«Pavlodar oil chemistry refinery» LLP improves plant management system with «1C:Manufacturing enterprise management 8 for Kazakhstan»
Date of publication: 14.11.2014
«1C-Rating» company completed the implementation project of corporative information system at the largest Kazakhstan oil production plant, Pavlodar Oil Chemistry Refinery. The system deployed on 713 workplaces, allowed to reach new level of business processes management and became an integral part of the plant management.
«Pavlodar Oil Chemistry Refinery» LLP is the largest oil processing enterprise in Kazakhstan and the only company in the Republic of Kazakhstan on a set of processing units, providing 80-85% depth of oil refining. The refinery is oriented onto processing of crude oil from West-Siberian oilfields and produces above ten types of oil products: gasoline, jet fuel, diesel and stove fuel, liquefied gases, bitumen, coke and sulphur of different grades, etc.
In 2009 the company became part of «KazMunayGas» JSC NC (Kazakhstan national operator for exploration, production, refining and transportation of hydrocarbons). This determined the choice of company strategic direction.
Premises of the project were:
- Processing of enterprise accounting in a more than 100 disconnected programs, developed in 80s, 90s. Absence of unified accounting system for elementary analysis, correctness monitoring of economic operations in realtime processing and periodic duty.
- Absence of planning, management data and reporting in current information system.
- Insufficient regulations of procedure for maintenance of basic classifiers.
- Insufficient automation of certain accounting areas or functional blocks.
- High degree of manual data processing with distracting the employees of neighboring departments forms the performing of direct duties.
- Excess data input on a certain areas of accounting.
- The requirement of management company to unify completely the companies reporting (through 1C Individual and Consolidated financial reporting system).
The customer company management determined the following tasks of the project:
Unification of all information into a unified database.
Avoiding manual input and processing of information.
Shortening of reporting information delivery time.
Data quality improvement and its input at the sources.
Ensuring of operative, timely and reliable information for management solutions.
Ensuring the efficient interaction of departments.
Development of centralized accounting methodology for financial and economic activity of departments; The implementation of this methodology within the accounting model of corporate information system.
Ensuring the connectivity of accounting and operational accounting of production and business.
Development of management accounting mechanisms and its implementation by the software.
Improvement of accounting and audit.
The production efficiency improvement.
«1C-Rating» company proved to reliable partner was chosen as project developer and proved to be a reliable partner in the development of complex corporate systems with maximum coverage of work places. The beginning of the cooperation was the decision to implement «1C:HR 8 for Kazakhstan» for 4200 employees. Further full-scale project implementation was decided. As the basis of chosen project following business applications were chosen: «1C:HR 8 for Kazakhstan» (for automation of document management) and «1C:Consolidation 8» (for the reporting development).
Due to the requirement of the management company to join the consolidation perimeter of the holding companies, working on the 1C platform, the project was divided into two stages:
The First stage — the end of the 1st quarter of 2013.
Main objectives: unified information system development; Transferring of data input to the sources; Unified normative referral information; the maximum possible coverage of operational and managerial accounting at this stage; management company integration to the consolidation system.
The Second stage — 2014.
Main objectives: development of advanced managerial accounting and planning, plan-fact analysis on the basis of already working block of subsystems, which delivers actual information.
Consulting services performed during the project implementation
- Development of triangular mapping of accounts charts (existed chart, management company chart of accounts, system’s main chart of accounts); agreement and partial development of concepts and approaches of regulated accounting for the most part of accounting areas.
- Formalization and development of the existing model of accounting and cost allocation, treatment of release and prime cost calculation of semi-finished and finished products.
- Development of further subsystem of social expenses accounting. Namely, creation and development of new charts of accounts, correspondence charts, prime cost calculation method. And integration of this model into general cost calculation model of the plant.
Key results of the project
- Unified information system is in process, regulated accounting is fully operational, manual processing avoided.
- Data input transferred to the sources.
- Managerial accounting is fully operational in sufficient quantities of subsystems (Treasury, normative referral information, realization, production management, etc.)
- Unified subsystem is used by all departments participated in production realization and expenses monitoring, cost allocation and prime cost calculation. Moreover, the system is used in conditions of complex manufacturing flow chart.
- Products and services accounting implemented in the repair sheds.
- All the warehouses and storage plants work with Inventory management subsystem.
- Normative referral information subsystem is operated. This subsystem allows the users to create and arrange the project of new or existing directory entry and allows the experts to analyze and to process incoming requests. Responsibility centres for classifiers are established, regulations on work with classifiers are composed and appropriate controls are operated.
- HR and payroll management subsystem for 4200 employees is operated and tightly interacts with other subsystems.
- 250 enterprise employees were trained.
- Accruals subsystem is implemented within the requirements of Managerial Accounting System of the holding. This subsystem allows accounting transactions monitoring on the basis of previous periods/arrangements with suppliers, metering devices, etc.
- The enterprise was integrated to the consolidation perimeter of holding companies, working with 1C software product.
- Pipeline, road, rail oil products shipment documents execution (from the client request to the road bill) within «Product Realization Management» subsystem.
The expiry date of the trial operation and the beginning of the production operation is the 1st of April 2013.
The employees of all enterprise departments are the users of the system, 713 work places automated.
- production management and product prime cost calculation;
- sales management;
- procurement management;
- inventory management;
- tax accounting;
- HR management;
- non-material and fixed assets;
- funds management;
- product data management – bill of material;
- product data management – production technology;
- supplier relationship management (SRM);
- customer orders management;
- production orders management
Mukhit M Mazhenov, Deputy Director General for Corporate Development commented the implementation results:
«Plans for implementation were realized in full within the executed works. I would like to note, that sufficiently serious level of business processes transparency achieved with using the unified information system, covered the majority of the plant departments, financial flow control strengthened. In total it allows to take well-balanced management decisions».
«Pavlodar Oil Chemistry Refinery» LLP - is the largest oil processing enterprise in Kazakhstan. The refinery was designed with fuel profile and put into operation in 1978. The refinery is oriented onto processing of crude oil from West-Siberian oilfields and produces above ten types of oil products: gasoline, jet fuel, diesel and stove fuel, liquefied gases, bitumen, coke and sulphur of different grades, etc.
Address: «Pavlodar Oil Chemistry Refinery» LLP, 1 Khimkombinatovskaya street, Pavlodar, 140000, Republic of Kazakhstan
Tel.: +7 (7182) 39-65-44
Fax: +7 (7182) 39-60-98