«Tarbagatay Munay» – from prospecting to production with «1C:Enterprise 8»
Date of publication: 13.03.2012
«1C-Rating» company completed the implementation of comprehensive information system of management at the «Tarbagatay Munay» LLP. The system, based on the «1C:Manufacturing Enterprise Management for Kazakhstan» software product, allowed the company management to improve enterprise management, move to a new level of planning, streamline business processes and improve expenditure monitoring.
«Tarbagatay Munay» is a rapidly developing oil and gas production company. This company is currently engaged in the exploitation of "Sarybulak" oil and gas deposits and proceed to the oil and gas extraction.
Staff, assets, business processes, document turnover, information flows and company needs increase during the company development. On that score the company management decided to implement comprehensive information system at the stage of oil prospecting.
Extra reasons were discrepancy between the data of managerial and regulated accounting, significant complication of procedures and defaults on document harmonizing procedures, damage or loss of paper documents.
The company management determined the following tasks of the project:
- All remote departments should work in unified information system with a maximum time of availability despite the potential disruption of communication.
- In addition to the regulated functionality, the main part of processes of procurements, payments and planning should be automated.
- Reporting, including financial, supply, etc. reports should be automated as much as possible.
- The information system should be prepared before the oil extraction.
- English-language for international managerial personnel should be provided.
«1C-Rating» company was outsourced for the tasks solving. The major factors for choosing this company were: «1C-Rating» company is official representative and distributor of "1C" and has wide experience in the implementation of corporate information systems, including systems for oil and gas industry.Previous information system was the modified accounting application based on the «1С», with elements of managerial accounting. The specialists of «1С-Rating» company choose the «1C:ERP for Kazakhstan» business application as the basis for the system development. The key factors for choosing this business application were the system portability and low cost of implementation. During the project, «1C-Rating» specialists performed the impact analysis, the system development, the customization of the business application, training of the customer personnel, data transfer from the previous system and the developed system implementation.
The data input to the system by field staff was ensured (supervisors, foremen, storekeepers, inventory managers). Phased staff training on the use of information system was conducted.
Under active construction it was planned to start the production soon. One of the provided works was the development of extended accounting of construction facilities with accounting of all construction stages.
Document harmonization subsystem allowed to streamline significantly routes and approval time of documents electronic versions, taking into account the document turnover between remote departments and central office.
English translations of system blocks for the international personnel were performed together with the customer’s employees. User-friendly English interface was developed for managerial reporting and document approval tasks. The company management gained the ability to control directly the most important processes in the information system.
Own-designed subsystem for the accounting of assets in functional currency (USD) and currency reporting was implemented to the management company. As result, all transactions in accounting are recognized at the historical rate of functional currency. Counterparts of regulated reporting and forms of currency regulations are formed in the USD currency, and as well, budgets and plan-fact analysis.
The implementation of new system allowed to save the functionality of regulated accounting subsystem and improved the accumulation of regulated reporting.
During the implementation, financial, managerial and production accounting were automated. The following subsystems and functional blocks were implemented:
- Inventory management.
- Funds management.
- Customer Service Processing.
- Procurement management, including:
· Supplier relationship management (SRM);
· Management of internal needs for materials;
· Procurement planning, annual procurement plan scheduling and monitoring;
· Accounting of regulated procurement procedures;
· Supplier order management.
- Production management.
- Sales management.
- Special clothing accounting.
- Assets management, including:
· Accounting of construction facilities;
- HR management.
- Financial and tax accounting.
At present, the majority of company departments operate in the implemented system. В настоящее время в системе функционируют практически все подразделения компании.
Nowadays the system is in product operation with 150 automated work places.
The plans for further development are the followings: more detailed elaboration of budgeting processes, procurement planning after production initiation, product prime cost calculation.
«I consider that the project was implemented successfully. The ideal is unattainable, there are always things to correct and to supplement, however determined tasks were completed. The company operates in the unified information system, data exchange with remote departments occurs in real-time, procurement and payment procedures of document turnover were automated, financial, supply, etc. reportings were automated as well. Professional skill level of the specialists is sufficient to perform the assigned tasks».
«Tarbagatay Munay» is a rapidly developing oil and gas production company. This company is currently engaged in the exploitation of "Sarybulak" oil and gas deposits and proceed to the oil and gas extraction. Headquarters is located in the city of Ust-Kamenogorsk. The company has offices in Almaty and Astana.
- 8 floor, 64 K Satpaev street, VKO, the Republic of Kazakhstan, 070016
- Almaz Khafizov, financial manager - Almaz_kh@tbmunay.com