Barnaul Cartridge Plant (1C:ERP Enterprise Management 2.0)

2023: Implementation of the 1C:ERP Enterprise Management 2.0 solution

Barnaul Cartridge Plant JSC is the main enterprise of the Barnaul Machine Tool Plant Holding Company, with more than 80 years of history and specializes in the production of sports, hunting and live ammunition, target installations and other related products, which are sold both in Russia and on the world market. The products of JSC BPZ"" are represented on the market trade by the brands "Barnaul" and "Centaur," includes more than 250 assortment items.

In the period from June 2022 to December 2022, in cooperation with Corporate - JSC, ITprojects our company implemented a project for the comprehensive automation of management and regulated accounting using the software product 1C:ERP Enterprise Management 2"" (hereinafter referred to as 1C:ERP"").

Since 2007, our company has operated information a system based on the software product ": 1C production Enterprise Management" (hereinafter - "1C: Manufacturing Enterprise Management"). During operation, the 1S:UPP software product was accompanied and modernized by the staff specialists of our organization. Changes in the Legislation establishing new requirements for the maintenance of regulated accounting tax and accounting, as well as separate accounting within the framework of the execution of state defense orders (GOZ), required an appropriate functional implementation in the information system based on the 1C: Manufacturing Enterprise Management software product. The implementation of such functionality required significant costs and was recognized as unpromising, taking into account 1C the "termination of 1C: UPP support" announced by the "Company."

The new legislative norms prescribed the preparation and submission of relevant reports, and also established responsibility for failure to provide or late submission of information. As a result of the above, the labor intensity of the statutory reporting has increased dramatically, the burden on the company's employees has increased, administrative costs have increased, and the risks associated with late reporting and errors in its preparation have increased.

In terms of management accounting, the capabilities of "1S:UPP" have also become insufficient. To effectively use the material and labor resources of the enterprise, new production accounting and planning tools were required. The above reasons led the management of the enterprise to decide on the need to introduce a new information system. To automate the enterprise, we chose the software product "1C:ERP Enterprise Management 2," for the following reasons:

• High degree of unification with the used software product "1C: Manufacturing Enterprise Management." The use of 1C:Enterprise 8 platform made it possible to significantly simplify the transfer of data between software products and will help reduce administration and maintenance costs in the future.
• Low cost of acquisition, implementation and maintenance, compared to analogues.
• The presence of a large number of specialists with competencies in the field of maintenance, maintenance, accounting, compared to analogues.
• Continuity, similarity of interfaces and accounting methodology in 1C:Enterprise 8 software products allowed to reduce the costs of user training, reduce the time of adaptation to the new information system.
• Wide functionality in terms of production accounting and planning.
• Support in the "1C:ERP" of the current regulations governing accounting and tax accounting.
• The possibility of keeping separate records in the "1C:ERP" within the framework of the execution of BARS contracts and automatic formation of relevant reports.

To implement the project, we have chosen an official partner of 1C Firm. JSC "Corporate IT Projects." The choice of this partner was due to the following factors:

• High position in the rating of partners presented on the official website of the Firm "1C."
• Positive reputation confirmed from open sources.
• Quality pre-project consultations, openness and readiness for communication.
• Positive feedback on the results of the implementation of 1C software products at other production enterprises, including defense companies specializing in the implementation of GOZ.
• Experienced specialists, whose qualifications are confirmed by the availability of certificates.
• A flexible approach to project management, taking into account the peculiarities of our enterprise, the level of automation and user training.
• Optimal implementation budget.

Statuses "Competence center 1C: KORP," "1C: ERP Center," "1C: Consulting (management accounting)."

• Certificate under ISO 9001:2015.

The goals of the implementation of the new information system were:

• Automate regulated accounting and tax accounting in accordance with the current Legislation and simplify the process of forming regulated reporting.
• Provide an opportunity to obtain operational and reliable data necessary for effective management of the enterprise, planning activities and making management decisions.
• Strengthen control over the movement of materials in production.
• Automate volume scheduling in terms of sales, purchasing, production.
• Implement separate accounting within the framework of the execution of BARS contracts, in accordance with the current Legislation, automate the preparation of reports on the execution of BARS.

