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Project

Esab (Galaktika ERP)

Customers: ESAB-SVEL

St. Petersburg; Power

Product: Galaktika ERP

Project date: 2009/03  - 2009/09

Content

In 2000 The ESAB Group opened in Russia two affiliated enterprises — zavod "ESABSVEL" on production of welding electrodes in St. Petersburg and the ESAB trading company with head office in Moscow, branch in St. Petersburg and regional representative offices in Yekaterinburg, Kiev, Alma-Ata and Minsk. Soon after creation of the ESAB trading company in it Erpsistema of the Russian production Galaktika using which performed control function and financial control was implemented.

However quickly upcoming business required more and more accurate control therefore there was a question of implementation of uniform Erpsistemy in all divisions of ESAB concern. Change of the owner of The ESAB Group and relocation of head office from Sweden to London became some kind of catalyst in this question. The new management of group made the decision on implementation worldwide of the Scandinavian Erpsistemy "Muveks" which had to become the corporate standard.

The postponed start

During an implementation project of "Muveks" at the Russian office it was going to automate such business processes as management of finance, logistics and customer service, salary and personnel management. It was necessary to provide possibilities of accounting both on western, and according to the Russian standards, formations of necessary financial statements which will be compatible to the standards developed at head office ESAB.

After long discussions the management of concern accepted and documentary recorded the following scheme of reporting. Daily sales informations, to orders, stock balance from branches come to the central database at head office; there reports on the western standards (IFRS) which then in real time should be transferred to the central server of the London office form and be consolidated.

In Russia the manager from the London office was appointed responsible for maintaining the project. However making the decision to implement "Muveks", lost sight of very essential part: the current version of a system did not support Cyrillics. This problem forced heads of concern to postpone implementation in the Russian representative office until the Russian-language version of a system appears.

Way out

But business needed to be done and it was necessary to find a way out of a situation. The solution based on "Muveks" assumed that the operations performed in subsystems "trade", "logistics", "warehouse" and "customer service" will be considered in a financial subsystem in the western chart of accounts accepted in ESAB concern as the corporate standard. Primary financial system was given the name "IFRS". And then the reporting made according to the western standard it was offered to transform to the Russian standard in a system which is called "RAS". "The scheme is peculiar — Vladimir Gvozdev, the chief financial officer of 'ESAB' govorit. — v similar cases the Russian representative offices, as a rule, keep initial account in kakoylibo to the Russian system, and then from it the reporting under the western standards turns out, necessary adjustments and other transactions are made".

The head office of the Russian representative office offered other option: for a while before development of Russian-language Muveksa version to replace a system with "1C: Enterprise", having left the scheme of consolidation of the reporting. So at first in the 1C: Enterprise system to receive the consolidated statements according to the western standard admitted to ESAB and then to transform it to the Russian standard. And further, after emergence of modifed Muveks to replace with it primary financial subsystem of "IFRS", having left as the secondary (slave) system "1C: Enterprise" (module "RAS") for formation of the Russian reporting. Originally such scheme was apprehended ambiguously both by the partner in implementation, and the customer — a rukovodstvo of ESAB company. On an utryasaniye of disagreements about two months left, but eventually went on such way.

"It was difficult to convince of expediency of such architecture ESAB headquarters, but the main objective of the management of the Russian office consisted in that later a forced delay as soon as possible to replace an outdated system and to bring new into commercial operation — Vladimir Gvozdev poyasnit. — v result not all decisions made in the project were correct for hundred percent, but this way was only acceptable for ESABA".

In a situation of limited financing

System implementation passed "1C: Enterprise" during 2007. According to Vladimir Gvozdev, the management aimed not to allow the project to expand. The modules "order management", "warehouse" and "finance" were implemented. But temporarily refrained from implementation of the module "purchases" as in it is mute then not was special need. Also the modules "budgeting" and "financial planning" — no it in the closest plans of the company are not implemented. "While there is large-scale system implementation of Muveks, it is necessary to select from a situation of limited financing first of all for the project the most priority directions of automation and to plan more accurately" — Vladimir Gvozdev otmetit.

Originally before delivery of a system in commercial operation within December 2007go it was supposed to work in parallel in a new system and in Galaktika. But then refused this intention, having decided to focus on a stage of trial operation on testing of a new solution. And it was correct: it was succeeded to reveal and eliminate all "bottlenecks" of the solution, to save forces and resources.

In January, 2008 commercial operation of a system began, and for the first four months many errors were found and corrected. Besides, from January to April the additional functionality was implemented. New requirements on expansion of functionality were created as during trial operation and because during project implementation three from four of his curators — the kommerchesky director, the director of service of logistics and the IT manager were replaced. All this could not but lead to change of a project framework. Nevertheless it was succeeded to expand functionality rather without serious consequences. At the same time the role, important for success of implementation, was played by united and responsible work of the accountant officers involved in the project, financial and IT department.

Financial module

We already noted that formation of financial statements of the Russian representative office is solved atypically. Information on transactions in real time gets to financial system module "1C: Enterprise". In it based on the western standards the daily reporting under a number of indicators (sales, orders, stock balance, receivables) is under construction and it is transferred to headquarters servers. Thus, the management of concern obtains information on a status of financial accounts of the Russian representative office timely.

To receive the reporting under the Russian standards, in the automated solution of representation the mechanism of postings is organized: data are transferred from western accounts to the similar Russian. The mechanism which is keeping track of compliance of transmitted data and also the reference book where it is described what of them are subject to transfer is developed. There is also the return mechanism of viewing primary documents from the western accounting entries in the module of the Russian accounting. In other words, the accountant working with the module of the Russian accounting can look with clicking of one button at the documents interesting him in the module of the western accounting.

To minimize risks at information transfer, in the 1C: Enterprise system the mechanism of reconciliation of data is implemented. It creates daily reports for accountant officers and finance division using which they quickly find discrepancies in documents. That it was less errors, the most part of data is selected and brought to a system automatically from the list. For the others there are two types of control: the preventive, excluding possibility of introduction to the system of wrong data, and search of inadmissible situations — a proverka of data on correctness and completeness.

By the way, the mechanism of control of data appeared in the spring of this year as completion of the solution though it was stated prior to the beginning of the project. But it was required to analyze result therefore the mechanism was developed later.

"It is impossible to tell that the financial accounting built thus is very convenient, at least an izza of need to work with two different databases — Vladimir Gvozdev rezyumirut. — the peredacha of data on postings requires special control from the accountant. Besides not all personnel of accounting are well familiar with the western accounting system. As result in the Russian representative office the staff of finance division is increased. The project was given hardly, nevertheless we in this system work nearly a year, improvements are already visible and there is desire to increase functionality". Works on accumulation of functionality of the solution are now conducted. Besides, implementation of a similar system in recently opened affiliated trade enterprise in Ukraine is planned.