The Kazakhstan Aluminium Smelter selected 1C:Enterprise 8

Kazakhstan Aluminium Smelter – one of five disruptive projects of Kazakhstan implemented in the Pavlodar region. Along with the termination of the first stage, on the same platform construction of facilities of the second and also self-produced burned the 136 thousand tons per year anodes that will allow to reduce the price of products continues. The first stage of the plant was put into operation in December, 2007.

Earlier at the enterprise the automated system based on 1C: Enterprise 7.7, but in connection with production expansion, increase in document flow was used, need of transition to higher level of automation arose the expanded information base.

In 2008 the management of the enterprise made the decision on transition to the modern automation system allowing to solve in a complex problems managerial, production and accounting, planning, budgeting and a financial analysis.

As a basis the solution "1C: Manufacturing Enterprise Management 8 for Kazakhstan" meeting the requirements for functionality and providing the solution of assigned tasks was selected. The main arguments in the choice of this system were:

• Broader functionality and flexibility;
• High scalability;
• Functionality of management accounting;
• Complexity of the solution.
  

As the contractor of the project the 1C Rating company as one of the 1C: Franchisee leading firms in the territory of Kazakhstan which is locating skilled staff and having the sufficient experience of implementation of large projects at the enterprises of the production sphere confirmed with positive reviews of clients was invited.

The main objectives which were set by the management of the enterprise for specialists of 1C Rating were created so:

• Organize accounting of process of construction of facilities, control of cost and acceptance of fixed assets as the plant was built "from scratch";
• Transfer the system of accounting to the chart of accounts of IFRS;
• Reduce information volume, processed manually;
• Automate cost value settlement process;
• Reduce labor input of collecting of the corporate reporting provided in management company;
• Arrange accounting of a large number of agreements with suppliers and contractors;
• Provide financial service with the full-function tool for planning and control of money;
• Provide with the convenient mechanism for accounting transport workshop.
  

As a result of implementation the management of JSC Kazakhstan Aluminium Smelter received the effective system unrolled more than in 500 workplaces, conforming to modern requirements of management and accounting. In a common information space the following divisions successfully work:

• Financial and economic management with all services entering into it;
• production divisions;
• accounting;
• warehouse economy;
• estimate and contractual department;
• department of work and salary;
• department of work with personnel;
• services of purchases;
• sales office;
• transport workshop;
• auxiliary divisions.
  

As results of implementation it is possible to select the following:

• The complete information system with single information input containing the complete information on financial and material flows of the enterprise is created.
• The enterprise without serious consequences passed to the new chart of accounts of NSFO (created based on IFRS).
• Accounting quickly obtains the comprehensive information about delivery and acceptance certificates of the equipment and component parts.
• Successfully business processes of calculation of cost value of semi-finished products and finished goods function. For receiving more exact picture the developed packet of the additional reporting is at cost taken advantage.
• The relevant information base on personnel is created that gives the chance of formation of the objective wages fund, operational decision making on filling of vacancies.
• Many routine transactions are excluded thanks to what at specialists time for analytical work was released.
• To specialists of the enterprise (masters of workshops, storekeepers, financiers, engineers of purchases) entering primary data in information base functioning in convenient assistants to information input is ensured.
• The quality of accounting and analytical information and controllability the plant significantly improved.
  

Thus, the new information system on the 1C:Enterprise 8 platform implemented in JSC Kazakhstan Aluminium Smelter allows company executives to obtain information for adoption of the justified economic decisions in the field of pricing, cost management, optimization of the production program:

• Now it is possible to define cost assessment of the built fixed assets with a high accuracy.
• There was an opportunity to analyze intermediate cost value of the made semi-finished products and finished goods.
• Earlier the management was guided by data from the accounting system most of which part was entered at the end of the month. Now simultaneous conducting management accounting by all services of the enterprise and regulated accounting in accounting, allowed the management to receive an operational picture at any time, without waiting for the end of month.
• The main qualifiers of the nomenclature and partners are put in order. The quantity of the considered positions of the nomenclature is reduced from 75,000 to 16,000 due to duplication elimination.
  

As notes the management of JSC Kazakhstan Aluminium Smelter:
"As a result of implementation the effective information system corresponding to requirements of the growing enterprise and allowing to react quickly to the happening changes was received".