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Leadtime reduced by 40-60% for all types of products

Instrumentation, electrical industry
Leadtime reduced by 40-60% for all types of products
scale1,500+ employeeskpidecrease the production leadtime
ProductProductionProject time2 years
year of briefcase2010geographyUkraine
IndustryInstrumentation, electrical industrycustomerRivne plant of high-voltage equipment (RZVA)

Project Goals

Due to rapid business development of the High-Voltage Union concern, the owners set the task of optimizing the accounting and control processes. As a solution, it was decided to implement the IT-Enterprise ERP system at all industrial plants of the concern.

The Ukrainian assets of an international concern were chosen for the first stage of automation and development of a standard solution for all the plants: the Rivne plant of high-voltage equipment and the engineering company “High-Voltage Union-Ukraine”. 

Tasks that have to be solved during the project implementation:

- instead of separate decisions, it was required to build a single planning system;

- to create a control system for processing factory orders at all stages of production;

- to realize the rapid production cost assessment at all production stages;

- implement a product lifecycle management system - from marketing to warranty service.

Project Description

Due to production volumes growth and tight delivery times, automation of the production control was required. At the same time, to automate individual business processes various automation systems were used at the plants of the concern.

After acquisition some plants by High-Voltage Union concern, the need of unified information environment for coordinated management of all the concern resources from the headquarter arose. It is necessary to have operational information on performance of factory orders, as well as the consolidated reports on all plants of the holding.

Concern owners wanted to see an actual situation of what is happening in production in real time from the point of view of the production cost.

Management decided to implement the integrated ERP system IT-Enterprise with full functionality. Before the start of the project implementation the inspection of plant was carried out and business processes "as it will be" was developed. For the project implementation following areas were identified:

  • design engineering;
  • production control and accounting;
  • logistics and inventory accounting;
  • financial planning, cost calculation and budgeting;
  • accounting and tax accounting;
  • personnel management and payroll job;
  • maintenance control;
  • quality control.

Concern management set the task to develop a typical scalable solution for other manufacturing plants during the project implementation at RZVA plant. Additional task was to unify business processes and data processing technologies to consolidate the financial data of different plants into single corporate report.

The main task of the project was to implement all types of production planning: APS, MPS, MES, CFB, revenue and expenditure budget. Then it was necessary to adjust the operational accounting of parts and materials in production and finished products with an instant estimate of costs.

Key project factors

Over 600 users of corporate information system
Up to 3 million of operations in the MRP-plan of the plant with daily production re-planning
By 40-60% reduced order production cycle

Results

The key target of the project has been reached - reducing the manufacturing lead time of orders by 40-60%.

At the same time, information on products cost, on inventories, on stock balances of raw materials, on production capacity utilization and on the current status of orders is available in real time.

 

In the production part of the project was implemented volumetric production planning with a production plan feasibility estimation by capacity, operational planning of sales and production with forecasting the lead time (APS), optimization of capacity utilization (MES), operational production accounting with estimation of direct cost.

In the financial part automated the treasury with coverage of industrial plants and management companies, centralized planning and payments approve, cash flow forecasting, budgeting of income and expenses, through plan-fact analysis of budget execution, payroll.

Transparent order management was organized at the concern level in the operational mode, internal and external cooperation logistics was built, material and financial flows were coordinated to meet production needs, operational accounting and optimization of production cost were implemented.

Production processes, inventories, as well as capacity utilization were adjusted.

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