Leonid Nodov, the head of the IT Department, “Tatneft-Neftekhim” Management Company LLC,and the project leader reports:
“The Group of Companies was in need to create a unified information space for all enterprises and replace older systems, having provided the maximum number of employees with the reliable information.
Today the main phase of the project has been completed and all planned aims have been achieved.As a result, referenced data has been unified; inner documents circulation among enterprises of the Group has been accelerated eight times; the cost price calculation has been automated including the tolling scheme of transferring semi-finished goods between enterprises. The system allows one to analyse operational work of the enterprise in real time mode. Accordingly, the quality of the company’s management has been increased noticeably”.
The largest tire manufacture in Russia, Petrochemical Complex “Tatneft” OJSC has begun its commercial use of ERP-System, covering 800 workplaces. Eight enterprises of the petrochemical complex have been automated by means of “1C:Manufacturing Enterprise Management”. The modern technology helps “Tatneft-Neftekhim” manage its manufacture effectively. Nowadays, it produces 12 million tires a year and has regular supplies of ready-made products in 80 countries all over the world. The main assistance in project realization was provided by 1C-Rarus specialists.
Tatneft-Neftekhim LLC is a Management Company founded in 2002 to control the petrochemical complex Tatneft OJSC. The petrochemical complex integrates 11 enterprises which are in close relationship with tire production. Tatneft-Neftekhim provides effective management of the following processes: production, financial and economic planning and control, trade service, marketing, personnel management.
The output of Tatneft-Neftekhim factories is more than 12 million tires a year. The Scientific and Technological Center „Kama“ develops and tests new tire types. The outputting production is supplied to 80 countries under control of the Trade Center “Kama”. In 2012, direct selling was organized for retail customers.
Until the move to the unified ERP-system, the enterprises of the petrochemical complex used separate accounting systems. The Management Company did not have an online access to data on operation of the enterprise that did work on planning and management much more difficult.
Releasing a tire product into the mass market, the Company’s management has made a strategic decision to improve the management efficiency of the petrochemical complex. It was decided to unite all enterprises of the largest tire manufacturer in Russia within the modern, high-tech and easily scalable system. With its help it was planned to achieve the following objectives:
- To automate basic accounting and production processes according to the unified standard and accelerate their interaction;
- To improve quality and pace of operation with external and internal orders by creating:
- An Internet-portal for handling requests from customers;
- Requests from enterprises for materials in manufacturing.
- To unify processes of restricted and corporate recording at all enterprises, and improve the quality and speed of receiving reports.
IT Management of the Petrochemical Complex, Tatneft OJSC, has approved the further policy of IT development. According to this policy, it was decided to create the unified information system based on the modern and multifunctional “1C: Enterprise 8” platform, using the following software solutions:
- “1C: Manufacturing Enterprise Management 8” (ERP)
- “1C: Payroll and HR Management 8 CORP” (HRM)
- “1C: Document Flow 8 CORP” (ECM)
- “1C-Rarus: Process Management” (BPM)
- and “1C-Bitrix” as well.
For 11 months, 1C-Rarus specialists have automated 800 workplaces in the following enterprises: “Tatneft-Neftekhim” Management Company LLC, Trade Center „Kama“ LLC, Scientific and Technological Center “Kama” LLC, „Nizhnekamskshina“ JSC, „Nizhnekamsk Truck Tires Factory“ LLC, „Tatneft-Neftekhimsnab“ LLC, „Nizhnekamsk SSC Tire Factory“ LLC. The system has allowed them to conduct calculation of manufacturing cost, administrating and inventory accounting, bookkeeping and taxation. It has helped conduct exchange control, process online all requests for goods and material purchase, and support social and corporate programs.
Project Results at Petrochemical Complex Tatneft OJSC
In general, the time-frame for performance of restricted, tax and corporate reporting has been reduced at the petrochemical complex.
The management receives accurate data on enterprise operation and issues challenges in time. The management of the petrochemical complex has become more operational and efficient.
Manufacturing Enterprises “Nizhnekamsk SSC Tire Factory”, “Nizhnekamskshina”, “Nizhnekamsk Truck Tires Factory”
The largest tire manufacturer “Nizhnekamskshina” controls the output of more than 120 nominal sizes and types of tires. “Nizhnekamsk SSC Tire Factory” succeeds in manufacturing unique goods, such as new durable, environmentally-friendly tires with monolithic metal cords. “Nizhnekamsk Truck Tires Factory” manages steadily with the standard volume of output, that is 7 000 automobile tires a day.
- Automated accounting of products with the output of 12 million tires a year.
- Accelerated calculation of prime cost of manufacturing tires; the process has been reduced from a week to a day.
- Improved accuracy of output plan and manufacturing load that has allowed one to fulfil a production plan.
