Sollers optimized production management using the 1C:ERP system

2015

October 20, 2015. The Prof-IT Group company announced implementation of 1C: ERP Enterprise Management 2.0 on one of the Russian holdings of automotive industry of Sollers Group.

Russian automobile building holding "Sollers", 2015

Project History

Corporate information systems of 1C already helped manufacturing enterprises of one of automobile building holdings of the country to reduce the level of illiquid stocks by 20%, to reduce general production costs by 10%, to increase efficiency of ensuring production with component parts, to reduce duration of unplanned idle times of assembly conveyors. Having deployed solutions of 1C already more than on 6000 jobs.

Choosing a Solution

Active growth of business of Sollers Group in 2007 demanded from the management of holding to unify and standardize business processes, to create the uniform centralized control system, to reduce costs for management of processes.

Management of holding stopped the choice on a single technology platform of 1C: Enterprise which completely met all requirements:

· existence on the platform of ready-made solutions for automation of the enterprises of the different industries which are a part of Sollers Group; · "seamless" integration of industry and functional solutions among themselves; · scalability, an opportunity for work over 1,000 at the same time active users in one base; · low total cost of ownership; · minimum implementation time of solutions; · efficiency of an exit of updates of systems in connection with changes of the Russian legislation; · existence of a large number of specialists in implementation in labor market.

The Prof-IT Group company became the strategic partner in implementation.

Today the following projects are implemented:

· at twenty manufacturing enterprises of holding the corporate information system based on 1C: Manufacturing Enterprise Management is implemented; · all enterprises are covered by the "1C: Payroll and HR Management" system; · using the solution "1C: WMS Logistics. Warehouse Management" 5 warehouses with a total area of 35,000 square meters with quantity of nomenclature positions more than 65,000 are automated; · at forty enterprises single corporate solution based on the 1C: Accounting system is implemented; · electronic document management of exchange of legally significant documents is automated. The efficiency of projects can be estimated on the following indicators:

· general production costs decreased by 10%; · the term of turnover of money was reduced by 7%; · the entering control and reservation of component parts and materials under production orders is provided; · the efficiency of ensuring production is increased by component parts; · level of illiquid stocks in warehouses decreased by 20%; · time of unplanned idle times of assembly conveyors is reduced; · terms of preparation of the regulated and management reporting by 3 times decreased; · all cycle of payroll calculation and taxes for more, than 24,000 employees is made within one day. In one information base data more than 8,000 employees are processed; · costs for maintaining time keeping decreased by 40%; · the costs connected with processing of legally significant documents were considerably reduced.

The annual volume of documents (the invoice, the act/delivery note) is more than 170,000 pieces. The number of the partners participating in electronic document management – more than 300. One of the most important conditions of further increase in efficiency of activity of holding is improvement of processes of management of production at the shop level. At the moment in JSC Ulyanovsk Automobile Plant the project on development and deployment of the sample solution based on is implemented"1C:ERP Enterprise management 2.0" regarding problems of operational production management.

Result

With use 1CERP":" the following blocks are already automated: management of BOM (Bill of materials); maintaining data on routes of production and to the list of transactions of technical processes of parts and assembly units; management of standards; formation of the podetalny production schedule; purchase planning, delivery schedule of component parts and payment schedule to suppliers; calculation of normative cost value.

Management of BOM (the specification of cars and assembly units) - one of the most difficult tasks in modern job order automotive industry. Calculation of the podetalny production schedule takes less than 1 hour taking into account complexity of BOM (14 nesting levels, 2000 elements).

Formation of the linear list: "The need for component parts, materials, parts and assembly units – providing/production Terms – a providing Source" allows to plan operation of assembly conveyors according to a set of orders and conditions of their providing with required component parts, materials, parts and assembly units. On the basis of the executed calculation the delivery schedule of component parts, materials and the payment schedule on suppliers forms. Economical divisions of the plant had an opportunity to quickly calculate normative cost value.

Development Plans

Further development of a production management system at the shop level according to the concept of "lean production" and replication of project deliverables is planned for all manufacturing enterprises of holding. Development of a production management system at the shop level according to the concept of "lean production" and replication of the ERP solution is planned for all manufacturing enterprises of holding, representatives of the company integrator reported TAdviser.

2014

On November 13, 2014 between SOLLERS and 1C company the General agreement about implementation of 1C: ERP Enterprise Management 2.0 is signed. The project is performed by Prof-IT Group company.

Choosing a Solution

Based on 1C: Enterprise a modern scalable ERP system will be created. This solution will help SOLLERS holding to implement the strategic objectives consisting in achievement and deduction of leader positions in the market of Russia and the countries of customs union.

