Sibaviastroy optimized an organization structure with implementation "1C: Managements of the construction organization"

December 09, 2015. The Katran-PSK company reported^[1] about end of system implementation "1C: Management of the construction organization" in the production and construction enterprise "Sibaviastroy". A system helped to optimize an organization structure of the company and to coordinate work of all production, construction and administrative divisions for achievement of the common strategic objectives.

JSC Sibaviastroy, 2015

Goals and Objectives

In particular, because of weak coordination between production workshops and construction sections it was difficult to plan providing construction objects with products and services of own divisions. Planning of construction and production works was executed separately, without requirements and plans of other divisions. Information on change or adjustment of plans was led up to interested persons not quickly that periodically led to failures to meet time constraints of delivery of products and materials on construction sections. Shortcomings of the organization of work of separate divisions affected efficiency of activity and reputation of all enterprise in general.

At the same time, there was no single system of management and accounting in which all divisions would work. For the cost accounting several solutions with different structure of the normative reference information were used that complicated comparison and data analysis. Information for preparation of the management reporting had to be collected from separate sources, reporting dragged on, data lost relevance.

The management of the enterprise had no effective tools for management of cost value of construction objects and costs of production divisions. There was no opportunity to quickly analyze profitability of separate activities and business in general.

Thus, the information system which would allow to coordinate work of construction, production and administrative divisions was necessary for the enterprise, to optimize production costs, to adjust uninterrupted providing building sites with required materials and services of own divisions, to take cost value of construction projects under control.

Choosing a Solution

After the research of the market of different corporate information systems of an ERP class the management of Sibaviastroy stopped the choice on the solution "1C: Management of the construction organization". The Katran-PSK company having experience of automation of production construction companies in Siberian Federal District became the partner in implementation.

Project Progress

The project was executed on project technology, lasted 11 months and was complete in planned dates and within the planned budget. At the moment in a system more than 100 employees of the enterprise work.

According to the results of the project the organization structure of the Sibaviastroy enterprise was optimized: new positions are selected, old are abolished, internal regulations are processed. On a response of the customer, it helped to coordinate activity of production, construction and administrative divisions of the enterprise. As a result, work of separate divisions and the company in general was optimized.

Planning process of productive and construction activity is consolidated now and considers resource requirements of all divisions: construction complex, plant of concrete goods, plant of building constructions, road-building complex. The system of approval of internal orders which allowed all concerned parties to process quickly requests for current demands of other divisions in products or transport services is developed and regulated. As a result it was succeeded to exclude almost completely cases of "nedovoz" of concrete on construction objects, having reduced their quantity by 10 times, installation and construction works are always performed just in time now, specified in 1C.

The department of supply, in turn, had an opportunity to quickly calculate the optimal amount of delivery and also to request more beneficial prices from suppliers. As a result, by the customer's estimates, purchase costs and material handling both for construction sections, and for production workshops are reduced by 8-10%.

The system of operational planning and management of finance is organized. Time for approval of requests for a funds expenditure is reduced from six to two days. Initiators of payments can trace independently in real time stages of approval of the requests and carrying out payments on them now. Besides, a system helps to control the set limits of budget items for fixed costs that allowed to solve completely a problem of "cash gaps".

At the same time, the structure of the normative reference information is unified and optimized. It allowed to implement uniform methodology of the cost accounting for all enterprise in general. Data of management accounting became more complete and are more authentic. Time for search and information analysis was reduced. For example, if earlier economists spent for formation of marginal reports several days, then now it takes several seconds, noted in the company. Now in the online mode reliable and detailed information about a financial status of the company is available to the management.

Owners and company management, in turn, had an opportunity to quickly control and analyze work both the enterprises in general, and separate divisions. On the basis of these data it was succeeded to build a control and management system for costs of the enterprise, to reveal and reduce unprofitable activities that finally, on a response of the customer, led to increase in profitability of construction objects by 3-5%.

"Result of implementation 'of 1C: Management of the construction organization' became creation of a system which in the online mode displays all information volume — from an analytical request to the complete analysis of cost value in necessary cuts: on construction objects, developer projects and also product lines. It helped us to organize more rational management of cost value — Olga Makarova, the chief economist of Sibaviastroy summed up the project results. — So, for example, automation of the block of motor transport solved a problem of an excessive consumption of fuel and lubricants, adjusted fuel consumption rates therefore cost value of services was reduced by 10-15%. Besides, the functionality of a system allowed us to use the transfer prices for sales of products and services between the CFD within one legal entity and also to automate the marginal analysis in a foreground mode. It helped not only to understand and calculate planned and actual cost of construction objects, but also to estimate profitability of the separate directions of business. Opportunities '1C: Managements of the construction organization' help us to optimize work of the enterprise constantly. Now we improve the block of financial planning — we implement the payment schedule and we plan budgeting system implementation".

Notes