Tekhnovek created an end-to-end system of planning based on Infor CloudSuite Industrial

2019: Creation of an end-to-end system of production planning

On October 28, 2019 the Infor company announced implementation of an end-to-end system of production planning on the basis of the ERP system of Infor CloudSuite Industrial (SyteLine) at the plant of the oil and gas equipment "TEXHOBEK". The project was implemented by experts of FRONTSTEP CIS company.

The solution supports end-to-end planning processes due to automation and systematization of preparation of the production normative reference information, synchronization of data between the ERP system and a product lifecycle management system. Thanks to such opportunities the relevance and accuracy of the data on all production and to business processes are provided. High quality of technology and design information guarantees the accuracy and efficiency of planning and also accelerates acceptance and order processing.

At the expense of it it was succeeded to increase capacity of production by 8%, to reduce operating costs by 11%, to reduce the level of warehouse stocks by 27%, to reduce runtime of orders for 7–8% and by 4 times to reduce the term of formation of the offer for the customer of upgradeable products.

Creation of an end-to-end system of production planning allowed to adjust reliable control of accomplishment of agreement obligations. The enterprise managed to increase flexibility at design, to increase capacity of production capacities and in general to increase performance and sales volumes.

The solution is created based on ERP Infor CloudSuite Industrial (SyteLine), and implementation of high-quality production planning became the next stage of accumulation of the functionality of a system applied at the enterprise. Within a uniform information field support of two planning methods — MRP (Material Requirements Planning) and APS (Advanced Planning and Scheduling) was implemented at once.

All finite scheduling of purchases and production in the daily mode is based on MRP. Qualitative normative and operational initial data of the ERP system are for this purpose used. The system of synchronous production planning of APS is used for the precautionary and corrective actions concerning production. It is applied to forecasting on model "that-if" and to risks assessment. It helps to reveal bottlenecks in production and further to fix the potential or already existing problem. At the changes influencing production, modeling helps to reveal where new points of risk will appear and to take the corresponding actions.

For modeling of a situation changes are made to the ERP system: "throw" of the large order, change of resource model of the enterprise and others, depending on an assigned task. Periodically carried out procedures of APS planning allow to provide possible risks (capability effectively is implemented to react to changes) and also to increase capacity of production and to increase performance due to purposeful optimization of technology processes and production capacities (resources).

For half a year from the moment of the beginning of commercial operation of planning modules as a part of the ERP system, the plant could provide a 100 percentage complete set of production, using safety stocks and uninterrupted providing with materials under the order and also to increase the level of accomplishment of contractual commitments by dates of shipment of products. Besides, on average cost value of products decreased by 10–12%: staff costs decreased, in business processes of the enterprise exact data began to be used.

"We could achieve accomplishment of all tasks set by us at the time of end of the previous stage of implementation in short terms. Change of indicators demonstrates that Infor CloudSuite Industrial (SyteLine) provides to management all necessary tools for effective optimization of activity of production company — at all its levels", 'Sergey Orlov, the head of department of ASUP NGO TEHNOVEK Plant LLC noted'

"Thanks to flexibility in the choice of means and methods of management and also to broad functionality of the ERP solution Infor CloudSuite Industrial (SyteLine), we could create powerful schedule system using at once two target techniques. The high level of quality and planning allowed to provide to TEKHNOVEK company a number of competitive advantages, to increase controllability and accuracy of business processes", Vladimir Mussin, the CEO noted "FRONTSTEP CIS"

"Infor CloudSuite Industrial (SyteLine) helps production companies to create a uniform ecosystem of process management of design development, planning, directly productions, deliveries, management of warehouses and a distribution system. Production becomes more flexible and effective, the response time is reduced by changes of the entering parameters and requests from clients. These are important components of success for the companies which work in technological segments of the market", 'Dmitry Martynov, the regional development manager of partner business of Infor in Russia and the CIS noted'

2015

On November 10, 2015 the company Frontstep announced an implementation project of a system of operational production management on the platform ERP Infor SyteLine in the company ZNGO OF TEKHNOVEK.

Project Progress

For November 10, 2015 in an operation status the first circuit of the project – logistics.

Screenshot of software window (2014)

In the project the problems of improvement of a system of production planning (tactical and operational) in many respects defining business performance of the enterprise were solved.

Planning meeting on production (2013)

Production planning is based at several levels, depending on the industry and specifics of the specific enterprise:

• sales and operations planning - the enlarged medium-term (tactical) production planning, purchases and external cooperation on the basis of forecasts and agreements for the main groups of products and financial performance. Horizon 1-2 years.
• the main production planning - development of the nomenclature release schedule of finished goods on production sites, planning of supply of materials and component parts. The horizon from several weeks to 1 year
• intershop planning - calculation of the nomenclature production schedule for sections (synchronization of work of sections) - tracking of the delivery schedule of materials and component parts. The horizon from several weeks to several months.
• scheduling - intra shop planning, distribution of works orders by resources (to the equipment and workers) with optimization by flexible criteria (for example, minimization of time of readjustment, ensuring uniform loading of the equipment).

The second stage

On November 13, 2015 the Frontstep company informed on how solving of tasks on supply and management of production warehouses accelerated rapid response in the conditions of competitive market, reduced labor input and excluded emergence of wrong data in business processes of the enterprise using the ERP system:

• purchase planning is executed automatically on the basis of the production plan of the enterprise, purchasing requests of materials and component parts for providing a production cycle form.

