Norbit and Everise Consulting are developing a management accounting methodology for Ulan-Bator Railway

2023: Preparation for automation of management accounting, budgeting and risk management

Norbit (part of the LANIT group), in partnership with Everise Consulting, is implementing a comprehensive project for Ulan-Bator Railway (UBZD) to prepare for the automation of management accounting, budgeting and risk management. Expert methodologies and process procedures will make it easier for management and owners to make effective management decisions based on data analysis, as well as to synchronize methodological tools with international standards.

The project was launched as part of a strategy for the modernization and long-term development of the UBZD until 2030. Budgeting and costing processes in the company were traditionally conducted in MS Excel. The management of the risk portfolio was carried out without relying on the scientific and methodological base, there was no dynamic update of the data. All this significantly complicated the implementation of the automation program initiated by the company. To start the transformation, it was necessary to develop methods and regulations for key business processes.

The team of experts from NORBIT and Everise Consulting has prepared for automation the processes of budgeting, costing, pricing and factor analysis. Each has its own methodologies, forms and algorithms. All processes are related to the budget model, which in the future will significantly reduce the complexity of calculations for users and increase the transparency of operations during automation.

In addition, methodologically sound models for monitoring and managing financial risks based on management reporting have been developed. They are built into the budgeting process, so tracking the risk portfolio can be carried out in real time, promptly responding to any changes. During the project, eight interconnected mathematical models were created. More than a thousand pages of methodological documentation have been translated into Mongolian.

The project being implemented is one of the key for the business of UBZD. The introduction of uniform methodologies and regulations will greatly facilitate and accelerate the future automation process, which will take place in accordance with generally accepted international standards and best practices of enterprises. transport industries Its implementation will provide the company's management with digital performance management tools and help bring corporate governance processes to a new level, "said Konstantin Aslanov, Deputy Head of the Road for information technology the UBZD.

On the project, work was carried out to create a risk management model and calculate the cost of rail transport. Competencies have been developed in the formation of the cost price by the method of single and enlarged consumption rates, calculation of the apparent and payroll numbers. This will allow UBZD to launch technological modernization and optimization processes. The team will be able to use the obtained expertise and best industry practices in the future for support and consulting, - said Dmitry Sysoev, director of the management consulting department of NORBIT.