Victor Kucheryavykh: Effectively it is impossible to manage production without product data management on Arsenal

TAdviser: It is known that this stage of automation of Arsenal began not with ERP, and from a PDM system, i.e. problems of optimization of production processes have a bigger priority, than problems of optimization of work of managers. This is true?

Victor Kucheryavykh: The matter is that there are no "net managers" at the plant, in fact. A core activity of Arsenal – design and production to order complex knowledge-intensive machine-building products. As a rule, design of the products (and development of the corresponding design documentation) released by the enterprise is executed specialized by CB. Engineering services of Arsenal study the design documentation (DD), develop manufacturing techniques, release DD at the expense of technology equipment (service station), necessary in production according to technology. Service stations are made on Arsenal. Managers manage production of products and service station. PDM – the tool for product data management (products, service station). Effectively it is impossible to manage production without product data management on Arsenal.

TAdviser: What tasks were mentioned as ERP systems, priority by preparation of an implementation project, and why?

Victor Kucheryavykh: For us it was important to provide process automation of personnel management, payroll calculation, fixed asset accounting, management of TORO (there was local an automated workplace in department of the chief mechanical engineer, but it required serious upgrade), accounting (it was necessary to provide transition from the used earlier accounting system "YEW"), intershop accounting. As a matter of fact, it also made the volume of the first stage of the project (with a transition condition from a "accounting" warehouse to traffic control of Inventories at the level "Warehouse — Workshop", "Division — the Consumer"). Such tasks were set by us as account at the enterprise was kept in separate, a part obsolete applications that led to problems with reliability and timeliness of processing of information, necessary for decision making, also, actually, was the factor constraining development of Arsenal. Certainly, only the ERP system could provide the modern level of the solution of the problems of automation described above.

TAdviser: What software products of the class ERP – foreign and domestic – were considered by the enterprise at the initial stage of the choice of a system? Whether it is possible to disclose "dynamics" of selection of systems: what were discarded at the first stage what – on the subsequent?

Victor Kucheryavykh: We considered practically all main foreign and domestic solutions: SAP ERP (three reference visits), Oracle e-Business Suite, BAAN (now Infor ERP LN), SyteLine (now Infor ERP SL), IFS Applications, Axapta (now MS Dynamics AX), MFG/PRO (now QAD 2007), J.D. Edwards OneWorld, LS Lipro, etc. From domestic - Parus, Galaktika, Global ERP (Business of Technology). There were offers on project implementation for "1C: Manufacturing Enterprise Management 8.0".

The beginning of the ERP project was defined by two pacing factors: readiness of PDM and terms of leaving from the TIS system. By this time it was decided to stop the choice on the domestic solution. There were Parus and Galaktika. The final choice (the chief accountant, the chief economist, the chief of penal correction system, the management of the enterprise) was made for benefit of Galaktika.

TAdviser: What approach to the choice of the enterprise was? First of all the supplier company was selected, the software product or the choice was combined? What arguments for benefit of the approach implemented by Arsenal?

Victor Kucheryavykh: At the same time software product and supplier company. I analyzed projects in the different industries and dynamics of development of the product. We first of all needed the tool for implementation of accounting functions and the description of a production system as sets of planned and accounting points (CHEAT) and registration of events in real time.

TAdviser: Whether there is at the enterprise a project management system which would serve as a link between a PDM system and the implemented modules ERP systems or interface of planning processes is performed somehow differently?

Victor Kucheryavykh: In the PDM SmarTeam system there is an integration module with MS Project. We try to implement in methodology "project process" two types of processes: design-technology preparation of production (under control of PDM); and actually production of a product. With components of the first part everything is clear and tunings of functionality are performed. We suggest to consider production of specific serial number of a product (or its some stage) as the project too. "Galaktika" is not integrated with MS Project. As option, there is an opportunity to use a product of the third developer, partner of Galaktika within a new solution Galaktika of software. Such solution not really suits us, we will look for a compromise.

TAdviser: Whether implementation of functionality of production management according to the MRPII standard and as far as this methodology is applicable to operating conditions of the plant is planned? Perhaps, here the alternative methodology, for example, of kanban would approach more? Or, perhaps, at the plant some own unique methodological base is developed for production planning and cost optimization on it?

Victor Kucheryavykh: The hybrid of MRPII and the pushings through system at working off of perturbations acts on the enterprise in "manual" option. The "perturbations" which arose in a production process in a production system, sometimes with their working off in PDM with carrying out changes in construction and (or) in technology and without working off within "The tasks operating design and technology documentation via mechanisms by request" are considered. Also "perturbations" on the basis of changes in construction and (or) technology for notifications are processed. The optimal solution to us seems in distribution of functionality by working off of "perturbations" between a PDM system and Galaktika.

TAdviser: What will be the next stage of mastering of the Enterprise resource planning functions at the enterprise and what expectations connected with it?

Victor Kucheryavykh: On the next stage of implementation of the ERP system we will pass to "production planning". Transition will be made step by step according to the traditional scheme MRP with an exit to nomenclature and volume scheduling.

Also operational planning (solving of tasks of "schedule") by different techniques for productions will be organized: procurement, machining (with the diagram of completing of SE and passing of all of PLUT) and assembly.

It is effective it is possible to organize these processes only on condition of integration (not just export import, and joint work) the PDM and ERP systems.

TAdviser: Whether it is possible to speak about some specific results of the first stage of the ERP project today? What problems managed to be solved what solution is expected in the nearest future? About what payback period it is possible to speak based on the performed works?

Victor Kucheryavykh: It is possible to speak about results and they are noticeable, however I would prefer to speak about them after implementation of an accounting part of the movement Inventories in production. The payback period strongly depends on a method of calculation of cost efficiency therefore it is difficult to define it. Especially as the project is not completed yet. Now it is possible to tell with confidence that though "to an absolute recovery" it is far, the status of the enterprise begins to improve and return to normal. Whether medicine is effective? In my opinion – yes.