AHK "Sukhoi" centralized key business processes based on Oracle E-Business Suite 12

Background of the project

AHK "Sukhoi" is the largest aircraft holding in Russia which develops and makes the civil and military SU airplanes, providing a full stroke of works in aircraft industry. During reorganization and consolidation of branches within the uniform legal person the company consolidated carrying out a contract work and purchase of component parts and also some other business processes. In March, 2015 the project on their implementation in the Information management system by the Sukhoi aviation holding company (IZA AJC) based on a complex of Oracle applications of E-Business Suite 12 was initiated. The program purpose IZA AJC - ensuring accomplishment of the production plan of the company using information support of end-to-end processes of management of contract activities, purchases and stocks, quality.

AKH "Sukhoi" centralized key business processes based on Oracle E-Business Suite 12

"We had a reorganization of the company - consolidation in uniform legal entity. Even before consolidation began and still process of centralization, optimization, unification of the business processes connected with enterprise management, including providing the enterprise with resources, planning of productive activity continues. In some cases there were gaps, nonagreements in processes, problems with access to up-to-date information. Most the question was particularly acute, perhaps, regarding logistics of productive activity, and these are transactions which directly influence accomplishment of the production plan. Showed requirements analysis of the corporate center and branches that it is possible to implement them in full only by creation of the unified information system", - Anastasia Schastlivtseva, the program manager comments on IZA AJC of Sukhoi.

Development of necessary tools and procedures of interaction of the divisions participating in purchasing activity, including ensuring contract work and quality control became one of the main directions. In the way three key systems - a management system for purchases (ISUZ), a contract management system (ISUD) of the and quality management system (QMS) were planned to implementation. Everything together they should become the tool which will provide a common information space - from formation of requirement to quality evaluation of purchases and will help with the organization of interaction of the corporate center and branches. These three systems (and projects of their implementation) and also the project of migration of a management system of Sukhoi Design Bureau were developed in uniform architecture and were integrated within the program - IZA AJC.

"Such consolidation was more than is justified. When we started works, processes of purchases, contract activities were once again convinced of it, quality evaluations so smoothly overflow each other that it was often difficult to draw a clear boundary and to tell that here we have one system, and here another", - Anastasia Schastlivtseva notes. The project provides not only implementation of IT functionality, but also reengineering of processes, creation of internal regulating documents to go to new management model.

On July 29, 2015 the Sukhoi company summed up the request for quotations results on rendering technical support services of software of Oracle^[1].

Services of support of the solutions Oracle Project Contracts, Oracle Database, Hyperion Planning Plus, Data Integrator Enterprise Edition, Oracle WebLogic Suite, Oracle SOA Suite for Oracle Middleware, Primavera P6 Enterprise Project Portfolio Management, etc. were required for the customer. The initial cost of the agreement was $710.75 thousand.

Applications for request for quotations were submitted by the companies RDTECH and "Borlas". Based on consideration of requests by the winner of purchase Borlas Group was recognized. The total cost of the agreement was $703.6 thousand.

Project Progress

Based on the held competition the Borlas consulting group was involved in program execution IZA AKJ.

"They do at us not the first project and well know our information systems which are in operation. For the solution of so major problem in the company "Sukhoi" very solid project team was brought together. Without exaggeration, several hundred people enters into the working groups. These are representatives of structural divisions which should work directly in a system, - employees of branches of the corporate center and also the staff of IT services", - Anastasia Schastlivtseva tells.

New information systems are unrolled based on the advanced version of the Oracle E-Business Suite 12.2 system which provides uniform IT architecture of solutions.

"As the platform for implementation selected Oracle E-Business Suite as in Sukhoi company there is a wide experience both project implementations on this platform, and further support; there is also well trained support command – applied administrators and developers", - note in the company.

Project of migration of ISU experimental design bureau

Migration with used in Sukhoi Design Bureau (branch of the Dry holding) of the information management system on the new version of Oracle E-Business Suite became one of important stages. Amount of works was done considerable: it was necessary to transfer not only standard functionality, but all expansions and completions, all reports which were made in a system for years of operation. Transition to the new version was performed on New Year's holidays of 2016. The matter is that its implementation requires disconnection of end users from a system for several days. Besides, it is always better to begin use of the systems connected with finance since the beginning of reporting year. During the project not only transfer of functionality on a new technology platform was performed, but also tuning of a core of a system was performed new corporate systems harmoniously joined architecture. It was especially important as implementation IZA AJC assumes distribution of Oracle E-Business Suite on new platforms – the corporate center of holding and also "The Novosibirsk aircraft factory to them N.P. Chkalova" and "Komsomolsk-on-Amur aircraft factory to them Yu.A. Gagarina" regarding functionality of contract management, quality control of products, purchase management.

Contract management system

The new information management system agreements (IMSA) was started also in January, 2016. It provides maintaining agreements for the corporate center and all branches with all necessary bindings and links. Support of complete lifecycle of the agreement, including formation of procurement documentation, information support of biddings, work with lots, approval of contractual documentation in electronic form is implemented. A system is integrated with the local accounting systems and also with a treasurer system regarding transfer of agreements, payment schedules, primary documents of performance of agreements (accounts, acts, etc.). It is constructed based on the solution Borlas Web Contracts and has advanced functionality and the improved interface in comparison with the solution used earlier.

Management system for purchases

During process of reorganization and consolidation by the management of holding the decision on need of creation of the centralized control system of purchases was made. A system which is capable to help with ensuring accurate accomplishment of the production plan, cost optimization on purchased components and materials due to consolidation of purchases. A system uses uniform qualifiers and reference books. It is integrated with the accounting systems of branches that allows to perform automatic collecting, processing and consolidation of purchasing requests, control of completion dates of requests during the purchasing company. For ensuring operational reproduction planning of branches integration with their production systems is implemented. Normalization of reference books as before start of the program the moment each branch, including the corporate center, used the reference book that considerably complicated tasks of consolidation of information on a status of material resources became a separate important task. Therefore methodical documents were developed for transition to the uniform reference book. The project of normalization of the reference book is carried out in two steps: the first stage - normalization of the positions of the reference book belonging to the category "Purchased" and the second stage - normalization of the reference book "Products" in full.

Quality management system

Creation of the information management system quality of the purchased component parts at all stages of lifecycle - from incoming inspection before production of airplanes, their tests and operation became other important direction of works. At the first stage of control automation the quality carries out the accounting of data on quality of the materials and component parts arriving from suppliers.

The cost accounting on the satisfaction of damage statements and quality control of self-produced units should become the next step on increase in quality control. For accounting of quality of the purchased materials and components arriving on warehouses of branches integration with the systems of an inventory control is provided.

The first results of the project

By the end of summer of 2016 the project IZA AJC is at high readiness. Projects of migration of ISU experimental design bureau are executed, the contract management system is brought into commercial operation. In trial operation there are quality management systems and purchase managements. It is important to note that the circuit of the project includes all structures of holding: corporate center, Sukhoi Design Bureau "Komsomolsk-on-Amur aircraft factory", "Novosibirsk aircraft factory".

Within the program integration and interaction interfaces with the existing information systems of branches will be implemented. Completely the holding is going to pass to work in the unified information system of management up to the end in 2016. The created systems should become the tool which will help to provide high reliability and transparency of information on the purchased products at all stages, from formation of requirement to quality evaluation and also to help with the organization of interaction of divisions and branches within large production holding.