"1C: Enterprise" at the new Elopak plant in Russia

The company 1C": First BIT" (1C Accounting : Trade and) completed the automation project of the new Elopak plant in the winter of 2012. On the Russia basis of the solution "1C: Production Enterprise Management 8," operational production planning was organized, uninterrupted supply of materials to production workshops was ensured, accurate accounting of warehouse balances was established. The number of personnel employed in the plant is optimized, for example, in logistics and production planning departments, the number of personnel is half that in foreign plants of Elopak. The integration of the system with data collection terminals, support for targeted storage and automation of product selection made it possible to minimize the number of warehouse workers - 1-2 employees per warehouse. The production planning Block created at the Russian plant using 1C: Manufacturing Enterprise Management, according to management, is better organized than at any other plant in the company.

Elopak was established in 1957 and is currently the leader in the global packaging market for liquid food products. The company is owned by Ferd, one of the largest private industrial groups in Norway. As a result of more than half a century of continuous development, the company has become a global corporation operating on each continent. Under the management of the holding there are 14 production enterprises. Elopak's network of divisions and subsidiaries covers more than 40 countries, the company's products are represented in the markets of more than 100 countries. The staff is 3,000. In Russia, the company has existed for more than 10 years.

In 2011, the first Russian plant of the company was opened in St. Petersburg. In order to ensure a successful start-up of the enterprise, the management of the Russian representative office Elopak decided to automate the plant with the help of a modern software solution. The following processes needed to be automated:

• Material Procurement Planning for Production
• Sales planning;
• Production planning, including production to order;
• Organization of warehouse accounting for finished products;
• Formation of operational and management reports;
• Reporting on; IFRS
• Integration with BI systems used in your company.

After analyzing the market for domestic software products, management chose the solution "1C: Production Enterprise Management 8," which allows to realize all the needs of the enterprise in a single system. The implementation partner was 1C: First BIT (1C: Accounting and Trade), which has successful experience in automation of production enterprises.

The plant under construction was to be automated, the amount of information about future production processes was minimal. Therefore, in order to fully meet the needs of the company, a large number of discussions and simulations of various situations were organized, a large-scale pre-design survey was carried out. For optimal construction of production planning processes, the customer proposed options for best practices used in specialized Western systems, which were taken into account when adapting and configuring the program. 1C: UPP was integrated with the BI system of the company's head office in the Netherlands, and active preliminary testing of the system was carried out using test cycles. Training of employees is organized. The launch of the system into industrial operation was carried out simultaneously with the launch of the plant.

As a result, 90 employees of the opened plant began their activities in a system that completely automated the processes of accounting and management of finances, production, warehouse, logistics, purchases and sales.

Main results of the project:

• Uninterrupted delivery of materials to production is ensured. Materials are purchased centrally, contracts with suppliers are concluded for a long time. In this case, the material is delivered to the plant according to a certain schedule, which is adjusted depending on the forecasts of the production volume and the filling of the warehouse with materials.
• Production planning processes are built from scratch. All products produced by the plant are registered: each batch of goods is manufactured according to the customer's individual requirements for the design of the box and the content of the information placed on the package. Lack of proper control in planning would result in loss risks due to erroneously running orders. Therefore, the products are accepted for production strictly on the basis of orders placed in the system, approved by the customer support department.
• The production department generates a production schedule according to the production windows. At the same time, the system implements an interface that allows the planned department to form a sheet of production tasks taking into account various indicators, such as packaging configuration, a set of colors for printing, equipment re-installation time and the like.
• Production of products includes two stages: the first - production of a blank and application of a drawing and customer information on a template; the second is the gluing of the workpiece. At the same time, reliable control of the production of products at each stage of the production process is organized, which allows minimizing the number of losses from scrap.
• Finished products are packaged and stored on pallets. To work effectively with inventory, targeted storage of goods is organized in the warehouse: pallets are installed on the rack in certain cells, each cell has its own barcode. When picking an order, the loader operator, using the data collection terminal (DPC), determines the location of the desired product (rack, level and rack column) and moves it to the loading place. Thus, the speed of picking orders is ensured and the time for shipping goods to buyers is reduced.
• The system implements a costing mechanism in accordance with IFRS principles. All necessary reports are promptly generated and provided to the head office. Management at any time has up-to-date information about the plant's activities and can make timely management decisions.

Victor Krytor, Financial Director of Elopak CJSC, notes: "The automation project based on the 1C: Production Enterprise Management 8 solution has become significant and indicative for the entire company. The economic effect of the implementation of the system became clear at the very beginning of the plant. Automation made it possible to minimize the number of employees employed at the enterprise. For example, Logistics and Production Planning is twice as large as other plants. Due to the integration of the system with warehouse equipment, targeted storage and automation of product selection, the number of warehouse workers is reduced to a minimum of 1-2 people per warehouse. As for the production planning unit, according to the general opinion of management, it is the best among all the plants of the company. We thank the company "1C: First BIT" for assistance in the implementation of the project and plan to continue cooperation. In particular, it is planned to detail the accounting of the issue of goods for each pallet, strengthen the control of mutual settlements with customs and implement the company's specific requirements for maintaining warehouse records. "