1C-Rarus implemented "1C:ERP" at "Gaysky non-ferrous metals processing works"

2020: Implementation of 1C:ERP

On March 24, 2020 the 1C-Rarus company announced implementation of 1C:ERP at "Gaysky non-ferrous metals processing works". 200 jobs are automated, a part of business processes is designed from scratch, and a system is adapted for industry specifics of metallurgical production. As a result of implementation the profit of the enterprise grew by 12.6%, labor costs were reduced, and labor productivity of personnel grew by 17%.

According to the company, at the enterprise the boiler expense accounting in the ERP system of the previous generation which is already removed from sale "1C: Manufacturing Enterprise Management" was used. In a system detailed accounting of production operations, business processes of acceptance and processing of scrap, melting and rolling production, acceptance tests was not implemented. Specialized programs of accounting of release of rolling and melting production were applied to compensation of this shortcoming. However there was no integration of solutions as among themselves, and with a 1C system. Also the automated system of scheduling of production was not implemented.

The management of holding made the decision on transition to the current version of the ERP system from 1C — 1C: ERP Enterprise Management 2. For project implementation own IT command was selected, and AKRON HOLDING asked for the help in office "1C-Rarus" in Chelyabinsk.

Before the project the following purposes were defined:

• Ensure control and safety of inventory stocks, finished goods.
• Create methodology of management of melting and rolling production for scaling on all profile enterprises of holding.
• Determine cost of production and balance of metal, to reduce unproductive losses.
• Provide accomplishment of accounting standards (RAS, IFRS) for providing information in management company, work with external financial institutions, banks, partners.
• Optimize labor costs and automate jobs of production workers.
• Reduce a set-up time of the reporting and develop automatic traffic light indicators.

The joint project team of the customer and the contractor carried out work on process automation of the plant and adaptation of 1C:ERP to industry specifics. Actually project teams of the contractor and the customer had to project some business processes "from scratch", to prove their economic feasibility and to protect the updated model of an IT landscape of the enterprise before owners of business.

The project team created methodology which saves the most standard functionality of 1C:ERP and considers features of melting and rolling production. The calculation of "Balance of metal" key is from scratch developed for control of losses at the metallurgical enterprise – defects, drainings, a scrap, etc. Strict control of regulations of losses on production raises economic safety of the enterprise.

The processes put in an information system for non-ferrous metals processing works are suitable for future implementation and unification at the enterprises of holding for processing of ferrous metals, production of normal and corrosion-proof metal rolling.

Key project deliverables:

• Accounting items and controlled transactions from registration of the customer order before implementation of finished goods are defined. There was an opportunity to manage detailing of the resources required for production. As a result for 22% order processing accelerated.
• The system of financial and production reports is optimized, the duplicating and not used reports were deleted.
• Jobs of the employees providing control of the movement of raw materials from receipt before delivery of finished goods are automated. The automated workplace of the Founder, an automated workplace of the Operator of work center, an automated workplace of execution of operations are implemented. Automated workplaces allow:
  • to Create replaceable tasks for semi-continued production of ingots.
  • to Reflect loading of burdening material in the furnace.
  • to Monitor accomplishment of production operations.
  • to Control the movement of procurement on production phases.
  • to Identify the order on series.
  • to Manage process of laboratory analyses, to create dresses on tests.

Thanks to innovations labor productivity in production grew by 17%.

• Control of formation of turnover, returnable, commodity waste and irretrievable losses is provided that allowed to reduce the volume of material stocks by 15%.
• Cost accounting on direct costs is provided.
• The system of control and managerial reports is designed and implemented, notifications about above-standard deviations at each production phase are configured.
• The analysis "on control points" in quantitative and/or weight expression of existence of Inventories in warehouses, the materials transferred to production, produced by production of semi-finished products, returnable, turnover waste and irretrievable losses is provided. It allows to manage effectively a raw materials remaining balance in a WIP, using them for production of orders. The result is achieved for the account:
  • Uses of an automatic subsystem of weighing for collection of data on the weight of raw materials, procurement, a finished product.
  • Identifications of products barcoding and assignment of passports of a product.

Automation of the major business processes and reduction of routine transactions allowed the enterprise to increase profit by 12.6%.