Formula has launched production planning for NTM Rus

2023: Launch of production planning for NTM RUS

On August 31, 2023, Formula Group shared its experience in implementing the 1C:ERP Enterprise Management 2.0 ERP system and launching production planning for NTM RUS, the Russian division of the international Finnish NTM group (Närpes Trä & Metall). The key area of ​ ​ activity of the NTM concern design is,, production the supply and maintenance of highly efficient waste disposal equipment in many. " countries of the world NTM RUS" - manufacturer and supplier of this equipment on. domestic market

The main task that faced the management of NTM RUS was to establish the production planning necessary for uninterrupted effective work in all areas and alterations. It was also important to eliminate periodic situations with a lack of material, labor and production capacities and to ensure that the company timely supplies everything necessary in accordance with the created schedule.

A shortage of just some part at the plant or the employment of the machine at the right time can disrupt the timing of production and supply to customers, which threatens to disrupt contracts and deteriorate business reputation. To prevent such problems, the management of NTM RUS set a goal - to launch a volume-calendar planning unit for production based on the 1C: ERP system in order to plan and control all the necessary processes for releasing its products to the market.

To achieve this goal, the consultants of the Formula group of companies proposed a proven implementation technology, when at the primary stage a kind of digital model or, as it is also called, a digital twin is created. Using his example, you can simulate the effective operation of production, correct the identified errors, identify responsible persons, and identify risks. This work also allows you to save the budget for the implementation of an ERP system, optimize the timing and increase the quality of the automation process. This is due to the fact that various business situations are predicted and worked out in advance. And only after the tested digital model, which has been twisted and turned from all sides, is recognized by the management of the enterprise as effective, it is introduced into production.

After the task is set to implement the production planning subsystem, you need to check which resource specifications are already available in the enterprise? Is all the information ready for the requirements for the creation of volumetric scheduling and maintenance of production schedules, which the customer's management has? At this stage, we identify what data is missing.

A strong basis for competent automation and the creation of a digital twin of an enterprise or its separate production site is the preparation of regulatory reference information (NSI), including process flow charts, resource specifications of products, nomenclature with characteristics and accounting features, etc. All this is necessarily prepared by technologists in production, on the basis of which it becomes possible to regulate the entire chain of production processes. Without the preparation of NSI, it is impossible to carry out automation, since, as you know, chaos cannot be automated - with randomly occurring processes, you can implement an ERP system for an infinitely long time and never complete this process.

Risks of absence of all necessary NSI data include:

• regular disruption of technological processes;
• constant lack of information for full production planning;
• inability to analyze business performance indicators;
• numerous management errors;
• poor forecasting base, etc.

Working with master data of NSI at the launch of volumetric scheduling at the production enterprise

In order to clearly show the customer how to detail their requirements for the volumetric scheduling process in 1C: ERP, the specialists of the Formula group of companies simulated business processes for preparing and maintaining NSI using the Business Studio system. Visual diagrams made it possible for the management of NTM RUS to see and understand what process and functional scope of work must be performed by the customer in order for the production planning process at their enterprise to work.

Among what should be available at the enterprise:

• resource specifications;
• Process flow charts that are integrated into the Resource Specification Guide
• All parameter settings that are related to the maintenance of work centers
• Business Process Description Diagrams that deal with regulatory data regarding the maintenance of resource specifications.

Three diagrams represent a single work diagram for the process engineer for filling NSI with forks, variations and responsible persons and indicate what the volume of NSI should really be, and what degree of immersion in this process the process should have. Four important roles were displayed on the charts: technologist, planning and dispatch department (PDO), planning department and NSI manager. For each role, you have defined the steps that these users must perform.

All these schemes answer the questions: who should do (user roles)? What should I do? In what order to do? How should interaction take place? And with what resources should all this happen at what stage? Thus, a digital twin of the production section of the enterprise was created, on which the technology of effective production volume and calendar planning of NTM RUS was developed.

Maintain Resource Specifications - Defining Manufacturing Process Parameters and Steps

Automation of the "Maintain Resource Specifications" process is essential for process engineers who prepare the regulatory and material composition of manufactured products, as well as standardize labor costs. The regulatory composition of any product should be determined so that this particular product can be produced at a specific enterprise - these are the norms that describe the route and composition of the described product. The volume of operations can also be planned - then this information is entered into the ERP system, specifications can be adjusted, analogues can be taken into account in them, parameters can be used in order to optimize the volume of specifications. This allows you to optimize work with a large number of NSI at the technologist. If BOM maintenance is not automated, production planning is not possible because it is all based on this process. BOM maintenance is the base, and the developed NSI is the base unit to begin production management.

Chart 1. Maintain Resource Specifications - Define Process Parameters and Milestones

This diagram describes a block of data that must be displayed primarily in the resource specification: we determine the parameters of the planned launch batch, and in relation to routing, the order of the manufacturing stages, etc. Each stage has its own number, graph. Variants of this resource specification are also indicated. For example, the ability to produce some semi-finished products separately.

The interaction points between users in the diagram show how you can move along the filling route, who to contact for this or that information in the system, when we decided on the sequence of stages and entered the standards into the specification.

Bottom line: This scheme simulates a well-thought-out route that the company did not have before. There is a certain innovation in this with regard to the implementation of the "1C:ERP" system - the more objects and reference books, the more this raises questions for users, so the decision to draw these diagrams was caused by the complexity of understanding how it should work, and what variations in work with these values ​ ​ are possible. This was an attempt to structure the process on the part of Formula specialists, since in the ERP system the ability to choose functionality is colossal. An example of working with a diagram: determine how many stages should be. We answer the questions: why each production stage, what will they include? For example, a production stage can include a set of certain operations in a particular division, but it can also form a set of certain stages, the results of which will be the release of a semi-finished product.

