How twice to accelerate accomplishment of production orders using "1C:ERP". Experience Volgaburmash

2017: Implementing solution "1C: ERP Enterprise Management 2"

The Samara branch "1C-Rarus" in November, 2017 announced end of system implementation "1C: ERP Enterprise Management 2" at two plants of the Volgaburmash company specializing in production of tools for oil, mining and building industry. The new ERP system unrolled in 400 workplaces helped to improve product output planning, to optimize purchase management and to provide timely deliveries of 10,000 names of materials and component parts. Approval of agreements and permissions to production start accelerated. Orders are transferred to work much quicker, operating control behind their accomplishment is organized. Terms of accomplishment of orders are cut almost by half - from 10-16 up to 8 weeks. Orders for production are executed just in time that raises customer confidence to the company.

About the Customer

Products Volgaburmash - boring chisels - are used in more than 40 countries of the world

Orders are required to be executed within 10 weeks

Volgaburmash is the largest Russian producer of the modern rock cutting tool for oil, mining and building industry. From the date of the basis the enterprise produced more than 20 million boring chisels which are used on the main fields and pits of Russia and more than in 40 countries of the world. In structure of the company two plants – Volgaburmash and Uralburmash.

Prerequisites

Monthly the enterprise receives about 100 orders and produces about 1000 finished products for which production 10 thousand names of component parts and materials are used. For timely accomplishment of orders it is necessary to plan rationally utilization of capacity, to quickly buy and supply parts in workshops, to quickly approve and transfer requests for production to production.

Earlier production planning at the enterprise was not automated. Transfer of the order in production required the written order of the management, approval of requests was often delayed, from the moment of obtaining the order before its transfer to work several days could leave. It was difficult to control production. An inventory control was kept manually, orders for component parts and materials were fixed on paper. The same goods could be by mistake reserved by two different managers for accomplishment of different orders because of what accomplishment of one of orders was postponed. All this slowed down work of the enterprises and dragged out a production process of finished goods. The management delivered a deadline on working off of each order — 10 weeks, but at manual purchase planning and productions accomplishment of one order, on average, took from 10 to 16 weeks, as a result by 90% of orders terms of production dragged on.

Project Tasks

The information system which would allow to organize management of each stage of accomplishment of orders — from purchase of component parts before finished product output became necessary for the enterprise. It was required to provide accurate accounting of materials in a warehouse, to increase efficiency of purchases, to accelerate transfer of orders in production, to optimize work planning of production divisions.

For the solution of assigned tasks a system "was selected 1C:ERP Enterprise management 2". The Samara office of the company "became the partner in implementation 1C-Rarus".

Key project deliverables

• Production planning is automated. Using a new system employees make routing by each order, plan in what what workshop the master will perform work, monitor that the order was delivered precisely in the necessary workshop. It helped to provide accurate and rhythmical production management of products, control over the implementation of orders is strengthened.
• When obtaining the order for production of products each workshop makes out the request for required materials which directly arrives to managers of department of the logistics (L) in a system now. The staff of MTS conducts requests from workshops quickly consolidate in 1C:ERP the commodity calendar in which it is possible to obtain exact data on the current remaining balance at any moment, reserve goods, and if necessary - distribute orders on suppliers, selecting the best prices. It helps to predict more precisely receipt of component parts and start of production.
• Individual accounting of each material is organized. Now it is possible to obtain quickly information on a remaining balance of any component part, without spending time for requests in warehouses of workshops. Control of material issue in production is strengthened. The inappropriate material consumption is almost excluded.
• The enterprise refused use of the central warehouses, now materials from suppliers on the requests issued in a system arrive on specialized shop warehouses at once. It simplified a logistics chain and reduced time and labor costs by repeated material transfers in the enterprise.
• Seamless integration of "1C:ERP" with the 1C: Document Flow system helped to accelerate approval of orders, agreements, requests for payment and other documents - as internal (between the plants), and with external partners and clients. Written orders of heads are cancelled, approval of start of production is transferred to an electronic form that considerably accelerated transfer of orders for accomplishment.
• In a system reports on employee performance taking into account such indicators as the number of the fulfilled orders, terms of their implementation quickly form. In reports all production process of a product, from adoption of the customer order before finished product output from workshop is visually visible. It is possible to estimate at what stage which of employees did not execute KPI. As a result the efficiency and quality of work of personnel increased.

All this considerably increased effective management of production: terms of accomplishment of orders are cut almost by half - from 10-16 up to 8 weeks.

The implemented system integrated management of the enterprise of two plants, during the project 400 jobs are automated.

Optimization of production processes logically overflowed in process of their automation. With the help 1C-Rarus we passed the first large stage of system implementation which already gives effect. allowed us to solve "1C:ERP", perhaps, one of the most burning issues is a timely execution of orders. I would estimate a share of timely executed orders at 95% (against 50% earlier). At the same time the term of accomplishment of orders managed to be reduced from 10-16 to 8 weeks. It became possible thanks to transition to a single system of management and accounting for the Volgaburmash and Uralburmash plants, to flexible management by warehouse stocks, to strict control of indicators of a business activity — Marat Matevosyan, the CEO of Volgaburmash noted.

2016: Automation of accounting based on 1C:Enterprise 8

In June, 2016 1C:Enterprise 8 became known of project finish of automation of accounting based on ". ERP Enterprise management 2" in JSC Volgaburmash.

JSC Volgaburmash (2016)

Project Progress

In the project progress works are performed:

• Consultations on the choice of the software and options of its maintenance
• Sale of the selected software products
• Delivery of software products in office of the customer
• Software installation on the customer's computers
• Individual training at office of the customer

Project Results

Are automated:

• Purchases (supply) and vendor relationship management
• Settlement with suppliers
• Order placement to suppliers
• Purchase planning
• Vendor relationship management
• Accounting of arrival of Inventories
• Formation of the payment schedule to suppliers
• Different industry specifics
• Production, services
• Production volume scheduling
• Material requirement planning
• Calculation of normative cost value
• Calculation of actual cost
• Data management about structure and structure of a product, a compounding
• The cost accounting on production
• Sales management, logistics and transport (SFM WMS TMS)
• Sales (sale), service, marketing
• Settlement with buyers
• Wholesale
• Order placement of buyers
• Sales planning
• Calculation of normative cost value of orders
• Sales accounting of Inventories
• Formation of the diagram of receipt of payments
• Pricing, price lists
• Warehouse and logistics
• Complete set and disassembling of Inventories
• Reservation of Inventories
• Management of warehouse stocks
• Finance, management accounting, monitoring of indicators
• Data analysis and forecasting
• Cash management (treasury)
• Accounting is accounting, tax, budget, including the regulated reporting
• Accounting
• Bank and cash desk
• End of the period
• Intangible assets
• Fixed assets
• Production operations
• Payroll calculation and personnel records
• Settlings with partners
• The regulated reporting
• Inventory items
• Trade operations
• Tax accounting
• Financial analysis

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