Zarechye (Galaktika Management of manufacturing enterprise)

Implementation stages

In 1998 the management of factory made the decision on implementation of the integrated enterprise management automation system Galaktika. In July, 1998 Specialists of Tyumbit-ASU Ltd conducted preproject examination. Originally in JSC Zarechye means of the Galaktika ERP system solved the following tasks:

• accounting,
• conducting inventory accounting,
• sales managements and supply,
• personnel managements and payroll.

Using data the Galaktika ERP appeared a possibility of automatic cost accounting. Important feature of JSC Zarechye is use of a semi-finished method of cost accounting: here cost value of each semi-finished product is calculated, and then complete cost value of finished goods already gathers. Then at the enterprise started creation of a system of production planning based on the Galaktika ERP system supporting the MRP-II standard (Manufacturing Resource Planning). This standard is focused on application of the corporate information systems covering a complete circuit of tasks of management of industrial enterprise at the operational level. Implementation of production functionality of a system allowed to increase efficiency of management accounting: there was an opportunity to calculate planned and actual cost, to analyze efficiency of structure of the production schedule taking into account different schemes of distribution indirect and overheads. At the enterprise the logical connective "Sale-> Production-> Supply" was created that made possible optimum to plan both production, and supplying and sales business processes. Result

Professionalism of specialists of Tyumbit-ASU Ltd and system capability allowed to resolve issues of automation of the labor-consuming repeating transactions, efficiency and transparency of the received reporting, creation of a common information space at the enterprise. Thanks to "Galaktika ERP", specialists of the enterprise began to define direct costs of each product at different stages of its production. A number of positions according to the results of the carried-out calculations was excluded from the range; on many products production procedures and route charts were improved, raw materials, optimal at cost and quality, are picked up. System implementation Galaktika influenced successful work on quality system certification of JSC Zarechye on compliance of ISO 9001. Completion of standard functionality of a system Galaktika by specialists Tyumbit-ASU allowed to calculate and analyze quickly cost value of products that is one of the factors providing competitiveness in the market both JSC Zarechye and each type of products.

Thus system implementation "Galaktika ERP" allowed to achieve the following results:

• cost accounting of finished goods to the tenth day of the next month;
• accuracy and reliability of the used information;
• noticeable reduction of illiquid warehouse stocks;
• reduction of receivables;
• optimization of product assortment and growth of business competitiveness.

Responses

Sergey Kiverin, CEO of JSC Zarechye:

"It is impossible to manage cost value, to control execution of budgets, to make timely decisions, obtaining information on a cost structure with delay more than for a month. "Galaktika" has a necessary set of functionality for planning, budget management, accounting, and cost accounting on large enterprise and allows to work with large volumes of data that allows to solve this problem".

Lyubov Nikolaeva, chief financial officer of JSC Zarechye:

"Today use of solutions of Galaktika is the base of systems management by factory. The administration of the enterprise obtains operational and reliable information for acceptance of management decisions, has an opportunity to control all main activities of the enterprise. In our plans – creation using Galaktika of a management system for budgets of the enterprise". Natalya Yaldygina, head of information technology:

"After system implementation the Galaktika ERP appeared an opportunity to define direct costs of each product at different stages of its production. Besides, at us stocks of "illiquid assets" in a warehouse considerably decreased and receivables were reduced, and it is very essential in the conditions of the accruing competition".