In Evrotsement group the cost accounting system of investment projects is implemented

2016: In JSC EVROTSEMENT Group the cost accounting system of investment projects is implemented

In JSC EVROTSEMENT Group the cost accounting system of investment projects based on software "PARUS" within the complex project "Investment management" is implemented.

As a result of the complex project the holding received the uniform management tool investment activities which integrates work of all participants of process – management of capital construction, accounting, treasury, divisions of logistics both at the central office, and at the cement enterprises "EVROTSEMENT Group".

Within the project in software "PARUS" processes of registration of planned costs (budgets) and formation of actual costs on uniform corporate methodology are automated, operational management of agreements and payments is implemented, control of deliveries of material resources is implemented. The efficiency of interaction with technical service regarding work planning (volumes and terms) and receiving the fact "from the platform" is provided with the mechanism of integration of software "PARUS" with the system of scheduling and network planning based on software Oracle Primavera. Using the implemented software product monitoring and the analysis of actual costs, their deviations from planned targets is also performed.

The cost accounting system of investment projects created based on software "PARUS" allowed to reduce labor input of formation of project budgets and collecting of their actual cost on the basis of primary documents, to increase transparency, efficiency and reliability of data acquisition and also to detail information on project costs to it is necessary level with an opportunity to quickly reveal zones of rises in price and to define the reasons of their emergence.

Dmitry Kaplan, the Head of Department of project integration and information technologies of JSC EVROTSEMENT Group tells: "Works began with diagnostics of a current status of the investment management on projects of capital construction and upgrade of the cement enterprises. We defined what measures need to be taken for optimization of this process, and created the road map of implementation of changes in holding regarding transformation of the investment management. After that the technique of investment planning, execution, accounting and control of projects, formations of the management reporting which allowed to define requirements to the relevant automated decisions was developed. On the next stage regulations were prepared and the basic control functions by scheduling and network diagrams directed to optimization of terms, amounts of works and the attracted resources are automated. At the final stage problems of a regulation and automation of process of execution of investment projects of upgrade within which new features of software "PARUS" regarding registration of plans and tracking of the facts of accomplishment of budgets of investment projects were implemented were solved".

2004-2013

10 enterprises of holding already use a system in the mode of productive operation. The remained 3 cement works ("Savinsky cement works", "The Pikalyovo cement", Podgorensky cement) at which projects started at the end of 2006, it is going to complete in the first quarter 2007. The project is performed by the Pba Consult company [1] (file) specializing in large projects of implementation of Parus.

The project began in 2004 with automation of Lipetsktsement. At that time the holding included 5 Russian cement works, but already by the end of 2005 their number increased to 13. Besides, the holding owns other assets on production of construction materials in Russia and abroad. Now 15 cement works from which two are located in Ukraine, four cement elevators, 25 sales branches, the enterprises for production of concrete, asphalt concrete, mineral powder, the motor transportation company are a part of holding.

The project objective announced standardization of business management processes in holding which meant creation of the uniform corporate chart of accounts and unity of use of other normative reference information, existence of corporate accounting principles. During automation of the first plants of the company the general standards of operational accounting and management were developed, the project solution for "standard cement works" is created and described.

To provide controllability of activity of the expanded holding, it was decided to keep account of business processes of all production facilities in the single database of management company. Thereby all processes and transactions happening at any plant of group regardless of the place of its arrangement, become transparent for management of holding and available to the operational and authentic analysis. From an automation position the plants turn into remote divisions of the company, remaining at the same time legally independent enterprises.

The problem of the first stage of the project included automation of a circuit of financial management as a part of accounting and tax accounting, controlling, calculation of product cost, calculation of financial results and a financial analysis and also a guidance loop transactions, including contract activities, purchases of material resources, storage, production and shipments of finished goods.

After development and the approval of terms of reference, implementation of an information system and development of corporate standards of management of the enterprises of holding happened almost in parallel. It reduced temporary costs of the project, but also and created additional risks. The special complexity was represented by implementation of uniform corporate standards at the plants with already developed own principles of management and accounting policy. Automation of the new plants extended the project on time, but did not make a delay of project finish critical as the enterprises "joined" already existing uniform information field of holding due to use of the standard solution.

Initially at the cement works entering into holding (Lipetsktsement, Maltsovsky portlandtsement, Katavsky cement, "Savinsky cement works", Nevyansky tsementnik) it was supposed to create about 400 automated jobs. By the end of 2005, because of expansion of holding due to new acquisitions (plants "Mikhaylovtsement", "Kavkaztsement", "Belgorod Cement", "Oskoltsement", "Pikalyovo Cement", "Podgorensky Cement", "Ulyanovsktsement", "Zhigulyovsk Building Materials") the project scope was estimated in 1000 and more automated workplaces.

Nevertheless, according to the statement of Artem Pastushkov, the commercial director of Pba Consult, the payback period of a system will make only two-three years.

The second stage of the project of automation of holding, according to plans of the company, will be characterized by deepening in process automation of a production circuit and corporate management, including maintenance and repairs of the equipment, control of motor transport and property, multilevel budget management, the centralized treasurer function.

It is supposed also that the IT system will mention also personnel management processes therefore will be standardized and HR records and payroll are on a centralized basis automated. At this stage integration of a system into solutions of other software makers, for implementation of missing functionality of the basic IT platform "Parus Enterprise 8" is possible.

The created information system has huge margin of safety and, on expert evaluations, is capable to service without any damage to high-speed performance on a centralized basis to 4000 jobs.

As  Sergey Royko reported TAdviser,  the marketing manager of the Center of corporate solutions of Parus company, this project is one of the largest implementations of this information system, along with projects in TNK-BP and Tatneft companies. After end of the second queue of the project it, perhaps, will become record for Parus by the number of end users and a geographically-distributed structure of divisions.