RusHydro integrated 20 branches in a uniform ERP system based on 1C

RusHydro is the largest Russian generation company and the second in the world among the hydrogeneration companies on installed capacity. A core activity of the company is electricity generation based on renewable sources: water flows, sea inflows, wind and geothermal power. The RusHydro company is created on December 26, 2004 within implementation of the state program on reforming of power industry according to the Order of Government of the Russian Federation No. 1254-r of 9/1/2003. At the time of creation and before registration of a new trade name of RusHydro (7/4/2008) a full trade name of the Company was the Federal Hydrogeneration Company Open joint stock company. The company is subsidiary of RAO UES of Russia.

In January, 2008 within reorganization of RusHydro 20 branches from which "The corporate university of hydropower" performs educational activity were attached to the company, and 19 branches  are engaged in electricity production.

With respect thereto there was a question of the organization of corporate accounting and financial and economic management of holding. It was required to create the uniform ERP system allowing to obtain information necessary for acceptance of management decisions both at the level of separate structural divisions, and at the level of the company in general.

The information system had to provide support of uniform standards and the principles of corporate accounting and a reporting preparation; reduce formation terms, increase quality of training and reliability of the reporting; provide parallel formation of data  of accounting and tax accounting. Besides, it was required to perform automatic cost accounting; support uniform standards of corporate planning; create corporate plans and budgets; exercise budget performance monitoring.

On the basis of the analysis of the existing ERP solutions the company management came to a conclusion that the ready information system meeting the created requirements in the market does not exist.  Adaptabilities and also supports of national standards of conducting accounting and tax accounting, the solution "1C: Manufacturing Enterprise Management 8" was the most attractive software product in terms of price-quality ratio, flexibility.  The 1C: Automation company [1] (file) in which asset successfully implemented projects of automation of OGK-2 and OGK-6 was attracted to implementation of the selected ERP system.    

From December, 2006 to December, 2007 on the basis of standard functionality  of the ERP system within customer requirements two large functional units "Corporate accounting and the reporting" and "Support of planning processes" according to standards of the customer were developed, pilot implementation of the developed system on five objects of RusHydro is carried out. In the course of pilot implementation additional requirements to a system are defined, procedures of implementation are fulfilled, the risk list, possible is defined at replication of a system. Based on pilot implementation the decision that the functionality of a system in general meets qualifying standards was made, however its expansion is required.

At the beginning of 2008 in connection with reorganization of the company and accession of 20 branches the decision to replicate a system on all newly created branches for the purpose of consolidation them in a common information space was made.  Works on replication of the ERP system were continued from January, 2008 to December, 2008. Expansion of functionality of a system based on pilot implementation and also taking into account changes in the business processes which were taking place during completion of reorganization procedures was carried out to the same period.

For the purpose of the effective organization of support system of users the Uniform Competence Center located in the territory of one of branches of customer company  – Sayano-Shushenskaya HPP was created.

Treats significant project deliverables: process optimization of planning and approval of budgets; planning and accounting on all assets and liabilities; unification and automation of all main accounting procedures; formation of the transparent and authentic consolidated statements. Besides, time for accomplishment of procedural procedures for closing of reporting period in accounting and tax accounting was significantly reduced.

ERP system covered 21 automation objects. 15 training courses in work with a subsystem "Accounting and tax accounting" and 17 training courses in work with a subsystem "Support of planning processes" are developed for economists. In an information system 250,000 economic transactions a month are executed. More than 1300 jobs are automated.