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Zorya-Mashproekt (Gas turbine research & production complex, State Enterprise) is one of the largest manufacturing enterprises in Ukraine and part of the Ukrainian Defense Industries (Ukroboronprom) state corporation. The enterprise mostly produces gas turbine plants while its products are in great demand worldwide.  

Due to the rising competition in global markets, manufacturing companies are seeking ways to increase the competitiveness of their products. For this purpose, it is essential to reduce product development time and production costs while maintaining its high quality. 

The digital transformation project chosen by the company management was expected to increase the efficiency of business processes, optimize the use of resources and reduce the duration of design and production cycles. 

Project description 

The enterprise managed to achieve the set goals with great success due to the active participation of its top management in business processes reengineering. Other project participants were also highly motivated to reach the result. 

Digital transformation covered all enterprise divisions and affected almost all key business processes: designing new products (management of the product development planning), all production stages and logistical tasks (procurement logistics and sales logistics).   

The most critical step taken by the management was a full transition to electronic document management, including product design, manufacturing and delivery to the customer. This approach ensured real-time management of a large machine-building enterprise. 

Designing new products 

Engineering bill of material (BOM), modular BOM and production BOM are now fully computerized. The company employs more than 600 design engineers and more than 150 process engineers who turn to IT-Enterprise PLM for information. Process engineers publish and archive all documentation only with the IT-Enterprise system. Based on these documents, the system generates routings, material requirements, standard times and costs necessary for production planning.   

Over 90% of the enterprise’s products are exported to foreign markets. The products produced by the plant are unique and custom-built. Customers receive a complete set of engineering documentation together with the manufactured item. A particularly interesting solution is the automated translation of such documentation. The system keeps records of the documentation distribution; therefore, up-to-date engineering documentation is always available for customers. 

The digital archive implemented in IT-Enterprise is the basis of the enterprise’s engineering document management. It provides reliable storage of e-documents versions at all stages and in various statuses (drafts, working and archived documents). Paper files are no longer needed since e-copies in TIFF/PDF can fully replace hard copies. Great attention is paid to maintaining a high level of security. A proper level of data protection is possible with flexible differentiation of documents access rights, as well as statistics on document processing. 

Manufacturing 

The plant simultaneously supports several production planning schemes depending on the order type and design & engineering documentation. Planning for each scheme is different since they have different manufacturing cycles and transferring procedures for fitting elements. The specialists managed to bring all the planning options into a single end-to-end scheme using which the requirements for material, purchased components, labor and production capacity are planned. 

For such a large manufacturing enterprise, an inventory management system has been implemented that keeps itemized records of transferring parts and assemblies in all production facilities, shop-floor storerooms and warehouses (the plant has more than 30). IT-Enterprise system also keeps functional control records of the shop-floor production (ссылка на кейс Зоря-MES). 

Logistics 

The enterprise works with a broad range of goods and materials (tens of thousands of materials and fitting elements per product). This is why the procurement procedure – from placing a purchasing requisition until receiving the materials – previously exceeded a year. 

Based on the master production schedule, BOM and material consumption rates, the requirements for goods and materials are calculated for 1,5 years ahead. Then online purchase requests are generated in the system. Enterprise procurement staff purchases the necessary materials on the electronic bidding platform. All these procedures implemented in the system are done in electronic form.  

Production requirements are planned at night, whereas at the daytime, only metering operations are carried out. All materials are transferred to the production department only after receiving orders through the system. 

The commissioning of the electronic bidding platform (EBP) at “Zorya”-“Mashproekt” took 3 months and was paid back in the first month of operation. Transparency of procurement procedures resulted in lower prices for some materials. 

Key project factors 

• The time-to-market has been reduced by 30% 
• Product development has become 40% faster 

Results 

Having an integrated ERP system from IT-Enterprise, Zorya-Mashproekt has successfully implemented a large-scale digital transformation project. Now, the company can boast better competitiveness on a global scale.  

The digital transformation project affected product development, manufacturing, procurement and sales logistics, equipment maintenance, quality assurance, budgeting and management control system, general accounting, tax accounting and human resources.   

The end-to-end 3D design has significantly reduced the process completion time. As a result, product development has been accelerated by 40%.  

The introduction of an electronic bidding platform has significantly reduced the price of procured materials. 

The time-to-market, including product design and manufacturing, has been reduced by one-third.  

One of the largest state manufacturing enterprises in Ukraine has implemented a successful digital transformation project, the ERP system serving as the basis of change. The enterprise has achieved shorter product development time and time-to-market and lower production costs while maintaining a high quality of products.