Tyumen experienced and experimental plant of the geophysical equipment (TOEZGP) (Galaktika Management of manufacturing enterprise)

About the Project

In the middle of the 2000th the management of joint-stock company was in search of the strategic investor ready to purchase the enterprise. The task was difficult, considering low capitalization of the Tyumen experienced and experimental plant which, in turn, was caused by insufficient transparency and efficiency of business processes. In particular, the management of the enterprise had no full control of the movement of inventory items: information on actual balances in warehouses, about regrading in workshops arrived with delay, and materials and component parts were released in production often without delivery notes. Prices for products were insufficiently competitive, cost of production was calculated once a month, purchase plans prepared manually, as well as many other calculations because of what clients had to wait for order placement long. Automation of an enterprise management system had to become a part of the program of the reforms designed to untangle this ball of problems. The project was charged to the Official regional representative of Galaktika corporation – Tyumbit ASU Ltd. The management of the experimental plant expected that implementation of the integrated Galaktika ERP system will help the enterprise to increase transparency of business, to formalize and optimize business processes of the company (in particular, to improve budget management, production logistics and planning), to undergo certification on ISO-9000, to implement US GAAP international accounting standard – and, eventually, to increase investment attractiveness of the enterprise. At the request of the customer the project passed in a short time, in four stages: from business process optimization and implementation of a production circuit of the Galaktika ERP system – before implementation of US GAAP and budgeting.

Main results of the project

1. It was succeeded to achieve reduction of prices of products of the enterprise to competitive level.
2. due to reduction by 40 times of time of processing of requests and establishment of control of work of managers sales volume according to requests of external buyers increased from 20% to 50%.
3. At the enterprise daily control of the movement of resources was set, requests of clients and production documents ceased to be lost.
4. Calculation of needs of production for resources was reduced by 4 times, calculation of the plan of supply – by 960 times. Managers could use the released time for the analysis and more effective management of resources.
5. Thanks to ordering of the regulatory base of the enterprise, informing on the course of each business process of all its participants the quantity of managerial errors was considerably reduced.
6. 2.4 million rubles of annual economy to the enterprise are brought by liquidation of a WIP (work in progress) and 1.2 million more rubles – implementation of the uniform reference book of inventory items and automation of an execution of requests for supply and a material return.

Responses

About results of implementation of the "Planning and Production Management" block (2009): "The project on implementation of a production circuit of the Galaktika ERP system at our enterprise lasted about 8 months and came to the end in November, 2006. Works were carried out by Tyumbit-ASU Ltd. Implementations of an information system are result today:

1. Reduction of time of calculation of the request for the client: earlier from 3 to 10 days, now from 0.5 hours to 3 dn. were required, time was reduced by 40 times.
2. Automatic calculation of resource requirements on the production schedule, reduction of labor input of calculation: earlier according to the plan of production (100 product names) 2 months considered regulations, now on condition of emergence in respect of 10% of new products calculation of regulations for the rest of products takes 1-2 weeks, i.e. increase in speed by 4 times. At the same time time for maintaining sheets of replacements was released.
3. Notifications on the status of planned documents (the release schedule, the production schedule, new requests) help to inform all participants of business process on need of accomplishment of the part of works.
4. there Is no physical loss of documents (requests of clients, the calculated regulations for products).
5. the Operational remaining balance of Inventories in production due to daily input of documents on places.
6. Closing of month is made to the 10th, up to the 25th earlier, by GAAP to the 15th".

Bragina R.G. Chief financial officer JSC TOEZGP (2009, Tyumen)