In Severstal-metiz Baan IV implementation is fully completed

The foundation for long-term cooperation of two companies was laid in 2002-2003 when specialists of TopS BI [1] (file) began implementation of the ERP system of Baan IV at the "Cherepovets steel-rolling plant" entering consolidation Severstal. During the project processes of management of sale and logistics, production managements and fixed asset accounting and also settlings with suppliers and clients were automated.

In August, 2003 in Severstal company the hardware group which part at first the Cherepovets and Oryol steel-rolling plants were was formed, and in February, 2004 the Volgograd enterprise "Volgometiz" also joined them. In the summer of the same year restructuring of group was carried out and the managing center - Severstal-metiz company which undertook functions on the centralized supply of the enterprises of hardware group, sale of finished goods and financing of business is selected.

In March, 2004, several months prior to formation of management company, the task to develop the concept of creation of the common information space integrating in itself work of three geographically spaced manufacturing plants and their general managing center was set for specialists of TopS BI. As base for a corporate system it was also selected by Baan IV software.

In three months of works, from April to June, 2004, efforts of staff of both companies created project solutions on all directions of implementation, all necessary reference books and control objects are developed and loaded, program developments for synchronization works of information systems are performed.

The management company began the activity on July 1, 2004, and from the first day works all economic transactions were performed in a new system. Within June - July transfer of obligations for sale of finished goods and purchases of raw materials from the plants was carried out to management company, transfer of stocks with preserving of lot-based accounting is performed.

During the fall forces of a project team Severstal-metiz developed and created all operational and analytical reports, necessary for a management activity. In December functions on operation of a system were completely transferred from a project team in functional services of the company. In February, 2005 in an information system the full stroke of financial and accounting works was executed - reformation and closing of balance for 2004 is carried out. By March, 2005 additional developments were complete and the last comments are resolved, and the solution for management company could be considered finished.

In July, 2005 the decision on legal reorganization of group was made, and by the beginning of 2006 the plants which were earlier representing separate legal entities integrated in the uniform company. By this time the technical algorithm of a company merger was created, the concept of accounting and management accounting, including a full stroke of collecting of production and economic costs, formations of actual cost of finished goods and products of auxiliary productions, accounting of deviations of actual cost from planned cost is developed for all Russian the enterprises of the hardware Severstal group.

Then, in January, 2006, the last stage of implementation of modules of production management of the Baan IV system at the Cherepovets plant was completed, and the ERP solution was completely brought into commercial operation. During the first quarter all processes on conducting transactions and closing of the periods were fulfilled. Within the next half-year the TopS BI company performed support of operation of a system.

Now, according to Andrey Ryzhov, the director of implementation of information systems of Severstal-metiz company, the project can be considered completely implemented. The implemented corporate information system completely provides operational management of processes between the enterprises in Cherepovets, Oryol and Volgograd. Business processes of the company, since logistics and finance are automated, and finishing with production management of three plants.

Now in a system transactions of write-off of raw materials and materials, acceptance in stocks and movements of finished goods, semi-finished products and procurements, production plannings and materials requirements, shipments of finished goods are executed. The created solution allows to exercise control of a consumption of raw materials, to eliminate losses of metal on work in progress, to exclude emergence of "bezzakazny" products and also to create a basis for effective management of a product portfolio. Economic services of the enterprise received the tool for the analysis and management of production cost value. The corresponding management models are developed for each production (staleprovolochno-rope, hardware, calibration) having the specifics.

According to project participants from TopS BI, production management implementation, including at the same time elements of process and discrete types became the most difficult task of the project. Not only knowledge of the implemented system, but also deep understanding of production processes were necessary for accomplishment of this task.

Andrey Ryzhov as the customer representative, reported to TAdviser that though the project initially and was positioned not as the IT project, and the project of organizational changes, nevertheless the considerable will for shutdown of the old systems, adoption of new rules, change of business processes was required. The standard functionality of the ERP system practically did not change, the functions considering features of hardware business (accounting of variable parameters of finished goods) were only added to it, the possibility of conducting payments in a complex with a budgeting system is implemented, and the necessary reporting is also significantly added. The implementation team made about 20 people from the customer and 6 people from the implementation company.