The concept of the stage is to some extent revolutionary - now you can make a multi-stage specification and get a whole product tree, then explode it, where the content of the specification will be disclosed, the need of each product in materials, parts, components to the lowest level is determined. And not as we used to have to describe it with nested semi-finished products, get some kind of product tree, but they could not get the order of movement, the relationships of these stages on older systems. This is an innovative approach to entering stages - it is it that is reflected here (it exists only in "1C: ERP").

Chart 2. Determination of material composition of the product and rated labor costs

According to this diagram, the process engineer determines the standard material composition of works by types of products. If the company plans to normalize its labor costs and keep them within certain norms-limits, then fixing the normalized materials is mandatory. Because if you do not control the plan-fact, but normalize some materials, then it is not possible to normalize deviations and identify those incidents that led to these deviations. Accordingly, working with them is impossible, because this process is opaque.

This work is related to planning - the plan-actual analysis can be carried out only on the basis of those data that are entered somewhere normal (in the resource specification). Rationing in the system is an important work that needs to be done.

In "1C:ERP" it became possible to assign collateral schemes. Now it is possible not only to feed the volume of materials, but also to show in the system how they will be provided for production purposes. It is a planning element that is linked to the material data supply schema and calculated within the framework of MRP theory (planning and material provisioning).

For example, how do I determine when a purchasing department should purchase what? It must have analytics on hand to ensure that purchases are on order for production, or simply to ensure that materials are always in the free balance. This is all reflected in the system. Another part of this chart concerns work rationing. After all, production consumes not only materials in the production process, but also human resources that have a costly estimate. To do this, you need to enter the amount of these work, for which you need to maintain the reference "Types of work." This all relates to the planning department and is related to planning and costing, i.e. the cost of the products (plan-actual analysis). As a rule, planners (normalizers) are responsible for this reference book, but all this is in the maintenance of the resource specification.

Chart 3. Purpose of the production version and work centers

In this diagram, using the Business Studio system, the specialists of the Formula group of companies modeled business processes by master date, which relate to:

• work centers;
• maintenance of work centers;
• all settings of parameters related to maintenance of work centers;
• The use of capabilities such as assemblies and nomenclature sets in manufacturing processes, which is relevant for assembly industries.
• Using material analogues that can also be involved in all planning phases - both financial planning and global dispatcher or workshop master level planning.

All three diagrams were needed in order to structure the flow of information that is going on during the implementation process. Together with the chief technologist of NTM RUS, all possible situations were simulated, which we do at one point or another - we got a visual guide to the route of his work in relation to the object, which is called the "resource specification" and is described on all three diagrams. And the technologist understands what he is doing when he sees these three schemes. Thanks to these schemes, Formula specialists implemented an ERP system in NTM RUS, helped fill the reference book database with the necessary information and launch production planning at the enterprise.

Project results

Formula specialists were able to create a digital model of the production site of NTM RUS, standardize the list of works and thereby increase the efficiency of the ERP system implementation technology. This approach gives more guarantees to any customer that the deadlines and indicators of the automation project will be met. Thus, the process of implementing an ERP system is cheaper, the budget is saved, the implementation time is reduced and its quality is improved. Thus, thanks to the digital twin of a separate production site of their enterprise, NTM RUS users were able to understand what data they lack, think about it and collect the necessary information, as well as appoint those responsible for what in the system.

Among the results of the implementation of production planning in NTM RUS, the company noted the following:

• the production planning procedures and dispatch control functions are debugged both at the site level and at the workshop level, in which some redistribution is carried out directly;
• Work was carried out to model the product line with certain differences.
• corresponding production articles and nomenclature reference book for semi-finished products, raw materials, components have been created;
• It is possible to efficiently plan all stages related to the material resources of production;
• There was no downtime at work and correct supplies of materials were established in the right time, business processes were changed and improved as a result of working with the digital model of the enterprise (in the digital twin they were able to see where improvements were required).

2019: Implementation of the 1C:ERP Enterprise Management 2.0 solution

On May 21, 2019, the Formula group of companies announced a set of work on the introduction of an automated 1C:ERP management system at NTM RUS, the Russian representative office of the international Finnish NTM group, the leader of the Scandinavian market for the production of waste cleaning equipment.

As a result of the implemented project, NTM RUS was able to establish an analytical and financial accounting system using ERP technologies, strengthen control over the timing of orders and the cost of products, and thereby increase customer satisfaction and improve work with suppliers.

The automated control system also makes it possible to generate various analytical reports with detailed details on the results of NTM RUS activities in accordance with the requirements of its Finnish parent company. Now the leadership of the Russian division can quickly create a reporting package necessary for effective work with a foreign investor.

Vyacheslav Nikitich commented on the project:

We presented to the Finnish management of the NTM group our prepared reports and forecasts, which can be obtained thanks to the implemented ERP system. As a result, they were very pleased and approved further investment in the construction of a strategic enterprise management system.

The consultants of the Formula group of companies began work on ERP implementation by conducting a pre-project survey of the enterprise, during which the customer's needs and the tasks that this system should solve are determined. After that, there is a stage of modeling of the future system and training of NTM RUS personnel on working with it.

Further, the specialists of the Formula group of companies carried out a stage of preparing the system for launch - filling the directories, transferring data so that it would be convenient for NTM RUS employees to start working in the ERP system. Only after that does its launch start into commercial operation. All work was carried out using the technology of corporate implementation of projects adopted in the Formula group of companies.

Olga Vasilyeva spoke about the introduction: