Power Machines refused from Compass and completely passed to SAP

The Power Machines engineering company finished SAP ERP system implementation fully. The implementation project of solutions SAP started in July, 2009 and was in October, 2012 fully completed. The division of SAP Consulting acted as the general contractor; the companies became subcontractors T-Systems and Capgemini.

Failure from Compass and the choice of the platform

As told TAdviser in the press service of the company, before creation of a uniform corporate information system automation of Power Machines was local. In particular, in 2002-2005 a number of SAP R/3 implementation projects which are not integrated among themselves at three plants of Power Machines in St. Petersburg –Leningrad Metal Plant,Electric power and Turbine Blades Plant was performed.

It is interesting also that Power Machines as a HRM system to the last used a system "the Compass: Personnel management", and in total in it worked about 400 users. However as uniform the ERP company considered SAP products and Oracle. "The software of SAP company was selected because of the broad functionality", - reported TAdviser in the company.

As for failure from Komps, in Power Machines explained it with the fact that in SAP there is a HR module and also that rather closed and nonflexible system which did not allow to develop seriously it and quickly to support Compass further".

According to a source of TAdviser in the market, close to this project, initially plans of Power Machines consisted in working at interface of Compass and SAP. According to a source, the reason for refusal of Komps lies not in the technology plane.

According to him, when choosing a single platform the management of Power Machines could be guided, in particular, by reasons about bigger comfort of operation of one system. "However, costs for localization of HRM SAP can be very considerable at such scenario", he believes. Besides, also that circumstance that use of ERP from the international brand can provide to the enterprise large capitalization could play a role.

Project Progress

The project was separated into four stages. Restructuring and business process optimization according to experience of the largest enterprises of the world market of mechanical engineering became one of the first tasks within the project. As a result of restructuring business processes, accounting and budgeting were unified. It covered most structural divisions and all main business processes: sale, logistics, purchases, finance, investment management, personnel.

At the moment a system supports the following functions: management of purchasing requests, purchase orders, customer relations, service activity, management of warehouses, accounting and tax accounting and reporting, management accounting, financial modeling, budgeting, management of financial flows, personnel, maintaining normative reference information.

Development Plans

By the end of 2012 implementation of functionality of production planning will be complete. Further, it is going to unroll control functions product lifecycle (SAP of PLM), the investment managements, repairs and maintenance of the equipment.

Project Result

According to Alexander Yankovsky, the CIO allowed to pass Power Machines, the project from company management, territorial to the functional principle, to reduce costs and to increase company performance in general. "Special importance, the implemented system, has for managers and financiers as allows to obtain quickly the necessary information for acceptance of management decisions", - he commented.

Financial component

For October, 2012 in a system about 1.5 thousand employees work. The project budget does not reveal.

2014: Three years wait for the promised SAP

The implementation project of SAP starting in June, 2009 in JSC Power Machines is still not complete though the deadline for elimination of notes expired on December 30, 2013 the Customer expects from the contractor – SAP CIS LLC – a deadline for delivery, involving the third companies^[1] in accomplishment of a part of the project^[2].

The reporter of ComNews knew of it from the source close to Power Machines holding. The press service of Power Machines confirmed ComNews "existence of difficulties when implementing the project of SAP". The implementation project of an enterprise management system of SAP in Power Machines started in July, 2009, having become one of the largest in Russia on a functional scope. The SAP affiliated enterprise in Russia – SAP CIS LLC undertook system implementation.

The project manager "Implementing solutions SAPS in Power Machines from SAP CIS LLC Imre Brenzovich reported to the factory factory newspaper Power Machines in August, 2009: "In total we will change work on 16 processes and several hundred subprocesses". At the same time numerous modules of SAP were supposed to be implemented in parallel, but it is not consecutive as it usually occurs.

In January, 2011 a system was put into trial operation, and in May of the same year – in industrial. However, according to the source ComNews, a system started not in full: a considerable part of functions of a system was not ready. According to ComNews, in November, 2013 the meeting of heads of Power Machines and SAP CIS on which the parties reached the agreement on complete elimination of all revealed defects and notes on the project till December 30, 2013 took place. However and this term was broken.

Under the initial contract, SAP CIS was responsible not only for implementation, but also for further consultations on support of a system. However due to the lack of a constructive position from SAP CIS Power Machines decided to replace the supplier in this part. At the end of 2013 tender on consulting services in support of a system of SAP took place, and from eight candidates Technoserv Consulting LLC was recognized the winner that the press service of Power Machines confirms.

The head of the press service of SAP CIS Marina Panchenko told the reporter of ComNews that in last SAP and Power Machines generated many positive PR-occasions. She commented on the current situation so: "SAP implements projects on Power Machines in accordance with the terms of contracts. The joint project team from Power Machines and SAP works and has the plan for the solution of all open questions".

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