“Razrez Stepnoy” Coal Company JSC
Development of an information system for logistics management based on “1C:ERP Holding Management” at “Razrez Stepnoy” Coal Company JSC
“Razrez Stepnoy” Coal Company JSC is developing the reserves of the Chernogorsky coal deposit of the Minusinsk coal basin, located on the left bank of the Yenisei River, near the mouth of the Abakan River. The Stepnoy open-pit mine produces “D” grade coal. The products are supplied to energy sector companies, housing and communal services structures and for export to Europe and Asia.
“D” grade coal is one of the most widespread in Russia, low-ash, easily enriched coal grades. This type of coal has good quality properties and is in consistently high demand, as it is often the fuel of choice for many large consumers.
The products of the Stepnoy mine include “DPK”, “DOM”, “DOMSSH”, “DSSH” and “DR” grades of coal. Coal grades are produced as a result of processing of regular “DR” grade coal at the coal preparation plant and crushing and sorting facilities of the open-pit mine.
The company has over 900 employees.
Project Objectives
Tasks
- Comprehensive automation of the following logistics processes, taking into account the connection with the processes of budgeting procurement, accounting, treasury, management of costs of materials and supplies:
- Planning the need for logistical resources and controlling the provision.
- Planning and control of procurement.
- Preparation, execution and monitoring of contracts.
- Procurement execution.
- Warehouse operations.
Designing a budget model describing the process of planning, adjustments and interrelations of the procurement budget, cash flow budget and income and expenditure budget, describing the rules for collecting actual data on the budgets.
Project background
Two years ago the company started the migration to “1C:ERP Holding Management” software product with a view of integrated automation of the company's processes.
When the work started, the company used the following software products:
- “1C: Production Enterprise Management + Career Management, edition 1.3” - a system of operational, production, personnel accounting, payroll and tax calculation, regulated accounting and planning.
- “1C: Document Management”, revision 3.0 – document approval system.
- BIT-FINANCE - information system for planning and executing purchases.
During the work in “1C:ERP Holding Management” accounting and treasury processes were automated, procurement and warehouse accounting processes were partially automated.
In the course of the work, difficulties were identified in the complex automation of operational and managerial accounting processes, taking into account the connection with the processes of procurement budgeting, accounting, treasury, and cost management.
In particular:
- There was no proper link between purchasing plans, supplier orders and warehouse operations, which did not allow for process control and plan-actual analysis.
- There were no structured processes for warehouse operations, purchases of goods and materials, and write-off of goods in regulated accounting.
- The following features were missing:
- Planning of equipment requirements.
- Procurement plan generation with the ability to adjust and monitor the limits.
- Inventory movement in terms of equipment for the purpose of cost accounting.
- Employees had to duplicate information in several information systems.
Considering the tight deadlines and the criticality of the tasks, the company decided to involve ITPS Group (Parma-Telecom LLC) in working on the transition to “1C:ERP Holding Management”.
Project milestones:
- Preparation and regulation of the project.
- Survey and design of target processes, including:
- Analyze the current document flow and rules for document processing.
- Drafting suggestions on the recommended document flow and document processing rules.
- Technical design and development of technical documentation.
- Revision and additional configuration of “1C:ERP Holding Management”.
- Preparing the system for pilot operation, including:
- Setting up a productive contour, including setting up document approval routes.
- Development of working documentation.
- Preparing and conducting user training.
- Preparing and conducting pilot operation of the system, including analysis and control of chains of documents generated by users in the production base and preparation of recommendations for their adjustment.
- Updating documentation based on the results of pilot operation.
- Transfer of the system to commercial operation.
Additional work performed during the project included:
- Regulation of the joint revision of the “1C:ERP Holding Management” configuration performed by the customer and the contractor.
- Advising the customer on typical “1C:ERP Holding Management” capabilities and analyzing the improvements made by the customer.
- Addressing additional priorities identified during project implementation.
- Direct consulting at users' workplaces at the start of pilot operation.
During the project, special attention was paid to documenting design and technical solutions, as well as transferring knowledge to the customer's employees.
Result
The project met all of its objectives. The following results were achieved:
- More than 102 workplaces have been automated, including:
- Employees and heads of production departments and administrative services – 82 workplaces.
- Employees and managers of the Logistics and Warehouse Management Department - 8 workplaces.
- Planning and Economic Department – 5 workplaces.
- Accounting – 7 workplaces.
End-to-end processes are supported using control procedures that reduce the likelihood of user errors, and reports that facilitate reconciliation of operational, managerial and accounting data.
Double entry of information was eliminated by discontinuing the use of "BIT-FINANCE" information system and transferring the functionality for recording warehouse operations from “1C:Production Enterprise Management” in “1C:ERP Holding Management”.
Customer Feedback
Taking into account the achieved results, “Razrez Stepnoy” Coal Company JSC expresses its gratitude to ITPS group of companies for fulfillment of the assigned project tasks. We should especially note the effective and professional work of the ITPS project team, which showed deep knowledge of 1C products, focus on the result, ability to understand the needs of the customer, to offer and implement effective solutions. Our company is looking forward to further productive cooperation with the ITPS.
General Director of “Razrez Stepnoy” Coal Company JSC E.B. Furtak
This website uses cookies. By continuing to browse, you consent to our use of cookies.