Akron Holding Group of Companies achieves maximum efficiency by implementing "1C: ERP"
On the basis of "1C: ERP" Odyssey company will automate the activity of RosMetIndustria LLC, one of the structural subdivisions of GC "Akron Holding". Implemented information solution will allow the plant to calculate the cost of production correctly, to reflect all the facts of economic activity, will provide an analysis of mutual settlements by maturity of debt and allow to make balanced management decisions based on reliable information.
About the project
The plant needed to restore work and set up production and sales. The company already had another information system "1C", but it did not meet all the needs of the business. The decision was made to transfer the activities to "1C: ERP". The product was chosen for several reasons. Firstly, the holding uses "1C" product solutions at all its enterprises. Secondly, the plant management was already working with the Odyssey project team leaders earlier and was confident in the professionalism of the entire team. At the start of the project, they performed a survey, formed a pool of requirements and tasks and created a time schedule. There were about 150 requirements for the first phase.
Why automation was required
Automation had a number of significant prerequisites:
- Some information was collected manually using Excel.
- There were no fixed regulations of business processes, their owners, terms, distribution of responsibility between employees and departments.
- Most internal approvals were conducted via email, reducing the speed of management decision-making.
- Work was carried out on old platforms in several information bases, as a result of which:
- business users addressed a number of sources with different information;
- high cost of current systems was observed;
- preparation and submission of reports took a long time;
- "manual" collection of reports was carried out;
- human factor remained significant;
- there were problems in working with analytics, and managerial reporting was uninformative;
- it was difficult to make decisions about the flow of goods and stock reserves.
The lack of reliable and complete information about the company made it impossible to analyze the effectiveness of sales, purchases, mutual settlements, the real terms of debt, the actual balances and costs of goods.
"The project team was faced with ambitious tasks. ERP had to be launched as quickly and successfully as possible. Pre-engineering survey started in May, and the first phase was launched in November. This speed was achieved through the accurate and smooth interaction between the project teams of the customer and the contractor. The success of the project is evidenced by the increased speed of business processes and their optimization".
Lyasira Yeroshenko, Odyssey Business Architect
As a result of implementation, the plant can:
- Make timely and justified management decisions based on the collected reliable information
- Operate high turnover of receivables, inventories, company assets and productive management of labor resources
- Effectively manage funds
- Prepare reports and close the period in the management accounting in a short time
- Analyze information qualitatively
- Minimize the human factor and the possibility of errors
"To correctly calculate the cost, you have to pay attention to a large number of aspects: accounting for packaging turnover, energy costs, waste and recycling costs, toleration accounting, cross-sectional production planning, the analysis of planned margin on customer orders, mandatory provision of advance payment for each order, the possibility of partial shipments on orders while maintaining payment schedules, production on customer orders, and more. Hence the obvious need to implement a high quality, multi-functional information system".
Svetlana Malkina, Head of Controlling Department of "Akron Holding" Group of Companies.
"We conducted training for the personnel, which did not cause any particular difficulties - the employees were already previously working with another 1C software product. 1C can be customized as convenient to the customer. We have already abandoned the "1C: UT", calculated the total production cost in the ERP, got the indicators of the company's financial performance in January and February 2020, as well as all the necessary management reporting commented".
Lyasira Eroshenko, business architect
Odyssey soon will start the second phase. Its tasks include planning and optimization of the production process, planning of purchases and sales, budgeting, marking of the finished products, and automation of the quality control system, including registration and examination of defects.
About
Akron Holding is one of the largest industrial and metallurgical holdings in Russia. The company has a horizontal multi-divisional structure, uniting 38 regional business units, 108 production and warehouse centers located in 22 federal districts of Russia, Kazakhstan, Kyrgyzstan and the Baltic states, and 7581 employees. The enterprises of the cable cluster produce more than 17,000 sizes of cable and wire products.
