KAMAZ-Metallurgiya (SAP ERP)

For information and analytical support of acceptance of management decisions the enterprise  implements  collecting of reliable information about activity of the enterprise, will organize  data exchange about production plans and a current status of resources and also  automates accounting and tax accounting.

"KAMAZ-Metallurgiya", one of the largest producers of casting and forgings in Russia, made the decision on creation of the integrated enterprise management system on the SAP ERP platform. Project implementation is charged to IBS company [1] (file).

"KAMAZ-Metallurgiya" is consolidation of two plants, foundry and forge. The enterprise releases parts for automotive industry and other industries. The staff of the enterprise totals more than 12,000 people.

The starting ERP project should become a part of new IT strategy which global purpose is increase in efficiency of the enterprise, its controllability and transparency for shareholders. The main objective which is going to be solved within a management system implementation project is increase in operational production indicators of the enterprise. Possibly, the project is closely connected with the automation of car assembly production of "KAMAZ" which is also based on the SAP platform began in February, 2008.

During the project on the SAP ERP platform financial accounting and the reporting, fixed asset accounting and intangible assets, budget management, management accounting, logistics, sale, production planning should be implemented. Besides, it is going to implement the module for reporting based on SAP Business Intelligence. Besides, in the pilot mode Quality Management quality management module should be started.

It is supposed that the project will cover all administrative, production divisions of the enterprise, commercial service, directorate on quality, HR department. In total it is going to implement about 400 jobs. It is going to complete the first stage of the project in March, 2009. The second queue should be complete in March, 2010.

According to Ilshat Haziyev, the deputy CEO for information technologies and corporate management "KAMAZ-Metallurgiya", for preliminary forecasts use of the ERP system should promote finally increase in sales volume of products by 5%, decrease in warehouse stocks of the main technology materials by 20%, reduction of average balances in work in progress by 10% and also reduction of number of organizational idle times by 75%.

Let's remind that the structure of KAMAZ holding includes more than 100 different enterprises, production, trade and financial. The distinction of the functions and tasks facing the separate enterprises led to the fact that IT infrastructure of holding is very heterogeneous, and includes systems on platforms of different power, including  "1C: Enterprise",  SAP,  Baan and others. About two years ago the holding accepted long-term strategy for creation of new IT infrastructure. Within this reorganization in group several large-scale projects are already kept. A part of projects is already complete, and the created systems are put into operation.