Kazakhstan aluminum smelter choose «1C:Enterprise 8»

Date of publication: 17.06.2009

«1C-Rating» company completed an important stage of large-scale project of «Kazakhstan Aluminum Smelter» JSC automation on the «1C:Enterprise 8» platform. KAS JSC is the only enterprise for producing primary aluminum in Kazakhstan.

«Kazakhstan Aluminum Smelter» is the first state-of-the-art aluminum smelter in Kazakhstan. Inaugurated in December 2007, it reached its run rate capacity of 125,000 tons per annum in Q2 2008.

Previously, the company used an automated system based on "1C: Enterprise 7.7", however the transition to a higher level of automation was necessary due to the expansion of production, increased documents flow, expanded information base.

In 2008 the company management decided to move to a modern automation system, which allows solving the tasks of management, business and accounting, planning, budgeting and financial analysis.

«1C:Manufacturing Enterprise Management for Kazakhstan» business solution was chosen as the project base. This business solution met the requirements for functionality and ensured problem solving. The main arguments for choosing this system were:

  • Wide functionality and flexibility
  • High scalability
  • Functionality of managerial accounting
  • Comprehensiveness of the solution

«1C-Rating» company was chosen for the project implementation. The company has qualified specialists and sufficient experience in large project implementations at the production sector enterprises. This is confirmed by the positive customer reviews.

The customer company management determined the following tasks of the project:

  • Establishment of facilities construction accounting, fixed assets cost and acceptance control.
  • Accounting system transfer to IAS chart of accounts.
  • Avoiding manual input and processing of information.
  • Automation of prime cost calculation.
  • Reduction of complexity of collecting corporate reporting provided to the management company.
  • Arrangement of contracts accounting with suppliers and contractors.
  • Provision of funds planning and control tool for finance department.
  • Provision of convenient accounting mechanism for transport department.

Due to the project implementation, KAS JSC received efficient system deployed on 512 workplaces and corresponding to modern requirements of management and accounting. The following departments works successfully in the unified information system:

  • Financial and economic management with all its member services
  • Production departments
  • Accounting department
  • Storage facility
  • Estimate and contractual department
  • Department of Labour and Wages
  • Department of Human Resources
  • Purchasing Service
  • Sales Department
  • Transport department
  • Support departments

The implementation results are followings:

  • Unified information system with single data input developed. It and contains information about full financial and material flows of the enterprise.
  • The enterprise was smoothly transferred to the new NFRS chart of accounts (created on the base of IFRS).
  • The accounting department promptly receives comprehensive information about equipment and components acceptance acts.
  • Finished and semi-finished products prime cost calculation business processes are efficiently proceed. The package of additional reporting was developed for more detailed picture of prime costs.
  • Actual info base of personnel formed. This allows formation of an objective wage fund and operational decision making to fill the vacancies.
  • Most of routine work is avoided, the staff has more time for the analytical work.
  • Convenient work with data input ti the info base ensured for the enterprise specialists. (shop foremen, storekeepers, financiers, purchase managers).
  • Quality of accounting, analytical data and plant manageability were improved significantly.

Thus, implemented new information system on the «1C:Enterprise 8» platform allows the company managers to make informed economic decisions in pricing, cost management, optimization of the production program:

  • High accuracy of constructed fixed assets valuation.
  • Possibility to analyze intermediate prime cost of semi-finished and finished products.
  • Previously, the company management was guided by data from accounting system and most of this data was entered in the end of a month. And now, Simultaneous managerial and regulated accounting of all enterprise allowed the company management to receive an operational picture at any time.
  • Classifiers of nomenclature and contractors were set in order. The amount of accounted nomenclature positions was reduced from 75 000 to 16 000 by eliminating duplication.

Maintenance of the implemented subsystems will be the next stage of the current project. Solving of the following tasks is panned:

  • Management of repairs and maintenance of fixed assets.
  • Further automation of reporting package formation mechanisms.
  • Further implementation of the budgeting and planning subsystems.

The management of «Kazakhstan Aluminum Smelter» JSC notes:

«Kazakhstan Aluminum Smelter» JSC management received efficient system with 512 automated work places, corresponding to modern requirements of management and accounting due to the implementation».

«Kazakhstan Aluminum Smelter» JSC is the first state-of-the-art aluminum smelter in Kazakhstan.. "Kazakhstan Aluminium Smelter" and its main partner - JSC "Aluminium of Kazakhstan" - are part of the holding company Eurasian Natural Resources Corporation (ENRC). ENRC is one of the leading diversified natural resources groups with integrated mining, processing, energy, logistical and marketing operations.

Inaugurated in December 2007, it reached its run rate capacity of 125,000 tons per annum in Q2 2008. At the first stage of the plant construction, the initial capacity was 62 500 tons per year and planned capacity of 125 000 tons per year was completed in December 2007. At the second stage, the production capacity of 250 000 tons per year, is scheduled for completion by 2011.

Address: Pavlodar, Kazakhstan, 140001

Tel.: +7 (7182) 77-88-48

Email: rse@kas.enrc.com

Web-site: www.enrc.com