Madin optimized the production of high-tech equipment with the help of 1C:ERP

2023: Automation of Manufacturing and Logistics Management

On January 23, 2023, 1C announced that the team of corporate projects of 1C IT company Lad had automated the work of Madin Group of Companies, a manufacturer of equipment for medical rehabilitation and physiotherapy. Production and logistics management is optimized with 1C:ERP. The production schedule is based on sales plans. A barcoding system has been implemented in the warehouse and production units. This allows you to quickly control the delivery of materials from the warehouse, the release of semi-finished products and finished products, the production of production employees. The efficiency of equipment use, as well as the distribution of working hours of production personnel increased by 15%. The deadlines for fulfilling orders were reduced by 10-20%, depending on the complexity of the science-intensive products produced. Production downtime due to late procurement of components and consumables has been reduced by 10%.

Madin Group of Companies

According to the company, earlier production and logistics management in the company was not automated. There was no uniform regulatory reference system for all divisions. information To register the receipt of materials, the storekeepers had to clarify in the supply department which item card to include the goods of a particular supplier. There was no operational information about the number of kits to be assembled and the number of products to be assembled, about the receipt of electronic components necessary to fulfill a specific order. The release of components into production was delayed. In the sales logistics area, the sales plan was maintained in a spreadsheet that was edited manually when the order arrived or shipped, and the same plan served as the production plan. The workers kept cumbersome handwritten reports on the operations performed. transport Logistics costs were also factored in manually. It was difficult to plan and control the output of products and the timing of orders.

It was necessary to organize the timely supply of production materials, ensure the prompt formation of a production schedule taking into account the sales plan, optimize the planning and work of production personnel. Workers needed tools to quickly record the release of semi-finished products and finished products with factory numbers and recording of production. In addition, it was necessary to provide detailed accounting of transportation costs under the cost items: cargo transportation, loading and unloading, customs clearance.

Regulated accounting and payroll in the group of companies was organized using 1C:ERP, to solve the tasks it was decided to use the previously unused functionality of the system. The partner in the project was the company Lad, which has been cooperating with the Madin Group of Companies for several years.

The specialists of the IT company Lad analyzed the existing business processes and developed a functional model of production accounting and logistics, which was focused on their support. The system implemented volumetric scheduling of sales, production, procurement, as well as the reflection of production processes in the figures: launch into production, production, production, assembly of finished products, processing on the side. The next step was the automation of procurement management: they introduced a mechanism for ordering suppliers in order to timely meet the needs for the production plan. They also automated warehouse processes, among the key improvements - registration of receipts based on orders to suppliers, prompt transfer of materials and components to production on the basis of a production assignment. To simplify the work of logicians, a number of documents were added to the system: assembly order form, delivery request, transport expense report.

The system is deployed at 40 workplaces in all production areas of radioelectronic equipment (REA). It is planned to replicate the system to other production areas: procurement, mechanical, CNC, locksmith, assembly, packaging.

Key Project Deliverables:

• 1C:ERP combined the work of employees of different production sites and sites. This optimized the number of errors due to inconsistency in the actions of different departments. Prompt completion of sales plans based on approved customer orders is organized, with verification of the shipment status and indication of the necessary deadlines. A reliable plan is formed without long chains of information transfer and is available to all interested users for further formation of production and procurement plans. When planning production, labor resources are correctly assessed: by types of work centers, by sections and standard hours, which allows you to 100% accurately monitor compliance with the deadlines for shipment of equipment to customers.
• Production managers were able to quickly monitor the loading of work centers, the presence of components, parts and components. This allows you to quickly and without compromising the workflow to rebuild the generated production plan when an urgent order occurs.
• To organize production accounting in accordance with the accounting requirements, according to which the WIP balance at the end of the month should be zero, the system implements an alternative mechanism for accounting for production by stages: an additional document "Production Task" has been added for each type of product. To do this, semi-finished products in production are taken into account not in workshop storerooms, but in virtual warehouses specially created in the system. Movement to shop storerooms is performed by accountants as output is fixed. This optimizes cost control for a small company accounting department.
• A specialized workplace has been created - AWS "Production," which allows you to accurately record the production of production employees. The intuitive interface optimizes the interaction of production personnel with the system: the worker approaches the AWS, scans the badge, as well as the QR code of the print form "Production Task" and receives a list of operations that need to be performed. As you work, the employee indicates the number of activities performed and confirms the action on the screen. According to the selected final operations, the release of semi-finished products and finished products is automatically recorded. Registering the release of semi-finished products and finished products online allows you to receive up-to-date information on balances in warehouses. In addition, the calculation of unit wages was optimized: the system calculates remuneration for personnel on the basis of data entered and approved by the master, taking into account the coefficient of qualification of workers and the preparatory and final time for a batch of products.
• The registration of the receipt and release of materials for production is automated. Previously, the goods receipt was recorded manually, now the checkout takes place automatically on the basis of the supplier order, which already contains all the necessary information. Materials are issued from the warehouse in accordance with the transfer order created on the basis of the production task. At the time of the recruitment of components for workers from the warehouse, the fact of delivery is recorded, including with replacement with analogues. This arrangement of work allows you to see a complete picture of the movement of components and ensures 100% control of stocks, acceptance and delivery of raw materials to production. This allows you to quickly make decisions about the possibility of receiving urgent orders for production and timely purchase of components. Production downtime was reduced by 10% due to late procurement of components and consumables.
• The work of logicians has been optimized. Rapid creation of delivery requests was ensured, accurate accounting of transportation costs was organized, which are systematized by their types: cost of cargo transportation, loading and unloading work, customs clearance, etc. In a few clicks, the data is displayed in an expense report convenient for managers and accounting with the desired detail. This allows you to identify reserves for cost optimization up to 5%.

2021: Put into commercial operation

The system was put into commercial operation in October 2021.

2020: Project start

The project started in June 2020.