Migration to 1C:ERP from 1C:UPP and a custom-built production system

Headcount: 1,200 employees

Project duration: 12 months
Number of workstations (user seats): 50

Industry: metalworking

Solution implemented: 1C:ERP

Objective

• Link all economic calculations to the production system
• Move the custom-built production management add-on to out-of-the-box 1C:ERP functionality

Project goals

• Switch to the out-of-the-box functionality of 1C:ERP
• Automate production economics. Calculate accurate product costs
• Fully automated dispatching of metalworking production
• Automated production process management at the shop-section level
• Revenue contract management by customer order
• Service and warranty management for manufactured products

Project specifics

Parameterization and bill of materials challenges.

Situation before the project

Initially, the company had a custom-built production system based on 1C:ERP, and a very well-built one. But when it was developed, production economics was completely overlooked. As a result, the company managed production well but could not perform even basic cost calculations. We joined the project when production had already been automated, and correct costing had to be implemented on top of that automation.

“1C strongly advises against custom-coding anything in the part of the system related to costing. This core is based on very complex calculations. It is easy to break and sometimes impossible to restore” — Evgeny, functional architect of the project

Project progress

Initially, the entire door production cycle started only after a customer order was received: purchasing or producing the semi-finished products required for the customer, assembly, painting, and so on.  This led to long order lead times.

The client believed its line of business could not run on standard functionality, because semi-finished products could not be standardized: each door is made individually to customer requirements. Consulting and analysis revealed that all semi-finished products could be divided into several types.

We managed to standardize all semi-finished products

• Door thresholds
• Door frames in a standard range of 60/70/80/90/100 cm
• Door leaves by metal thickness: 0.6/0.7
• Lock type: a wide model range, up to touch-controlled locks
• Glazed/unglazed
• Glass type
• Glass frame type

Blanks could now be produced in advance. To customize a door to a customer order, only assembly and painting remained. This significantly shortens production lead times and reduces costs, since production capacity utilization is inversely proportional to costs

Conclusions

Manufacturers often believe that a particular automation approach does not suit them because each of their products is unique and made to order. But our experience shows that even this kind of production can be standardized and automated.

Rely on our experience.