Motovilikha Plants automate production using 1C:ERP

In March, 2016 1C company announced that Motovilikha Plants (Perm), one of the largest enterprises of defense industry complex of the Russian Federation, automated production management of artillery pieces using the system of new generation of 1C: ERP Enterprise Management 2.

Motovilikha Plants conduct the history since 1736 - the moment of foundation of Motovilikha copper-smelting Plant. Today it is the vertically integrated holding integrating a number of the directions of mechanical engineering, among which production of military equipment and the oil-field equipment and also own design office of civil and special mechanical engineering.

Motovilikha Plants - one of the oldest engineering enterprises of the Urals (it is founded in 1736).

Project Progress

The machine park of the enterprise contains thousands of units of the various equipment, including the most modern samples of the processing centers and also a number of unique installations. The end products consist of thousands of separate assemblies and parts which are made at the enterprise within a full production cycle.

At the enterprise the complex multi-layer system of production planning is applied: volume indicators of production are originally planned, further, at the level of production department, assembly schedules and productions of the main nodes, and then, at the level of workshop are developed, detailed nomenclature production schedules form. Earlier all these problems were solved with use of separate programs and spreadsheets, it was difficult to synchronize production schedules of separate production divisions, loading of workshops was not balanced that often led to production failures to meet time constraints.

For support and working off of methodical solutions of the project between Motovilikha Plants and 1C Company the general agreement about cooperation was signed.

Creation of the centralized control system of production capable to provide the automated nomenclature production planning, accounting of the actual execution of works, synchronization of activity of workshops and balancing of utilization of capacity became the main objective of implementation of 1C:ERP. The production functionality of 1C: ERP Enterprise Management 2 is designed taking into account requirements of the enterprises with technically difficult multiconversion production.

During the project it was necessary to solve the following problems:

• unify engineering data and create the system of operational management of the normative reference information;
• optimize production planning;
• provide operational and exact calculation of normative and actual cost of production;
• organize operational management of purchases of materials and component parts;
• increase effective management of sales from the moment of obtaining the new order (including the organization of interaction within obtaining the state defense order) and approvals of terms of its accomplishment until shipment of finished goods to the consumer;
• optimize a management system for logistic processes of the enterprise, including inventory management, warehouses and ensuring production.

For the operational solution of assigned tasks the project office was created. All key experts and heads of Motovilikha Plants were a part of a project team. The new contractor - AYSIEL-KPO of AF company was involved to implementation of an expanded circle of tasks.

At the first stage of the project modeling of a solution architecture was carried out, the requirements reflecting specifics of Motovilikha Plants are worked carefully out. During preparation of implementation of 1C:ERP important organizational decisions were made.

"Important work is performed on the organization of activity of the newly created logistic center. Inventory of warehouses is carried out and export of unclaimed materials and semi-finished products is performed, up-to-date information about the actual remaining balance of Inventories as a result was obtained. The concept "internal logistics" for our enterprise is new – these functions were not in a special way organized earlier and were executed "as it is necessary", - Igor Medvedev, the project manager, the deputy CEO for operational management of Motovilikha Plants notes.

One of key project risks of control automation by machine-building production is the low level of quality of the normative reference information, and in particular it concerns technology data: routes of processing, parameters of labor input of production of products and material standards. For the solution of a problem of ensuring production with qualitative information the group of operational adjustment of technology data was specially created. During operating time the group checked tens of thousands of technology processes, more than 10,000 errors are corrected.

"We managed to increase considerably quality of engineering data on products. We created group of operational correction of NSI in department of the chief technologist. Its tasks include check and the analysis of quality of NSI and also quick reaction and correction of the errors revealed in production. Besides, the group develops and enters into a system the detailed technology processes of dismantling, fault detection and assembly after dismantling of the products which are subject to repair", - Andrey Nikonov, the deputy chief technologist of Motovilikha Plants comments.

Project Results

During the project, to a 1C:ERP broadcast in trial operation on Artzavod, requirements of Motovilikha Plants regarding improvement of standard functionality of the solution for the enterprises of defense industry complex were implemented. Leading specialists of 1C Company and the partner "of AF" rendered to AYSIEL-KPO methodical and organizational consultations on use of new production functionality of a system. Thanks to joint efforts in December, 2015 a system is put into commercial operation.

Experience of successful implementation of 1C: ERP Enterprise Management 2 at the Motovilikha Plants enterprise can be replicated also on other enterprises of defense industry complex of the Russian Federation.

Efficiency evaluations of the project were given by its key participants:

"In a year the project team managed to make all much – to implement a class ERP production management system at the plant of the artillery systems. Now parts are followed in production by route sheets which contain all information, necessary for work: route of the movement of a part, necessary materials, step-by-step technology processing of a part. It is important to note that all documents form in a system automatically, proceeding from the production schedule. Changes are noticeable also in work of warehouse economy of the plant – now to receive parts from a warehouse, it is necessary to create requirements in a production management system according to the production schedule. The basic principle – in production only those parts and materials which are really necessary for accomplishment of the production schedule are issued. At the same time a system automatically monitors all changes and requirements, the staff of planned and distribution bureaus and a warehouse provide production with necessary parts and materials, timely entering necessary information into 1C, and the production personnel are engaged in the direct work – production", - Igor Medvedev, the deputy CEO for operational management of Motovilikha Plants - the project manager tells.

"Until recently all production was planned "on a knee", at total absence of coherence of production schedules of separate workshops. As a result loading of workshops was not balanced, it was extremely difficult to predict terms of production of parts. The newly created schedule system completely changes approach to planning – now this process is completely centralized. Now we had an opportunity to online trace running state of the order and to react quickly to all deviations", - Vyacheslav Tsybulin, the director of command center production of Motovilikha Plants notes.

"Using 1C:ERP we managed to build process of management of production of special equipment from the moment of receipt of the order before shipment of finished goods. And here the extremely important role is played by interaction with customer representatives. During the project we reviewed and approved with all participants of process standards of processing of requests and signing of the contracts", - Alexander Lomonosov, the deputy CEO for special equipment of Motovilikha Plants comments.

"One of key project tasks – to make production profitable that means approval of the customer of the reasonable price of a product allowing to work to the enterprise with profit. It was necessary to organize accurate accounting and cost control on production not to allow receiving losses. Using 1C:ERP we managed to automate formation of planned calculations of a product. Such approach allows to increase repeatedly the accuracy of calculations, to reduce labor input and to increase efficiency of data acquisition", - Sergey Nikulin, the head of the planning department and reportings of Motovilikha Plants adds.

"Despite gravity of the achieved results, it is impossible to stop on it. 2016 will be even more intense – it is necessary to extend a production management system to the plants of the reactive systems of volley fire and "Motovilikh - Civil mechanical engineering", considerably to expand guidance loops within the project", - Artem Vozhakov, the CIO of Motovilikha Plants says.