of work, etc. also gives to loyalty of personnel considerable economic effect.

Let's address benefits and advantages, specific to the power industry, now.

Maintenance and repair <o:p></o:p>

The enterprises of power which are especially generating and network, have expensive fixed assets which idle times also cost much extremely. Therefore for the power enterprises maintenance of the equipment in working order – a separate important task. The business assets at the enterprises of a power complex often put into operation in 60-70 years of last century, already physically outdated and worn-out that also speaks about relevance of this task. The continuity of power production also requires reliable and trouble-free operation of the equipment.

All this demonstrates that control of the equipment, maintenance and repairs (MRO) – a problem of paramount importance for the power companies. Implementation of the similar systems at the enterprises of power can bring notable economic effect.

Traditionally in power the system of scheduled preventive maintenance when service and replacement of the equipment it was made in normative terms was used. Such method provides high readiness of business assets, but is extremely inefficient from the economic point of view – the equipment at the same time is replaced often long before the termination of the actual service life. Transition to repairs on a status (on the basis of a real condition of equipment) allows to reduce costs significantly. Besides, planning of repair work should be carried out taking into account losses because of forced idle times. At the same time costs are even more reduced. Quality improvement of repairs thanks to strict regulations on execution of works and to control of its observance – one more reserve for economy. All this, finally, influences decrease in cost value of the made products and ensuring stability of work of the power company. But the solution of similar tasks is impossible without use of the integrated information systems.

As for quantitative estimates, according to information from different sources use of EAM-systems (or EAM-modules of ERP systems) allows to reduce to 50% costs for technical maintenance and repair of the equipment, and the total costs of a MRO of 20-30%. Reduction of abnormal, overtime works and other unplanned idle times also reaches 20-30%. At the same time average terms of payback of implementation of the similar systems – about 2 years.

Logistics <o:p></o:p>

In the absence of purchase planning often there is excess of materials in warehouses that leads to freezing of current assets. And when purchasing spare parts for an obsolete equipment of means money in general is thrown out in vain. Also at irrational planning there can be situations when necessary spare parts in a warehouse do not turn out what leads to idle times because of waiting of spare parts and to carrying out urgent purchases at the non-optimal prices. The solution of similar tasks – also one of clear advantages of automation.

Implementation of ERP systems allows to reduce, by different estimates, warehouse stocks by 10–20%. And reduction of cases of shortage of stocks and waiting time of spare parts – up to 30%. The payback of such systems is also very high. So in JSC Permenergo at implementation of a subsystem of logistics warehouse stocks and a remaining balance at once managed to be reduced by the amount several times the exceeding cost of development and deployment of the module.

Sales management of energy <o:p></o:p>

Problem, characteristic of power industry, is conducting calculations for the delivered heat and electro-power. In any regional power supply system there is a problem of accounting of consumption of energy carriers by consumers and ensuring timely and exact settlings with them. Speed of settlings with consumers averages 8-10 months today, and in certain cases reaches also the 24th that is extremely inefficient from the economic point of view.

The management subsystem provides with sales efficiency and transparency in accounting of implementation of heat and electro-power. The similar module allows to organize hierarchical distributed system of data collection and processing on implementation of heat and electro-power, beginning from sections, through departments of power supply networks to management of power sale, accounting of payments and debts, etc. At the same time the speed of settlings with consumers considerably increases and the general collecting of payments increases, by different estimates by 30-50%."'

Accounting of energy in networks<o:p></o:p>

For the network companies the system of accounting of energy in networks (the AIIS KUE is the automated integrated information system of complex accounting of energy) – also represents a big reserve for economy. At the heart of a similar system a complex of metering devices of all points of entry and a holiday of energy in network.  On communication channels information is transferred to the center of collecting and processing from where in a convenient type goes to the services which are engaged in transport and sale for settling with partners.

In addition to submission of reliable, operational information for implementation of commercial settlings of transport company with suppliers and power consumers, the system of accounting of energy in networks gives the chance of localization of sources of losses of the electric power. Decrease in losses — very important task in market conditions. A similar system will allow to know precisely where and on whose fault there were losses of energy, so who should pay for them.

That at whom the most exact instrument of electricity metering bears the most smaller loading on losses - that is minimizes the losses. So, for example, JSC UENC (Uniform Energy Network Company) plans, using the AIIS KUE, to save on losses within the next three years about 160  million kW. What at present prices of electricity gives significant economy in terms of money.

Municipal services <o:p></o:p>

For the enterprises of housing and communal services implementation of end-to-end information systems also promises undoubted benefit.

First, the pay level raises and the main debt to service providers decreases. At the same time unclaimed debts vanish irrevocably after a while because of the expiration of terms of limitation period on their claiming. Reduction of debt quite often many times over exceeds costs for implementation of an information system that does not manage to achieve any staff increase of service of sale and control. So, for example, in Novosibirsk, after implementation of a single automated system of acceptance of utility payments payments from the population increased by 43%.

Secondly, the efficiency of use of the budgetary funds intended for privileges and subsidies to the population in the field of utility payments increases. By estimates of the Ministry of Economic Development and Trade of the Russian Federation implementation of a uniform automated payment system in Moscow will lead to economy up to 30 million rubles a year due to minimization of an overpayment of social payments.

Thirdly, automation of work at  the housing and public utilities enterprises will increase labor productivity of employees and will allow to increase efficiency, accuracy and reliability of the obtained reporting information.

And, for the end, fourthly, the convenience to the population at accomplishment of payments increases. It is difficult to measure this factor in a quantitative sense, however improvement of a social situation at implementation in the city of a similar system is available.

Summing up all aforesaid, one may say, that implementation of the ERP system at the enterprises of the power industry can give considerable economic effect and it is essential to increase controllability and investment attractiveness of the company.

Ekaterina Brynina/analitik of TAdviser