Success Story – Rockwool company
Company Rockwool CIS - ZAO Mineralnaya Vata Location Rockwool Moscow Office, Russia, Moscow Industry Manufacture of solutions on the basis of stone wool (a group of mineral wool thermal insulation). Products/services Rockwool solutions and services on the basis of stone wool are used for heat insulation, sound insulation and fire resistance, are manufactured for all types of building structures, buildings and constructions, for shipbuilding, industrial equipment, pipelines and air pipes. Internet address: http://www.rockwool.ru Project goals Adjusting business-processes at new ROCKWOOL plants to international corporate standards. Rolling out SAP ERP business model from Vyborg plant to a new plant in Troitsk. Used solutions SAP Enterprise Resource Planning (SAP ERP) solution - Materials management (MM)
- Sales and distribution (SD)
- Production planning (PP)
- Variants configuration (VC)
- Transporting (LES)
- Finance management (FI)
- Controlling (CO)
The project roll out of SAP ERP corporate system to new company plants in Russia. Implementation peculiarities Limited implementation terms. Usage of a non-standard solution for evaluation of materials self cost within the profit center and company groups. Implementation partner ALPE Consulting Project realization terms The implementation was planned to be completed in three months. As a result, the project was successfully started in two months and 1 week. Results The new plant received consolidated reporting, corresponding to the standards of corporate reporting of the head office and Russian legislation. The possibility to have unified logistics modules (production-sales-finances), unified book of accounts. About the company Rockwool company - is a world leader in manufacture of flame-proof isolation on the basis of stone wool. The company was founded in 1909. The head quarter is located in Hedehusene (Danemark). At present ROCKWOOL owns 22 plants in 14 countries: in Europe, North America and Asia. Rockwool sales in 2009 totaled 1,5 billion euros. ROCKWOOL company is well-known in Russia since 70th - back then products were supplied to the Russian Federation for shipbuilding industry. In 1995 a trade representative office was opened and in 1999 – the first Russian Rockwool plant. ROCKWOOL manufacturing enterprises are located in Zheleznodorozhny (Moscow region), Vyborg (Leningrad region) and Troitsk (Chelyabinsk region). In the republic of Tatarstan, on the territory of special economic zone “Alabuga” a new ROCKWOOL plant is being built. Above 1150 people work at the Russian ROCKWOOL subdivision. In 2009 ROCKWOOL celebrated a 10-year anniversary of manufacture in Russia. Current situation At the moment of the project start a new plant in Troitsk (Chelyabinsk region) began operating. ROCKWOOL group of companies has already been using SAP ERP as its corporate system for several years. In connection with the start of the plant in Troitsk (“ROCKWOOL Ural”), there followed a decision to roll out the project to a new plant in Vyborg from the existing one. It was supposed to be a three months project. “Rockwool Ural” project has included the following functionalities: - Material flows and sales management. This functionality allows purchase materials and services, carry out stock management and inventory;
- Manufacture management. This functionality allows build the consequence of planned orders, perform scheduling, form manufacture schedule;
- Manufacture planning with planning material. Manufacture of finished products is based on a customer’s real orders. This functionality permits to react to a customer’s needs fast;
- Configuration of variants. This functionality allows create new variants of products by means of modifying some certain characteristics in already existing products (for example: colour, height, thickness);
- One material - so-called “configured material” - can be used for all necessary material modifications and variants. Maximal specification and maximal technical card containing components and operations for manufacture of all product variants are created for this material. So, an enterprise does not need to create a special material for each product variant.
- This functionality reduces the volume of data input;
- Sales management. This functionality includes: managing of Intercompany process, invoicing, forming of different sales reporting;
- Transportation;
- Accounts receivable control. This functionality permits to make automatic of accounts receivable out of sales module, automatic calculation of realized and estimated exchange rate differences, to form different accounts receivable reporting;
- Accounts payable control. This functionality allows perform automatic formation of accounts payable out of sales module, automatic calculation of realized and estimated exchange rate differences, to form different accounts payable reporting;
- Control of bank operations;
- Control of bank transactions. This functionality allows perform automatic formation of payments with the further loading into an e-bank, automatic loading of bank statement out of an e-bank;
- Fixed assets. This functionality allows keep records on fixed assets, automatic calculation of amortization, formation of different reporting on fixed assets.
- Control of cost center and inner orders expenses. Planning of costs on the product in the conditions of configured materials (standard calculation of cost value).
- Periodic controlling of serial manufacture. Control of expenses on collectors of serial manufacture on normative values with further distribution of material productive deviations.
- Control of results.
- Control in profit centers.
Initially, ROCKWOOL team plant to implement the following functionality – variants configuration (VC) to a new plant as a separate project (with the approximate duration – 2 months), considering the experience of implementation of the mentioned functionality at plants in Zheleznodorozhny and Vyborg. However, ALPE Consulting consultants/analysts have calculated that this volume of functionality can be started within the main project, without increasing rollout project terms. ALPE Consulting specialists managed to persuade ROCKWOOL administration that it’s necessary to connect two projects into one by means of the following: - During the project implementation in two stages all business processes from Vyborg plant where VC functionality had already been realized for the moment of the system implementation in Troitsk should not have been copied.
- System support at the new plant was performed by the same specialists that had done it at Vyborg plant. So, before the moment of VC implementation they would have had to work on two schemes that would have increased the amount of labour.
- Connecting two projects into one allows start all business processes at a new plant in shorter terms.
A major peculiarity of the project is as follows – a non-standard solution for product cost value determination within the frames of profit center and group of the company was used. At that, standard functions of materials register were not used. Instead, there was set a special system of conditions sorts in sales module (SD), which were used to form other evaluations of materials. Reports on profit center were used to analyze the evaluations. The project was realized on the basis of the already existing plant in Vyborg. The project consisted of the following stages: - Adjusting the system for a new plant;
- Testing;
- Data migration;
- Starting industrial operation of the solution.
Due to common efforts of ALPE Consulting and ROCKWOOL specialists the corporate system start was accomplished in a very short period of time. Technical specialists, business processes owners as well as key users with experience of work in SAP ERP corporate system had joined the team. Permanent monitoring of the project realization quality by ROCKWOOL top management has played an important role in the achievement of project goals. Due to work of the united team the productive system start was completed within the planned period of time - without mistakes and functionality failures, having provided the due level support for business processes. Tatiana Osina – the manager of automation project at ROCKWOOL considers the results of work of ALPE Consulting team very successful: “The automation has made the accounting and taxation in the company transparent, has simplified the process of collecting of registration information and has reduced the time necessary for analysis of key indicators of work of company subdivisions and affiliates. We have managed to connect Roll-out project implementation with the implementation of VC (variants configuration) functionality. Initially, this functionality had not been included into the project volumes, but its wider possibilities allowed considerably reduce the period of time, necessary to create ready product configurations and to perform data input, as well as permitted to create the unified algorithm for calculation of normative production costs.”
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