Goals and Objectives

Among key tasks of the enterprise further steady growth due to creation of new partnership. Start of the new customized models of cars, development of production base, implementation of new technologies which would allow to improve a management system for territorial and remote divisions is planned.

Project Progress

Within the signed agreement leading specialists of 1C Company carried out the assessment of an information system of the company, jointly with specialists of SOLLERS consultations were organized and a number of the actions directed to improvement of software solutions and techniques of their implementation in mechanical engineering is developed. For solving of tasks of the company software products of 1C Company on a new technology platform of 1C:Enterprise 8, including the ERP system of new generation - 1C: ERP Enterprise Management 2.0 are recognized a best tool.

Result

Specialists of SOLLERS company estimated new production functionality of 1C: ERP Enterprise Management 2.0, considered model of its use in automotive industry and made the decision on inclusion of a system in the IT strategy of group. The project of complex implementation of software products of 1C Company at the enterprises of holding is at the moment developed. Implementation is entrusted to Prof-IT Group company.

The SOLLERS holding successfully uses many years software products of 1C for management and accounting. In total based on 1C: Enterprise in SOLLERS more than 6,000 jobs are automated:

• in Ford Sollers joint venture the MES system developed on the 1C: Enterprise platform which manages a full stroke of production of cars, including control of controllers of the pipeline and nut wrenches a WMS system is implemented provides effective delivery of materials to the pipeline and their optimal placement in a warehouse. Systems personnel and accounting completely cover settlement process of salary, personnel records and the corresponding regulated reporting, using the solution "1C: Document Flow 8" the effective system of formation, storage and approval of documents is organized;
• activity of Ulyanovsk Automobile Plant is automated using the system of 1C: Manufacturing Enterprise Management which helps to control production costs, cost value of release, settlement with suppliers and buyers, to manage warehouse stocks, to timely plan purchases and sales;
• the "1C: Payroll and HR Management 8" system helps the company to solve problems of personnel records, personnel management and payroll for more than 30000 employees;
• Are used by 1C: WMS Logistics. Warehouse Management 8 in SOLLERS trading house and 1C: Trade Management 8 at Zavolzhsky Motor Plant for procurement management, sale and warehouse logistics;
• 1C: Accounting 8 is applied to accounting and formation of the regulated reporting in divisions of holding;
• to Zavolzhsky Motor Plant 1C: Motor Vehicle Management 8 helps to solve problems of control of own vehicle fleet.

Business trips? – Easily! The group SOLLERS lowered costs for management of business trips using the solution PROF-IT GROUP.

The group Sollers, the Russian automobile holding, by 5 times reduced costs for traveling expenses due to implementation of the unique solution based on software of 1C. At the same time the quantity of forms for paper documents decreased from 14 to 2. The solution developed by PROF-IT GROUP company provides service of a design of business trips, universal, fast and available on any devices, reducing load of managers and financial service of the customer.

The solution created by PROF-IT GROUP company provides the instrument of control and monitoring of process of approval of business trips in the mode of "one window" as from the management and responsibles of holding, and external auditors. Using convenient services and the intuitive interface, users can independently issue the request for a business trip, having selected desirable options, for example, the type of transport, the flight number or the name of hotel, to keep track of the status of consideration of the request, to print a set of documents, necessary for a trip, and also to make a travel coordinator request, using a feedback form. The relevant list of employees, with a possibility of detailing of data on each specialist, including information on the regulations of accommodation and journey, passport data necessary for an operational design of a business trip is available to a travel coordinator in a personal account.

A system exempts heads from paperwork and gives an opportunity of monitoring of expenses of the company and the actual finding of employees. In a system the functionality of time substitution of employees is available, - the tasks and instructions appointed to the user for his absence will be available to accomplishment to the employee substituting it. Besides, the possibility of remote online approval by means of the mobile application created for convenience of Top managers of Group is provided in the solution.

For specialists of financial service the functionality of management of requests according to the approved plans of divisions which use provides correctness of accounting and detection of requests "over the budget" is implemented. The solution is closely integrated with the existing accounting system of the company, allowing the staff of financial service to unload expense reports with the made calculations in the automatic mode.

"The project is unique the fact that we were faced by a task completely to automate process of management of business trips in single solution taking into account the existing IT landscape of holding, having provided their close integration among themselves. Jointly with specialists of Group Sollers to us was succeeded to pass a way from private completions to the full horizontal solution containing all necessary functionality on each process step with automatic formation of a complete set of necessary documents. But the most important – the customer received the solution which at rather low implementation cost and supports, allowed to receive real results in short terms", - Denis Kotlyarov, the PROF-IT GROUP project manager noted.