"First Bit" introduced 1C: ERP in Sibeko, accelerating the calculation of production costs

On November 24, 2020, the First Bit company announced that it had automated 75 jobs at the Sibeko trading and production company, ensuring an operational and accurate calculation of the cost of production thanks to the implementation of 1C: ERP Enterprise Management 2.

Sibeko is a manufacturer of seats of any complexity for all types of transport: trucks, special equipment, agricultural equipment, public and railway transport. Sibeko has a constantly expanding network of company representative offices in Russia and the CIS countries, meets Russian and European standards and produces more than 150,000 seats annually.

The main activity of the company was initially wholesale trade, so the information system was based on the 1C: Trade Management program. Over time, the company began its own production: from simple assembly to a full production cycle, and therefore the previous information system ceased to meet the requirements of Sibeko, management could not quickly obtain the exact actual cost of products and profitability of each transaction and, accordingly, could not control and manage one of the main indicators for the production enterprise. Employees reflected production records in part in 1C: Trade Management and settled costs in Excel, which took approximately two weeks. At the same time, the structure of products became seriously complicated over time - previously there was only assembly, and now complex, multi-transfer production. Another problem was that the company did not have the correct inventory. The exact number of balances could only be determined after the inventory, which took place once a year and took more than three weeks from employees.

The company needed an information system. The optimal solution was the choice of the solution "1C: ERP Enterprise Management 2," which covers the key business processes of the production enterprise and closes its basic needs. The system is constantly developing and improving, acquiring more modern functionality, becoming more mobile and more convenient for users. The implementation partner was the Chelyabinsk office of the company "First Bit," which has extensive experience and expertise in the automation of trade and production enterprises, which is confirmed by the status of "1C: Competence Center for ERP Solutions."

The First Bit team was given the following tasks:

• analysis of the financial performance of the company by using tools to correctly calculate the cost of products and the profitability of each sale;
• ensuring transparency and relevance of goods balances in warehouse and in production. Increase efficiency of use of production and storage areas;
• reduction of costs due to timely purchase of goods, as well as taking into account their needs.

The project team of the Chelyabinsk office of the company "First Bit" together with the specialists of "Sibeko" conducted a survey of the business processes of the enterprise and modeled them on the basis of "1C: ERP Enterprise Management 2." The program can reflect material, labor and other costs, both direct and indirect. This allows you to obtain and manage objective cost data. The implementation of the 1C: ERP system at Sibeko made it possible to quickly and accurately calculate the key indicator of the enterprise's activity - the cost of production. It also became possible to calculate the profitability of sales - an indicator of the financial performance of the company, reflecting how much of the profit the enterprise receives for each ruble invested. The system allows you to carry out a sales plan analysis in the context of each manager. Sales managers, as in the previous 1C: Trade Management program, reflect customer orders in 1C: ERP, form invoices, sales and other documents, issue returns, and also plan sales.

With the implementation of "1C: ERP Enterprise Management 2," it was possible to build a volume-scheduling plan for the production of finished products and semi-finished products, as well as a plan for the purchase of materials. Thus, the company purchases only the necessary materials and always on time. This allows you to minimize the cost of purchasing excess raw materials, parts and other things, and eliminate production downtime due to lack of materials. In turn, this helps to optimize the operation of the warehouse. Storage areas occupy only the required material. The organization of the internal goods movement shows the real route of movement of each material. This allows you to monitor the status of shipment/acceptance, to reflect the actual shipment of goods from the warehouse, to obtain data on current balances both in the warehouse and in production. The purchasing department online sees up-to-date information about the availability of materials in the warehouse, makes an order from the supplier in a timely manner and provides production with the necessary resources, which means that customer orders will be completed on time.

Project Results:

• automated calculation of cost of finished products. It became possible to analyze the financial result of the company's activities in terms of activities by using tools to correctly calculate the cost of products and the profitability of each sale;
• ensuring transparency and relevance of goods balances in the warehouse, reducing costs due to the fact that the goods are purchased in a timely manner taking into account their needs. The efficiency of use of production and warehouse space has improved.