Interview of TAdviser with the director of information technology and communications Uraltransmash Konstantin Tatarenkov

Konstantin Tatarenkov: JSC Uraltransmash (Yekaterinburg) — the enterprise of transport mechanical engineering with almost 200-year history — one of the oldest in the Urals and in the Russian Federation. Now is a part of the Ural Carriage-Building Plant scientific and production corporation (SPC). In 2006 when I was appointed the director of the Center of information technologies, the management set the task of transition from an obsolete ACS of the enterprise to the system meeting the modern economic requirements for more flexible management by efficiency of all plant.

Konstantin Tatarenkov: Considered solutions of Parus, 1C, SAP. On the basis of the prepared analytical reports we came to a conclusion that the functionality of the Galaktika ERP system corresponds, for example, to opportunities which are offered by SAP. At the same time total cost of ownership of the solution of Galaktika corporation was 10 times more profitable to us. Besides, for us as representative of a segment of a MIC, the choice for benefit of the Russian solution having all necessary certificates and admissions was more preferable with other things being equal. Also important factor was presence at us in Yekaterinburg of a team of experienced qualified specialists from Galaktika Ural Ltd company - the Ural regional department of Galaktika corporation.

Konstantin Tatarenkov: We were faced by tasks of automation of all key business processes of the enterprise. Implementation of the ERP system happened step by step, with input of each new module we closed the corresponding module in an old system.

If to speak about stages, then in 2006-2007 we automated warehouse logistics and settlings with partners, in 2008-2009 — accounting of personnel and payroll, from 2011 to 2013 we completed the works on automation of the income and expenditure budget, the budget of cash flow at the enterprise. And even in parallel with these works automation of accounting and tax accounting — from 2007 to 2010 was executed.

From outside can seem that project deadlines are tightened, but considering those difficulties which we had to face also enterprise scales and also the achieved results, it is possible to say that the task is carried out in the optimal mode.

Konstantin Tatarenkov: It is appropriate to remember the expression of the Nobel laureate Pyotr Kapitsa: "The word "implementation" in Russian means that promotion happens at environment resistance forward".

The main difficulties were connected even not with technical issues. Parallel to us it was necessary to resolve a set of other organizational issues. In particular, we had to participate in building of logic of accounting processes, a part from which was conducted manually.

Also there were difficulties connected with ideas of users of work. Of course, they always want "to leave everything as it is" — so more usual and more conveniently. Often we tried to meet requirements of them. But in a number of the directions when carrying out inspection and formation of technical specifications, we saw that the functionality of a system in an invariable type will help us to optimize also process of work in practice. And we were forced to insist on change of usual processes by all.

Konstantin Tatarenkov: When we only started the project, we had no sharp need for integration of the Galaktika ERP system with other systems, however for a transient period we, jointly with specialists of the Ural regional department of Galaktika corporation yet, developed solutions with integration elements for systematic substitution of an old system. Other aspect of integration consists that as the solution for production management we use a specialized system Galaktika AMM (Advanced Manufacturing Management is management of production processes). Of course, all solutions of Galaktika corporation are integrated among themselves. In turn, a system Galaktika AMM is integrated with the system of design-technology preparation, important for our enterprise. There was a requirement of integration of ERP still later with an electronic document management system which is used in plant operation. In 2010 we needed to integrate about the ERP system of electronic control of admission on the enterprise. On the basis of data from this system the sheet forms and there is a time recording of povremenshchik.

I can tell that today the Galaktika ERP system is a core of our information system. And we build all other areas of work taking into account further integration with it.

Konstantin Tatarenkov: Up to the end it is never possible to implement a good system. Why? Because a good system has opportunities for permanent development according to requirements of the enterprise. Between a good system and users some kind of symbiosis when there is a wish to make even better, even more, more qualitatively, more interestingly is established over time.

If any specific digits are necessary, then I can tell that the output in commercial operation of each single module lasts approximately from six to nine months. We began to work with Galaktika corporation in 2006. And since then solved many problems jointly, at the same time we reside in the process optimization mode as it is caused by external calls. And a system allows us quickly to answer these calls.

Konstantin Tatarenkov: Completions, of course, were carried out. Take at least need for providing specific, for us, report forms. But nevertheless not always of the reasonable requests of users I consider some completions, too deep customization of the solution and accomplishment inexpedient. The more we arrange a system under specifics of the enterprise, the it is more difficult to update it further. And still such position is connected with the fact that the standard functionality of a system allows to consider the best industry practices due to a centralized system of development of solutions in Galaktika corporation. The best practices are replicated and become then available to all users.

Konstantin Tatarenkov: I will begin with the fact that our plant is famous for employees who work within very many years. They had certain concerns connected with need to get used to work in a new automated system. It is possible even to tell that it frightened them and caused some resistance. For overcoming it, at a delivery stage in commercial operation of each separate block, specialists of Galaktika corporation provided system user training. Over time it became noticeable that employees not just got used, and opened for themselves new opportunities and confirmed that work became more effective.

Now the internal system of order taking which quickly solves the most part of the arising problems works for us. The most difficult questions we have an opportunity to ask in the uniform center of technical support of Galaktika corporation.

Konstantin Tatarenkov: In total more than 70 services and departments are connected to work in the ERP system. In the Galaktika ERP system about 375 active users work today. And 183 more — in a system Galaktika AMM.

Konstantin Tatarenkov: Today using the Galaktika ERP system all key business processes of the enterprise are covered: accounting and tax accounting, logistics, cost value formation, settlings with partners, budgeting, accounting of personnel.

We made significant progress using a system in a question of formation of debit accounts payable. Earlier, in the used ACS system of the enterprise, it formed with delay to three months. Today data on settlings with partners form automatically in a foreground mode. Also the time recording is with higher quality kept. Especially relevant it for calculation of povremenshchik.

We received significant simplification of taxation using the Galaktika ERP system. Due to operational work with tax authorities we manage to release in the form of VAT refund up to 7 million rubles of current assets a month, and, respectively, not less than 70 million rubles — in a year.

Konstantin Tatarenkov: In the future we are going to develop functionality of a system regarding management of production assets of the enterprise and transport and also carrying out scheduled repairs. For us it will open new opportunities for more effective production planning connected taking into account resources and possible idle times.

We have a created pool of expectations and wishes from users on development of a system. They estimated a system, accepted and are ready to work in it, to solve difficult production tasks.

Also we plan further development of the module "Executive information system" - the Galaktika of BI systems which allow to see data in different cuts, to carry out their analysis and to represent results of this analysis in a convenient graphic form.