Slavneft Yaroslavlnefteorgsintez
Introduction of SAP-based corporate enterprise management system, SAP ВI-based information budgeting and business planning system and automated electric power commercial accounting system (ASKUE)
Enterprise profile
OAO "Slavneft-Yaroslavneftorgsintez"(YANOS) is the largest oil refinery in Central Russia whose production capacities exceed 14 mln. tons of hydrocarbons per year. The enterprise has a well-developed production and transport infrastructure. The plant's assortment includes over 100 products. Over recent years YANOS has implemented a large scale production reconstruction programme one of whose parts includes construction of an advanced deep oil refining center. Consumers of the refinery's products are all big enterprises in Central and North West Russia as well as airports, North Railway Department and defense industry facilities.
Objectives and tasks
In July 1996 the company's management decided to upgrade a management system of the enterprise because of the need to bring administration of production and commercial operations in line with the existing world's standards and make it more transparent for the executive officers of a management company.
IKT-Consult, which belongs to IKT Group of Companies, was chosen as the company's partner for design and installation of the system. A decisive factor that helped to choose a consultant is unique expertise in oil and gas industries and successful experience relating to creation of information systems in the oil-refining industry (Sibneft, Omsk oil refinery).
Key approaches
- Introduction of a SAP-based corporate enterprise management system.
- Introduction of a SAP ВI-based budgeting and business planning information system.
- Creation of an automated electric power commercial accounting system (ASKUE).
Solution
Creation of the information and management system for OAO "Slavneft-Yaroslavneftorgsintez" started in 1997 simultaneously with overall automation of the enterprise. At the first stage two programme modules were introduced: FI-AA (External accounting and reporting and SО (Costs accounting).
Management of the enterprise has got an opportunity to make more reasonable decisions on the basis of the reports on primary and secondary production costs sent by the system. A centralized costs accounting system helped to arrange automated accounting as regards types and areas concerned and to provide calculations of the products' prime costs. As a result, financial services of the plant have got an instrument for creation of reports in uniform information space. Starting from early 1999 the work regarding introduction of new modules has been started, namely, management of materials flow and automated accounting of oil products sales of and oil refining services.
Information and management system of OAO "Slavneft-Yaroslavneftorgsintez" based on SAP has been used by the enterprise since January 2001. Two years of the system's operation demonstrated that the project's tasks had been performed.
Result
The system provides as follows:
- information support helping to make decisions about management of an enterprise;
- review of the company's financial status;
- accounting and control;
- management of sale and purchase of oil and oil products;
- budget execution control;
- inventories deliveries and supplies planning;
- costs structure and planning for the existing types of costs and works; calculation of costs and prime cost of the products as well as that of primary and secondary production;
- calculation of the company's income as regards shipment and payment of products;
- control of contractual and financial relations with debtors and creditors.
At the present moment IKT-Consult provides contract monitoring for the information and management system of OAO "Slavneft-Yaroslavneftorgsintez".
Introduction of business planning and budgeting information system
The key functional purpose of a business planning information system (IS BPB) is automated interactive information support of budgeting and business planning on a monthly basis.
Objectives
The project's objective is upgrading a management system of OAO "Slavneft-Yaroslavneftorgsintez" by resolving the following tasks:
- providing transparency to financial and administrative management of the enterprise;
- higher level of reliability and promptness in provision of management accounting reports;
- higher quality and promptness when taking managerial decisions;
- higher level of interaction among structural departments of the enterprise;
- data processing rationalization by business planning and budgeting participants on the basis of special applications packages;
- Integration with SAP and RPMS 2000-based management systems which are already in use at the enterprise.
Solution
In order to resolve specified tasks SAP Business Intelligence (SAP Bl) module was chosen as a basis. It meets the project's requirements and helps to identify, integrate and analyze scattered business data received from various sources. SAP Bl automates business operations by providing reasonable decisions making and required actions implementation.
To optimize an introduction process and reduce a load on the employees of the enterprise IS BPB is created step by step by performing separate sets of tasks. To IS BPB tasks belong a number of indicators relating to specific management area, a number of functions which are used to calculate indicators and planning and analytical forms where indicators are structures and calculations are made.
Result
The project was started in February 2005; in August some of its functions were transferred to industry.
