Dzerzhinsky Management Company automated production accounting

2023: Automation of Production Accounting

On July 21, 2023, representatives of the Development Laboratory company shared with TAdviser a case for automating the production accounting of the management company, the result of which, according to the customer, was an increase in the speed of work in all areas by 4-5 times and a full return on investments.

Seamless automation of housing and communal services in the Dzerzhinsky Criminal Code

The Development Laboratory company, commissioned by Dzerzhinskaya Management Company LLC (Nizhny Novgorod Region), has introduced a single platform for seamless automation of all business processes: from accepting applications from residents to sending reports to GIS housing and communal services. As a result, the work of all departments of the company accelerated 4 times, the number of errors arising from the influence of the human factor decreased by 80%. As a result, residents of houses began to receive services on time, dissatisfaction began to subside.

The list of obligations of the management company includes repairing houses, maintaining cleanliness in entrances and in the adjoining territory, ensuring fire safety, maintaining elevators according to the schedule, changing bulbs on floors, etc. At the same time, monitor the reasonable use of the budget and report on time to residents and supervisory organizations.

To do all this according to schedule and quality, modern accounting programs are needed. As of July 2023, the housing and communal services sector in Russia is still one of the most "non-digitalized." Many tasks are still performed "on the knee" - with and Excel another standard ("boxed"). And ON this gives rise to a whole list of difficulties and problems.

Project prerequisites

This is what complaints the Dzerzhinsky Management Company (Nizhny Novgorod Region) filed with the Development Laboratory in 2022.

• Errors that arise due to the influence of the human factor. For example: due to confusion in the documents, repairs were made in one entrance twice a year, and the neighboring one was left without repairs at all.
• Slow execution of tasks, constant delays even for planned work. For example: up to 1000 applications are received per month from residents of the average nine-story building, but it is almost unrealistic to process and systematize them, and therefore fulfill them.
• Difficulties with planning and budget compliance. For example: in many management companies, an outdated management accounting system is used, in which there are no mechanisms for planning and control, calculating house budgets.
• Loss of a significant amount of information on applications from tenants, confusion in applications. For example: residents leave applications by phone, through sites, instant messengers or applications. But they will be performed "someday" - and then if they are not lost.
• Large labor and time costs for data processing. For example, you have to manually enter the same documents twice in different programs so that they are reflected in accounting and management accounting. Performing such work on a residential complex of 200 houses is a month of continuous work of one employee.
• Data loss due to aging. ON For example: many programs used by employees have already been removed from support by the developer, so in case of malfunctions, they data are lost forever. In addition, due to the fact that programs do not integrate with each other, accounting is disjointed.
• Ever-increasing costs of fixing accidents instead of analyzing them and finding the causes. For example: over the past three months, 100 light bulbs have burned out in the entrances of the house. But the Criminal Code cannot track the replacement of light bulbs and continues to spend money on their purchase - instead of understanding why they burn out so quickly.
• Impressive fines due to wrong or incorrect reports. For example: the wrong report submitted to the GIS Housing and Communal Services is a fine of 250,000 rubles. With an annual budget of 1,000,000 rubles for the average high-rise building, this is as much as 25%.
• Care of customers (houses and residential complexes) due to poor quality, but at the same time expensive service. For example: competition in the industry is very high. Only in Dzerzhinsk (population of only 230,000 people) 38 management companies are registered.

In fact, these problems are common to most management companies in Russia that require a digital solution.

Under the management of this Criminal Code there are more than 200 apartment buildings, the total living space is about 1.3 million square meters. m. At the same time, the average age of buildings is from 30 to 70 years. That is, it is mainly an old housing fund with a high degree of wear and tear, which means they really need regular repairs.

However, employees of the DUK are faced with the fact that it is very difficult to fulfill these obligations with high quality. The budget literally flowed through my fingers, and annoyed tenants cut off the phone with questions about their applications and threatened to go to another management company. It seemed - failure is inevitable.

As a result of an "internal investigation," the main reason was ineffective outdated software, which slowed down most processes.

The first thought was to replace the old programs with a modern ready-made solution - to go to the store, buy beautiful "boxes" and install them. It's good that we did not have time to do this - the guys from the "Development Laboratory" explained that these are "crutches," which in the end will cost us even more than individual development. told Alexander Markov, consultant-expert on working with management companies

And here's why:

• "boxed" programs do not integrate well with each other - you will not be able to configure seamless processes with ready-made programs. This means that again you will have to twice enter the same documents into different programs; accept the risk of data loss or distortion.
• all the same, personalized refinement will be required - as a result, the cost of such a solution will be more expensive than an individual project.
• ready-made mobile applications that are now so popular with management companies are a beautiful and convenient solution for residents, but for the management company this is not a functional system. Applications are collected (you can even send a photo of a broken window in the entrance or a mountain of garbage in the yard), but the Criminal Code has no way to fix them normally and react. Problems are solved "someday."

The request of the DUK to find a solution sounded like this: we need a modern single digital "intermediary" between residents and the management company, which will speed up and simplify the processes:

• registration and execution of applications,
• keeping of house-to-house accounting,
• analysis and reporting.

And as a result, on the one hand, it will reduce the risk of houses refusing the services of the Criminal Code, and on the other, it will "save" the supervisory authorities from fines.

Difficulties for the management company arose really serious, so the team of the Development Laboratory proposed a phased work, which gradually solved the tasks.

