The producer of carrier rockets JSC "Proton" implements SAP instead of 1C

Contract signature

"JSC "Proton" – Perm Motors", the enterprise of the space-rocket industry of the Russian Federation, and SAP company, the developer of software solutions for business management, announced start of an implementation project of a complex of SAP solutions for optimization of an enterprise management system. The contract between the companies was signed on September 3, 2010 in Perm by the CEO of JSC "Proton" — Perm Motors company Igor Arbuzov and the CEO of SAP CIS Vladislav Martynov.

The insufficient regulation of business processes, subsystem of operational production planning inappropriate to strategic plans and accounting of course of production, lack of a single platform of the existing automated information systems became premises of acceptance by company management "JSC "Proton" – Perm Motors" decisions on implementation of the unified information system. As a basis of a system the functionality of SAP ERP and SAP ERP of HCM was selected.

Chronology of implementation

Project works of business process automation of the company will begin in November, 2010 and as it is planned, will come to the end in December, 2013. The project will be separated into three phases: October, 2010 – March, 2012 (personnel management, production management, management of finance, management accounting, logistics, inventory management, sales management, budgeting); January, 2012 – December, 2012 (production management, quality management, personnel management, customer relationship management); January, 2013 – December, 2013 (expanded planning / optimization of production schedules, an enterprise information portal, a business information warehouse, analytics for the management).

Project Progress

As the head of department of ASUP of JSC "Proton" Vitaly Sosnin told TAdviser, prior to the beginning of the SAP project from finished software products at the enterprise "1C: Accounting" (at first the 7th version, then 8, integrator acted as Net Consult) and LanDocs electronic document management system were implemented. And the configuration of 1C significantly was improved under requirements of accounting.

But generally the company used automated workplaces of own development which were created under specific requirements of customers. Different production and managerial divisions acted as customers (production workshops, supply, economic service, accounting and others). The programming language was selected by Delphi, and the database server - the SQL server.

In total about 120 automated workplaces were developed: some part of them was connected among themselves by data, some is not present. Some subsystems were created based on finished software products, such as, electronic accounting in dining rooms or a control system and access accounting. "As a result of implementation of automated workplaces current demands of informatization of the enterprise were more or less satisfied, but to a certain timepoint understanding came that it is impossible to obtain the integrated information for high-quality acceptance of management decisions from such "scrappy" automation", - told the CIO companies.

As a result the management of JSC "Proton" made the decision on implementation of a ready ERP system. The company carried out selection process of a new solution in details. In 2008 specialists of TopS BI company who helped JSC "Proton" to create requirements to a new information system were invited to the enterprise. Then the solution was selected within the closed tender between solutions of SAP and Oracle companies. The functionality of SAP ERP and SAP ERP of HCM was as a result selected.

The SAP project starts on JSC "Proton" in November, 2010 and will come to the end in December, 2013. Automation of such business areas as personnel management, by production, finance, stocks, sale, customer relations, budgeting, management accounting, supply and also creation a business information warehouse, analysts for the management and other important subsystems is planned. Eventually SAP ERP will cover all cycle of business processes of the enterprise.

It is interesting that own practices of JSC "Proton" were useful to the company during the new project. Earlier for work of all subsystems the reference and regulatory information in electronic form was required, it stimulated to its transfer from a paper type to digital. As a result, by the time of the beginning of SAP implementation such base was ready that it is extremely important, Vitaly Sosnin says.

The company does not open investment into the project, however, according to Vitaly Sosnin, usually it is about the range of 20-100 million rubles within several years for medium-sized engineering enterprise (3-4 thousand working). "But direct investments which are the simple for counting it is not the main part of costs. It is more difficult to consider indirect investments into skilled staff on service of the IC and also in the operation cost, the subsequent completion", - he says.

If at the enterprise high-quality investment accounting is properly delivered, then investments enclosed in the IC should be returned through the number of years planned in an investment program, as a rule, these are 5-10 years, the IT manager of JSC "Proton" added.

Implementation of the module SAP ERP HCM

Main article: Protom-PM replaced "prehistoric" HRM with SAP

In June, 2012 "JSC "Proton" -" passed Perm Motors to personnel records in the HCM SAP ERP system: input of the corresponding module in commercial operation it was announced at the beginning of June, 2012.

The expected result

It is expected that use of SAP solutions will allow JSC "Proton" — Perm Motors company: lower stocks by 20%; reduce duration of a production cycle by 15%; pass to end-to-end production planning and reduce duration of a production cycle; to precisely calculate requirements when purchasing inventory items taking into account alternative materials and to lower inventory stocks; carry out the detailed poperedelny (poprotsessny) analysis of cost value at possible discrepancy with detailing of divisions and resources; to quickly define the reasons of possible discrepancies; to precisely calculate loading of resources and to timely reveal "narrow" places in production; analyze profitability of each transaction.