Trade Centre “Kama”
The system has allowed Trade Center “Kama” to market production, manufacturing in enterprises of petrochemical complex: 95 commodity items of automobile tires, 14 commodity positions of cargo tires, 53 commodity items of truck tires, and agricultural tires.
- Sales managers have gained the access to the operative and accurate data on manufacturing and tire availability.
- The quality of service providing for more than 50 wholesale customers (dealers and partners, the largest Russian auto manufacturers as well as retailers in more than 80 countries around the world) has been improved.
- The system has been integrated with the website where clients may leave their orders for necessary goods on-line.
- The enterprise satisfies to 100% clients’ orders; lost data have been excluded; the number of faults in the product distribution according to clients’ orders has been decreased.
- Using the website, Trade Center “Kama” has increased the number of customers in service by 10 times, retaining the previous staff number.
“1C:Enterprise 8” assists with the organization of a smooth supply with necessary high-quality raw materials, components and equipment for existing enterprises and building objects in the petrochemical complex.
- The process of receiving and handling requests for purchase of commodity and material valuables using “1C-Rarus: Process Management 8” has been organized.
- As a result, the processes of receiving and handling requests have been accelerated; lost data has been excluded.
- The employees receive information about the deadline of order fulfilment promptly and in time; the accuracy of planning and conducting operations in other enterprises (of both production and construction) has been improved.
Scientific and Technological Center “Kama”
The system provides control over operations on development and production of new tire types of trucks, passenger vehicles and agricultural equipment.
- The accuracy in the prime cost calculation of release and test of new tire types has been improved. That means that the enterprise is able to perform pricing more efficiently and plan its profit more elaborately.
Rinat Biktimerov, the deputy director of sales and marketing, the executive director of the Trade Center “Kama” LLC reports:
— Our company used to sell our production with distributors’ help. But before we started the project on automation, our management has decided to work with clients directly. As a result, we have concluded contracts for direct supplies with major customers in all regions. Also, we have created an Internet-portal to receive orders and make our work with customers more convenient. What is more, we have completely automated the process of daily request processing: from receiving orders to shipping products. Retaining all managers of customer service (10 people), we have managed to serve more customers (almost 10 times more). As shown, the decision we have made is correct. The enterprise has increased the sales volume and improved the customer service.
Nail Satdinov, the executive director of Tatneft-Neftekhimsnab LLC says:
— Managers of our company used to receive requests for materials in paper form. That caused lots of problems: lost requests, mistakes in transferring data into tables, incorrectly fulfilled orders and necessity to process re-orders. All these factors hindered the process of order fulfilment and, consequently, extended the operation of enterprises depended on the material supplies. Creation of the website where all departments may prepare and submit their requests for any required goods and materials has significantly lightened our work. Request information is automatically transferred into data system, where managers operate it promptly. We have greatly accelerated all processes of request fulfilment from all companies of the group.
Nail Tuykin, HR Department, the head of Tatneft-Neftekhim Managment Company, describes:
— The system helps to the Management Company in the implementation of social corporate program within which employees are provided with housing under the conditions which are close to the state program of social mortgage. In “1C: Enterprise 8” records of about 700 loans given to the employees on agreements of mortgage lending are being kept; Interest charges are calculated automatically; payments are processed. Today the global project of the social mortgage is served by only a few employees of the Management Company.
Leonid Nodov, the head of the IT Department, MC Tatneft-Neftekhim LLC, and the project leader reports:
— The Group of Companies was in need to create the unified information space for all enterprises and replace older systems, having provided the maximum number of employees with the reliable information. “1C-Rarus” having great experience in creating large systems has become a general provider of solutions and a contractor as well. Today the main phase of the project has been completed and all planned aims have been achieved. As a result, referenced data has been unified; inner documents circulation among enterprises of the Group has been accelerated eight times; the cost price calculation has been automated including the tolling scheme of transferring semi-finished goods between enterprises. The system allows us to analyse operational work of the enterprise in real time mode. Accordingly, the quality of the company’s management has been increased noticeably”.
Tatneft-Neftekhim MC LLC is a subsidiary of Tatneft OJSC with 100% share of the parent company in the authorized capital stock and a member of the Holding Company “Tatneft”. It is a Management Company founded in 2002 in order to control the petrochemical complex Tatneft OJSC. It consists of integrated enterprises that are in close relationships with the tire production. They are “Tatneft-Neftekhim” Management Company LLC, Trade Center „Kama“ LLC, Scientific and Technological Center “Kama” LLC, „Nizhnekamskshina“ JSC, „Nizhnekamsk Truck Tires Factory“ LLC, „Tatneft-Neftekhimsnab“ LLC, „Nizhnekamsk SSC Tire Factory“ LLC.
Promzon st., 24,
Nizhekamsk, Nizhekamski Region
423580, Republic of Tatarstan
Tel.: + 7 (8555) 49-73-42
The Contact person is Leonid Nodov.
More detailed information is presented at www.neftehim.tatneft.ru