As Chelyabinsk Zinc Plant implemented HRM

: Oleg, we would like to talk about successful experience of your enterprise in control automation by personnel. However, as far as I know, it is only a part of the big ERP project which lasted in your company several years. Tell, please, when it started, its essence and a brief summary?

Oleg Baydin: System modules of the ERP system of Epicor iScala since 1999 consistently were implemented on Chelyabinsk Zinc Plant that was defined, first of all, by an IT budget framework. First of all the following processes were automated: management of finance, logistics, sale, fixed assets. A common information space, including warehouses, the producing and non-productive departments of the plant was created. Further problems of financial accounting of IFRS and automation of control of budget implementation were solved, personnel management modules, payroll, the investment managements are implemented.

TAdviser: At what stage did need of automation of work of HR service arise? What do features of personnel management on such large industrial enterprise as CZP consist in?

Oleg Baydin: Before implementation of iScala at our enterprise worked with "self-written" programs of accounting of personnel and payroll. Problems which faced at their operation are typical for "scrappy" automation and are described in many publications. Experience of fight against these problems also led to the decision on implementation of an end-to-end system.

Specific features of personnel management on CZP are caused by a metallurgical profile of production. In metallurgy there are special working conditions connected with the pension legislation. The software setup under these requirements made one of tasks at implementation.

TAdviser: Did you have no doubts that for automation of HR it is necessary to select the solution Epicor? In the Russian market there is a stereotype what it is better to carry out automation of accounting and personnel records based on the domestic systems allegedly more precisely reflecting the Russian specifics?

Oleg Baydin: In spite of the fact that at us several modules iScala were already implemented, we considered the module iScala HRM along with other solutions, including domestic. Thorough work on the analysis of their opportunities was done. As a result selected iScala HRM. Of course, the fact that it is system module which partially was already implemented at us mattered, but not decisive.

The fact that we selected iScala HRM, is, actually, the answer to a question of a stereotype. Also it should be noted flexibility of the software of Epicor which allows the staff of IT service to change algorithms, forms of calculations and reports under the Russian requirements which are not differing in constancy. The built-in customizers allowed us to adapt without assistance to descending and progressive scales of taxes, to pass from sotsotchisleniye to UST and vice versa.

TAdviser: As for HRM solution modules of Epicor what functionality you used, it is rather extensive? What functions of department finally were automated during the project? Whether it was necessary to finish or finish the solution, proceeding from features of business processes of your company?

Oleg Baydin: Were completely automated: personnel records, staff list; the cost budget on the salary; time keeping; payroll. The automated jobs of time keeping are directly in structural divisions – workshops. Tens of forms of the reporting are developed.

In total 46 users work with iScala HRM, including those who use only reports. Payroll on 1800 people lasts 30-40 min. Recalculation on the certain worker or on group is possible that it allows to eliminate quickly errors which sometimes arise at data entry. On CZP affiliated enterprise the new version of the module for payroll of "Advanced Payroll" of Epicor company is installed. Calculation of 1200 employees goes 5 minutes due to multiprocessor data processing. In the next plans CZP also transition to new release of iScala.

TAdviser: Tell, please, how there was a project on stages? Whether there were some difficulties? As far as the staff of HR department was involved in it?

Oleg Baydin: The staff of HR service took active part in implementation process, since preparation of technical specifications. The first implemented the module of accounting of personnel, then – payroll and work of department of job management and the salary. Serious problems in the course of implementation were not. Volume work at a stage of the choice of a system, active participation of staff of HR services, support from the chief financial officer, high qualification of IT specialists – the factors which provided successful implementation.

TAdviser: How a system was brought into commercial operation? Whether it was necessary to interrupt for this purpose works of service or start was soft? Whether it was necessary to train employees in work with a system?

Oleg Baydin: By the time of start of a system specialists of HR services, certainly, were trained and from the planned date got to work in a new system. At the initial stage of operation they were sponsored, of course, by IT specialists.

TAdviser: What became during implementation of this stage of the project the biggest complexity? How it was succeeded to solve this problem? Returning to the project what you would like to correct, make in a different way?

Oleg Baydin: All work on this implementation took place, one may say, in the normal mode. In this project there were no basic errors, at repeated implementation (for example, at other enterprise) would fulfill also, only quicker. In general, personnel management is a difficult IT task in terms of the large volume of the processed data. History of the employee, a time recording, budgets for personnel, data on charges, deduction is about 30% of all ERP solution of our enterprise. Respectively, the organization of process to the analysis of results demands serious efforts from administration of the enterprise from data entry, users, IT specialists.

TAdviser: Now, about a pro-procession of several years of use of the personnel module Epicor what response you could give about it? How its implementation changed work of HR department how it is possible to describe economic effect?

Oleg Baydin: Within six years since the beginning of operation of the module there were no essential notes from users to its functioning, there were no significant changes, completions: in my opinion, it is very good characteristic of the module.

TAdviser: Thanks for a conversation!

The TAdviser center conducted an annual research of the market of personnel management systems in Russia. Unique statistical data about implementation of HRM systems are provided in this overview in free access, the functionality of modern solutions is described, recommendations about the choice of systems are provided. Chief information officers and suppliers impart experience creations of effective information systems.