• operational management of purchases helps to perform deliveries in the conditions of the changing production schedules.

• high-quality inventory management on the principles of "transparent accounting" helped to optimize and reduce the level of warehouse stocks of the enterprise that released the "frozen" current assets.

• for a complete set of production uninterrupted providing production sites with materials is organized, failures to meet time constraints of delivery of component parts and accomplishment of contractual commitments by dates of shipment of products to customers are excluded.

"Plant of the oil and gas equipment "TEXHOBEK" (2013)

The management of department of logistics received the instrument of operating control and the analysis of a purchasing system of the enterprise on the basis of reliable data, monitoring of minimum safety stocks of materials and optimization of the current warehouse stocks is conducted that released a part of current assets, reduced credit load of the enterprise.

Management of sales processes of the Plant of the oil and gas equipment of "TEXHOBEK" by job order production – the labor-consuming activity requiring systemacity of carrying out routine transactions and reduction of losses of working time. An important factor of prosperity of the enterprise - the speed of formation, design and transfer of the order in production that finally affects completion date of requests of clients - competitive advantage of the company in the industry.

Reduction of time of passing of the order on a chain from acceptance and calculation of the price before structure formation of a product for production planning and purchases became requirements to process optimization of sale of the enterprise.

Are included in a circuit of automation:

• order taking,
• configuring of a product,
• calculation of cost,
• formation of the offer (price) for the client,
• transfer to production,
• receipt of products from production,
• control of a finished goods warehouse,
• management of shipments.

Document flow and control of settlement is automated (including integration with 1C), a work progress by projects is planned and controlled.

Dynamics of optimization of activity in use such is that the management of the Tekhnovek plant predicts indicators after 12 months of work:

• level of warehouse stocks of the enterprise will decrease by 35% due to exact calculation of requirements of production,
• the production complete set thanks to existence of safety warehouse stocks and uninterrupted providing with materials under the order will be provided to 100%,
• the term of formation of the offer (price) for configurable products for the client will be reduced by 6-7 times due to automation of process of configuring of a product and formation of cost in the automatic mode on the basis of reference books,
• failures to meet time constraints of accomplishment of contractual commitments by dates of shipment of products will be excluded,
• cost value of products on average will decrease by 10-12% due to cost reduction for personnel (labor inputs) and uses of exact details in business processes of the enterprise.

These systems Infor Syteline and the information systems used at the enterprise (MS Excel, PDM- a system Pilot 1C) are united in a single system of operational accounting and planning on the basis of the general reference books, dictionaries and mechanisms of integration. Seamless integration of separate information systems allowed to save investments into already existing IT infrastructure the Plant and to optimize costs for its development.

Sergey Orlov, head of department of ASUP Plant of the Oil and Gas Equipment TEKHNOVEK LLC: "We are unambiguously happy with the made choice in advantage as contractor on an implementation project of a system (FRONTSTEP CIS), and the ERP solution. The arguments adduced by experts for benefit of Infor Syteline concerning other systems of a similar class both on a functional covering, and at ownership cost, are completely justified. The full-scale project is not completed yet, continuation – automation of other guidance loops is necessary, but the indicators of our activity received for today allow us to recommend FRONTSTEP CIS as competent avtomatizator of industrial enterprises, and Syteline as an optimal solution for management of production company. We expect further effective cooperation of our commands in development of IT infrastructure of NGO Plant TEKHNOVEK LLC and also in increase in competitive advantages of production due to implementation of advanced technologies".

2016

Project Results

On July 14, 2016 the company Infor announced results of implementation by the company FRONTSTEP CIS ERP- systems Infor SyteLine at the plant of the oil and gas equipment TEKHNOVEK.

As a result of operation of a system, calculations show decrease in level of warehouse stocks by 35%, reduction by 6-7 times of terms of formation of offers for clients due to automation of process of configuring of products, cost value of separate positions of products decreased by 10-12% due to cost reduction.

Entered a circuit of automation:

• order taking,
• configuring of a product,
• calculation of cost,
• formation of the offer for the client,
• transfer to production,
• receipt of products from production,
• control of a finished goods warehouse,
• purchase management and shipments.

Document flow and control of settlement is automated, a work progress by projects is planned and controlled.

Tekhnovek NGO plant, (2013)

As a result reaction speed in the conditions of competitive market increased, the labor input of production decreased and availability of objective data in business processes of the enterprise is provided. All these factors allowed to release a part of current assets, having reduced thereby credit load of the enterprise.

The full-scale project is not completed yet, but growth of our business indicators already allows to call Infor SyteLine an optimal solution for management of production company and also to recommend FRONTSTEP CIS as competent avtomatizator of industrial enterprises. We expect further effective cooperation of our commands in development of IT infrastructure and also in increase in competitive advantages of production due to implementation of advanced technologies. Sergey Orlov, head of department of ASUP NGO Plant TEKHNOVEK LLC

Implementation of the ERP system of Infor SyteLine laid the foundation for full automation of all guidance loops by the enterprise and formations of a single system of operational accounting and planning with full control over all resources and production capacities of the plant. The full-scale project is not completed yet, now we continue to develop actively the customer's IT infrastructure that increases the level of production efficiency and product competitiveness in the market. Vladimir Mussin, CEO FRONTSTEP CIS

Using Infor SyteLine ERP system production companies control all workflows and material chains, understand and improve the production capabilities and also quickly react to requests of clients, remaining competitive in constantly changing market. Dmitry Martynov, official representative of Infor in Russia and CIS