Kotofey develops the project of automation

The companies "1C-Rarus" and "Yegoryevsk footwear" (the producer of the children's Kotofey footwear) signed the agreement on implementation of the complex project of automation by implementation of the software product "1C: Manufacturing Enterprise Management 8", the press service of integrator reported on March 4, 2013.

Before

The software which is available for the customer did not cope with the growing volume of an information flow any more, it was difficult to factory to receive the broad picture of results of activity of all divisions.

The guide of the customer decided to carry out complex automation of factory using the 1C: Manufacturing Enterprise Management 8 program.

Objectives

The agreement with 1C-Rarus company within which it is planned is signed:

• industrial automation, implementations, accounting and payroll;
• integration with management systems for sales and warehouse stocks.

The first stage of the project will cover 70 automated jobs on production, in accounting and personnel departments.

Ilya Antonenko and Alexey Spiridonov, staff of department of IT "Yegoryevsk footwear", noted:

• Recently before us sharply there was a need to leave from old information systems which do not meet the modern requirements any more and are difficult in updating. With implementation "1C: Manufacturing Enterprise Management 8" we expect to receive an end-to-end system which will deeply allow to penetrate into work of factory and to optimize important business processes. We are going to implement accounting on costs on production, to automate the individual settlement scheme of key indicators, to optimize accounting and personnel records. We expect that complex optimization of all business processes of the enterprise will result in increase in productivity and search of new opportunities to increase profit.

Igor Grigorov, the area director of automation of construction of 1C-Rarus company, emphasized:

• We are proud of the fact that the management "Yegoryevsk footwear" entrusted us to implement the large-scale project of automation of the most large-scale production of children's footwear in Russia. Scales of production and the requirement to functionality led to the choice of the complete solution answering to all regulations of the current legislation - "1C: Manufacturing Enterprise Management 8". Already now it is possible to say that this cooperation will be successful both for the customer, and for the contractor. The wide experience of employees and their flexibility in use of this experience to different projects will allow to achieve effective objectives to us. We expect the first results to receive in the II quarter 2013.

The first stage behind

The company contractor completed the first stage of the project of complex automation of the enterprise of the customer. On a basis "1C: Manufacturing Enterprise Management 8" HR records and payroll for 600 employees are optimized. Several methods of calculation of remunerations – price-work, sole and hourly wage systems are automated. Work in an information system of estimating accountants in each of workshops of the enterprise is organized. Speed and accuracy of payroll is as a result increased.

The enterprise uses several payroll systems:

• About 30% of personnel receive payment on a salary, according to the fulfilled hours;
• Work of 20% of personnel is paid clockwise to a wage rate;
• 50% of employees on a piece-work pay.

Alexey Kutuzov, the chief financial officer "Yegoryevsk footwear", noted:

• With the help "1C: Manufacturing Enterprise Management" at the first stage of the project we automated work of specialists in payroll. As a result we managed to reduce the number of handwork – in particular, formation of postings based on charges. We timely prepare and we hand over the managerial and regulated reporting. We managed to reduce financial and tax risks and to reduce costs for payroll. Reduction of time for payroll twice – from 5-6 to 3 days became a result of active use of an information system in work.

Project Continuation

On September 27, 2013 the 1C-Rarus company announced end of the next stage of an implementation project of the ERP system "1C: Manufacturing Enterprise Management 8" - in department of accounting of Yegoryevsk footwear company.

Accounting - the center of accounting of Yegoryevsk footwear factory. Here all activity of the enterprise is consolidated, the managerial and regulated reporting prepares. Accounting needs to keep the cost accounting on materials which because of weak opportunities of an old system had to be made earlier on paper.

Using software "1C: Manufacturing Enterprise Management 8" 17 jobs are automated. A system allowed to optimize accounting on sections: fixed assets, materials, cash desk, bank, sales, purchases, advance payments, settlement.

Accounting of factory had an opportunity to keep the detailed cost accounting, differentiating materials on quality and characteristics that allowed to carry out cost accounting more correctly.

2014: Project Results

On March 31, 2014 the 1C-Rarus company announced results of the project and 70 users working in a system:

• Control automation by production allowed to strengthen control over the material consumption and compensation of production workers. Now materials are written off according to predefined regulations and on the basis of data on the turned-out products. On regulations development of production workers is calculated. The analysis of labor costs and the material consumption which a system allows to execute in real time allowed to reveal difficult sections and to make a number of management decisions as a result of which it was succeeded to reduce cost value of products on average by 3% already now.

• Detailed cost accounting allows to analyze profitability of production by each type of products and to define highly profitable and unprofitable models, to adjust price policy.
• On section of management of settlement reports on types of debt, on debt due dates, on currency debts, on lease debts quickly form. The analysis of this information and acceptance of the relevant management decisions strengthen financial stability of the enterprise. Regular monitoring and gain of control over payments allowed to reduce receivables by 10%.

• Distribution of general production and general business costs by the place of their emergence as, for example, costs on fixed asset depreciation, on compensation, overalls, the special equipment, etc., allows to reveal the least profitable sections of production process now. As a result production costs managed to be reduced by 5%.

• Payroll is completely automated. Now it is executed twice quicker, than earlier. The quantity of the errors connected with a human factor is reduced. Each employee can check the charges and their compliance to personal development. Already now it is possible to note positive influence of material interest on a personnel increase in labor productivity.

• Terms of preparation of accounting and tax statements were reduced three times.

Alexey Kutuzov, the chief financial officer of JSC Egoryevsk-Obuv, noted:

• Implementation of the 1C: Manufacturing Enterprise Management program allowed to obtain quickly data for production efficiency analysis. See "narrow" places and make a number of the coordinating decisions. It became easier to manage price policy. Now we can calculate cost value and profitability of production of each specific model, to compare the planned price of model and cost value. In plans of our company further development of a system and implementation of its subsystems Planning and Financial management.