"The Arzamas bread" increases quality of planning and production management using 1C:Enterprise 8

The 1C-Rarus branch in Nizhny Novgorod automated the largest Nizhny Novgorod producer of bakery products – Arzamassky hleb Ltd. The information system on the 1C:Enterprise 8 platform covered 100 jobs in all divisions and allowed to strengthen control over purchasing, productive, sales and financial and economic activity. Production is as a result optimized, processes of shipment and the goods delivery are accelerated, costs are reduced.

Arzamassky hleb Ltd is the leading producer of bakery and confectionery products in the Nizhny Novgorod region. The range of the enterprise is provided by more than 200 names of bakery, puff and dietary products. The main competitive advantages of the enterprise are high quality of the made products, the wide range and the affordable prices. Daily the enterprise services 1100 outlets. The most important strategic objective of the enterprise is gaining 70% of the market of the South of the Nizhny Novgorod Region.

The programs of own development which were earlier used at the enterprise focused on the solution of local tasks did not provide the management of information necessary for the analysis and planning of activity. They allowed to plan only approximately the needs for raw materials and production capacities. Inaccuracies in planned cost calculations as a result of steel the braking factor, did not give the chance to optimize operating activities.

The new information system allowing to obtain operational and reliable data about the state of affairs at each stage of a production chain – from requirements planning in raw materials and production capacities, purchases of raw materials before sale of finished goods was required. At the same time a system had to consider a number of the features inherent in bakery production.

As the leading software engineer of Arzamassky hleb Ltd Starkova Tatyana Valentinovna notes, – "In activity of the enterprises of our industry production and sale are important. When conducting production accounting it is necessary to take humidity of flour, a compounding, the used raw materials and options of packaging into account. The complexity of sale is usually connected with the product sales limited on time, delivery routes and diagrams of delivery in outlets".

As a basis for a new information system the solutions "1C: Manufacturing Enterprise Management 8" and "1C: Motor Vehicle Management 8" were selected, and the Nizhny Novgorod branch "1C-Rarus" having experience of successful maintaining projects on complex automation of manufacturing enterprises became the partner in project implementation.

The project was preceded by development by specialists 1C-Rarus of conceptual model of future corporate information system in which industry features and numerous requirements of staff of the enterprise to the instrument of automation found reflection. Implementation was decided to carry out evolutionarily, "step by step", gradually taking numerous outdated programs out of service. As a result it was succeeded to implement an automated system without stopping works of the main divisions.

A year later the project of complex automation was successfully complete, a system is completely put into commercial operation on sections:

1. Accounting of raw materials and materials, settlings with suppliers.

2. Sales management of products.

3. Production accounting.

4. Fixed asset accounting.

5. Control of motor transport.

6. Accounting of settlement with clients.

7. Technical and economic planning.

8. Accounting and tax accounting.

9. Personnel records.

10. Payroll calculation.

In the unified information system about 100 employees of the enterprise from the following divisions work:

• raw-material storages and materials,
• purchasing department,
• production and technology laboratory,
• production,
• department of transport logistics,
• economical department,
• sales department,
• sales office,
• accounting,
• personnel department,
• IT service,
• administration.

The most significant results during the project, according to the management of Arzamassky hleb Ltd, managed to achieve after implementation of a subsystem "Sales management of products".

The First Deputy CEO on corporate strategy of Arzamassky hleb Ltd – Vladimir Alekseyevich Kraynov tells: – "We make perishable products which expiration date is limited sometimes for 12 hours. Therefore for us it is very important to accept quickly goods, to make out orders and as fast as possible to execute them. Now on the basis of receipt of the order there was an opportunity to analyze its readiness taking into account products remaining balance in a warehouse and to quickly obtain data on percent of its accomplishment. Thanks to control automation by sale, process of formation of primary documentation happens quickly. If earlier the majority of commodity-transport delivery notes and accompanying documents formed on the basis of the data recorded on the paper form of the order, then today information on the taken order from an advance orders section at once appears in a system and arrives to responsible for its accomplishment".

Project Results:

• Control of work of all structural divisions is strengthened, business processes are regulated, labor productivity of employees is increased.
• Strict control of the planned and actual prices of the arriving raw materials and materials allowed to reduce costs for raw materials purchase.
• Control of the prices of suppliers according to contractual conditions and maintaining specifications allowed to avoid unreasonable price increase.
• Operational tracking of characteristics of nomenclature positions (in particular, an expiration date) reduced the probability of use of overdue products in production.
• Increase in speed of shipment and the goods delivery raised a customer loyalty.
• Assessment of profitability of the made goods and drawing up production schedules on future periods allowed to optimize the range and price policy, to save competitive positions in the market.
• Control of loading of motor transport and calculation of profitability of routes led to cost reduction on its use.
• Increase in efficiency of obtaining information reduced a reporting set-up time.

Kraynov Vladimir Alekseyevich: "We consider an implementation project of a corporate information system successful. Requirements are implemented. The Nizhny Novgorod branch "1C-Rarus" proved to be the reliable and fair partner. As a result of the purposeful and accurately planned work transition to 1C:Enterprise 8 managed to be implemented without failures in work of the enterprise.

Now we quickly obtain information on the state of affairs at each stage of a production chain that gives the chance timely to make important management decisions. Thanks to assessment of profitability of each made unit of production, the timely analysis of performance indicators and continuous improvement of quality we save strong positions, gradually winning new sales markets".

We consider system implementation of enterprise management our competitive advantage. We quicker than our competitors see the reserves and we make the decisions allowing to increase efficiency of the enterprise. I recommend to all colleagues to implement 1C.