Altyntau Resources begins a long implementation project of the automation system of planning

JSC Altyntau Resources together with GMCS implements the project on creation of a system of collecting of budgets and cost accounting of products based on a complex of the solutions IBM Cognos Express.

Tasks

In implementation process of the long-term project Altyntau Resources she intends to pass to a single system of planning, to provide the consolidated forecast financial statements according to IFRS on group, in several cuts and also to increase profitability of activity of the company and control over product cost.

The implemented system is designed to increase profitability of activity of the enterprise due to balancing of the forecast movement of metals on group and budget planning. As the platform for creation of a system the integrated solution of IBM Cognos Express comprising tool kit for budgeting, scenario modeling and the business analysis is selected.

Opinion

"Cost value of an end product in the extracting industry depends on a set of factors: ore grades, method of development, technology equipment of the plants on processing and many other. Altyntau Resources looks further. In the conditions of a difficult chain of cost value, several repartitions – and them at us more than 40, competitive advantage is an opportunity at a stage of the beginning of production to calculate several options of cost value and to select the best from the point of view of what end product will be made, what method. The implemented system is designed to provide the solution of these tasks", – Ilyas Kazhibekov, the director of planning and budgeting of JSC Altyntau Resources tells.

Solution

The project is expected several years and will be implemented in several stages.

Result of the first stage which expected date of completion – the end of 2012, there will be implementation in the system of multi-level planning, including receiving on group of consolidated budgets in the IFRS standards in several cuts, to the specific field and a type of ore. JSC Altyntau Resources will receive tools for automatic calculation of balance of metals, the planned movement of products of work in progress and finished goods, planned cost of a unit of production and planned finished product output and amounts of work in progress, including the plan-fact analysis. Also calculation of depreciation, lease and taxes, calculation of the budget of the capital investments will be automated.

Within the subsequent stages in a system processes of formation and collecting of estimates of divisions, calculation of planned production volumes, preparation of analytical reports on materials and fuel and also planning of expenses on compensation will be automated (according to the staff list or divisions). For alignment of business processes of the enterprise integration of IBM Cognos Express with a corporate system of management of JSC Altyntau Resources based on Microsoft Dynamics AX will be executed.

Importance of a deposit

"Implementation of the long-term project for the leading gold mining company in Kazakhstan is an indicator of intentions of IBM corporation concerning business development in the CIS countries. In 2012 the corporation invests in expansion of geographical presence in regions of Russia and the CIS countries in addition 6 million dollars, opening new offices and involving highly professional specialists. The business intelligence is for us one of the priority directions till 2015. Certainly, the project which is implemented for the benefit of Altyntau Resources is also significant contribution to fast-growing economy of Kazakhstan", – Adam Dosymov, the chief representative of IBM in Kazakhstan told.