On KamAZ the implementing solution SAP for Automotive is complete

Application of the SAP solution for Automotive allowed to bring such management processes as production planning, quality management, planning of a logistics chain to the new level of efficiency. Production costs are optimized, idle times are excluded. The volume of warehouse stocks is significantly reduced, performance of assembly production grew. A number of key processes in the field of production and logistics is optimized, own logistic center is created. This project is one of the largest SAP implementations in the Russian and world automobile industry, and its further expansion and development is provided in joint plans of SAP CIS and JSC KAMAZ.

In the 1970-90th years production of JSC KAMAZ was concentrated on mass release no more than four models of cars. For improving competitiveness the KAMAZ group in the 2000th years almost completely started the job order production cars. Today about ten cars of one model a month are on average produced. At such high variability the used information model could not provide the necessary level of accuracy and controllability of planning processes and production accounting. It negatively affected production efficiency: warehouse stocks grew, work in progress volumes increased, cases of a stop of pipelines, failures to meet time constraints of accomplishment of orders became frequent.

In 2007 in the KAMAZ group the decision to upgrade processes of management of production, first of all — information management systems was made. The analysis of a production management system and also the solutions proposed in the market regarding automation of a management system was carried out. In 2008 there was an order of the CEO of JSC KAMAZ on the beginning of project works "Implementation of an information system of calendar production management of group of the organizations of JSC KAMAZ. As main system the SAP for Automotive software product, the main contractor on implementation — Microtest company was selected.

Today works on system implementation of SAP for production management of car assembly plant — the main manufacturing enterprise of group which rhythm of work — the compulsory provision of effective work of all KAMAZ group are performed. A system automates the following processes:

• configuring of the order;
• formation of unambiguous structure of future car;
• formation of the optimal sequence of a tab of the car on pipelines taking into account restrictions;
• formation of the calendar production plan for 25 workshops of machine-assembling production;
• operational providing with the materials completing jobs from storages and warehouses;
• operational accounting of the movement of materials in more than 80 warehouses;
• operational accounting of accomplishment of the production plan, write-off of materials and component parts in workshops, on control points of pipelines;
• accounting and analysis of defects and defects;
• cost value formation.

At the same time essential organizational changes, for example, creation of the logistic center were carried out. Besides, during the project for development of a production system of JSC KAMAZ the existing business processes were changed.

At the implemented system standard industrial functionality. Orders are entered into SAP, the structure of parts of the released cars is conducted - each machine receives the electronic passport with the list of its components. Also in a production system on the set restrictions (for example, release of no more certain number of products with the set characteristics) the sequence of works on pipelines is formed. The job schedule for workshops is kept, work with warehouses for decrease in a remaining balance on them is automated, cost value of products is calculated. Among the implemented modules - MM, FI, iPPE, WM, APO, PP, CIF, SD, CO.

Need of replacement of old IT systems on KAMAZ is connected with change of approach to release of cars. At the beginning of the 2000th KAMAZ passed from mass production of a small number of models to job order release of a large number of their variations - now in a month only 10 identical machines are made on average. According to in the companies, such variability old IT systems could not support.

SAP implementation - not the first attempt of KAMAZ to unroll an end-to-end system of management. In the late nineties at the enterprises of group projects on implementation of ERP BAAN started (it was purchased by SSA Global Technologies which in turn entered into Infor Global Solutions later). This system appeared at the Kamaz-Diesel plant (the affiliated enterprise which is responsible for release of transmissions and engines) and metallurgical production "Kamaz-Metallurgiya".

This ERP works at the first enterprise still, on the second - is almost taken out of service. Since the beginning of 2008 on "Kamaz-Matallurgiya" of SAP implements IBS.^[1] At the enterprises of group KAMAZ also other ERP systems are unrolled. In February, 2011 implementation "1C: Manufacturing Enterprise Management 8" for 40 departments was announced by Intelkom company, and the child Tuymazinsky plant of autoready-mix trucks in 2008 selected Galaktika.

"Implementation of a new management system matched the beginning of financial crisis, recession of sales and productions. In the KAMAZ group the investment program was significantly reduced at this time. However we made the decision to continue project implementation, and it was correct. For the project recession in production did good — we could concentrate the best forces on the project, debug new processes. In many respects thanks to it our company was ready to increase in production volumes, and in need of their adjustment in the greater or lower side. Now the daily release reached 180 cars that corresponds to the pre-crisis period, but now the quantity of working shifts decreased twice and the increase in labor productivity is as a result reached twice" — Yury Klochkov, the First Deputy CEO of JSC KAMAZ noted.

Economic effect of creation of a new production management system is estimated at 500 million rubles in 2010. Reduction of shortages of inventory items was 25%, reduction of defects on the main production of car assembly plant — 10%. The group optimized production costs, excluded cases of idle times, at 20-day working month three working days were released. The new production management system allowed to receive more objective cost estimations on the released complete sets of cars.

After completion of works at automobile plant creation of schedule system of interfactory deliveries began. Until the end of 2011 in JSC KAMAZ there will be a logistics system integrating the plants of the main technology chain. Long-term plans of development of a system include implementing solutions for sales management and dealer network, managements of the press and frame plant, improvement of the systems of the financial and economic block.