• Classification and functionality of personnel management systems
• To whom and when it is necessary to implement a personnel management system?
• Volume, dynamics, and structure of the world market of the automation equipment of HR departments
• Top trends and forecasts of development of the world market of HRM
• Suppliers of HRM systems: leaders in different segments
• Russian market of HRM systems: volume and trends of 2010
• HRM systems: completeness of functionality and experience of implementations in Russia 2010
• Methods, approaches and problems of implementation of HRM systems
• TCO: How many will" the information system "cost"?
• As it is correct to select a HRM system: methodical recommendations
• NORDIS/2: Personnel management. One of subsystems of the corporate information system (CIS) of NORDIS/2 of the Novosibirsk developer "Alekta"
• Molga HCM Fast startpredvaritelno the customized (packaged) personnel management system based on the SAP solution ERP HCM (SAP HR).
• Implementation project of a personnel management system based on HCM SAP ERP for retail chain stores of Eldorado Molga Consulting company

• Elena Babaylova: The high level of qualification of personnel – a basis of our work. "Federal Grid Company of the unified power system" (JSC FGC UES) brought into commercial operation a personnel management system based on HCM SAP ERP. For what this system is necessary the companies and what project deliverables, in an interview of TAdviser Babaylova Elena, the deputy chief of Department of information technologies of JSC FGC UES, the Project manager of SAP implementation of ERP HCM told.

• Oleg Baydin: The flexibility of iScala HRM allows to follow requirements of the Russian legislation which is not differing in constancy. For several years of JSC Chelyabinsk Zinc Plant completely transferred the main business processes of the enterprise to the iScala platform. Automation of accounting of personnel and payroll for 3000 employees of the company became one of essential stages of this large-scale ERP project. What nuances the plant faced during this stage and also Oleg told CIO of Baydin company about the impression of the module iScala HRM TAdviser.

• Maria Vozhegova: We achieved transparency and controllability of processes of personnel records. Consolidation of group at the interregional level, and then, already in use became Impulse to implementation of a new personnel management system in Rosgosstrakh, the BOSS-PERSONNEL OFFICER system successfully endured one more consolidation of the company, already in federal scale. At the same time in 5 years of operation a HRM system on the BOSS platform uninterruptedly processes data of more than 100 thousand staff of the company. How it was succeeded to achieve brilliant results at such scale of the project, TAdviser was told by the vice president for IT and transactions of Rosgosstrakh company Maria Vozhegova.

• Mikhail Panchenko: Implementation of a HRM system is least risky as the result is clear and obvious. Fixed capital of any company are her employees. Those heads who fully realize it think of implementation and development of personnel potential of the subordinates, talent management sooner or later. At the same time it is important to understand that the strategy of personnel management is inseparably linked with the main business strategy. Such companies come to need of implementation of management systems for human resources (HRM) sooner or later. TAdviser talked about specifics of the market of HRM to two company executives of MOLGA Consulting – the leading system integrator specializing in products of SAP company in the field of HR – CEO (Managing partner) Mikhail Panchenko and the Senior partner Evgeny Vasilyev.

• Dmitry Romanchenko: New requirements of the legislation on personal data – not a problem, but chance to upgrade HR-and other business systems of the organization. Dmitry Romanchenko, the manager of projects of Department of business applications and technologies of Oracle of IBS company tells about perspectives of market development of personnel management systems in FZ-152 light "About personal data".

• Natalya Sidorova: Crisis introduced positive amendments in approaches to the choice of HRM systems. The Epicor company in 15 years of work sold more than 150 large projects in the field of control automation by personnel in the Russian market. The area director of Epicor in Russia and the CIS countries Natalya Sidorova in an interview of TAdviser disproves a stereotype that the western system not fully corresponds to rules of the game in local market of work and also it is told how to estimate efficiency of implementation of a HRM system and to gain from it maximum benefit.

• Dmitry Takser: The market is waited by a new paradigm. To replace HRM there is EHRP or planning of human resources. For the last crisis year the BOSS system. The personnel officer remained not only among the dominating solutions for personnel management in the Russian market, but also considerably promoted among leaders in number of projects and completeness of functionality. How it was succeeded to perform it and also the head of marketing department of BOSS. Personnel systems company told about the innovation approaches in control automation by personnel of TAdviser

• Andrey Shabanov: Krom of a HRM system on model SaaS, our company also provides to clients a full range of outsourcing services.UСMS Group – the company with the western roots and the rich history of presence in the Russian market – on an extent of several years works on development of the advanced software product - HRM- systems Quinyx on model SaaS (Software as a Service). About that, clients are how ready to perception of SaaS technology, market prospects and partner plans of the company it is told in an interview.

• Sergey Shishov: Modern human capital management - a key to success of any company. The EVOLA company has strong industry expertize in the field of the implementing solution SAP ERP HCM in the companies of a power complex, retail and the banking sector. The CEO of EVOLA Sergey Shishov told in an interview of TAdviser about the most successful projects of the company in 2009 and also an output to the market of the new direction of a business intelligence and reform of Service center of operation of HRM solutions.

• Igor Jacobson: In cherishing, caring and growing up the personnel, there is a sure economic benefit. The Kompas company is engaged in control automation by personnel and payroll already nearly two decades. Having begun with small DOS programs, it came to creation of the full-function personnel solution "Kompas: Personnel management". At the moment this system firmly sustains the competition of the western HRM solutions and to success is applied in hundreds of Russian companies, including the largest machine-building holdings of the country. How a system evolved, its main advantages and practical experience of implementation the chief expert of the company Igor Jacobson told TAdviser.