OREANDA-NEWS. March 18, 2011. KAMAZ’s auto assembly department has completely implemented a production control system based on the SAP for Automotive solution.

It is also known as ERP (Enterprise Resource Planning). This system integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

In the 70’s-90’s, KAMAZ produced only four vehicle models on a mass scale. In order to increase marketability, the KAMAZ Group started producing vehicles against customers’ orders in the 2000’s. To date, the enterprise produces at least 10 vehicles of one model a month. With such a high variability, the information model used at that time couldn’t make planning and production record processes precise and manageable. It affected productive efficiency: stocks and work-in-progress inventory increased, production line stopped more frequently, orders were not always executed on time.

In 2007, KAMAZ Group decided to modernize production control processes, and, in the first place, information control systems. KAMAZ specialists analyzed the production control system and various solutions offered on the market of automated control systems. On February 18, 2008, Director General of OJSC KAMAZ signed an order starting up a project on implementation of an information scheduling system of KAMAZ Group. The “SAP for Automotive” software product was chosen to be its basis, and Microtest helped KAMAZ to implement it.

To date, the SAP system works to control production of the automobile plant – the main and most important production enterprise of the Group.

Simultaneously with the start-up of the information system, changes were made in organizational structures too, for example, a logistic center was established. Besides, current business processes were changed due to development of the production system of KAMAZ.

“The new control system was implemented when the financial crisis started, and sales and production volumes fell,” said Yury Klochkov, First Deputy Director General of OJSC KAMAZ. “KAMAZ Group at that time considerably reduced its investment program. However, we decided to continue implementing this project, and it was the right decision. The industrial recession was even of benefit as we could focus on the project and fine-tune new processes. So, our company was ready to increase production volumes. To date, it produces 180 vehicles a day like before the crisis. But now the number of working shifts halved, therefore, labour productivity doubled.”

The new production control system yielded an economic effect of 500 million roubles in 2010. Shortage of commodities and materials was reduced by 25%; the number of defective goods at the vehicle assembly plant decreased by 10%.

The company started working on a system to plan deliveries between plants. By the end of 2011, KAMAZ will have implemented a single logistic system connecting plants of the main production string. In the future, solutions will be used to control marketing and a dealer network, a press and stamping plant, to improve systems of financial and economic services.

OJSC KAMAZ is the leader of the Russian market ranking 13th among the world’s largest heavy truck producers. KAMAZ vehicles are used in more than 80 countries. OJSC KAMAZ is integrated into the global auto industry. With the world’s leading manufacturers of auto components, it set up 4 joint ventures: ZF KAMA (gearboxes), CUMMINS KAMA (engines), KNORR-BREMSE KAMA (brake systems), and Federal Mogul Naberezhnye Chelny (details of a cylinder-and-piston group). OJSC KAMAZ received the national prize “Company of the Year” in 2010 as an automobile company. The KAMAZ-master team is a ten-fold winner of Dakar rally raids.

SAP

As market leader in enterprise application software, SAP helps companies of all sizes and industries run better. SAP solutions enable all kinds of companies to build effective interaction between employees and organizations in general, to form a deep understanding of business and create competitive advantage. SAP solutions and services are used by more than 105,000 clients, the company’s leading technologies guarantee high profitability, contribute to continuous adaptation and sustainable growth. In 1992, an office of SAP AG was opened in Moscow. Over the past 19 years, SAP offices were also opened in St. Petersburg, Novosibirsk, Rostov-on-Don, Almaty, Minsk, and Kiev, and the number of employees exceeded 700 people.

Microtest

Founded in 1990, Microtest is among the largest IT companies in Russia and the leader in the market of system integration implementing the most complex projects. Microtest implements consulting and integration projects, corporate information systems, builds IT infrastructure, and provides professional service support. The company employs over 650 experts and has got more than 1 thousand certificates of the world`s leading vendors. Microtest representative offices operate in 6 regions of Russia.

Microtest has 8,000 clients, including JSC "Russian Railways", the RF Pension Fund, the Ministry of Taxation of the Russian Federation, Joint Stock Company "Company TransTeleCom”, EMERCOM of Russia, TNK-BP, “LUKOIL”,
 Slavneft-Megionneftegaz, Bank of Russia, VTB, Raiffeisenbank, URALSIB FC, Toyota Motor, OJSC KAMAZ, OJSC Lebedyansky, etc.