Project milestones

All work can be divided into 4 large stages:

• Analytics and consulting. At this stage, all business processes of the PUK were divided into shelves, collected complaints and wishes of employees, then determined the optimal methodology for keeping records of data. All these works were carried out taking into account the specifics and "pitfalls" of the housing and communal services sector.
• Development. Here, first of all, we identified automation tools - the basic software on the basis of which the project is created. They became two products that are successfully used in the housing and communal services sector:
  • 1C: Accounting in the Housing and Utilities Management Company, HOA and Housing Insurance Company 3.0 - ensures the integration of home and accounting into a single system. Here all income and expenses, settlements with contractors are recorded and analyzed, financial reports are formed for regulatory authorities.
  • 1C: TOIR 2 KORP 2.0 - responsible for the management of housing repairs and technical assets of the management company (including the management of the budget allocated for repairs). All applications, repair plans, equipment and equipment records are reflected and automated here. At the same time, contractors themselves can mark that they have carried out the work - for this they are given special access.
  • ADC ACS - own development. Made it possible to replace the outdated system used by the client.

Registration of payment

Personalization of the development process included the creation of special reporting forms (dashboards, tables). They help track how the work that contractors do goes, as well as how applications from tenants are received and executed. And most importantly, they allow you to conduct analytics for reasons of frequent repairs and get away from the "respond to applications" regime in the "anticipate what will require repair and attention" mode during the year.

Perhaps some programs created on the basis of 1C seem "gray" and boring. But when there is a question of losing customers and money, the main factor in choosing is the ability to combine and quickly analyze data in one system. The 1C software is just that - without beautiful "pictures," but with optimal functionality. We needed to address the functional gaps in the business process chain "request acceptance-work planning-execution control-reporting" and add a quick analytics capability. At the same time, it was necessary to "sew" several different solutions into one so that employees became easier in routine tasks. I think we succeeded - we created an understandable single product and quickly trained the employees of the Criminal Code. told Mikhail Salashchenko, director of the company "Development Laboratory"

To implement the solution specifically for the Dzerzhinsky Management Company, the Development Laboratory formed a working group of 7 specialists, which included: a manager, two consulting analysts, three software developers, and a system administrator.

• Implementation. Software development and implementation took three months. So it turned out to solve two problems at once:
  • Analyze the implementation of individual functions and immediately improve them if errors were detected or there were requests for revision from the client. This is much faster and easier than remaking the entire program after the project is completed.
  • Help employees adapt and train them to work in an updated system.

After the first stage of implementation, we noticed that the processes accelerated, and it became more convenient to take into account and analyze the data. Tracking tasks in the system has decreased by 2-3 times. There have also been much fewer postponements during important work. They promised to replace the sewer pipes in 3 months - they did so. And the client sees that the Criminal Code keeps its word. At the same time, even our oldest employees coped with the program (not without help, of course, including psychological). It's no secret that in the housing and communal services sector, most of the office workers are ladies in the status of "grandmother," who often accept all sorts of digital innovations with hostility. reported by Alexander Markov, an expert on working with management companies

• Support. Installing all components of new programs is not the end of work. After all, even after implementation, minor errors or wishes for software revision from the client may appear. It is natural that when resources (time, employees) are freed up thanks to the updated software, tasks and goals arise - they also need their own software solutions. Some of the work is carried out free of charge (elimination of "bugs," minor improvements to existing reports), and the rest - by subscription. As of July 2023, the second stage of digitalization for the management company is next in line, which will help automate work in several residential complexes at once, covering up to 600 apartment buildings.

Results

The result of the work was the introduction of a seamless digital platform, which significantly optimized the confusing processes of the DUK. As a result, the economic and social indicators of the manager almost immediately improved companies.

• 100% of requisitions began to be processed and executed. The updated accounting system made it possible not to lose this data "at the entrance."
• About 40% of the workforce was freed up to solve more interesting and profitable problems. For example, it became possible to develop a service - intra-apartment repairs.
• The speed of obtaining operational reports increased 5 times. Online scoreboard with analytical data allows you to monitor processes in real time.
• The impact of the human factor on all business processes has become 80% less. The mistakes that appear through the fault of employees have practically disappeared.
• The productivity of planned departments has increased by 2 times. Online tracking of the entire application cycle made it possible to create a realistic schedule for all works.
• The speed of decision-making has increased by 90%. It became possible in real time to track the "red zones" that require immediate intervention.
• Data processing has become 4 times faster. This was made possible by an end-to-end data accounting system and data integration into financial accounting add-ins.

Implementation result

These advantages were also reflected in the reviews of satisfied employees of the Dzerzhinsky Management Company.

{{quote 'author
= told Irina Sosnova, financial director of Dzerzhinskaya Management LLC Company "| Our path to finalizing standard solutions was difficult, but we were ready to make every effort during this period to eventually get the solution that would be suitable for us.}}

In addition, the client received a social effect. Relations with residents have improved due to the fact that work began to be carried out efficiently and on time, and reporting became accessible and transparent. Satisfied apartment owners no longer threaten to go to another management company or organize HOAs. And this means that now it may not worry about the income of the Criminal Code. And this despite the fact that at the moment residents can only partially appreciate all the advantages of changes in the work of the management company. The final (and most impressive) results of digitalization are still ahead - apartment owners will be seen within a year after the completion of the digitalization project.

As of July 2023, the second stage of digitalization is next in line, which will help automate work in several residential complexes at once, covering up to 600 apartment buildings.