Within the framework of the project, the tasks were formulated:

• Start trial operation from the beginning of 2023 by adapting (finalizing) a standard software product according to the requirements formed during modeling.
• Train key users to work in the information system.
• Normalize and transfer regulatory reference information (NSI) from "1S:UPP" to "1C: ERP."
• Introduce initial balances at the beginning of 2023.

Within the framework of the project on the implementation of the information system based on the 1C:ERP software product, specialists of Corporate IT Projects JSC performed the following works:

• Pre-project consultations were held, various options for implementing the information system were proposed, differing in the composition of work, deadlines and budget.
• After the formation of the project working group, an approach to the implementation of the information system implementation project was agreed. Project documentation, work schedule and project budget have been developed and agreed.
• The existing information system "1C: Manufacturing Enterprise Management" was analyzed, the state of the regulatory reference information base (NSI) was assessed for subsequent transfer of the NSI to the new information system. Key reference books have been identified, recommendations for their completion have been given.
• Interviews were conducted with key users for each of the automated accounting loops in order to collect and analyze requirements for the information system.
• Analysis of business processes and documents for each of the automated accounting circuits was carried out.
• Functional modeling of the business processes of the Customer's enterprise was performed in the standard version of the software product "1C:ERP" for each of the automated accounting circuits.
• Test cases have been created, taking into account the specifics of the enterprise on conditionally real data.
• The processes (test cases) modeled in the information system were demonstrated for each accounting loop.
• Business processes deviated from the capabilities of the standard 1C: ERP software product.
• Assistance was provided in transferring the NSI and entering the initial balances.
• The exchange of data between the software products "1C:ERP" and "1C: Salary and Personnel Management 8," rev. 3.1 ("1C: ZUP") has been set up and tested.
• Operational support of the Customer's users was carried out during the test operation for each automated accounting loop. As part of the test operation, users entered conditionally real data, taking into account the specifics of the enterprise's activities, reflected business operations and created relevant documents in the information system.
• User instructions have been developed for working in the "Manufacturing" subsystem.
• After commissioning, the specialists of JSC "Corporate IT Projects" provided operational methodological support and advice to users of the information system.

During the project, the following accounting areas were automated:

• Sales (sales), marketing.
• Procurement and supplier relationship management.
• Warehouse and logistics.
• Volume scheduling.
• Production.
• Non-current assets.
• Accounting and tax accounting, regulated reporting.
• Treasury.
• Accounting of expenses, calculation of cost of production.
• Separate accounting within the framework of the implementation of the BARS and reporting on the implementation of the BARS.

One of the priorities of the project was to minimize the refinement of the standard 1C: ERP software product. For this reason, some enterprise business processes have been adjusted to bring them closer to the logic of the software product. Only the most critical requirements for modifying the standard functionality were accepted for revision. Modification work will be carried out by the staff specialists of our enterprise.

On January 09, 2023, we signed the Protocol on the completion of pilot operation of an automated system based on 1C:ERP and its transfer to commercial operation in terms of operational and regulated accounting units. As a result of the introduction of an information system based on the software product "1C:ERP. Enterprise Management 2 "achieved the following results:

• The regulatory reference information has been revised and updated.
• The regulated accounting and tax accounting has been automated in accordance with the requirements of the current Legislation.
• Separate accounting within the framework of the implementation of the BARS and the process of generating reports on the implementation of the BARS are automated.
• The number of manual transactions and paper documents has been reduced, and double data entry has been eliminated.
• Improved scheduling accuracy when executing orders.
• The process of preparing production, forming a schedule and stages of production, providing production with materials has been implemented.
• Improved control over the movement of materials in production, identified illiquids.
• Increased detail when calculating the cost of production.
• The ability to obtain data for analysis, control and management decisions has been significantly expanded.
• A unified enterprise resource management information system has been implemented.