Elabuga Automaker Boosts Production Efficiency with ERP System
Region:
Republic of Tatarstan
Industry:
Industrial Machinery Manufacturing
Background:
The enterprise needed effective management in both make-to-order and batch manufacturing that take place on one and the same production site. Moreover, PA ELAZ committed to increase its output of products by one-and-a-half or two times although the enterprise could not achieve the high performance indicators without an effective production scheduling and management tool.
Solution:
ERP system implemented at the enterprise is used for warehouses and purchasing management. The created database is practical for product data management. The system provides production scheduling and shop floor management capabilities. Data needed to generate payroll reports are exported from the system on a daily basis.
Advantages:
ERP system automatically indicates shortages in technological and engineering data
The enterprise is able to make changes in production on-the-fly
The production plan is generated taking in account all new orders of the Trading House and the orders already placed
One may call the process organization at the Tool Making Plant exemplary—well-thought-out process flows, clean premises, well-organized and properly stored tools and jigs, and smooth working rhythm without any extra clutter. The most important source of innovations at the enterprise is that resources planning and production process management are fully automated through using ERP system.
About
Tool Making Plant (TMP), ElAZ is one of the main production subdivisions of Elabuga Automotive Works (OJSC “PA ELAZ”). It produces machine tools for Russia’s automobile, gas, oil and other industries. Special-purpose motor cars are supplied to the divisions of such major oil companies as TNK, LUKOIL, Gazprom, Surgutneftegaz, Tatneft and others.
Situation
Tool Making Plant (TMP), ElAZ produces heavy-duty automotive special machinery for oil and gas industry, both based on truck and tractor bodies, and also a great number of component items. Manufacturing of a variety of products for several industries has two sides of the same coin. From the front side—it is a broad coverage of markets resulting from a wide range of products, and from the flip side—complications with management organization when several types of production can be found side by side in one production facility.
In such situation, it was rather difficult to manually streamline production management functions. Its large scale spurred the enterprise to embrace a powerful information system to support production management. Moreover, in the nearest future, the enterprise planned to provide its product output growth by one-and-a-half or two times, and this goal could not be achieved without computer system.
Solution
It was important to not only provide for quick changeovers between products but to streamline all business processes in order to increase production efficiency in the eneterprise. That is why the choice was made in favour of ERP MAX+ System capable of encompassing, apart from production, purchasing, inventories, and product data management. ICL-КME CS was selected as implementation partner. The main criterion for the choice was its in-depth expertise and strong experience in ERP implementation in manufacuring industries.
The initial changes were made with regard to product data management: building up a single engineering database where T-FLEX DOCs was used as a source. It is well-known that manual entry of data from one system into another one is labour intensive, error prone and time consuming. To overcome those complexities, a specific program was developed for engineering data migration to МАХ+ System. Verifying and ensuring the completeness and correctness of data migration was its strong advantage: if earlier minor errors caused by human factor could occur in enginnering departments, now it was the system to automatically identify missing data and validate entered values.
Integration of МАХ+ System with 1С Accounting enabled to efficiently generate financial reports resulting from timely receipt of the required information from production into ERP MAX+ and, further on, into 1С system. ERP modules accumulating all information about inventories, purchases and sales were successfully implemented.
Inventory Management keeps data on inventory available in stock: item inventory codes, bin locations and put-away rules between warehouses.
The modules recording purchasing data perform transactions related to procurement activities: supplier chain management, generation of purchase requisitions for component materials, flow-of-funds planning and incoming inspection of materials received.
Distribution Management and Sales Order Management enabled to maintain product catalogues, provide prospect and customer relationships, pricing, customer credit monitoring, sales order processing, order despatching, and also keep the appropriate financial records.
Effects
Shop floor management and scheduling is available on-line through ERP МАХ+ System. Production process flows are built to the best advantage consistent with the best practices in ‘lean manufacturing’ implemented by the enterprise specialists. Dispatch lists for workers to make component parts and items are printed out from the system, and the data needed for generating payroll reports are exported to 1С system on a daily basis.
To date, apart from Production, Warehouses and Purchase Management are in full operation, and the Product Data Management database goes live. No confusion occurs with changes in engineering documentation thanks to ECNs (engineering change notes). All restrictive lists are brought into compliance.
With each passing day the ERP system is gaining full and expedient adoption at the enterprise. The staff speaks positively of the system operation, and they can’t imagine how they used to work without it before.
