GAZ, management company

Volga Siber assembly

The GAZ Group (ERP system implementation project) is the largest Russian producer of commercial motor transport and the construction and road equipment. JSC GAZ, 15 automobile building enterprises in Russia, the British autocompany LDV, sales and service structures are a part of GAZ Group.

Solution and Contractor Selection

In 2006 the GAZ Group redeemed from Chrysler of the right to the JR 41 platform and the equipment of the Detroit plant Sterling Heights Automotive Plant releasing the Chrysler Sebring car. These acquisitions formed the basis of new production of cars under the name of Volga Siber developed in Nizhny Novgorod. For production organization where Volga Siber assembly should be performed, tough terms and requirements were from the very beginning set. Among them high level of automation and existence of a modern information system. Implementation of an information system went in parallel with preparation of a production line and was strictly tied to terms of the beginning of production. The IT project failure in this case threatened with production start failure.

For solving of tasks of the JR project by 41 directorates of IT of GAZ Groups management company the working group where in addition to the staff of GAZ Group, the representatives of the Austrian Magna Steyr, the strategic partner of carmaker who acted in the project as business consultants entered was created. In the spring of 2007 the concept of creation of the IT system with the description of functional requirements was developed and the choice of the ERP solution is made. As participants note, the project became one of rare examples when the customer precisely knew what he wants, and accurately formulated the requirements that considerably facilitated work of IT specialists.

In an analysis result of requirements as an information system for the JR 41 project the solution Infor ERP LN used by many world carmakers because of well worked functionality connected with autoassembly production process was selected. Implementation was performed on the methodology developed by Infor company, using phases of iterative and consecutive modeling and with success applied many years. The reference model of Infor company created for the enterprises of automotive industry was the basis for development of project model.

With the choice of a system the project included specialists of Infor company who rendered consulting services in an implementation methodology and also took part in development of project model. Many significant completions of the Infor ERP LN system executed by specialists of developer during the project will be included in the new standard version of a system which release is planned for the end of the year. The GMCS company which was earlier already cooperating with the enterprises of group and therefore well familiar with specifics of automobile production as such and with business of GAZ Group became the Russian consultant for GAZ Group. According to the partnership agreement with Infor the GMCS company executed localization of the Infor ERP LN system according to requirements of the legislation of the Russian Federation that allows to use the solution for maintaining tax and accounting.

Project Progress

The key purpose of this business project of auto maker – start of a new production line on serial assembly of cars under the name of Volga Siber conforming to the international standards of the industry. Therefore the reference model of Infor company developed especially for the enterprises of automotive industry and successfully implemented in a number of the leading carmakers of the world was the basis for the information management system.

According to priority of business challenges the implementation project was separated into several phases. Within the first stage begun in July, 2007 problems of maintaining the difficult specification of products, production data and data on work with numerous foreign suppliers with which the plant cooperates directly were solved. Two subsequent phases included process automation of purchase management and planning and also management of a full stroke of production. Specifics of the implemented solution was control automation by assembly that provided a possibility of planning and operational reflection of pipeline production. The fact of inclusion in a circuit of a system of processes of management of assembly testifies to the high level of the organization of business processes of the new plant.

Difficulties of the project

Implementation of a full-scale management system along with start and the organization of new production was the main complexity of this project.

For the fast solution of assigned tasks the project team developed model of workers and role processes, powers were also defined and role instructions are developed for each employee. The essential role was played that the Infor ERP LN system already includes the model for the enterprises of automotive industry created on the basis of experience of many implementations. Each business process of this reference model or was accepted at the enterprise without changes, or was exposed to completion.

Compliance to terms and plan of the budget

Creation of the information management system was executed less than in 12 months.

Effect from Implementation

At the moment the management system of the new plant on release of cars under the name of Volga Siber is brought into commercial operation.

Developments of Infor and GMCS allowed to create a system prototype which can be used for automation of any GAZ Group enterprise if such need arises.

Sources

GAZ Group: ERP for new Volga

Information "suspender" of automobile production