Tulamashzavod, JSC (Tula)

• Complete description of implementation of the ERP system "COMPASS" in JSC Tulamashzavod

Software Selection

JSC Tulamashzavod  — the first of the domestic enterprises which began implementation of ERP (at first it was SAP R2 system afterwards replaced with SAP R3). However, and after about 10 years of work with a SAP software it was not succeeded with its help to automate many necessary functions. Therefore if, for example, registration of personnel was kept in system R3, then payroll was made using several programs developed by specialists of IT department of the enterprise.

Such situation ceased to satisfy plant's management, and in 2005 the decision on replacement of the operating software by a domestic ERP system was made. As a result in the middle of 2005 the provisional agreement according to which the Kompas company granted to the customer the right to free use of licenses for all subsystems no more than from 5 computers at the same time for a period of half a year was signed. And only after IT specialists of the customer were independently convinced of completeness of functionality and quality of the ERP system Kompas and also that she will allow to solve all relevant problems of business process automation, the agreement on full automation was signed.

General Description of the Project

Implementation began in  December, 2005. At the end of  January, 2006 the subsystem Personnel management using which HR records and payroll were performed was put in trial operation. For check and reinsurance the customer within three months carried out parallel payrolls by means of an old product and software Compass for all 4000 employees.

Completely the first stage of the project which provided automation of all accounting functions was executed for only 8 calendar months, including the summer pause made at the request of the customer. High rates were caused, among other things, by the fact that the customer made the decision on failure from transfer in the ERP system "COMPASS" of a set of small, usual visual solutions and printed forms for users from the operated earlier software products. Same provided also compliance to the initial project budget as no program completions of the ERP system for the solution of specific tasks of the customer were required. Many specific problems were solved and solved by forces of IT specialists of the plant by means of the powerful instrument of visual setup of Master Kompas.

Upon completion of the first stage the following functionality, ispolzovashiysya by the principle of simultaneous access of any modules from 55 jobs was put into operation (total number of the automated jobs is not limited):

• accounting;
• communication with  the systems "the client — bank";
• inventory and material control;
• accounting of fixed assets;
• accounting of special assets;
• registration of personnel;
• payroll;
• execution of orders;
• salary accrual on cash cards;
• delivery of individual data in PF and FTS in electronic form.

This, necessary for functioning of all subsystems, arrive directly from places of emergence (workshops, departments, warehouses  , etc.) and are brought once.

In parallel with accomplishment of the first stage terms of reference on implementation of a subsystem Cost management and the module "the COMPASS were made: Budgeting". These tasks are included in the second stage of project implementation.

At present forces of staff of Tulamashzavod in Compass configure 90 % of algorithms of formation of articles of budgeting. Test calculations are carried out.

By 2010 the number of licenses is increased up to 72.

Some Specific Features of the Project

• It is the first widely known project during which implementation replacement of the implemented import software product which is the world leader among ERP systems, SAP R3 on a domestic ERP system was made.
• As a result of a large number of the checking accounts of the plant concentrated in different banks setup of communication with 6  systems "the client — bank" was made.
• Before ERP system implementation "COMPASS" of control function by personnel were distributed between the diverse software (registration of personnel  — SAP R3, payroll  — several self-produced programs functioning including, and on a mainframe). Therefore complex import of data to a subsystem "the COMPASS was carried out: Personnel management" from diverse software products.
• The new kind of a dress on execution of works corresponding to historical traditions of the plant and using multiple-factor payroll distribution between workers was configured. The principles of distribution depend on such initial data as a kind of the performed work, the cipher and the cost account, category of personnel, etc. For implementation of a difficult algorithm different codes of charges were delivered to all works in the reference book in compliance.
• At payroll more than 150 codes of charges and deduction are used.
• Within 3 months parallel payroll in the "COMPASS" and software products used earlier was carried out.
• In the course of implementation of a subsystem "COMPASS: Purchase management, stocks and sales" in parallel with accounting by nomenclature number organized accounting on the qualifier of materials accepted at the plant.
• In the course of implementation of a subsystem "COMPASS: Purchase management, stocks and sales" reorganized business processes of material accounting in workshops. If earlier all materials which are transferred to workshop were right there written off in production, then now they are transferred to virtual "shop storerooms" from where are written off in production in full accordance with real life. Thus, it was succeeded to achieve accurate accounting of unused balances of materials.
• The high detailing of the cost accounting implemented in a subsystem "the COMPASS is characteristic of the plant: Cost management".
• In the course of implementation of a subsystem "COMPASS: Asset management" "COMPASS" was imported to a DB about 100,000 inventory cards of fixed assets.