Pulkovo of PSK (1C: Enterprise 8.0)

The industrial and construction corporation "Pulkovo" finished implementation of the first stage of the automated control system for holding and the enterprises which are its part. An ERP system of corporation is based on the platform of the software product "1C: Management of Construction Organization 8.1". The chief financial officer of PSK "Pulkovo" Vladimir Gomenyuk tells about experience of system implementation.

Overall objective of implementation of the ERP system – creation of corporate network automated information system of management of production holding and the legal entities who are its part in the mode of "real time".

Starting system development, we expected to solve the following strategic problems:

• increase in effective management of business;

• increase in transparency of all business processes;

• providing managers of all levels with information for adoption of the timely solutions guaranteeing optimal permanent placement of resources for the purpose of the maximum generation of profit and to cost reduction;

• ensuring ordered control over financial, accounting, production processes;

• risk management quality improvement;

• successful capital management.

The need for a modern ERP system was caused by certain circumstances. In 2003 — 2007 in Industrial and construction corporation "Pulkovo" there was a rapid growth of amounts of works and production. Rapid business development required to improve qualitatively coordination of actions of all services of corporation responsible for customer acquisition, finished product output, technological support of production from a project development stage before delivery of the performed works and also finished goods to customers. Management of the corporation headed by the honored builder of Russia Valery Klimov came to a conclusion that in the nearest future it is necessary to resolve an issue of obtaining qualitative operational information for acceptance of any management decisions. And information on all production stages, business process optimizations and developments of effective financial policy.

For studying of the ERP systems offered in the market in corporation the working group into which the chief financial officer, chief accountants of the enterprises, heads of IT-department and some other services entered was organized.

On a preliminary stage the commission got acquainted with a number of ERP systems. Then the report including characteristic of each system by the following parameters was submitted:

• consulting structure of a system;

• development and existence of the additional applications reflecting specifics of business;

• existence of partnership with other firms and dealer network;

• expected cost of a system;

• implementation time.

On the basis of the analysis including the above criteria and also short-term and long-term perspectives of development of corporation, price relation and qualities of implementation, members of the commission gave preference to automated information system "1C: Enterprise. Management of the construction organization. Version 8.1" (further "AIS 1.C. 8.1).

Before the tender for system implementation the financial service of corporation developed the enlarged technical specifications with sections:

1. Project Objective.

2. Requirement to the information accounting system.

3. The planned stages of execution of the project.

4. Organization of implementation of an information system.

5. The analysis of an initial situation, premises and initial data for implementation of an information system.

6. The planned terms and phases of implementation of an information system.

7. Software of the project and beginning of work.

8. The enlarged list of actions for implementation of an information system at the enterprise.

9. Project cost (implementations).

10. Results.

The planned project implementation stages:

The I stage

1. Accounting, tax, management accounting.

2. Management of construction production. Estimate pricing.

Iietap (it is specified according to the results of the I stage).

1. Management and planning of productions – the main production, auxiliary production, sale. Formation of production plans and reports on production, rendering services.

2. Control of transport.

3. Inventory management and purchases.

4. Sales management – scheduling of sales, execution control, accounting of orders and shipments.

The III stage (it is specified according to the results of Ii II of stages)

1. Personnel management and payroll. 2. Management of finance. 3. Budgeting. 4. Cost management. 5. Management of the relations with buyers and customers.

The planned terms and phases of implementation ERP system:

1 phase – the organization of the tender for implementation and submission of preliminary applications by applicants. Term: November - December, 2006.

2 phase - studying of proposals of applicants by the commission, selection of applicants which offers most fully meet the requirements of tender conditions. Term: January-February, 2007.

3 phase - representation by applicants of the specified technical specifications, draft agreements, terms, stages and other documents connected with implementation. Term: March-April, 2007.

4 phase - determination of final outputs of the tender. Term: May, 2007.

5 phase - preparatory work, input of initial data and the beginning of operation of "AIS 1.C. 8.0". Term: June-November, 2007, the beginning of work – on December 1, 2007.

6 phase - works on optimization of an information system and the project, term – 3-6 months later began works in "AIS 1.C. 8.0".

Implementation stages:

1. When choosing model of data structure on the platform "AIS 1. With 8.1" the working group considered the possibility of use of the network version with technology the client-server ("1C: Enterprise for 8.1"). The main difference of the network version from client-server consists that the last has potential to work both with normal information bases of a system, and with information bases in which tables of the database are placed on the specialized server. For the rest the complete functional identity to systems remains.

This, at first sight, not really essential difference between the network and client-server version of 1C in the future can be basic.

2. Organization of the tender for implementation of the project. The working commission sent offers to the certified companies for participation in the project on implementation "by AIS 1. With 8.1". The beginning of the project it was widely announced in the regional press and the Internet. Tender conditions and the enlarged technical specifications are directed to all applicants to system implementation. Submission due date of offers applicants from the moment of announcement of the tender made 3 months.

3. Studying by members of the working commission of the materials provided by applicants, determination preliminary group of winners of 3 firms, which are most answering to tender conditions. Term: 1 month.

4. Work with group of preliminary winners of the tender, discussion of the project with applicants, amendments of the provided offers. Term: 1 month.

5. After detailed acquaintance the winner of the tender – SoftBalance Group was defined.

6. The order of the CEO of corporation organizes the working group on system implementation. From PSK "Pulkovo" the chief financial officer is appointed responsible for implementation.

7. Beginning of work on terms of the contract, refining of terms and stages of implementation:

• final functional requirements of a system and the engineering design are defined;
• the detailed plan of system implementation is developed;
• the main business processes and procedures which are subject to automation are defined;
• the project model of financial and economic activity of the enterprise within solvable tasks is created;
• differences between specifics of a function model of the enterprise and the standard version of a system are defined, the list of necessary completions of functionality is created;
• the detail schedule of implementation and terms of training of employees in the territory of corporation is defined.

8. By preparation of the specified engineering design to PSK "Pulkovo" we carried out the following work:

• the chart of accounts is optimized;
• the general reference books of analytical data are organized;
• account policy under RAS in relation to "AIS 1 is developed. With 8.1";
• the model and accounts of management accounting is specified;
• the accounting methodology, including formation of the financial and managerial chart of accounts, reference books of income types and expenses, development of forms of the reporting, the principles of reflection of data in different types of accounting and a transformation order in relation to "AIS 1 is developed. With 8.1";

Besides, the system of the organization of access rights for different business functions was developed.

9. Input of a system was going to be performed since December 1, 2007, the actual data transfer and a remaining balance as of December 1 was outlined for December 15-20. At the same time recognized what began December – the successful period as the term of delivery of the annual report till March 30, 2008. Also it was going to carry out qualitatively preparatory work, and only month to work in parallel in two systems because of big loading of personnel and large volume of information.

In the course of preparatory work it was necessary to correct system implementation term – to postpone from December 1, 2007 for January 1, 2008.

Within November-December, 2007 all necessary preparatory work within the 5th phase was carried out, and the corporation was completely prepared for transition to a new technology platform. Within accomplishment of the 5th phase the actual transfer of a remaining balance, balance and other data as of December 31 was performed from January 20 to February 15, 2008. The maximum number of transactions was made in the old systems.