Developing and implementing system to manage production

Project summary

Borlas Group has developed and implemented a production management information system powered by 1C: ERP Enterprise Management 2 solution. The project resulted in standardized and automated accounting and planning operations for all production and quality control departments, implemented concept of paperless production guaranteed by data terminals, and ensured full traceability of consumption of material batches in production (compliant with the GMP standard).

Project deadlines

February 2018 – December 2018

Project goals

Standardization and automation of workflows to manage the Customer's production

Baseline

Production accounting at the Faberlic enterprise was carried out in European ERP information system. Data on completion of production operations was transmitted daily to the central ERP system fueled by 1C: ERP Enterprise Management 2 solution.

General shortcomings in production identified in the survey:

Lack of standardized production and a single information space for operational production accounting.
Production planning was carried out outside the context, in the existing information systems.
Accounting systems data were not reflected promptly, there was no relevant and correct information on warehouse residual stock of raw materials and supplies, semi-finished and finished products.
The system featured no automatic tracking of the structure of finished products batches to raw materials and supplies batches under the GMP standard and the enterprise accounting policy.
Realization of a large number of production functions depended on the employee expertise or required manual control outside the system.
There were no mechanisms for plan-fact analysis and control of production work.

Solution architecture and project scope

Information system to plan and manage ERP production is powered by 1C:ERP Enterprise Management 2 solution. Borlas Group automated all major and auxiliary operations to plan and account for production. Here are major automated systems integrated:

ERP: Sputnik is a system for managing purchases and sales, maintaining regulatory accounting, financial accounting and planning powered by 1C:ERP Enterprise Management 2 solution.
1С: WMS Logistics. Warehouse Management is an information system to manage central warehouses.
SCM Faberlic is an information system features tools to describe, plan, optimize and track trade supply chain (jointly developed by Borlas and Faberlic specialists on 1C: Enterprise platform).

Networking of information systems

ERP Production system is a master system for production master data (Resource Specifications, Roadmaps, Workcenters, etc.) transferred to the ERP Sputnik system which is used to calculate the volume-calendar production plan. Plan-based production orders are transferred to the ERP Production system to develop a production schedule.

ERP Production system also generates requests to provide warehouses with raw materials, supplies and accessories. ERP Production system transfers the data to the ERP Sputnik system in the form of orders to replenish warehouses at the shops used in the warehouse employees fieldwork.

ERP Sputnik transmits data on acceptance and shipment of goods and materials at central warehouses to 1C: WMS Logistics. Warehouse Management. 1C: WMS Logistics. Warehouse Management confirms the specified operations, data on which returns to ERP Sputnik system.

ERP Production system transmits data on the relevant shipment of goods and materials from warehouses at the shops to the central warehouses to 1C: WMS Logistics.Warehouse Management. 1C: WMS Logistics. Warehouse Management confirms the specified operations, data on which returns to ERP Production system.

ERP Sputnik system transmits data on the relevant residual stock and movements of finished products and goods in warehouses to SCM Faberlik system. From the data, information on capacity availability, as well as a demand forecast loaded from external systems, SCM Faberlik system estimates safety stocks, plans for replenishment and shipment of finished products and goods, which, in turn, are transferred to ERP Sputnik system to meet the estimated requirements.

Project unique features

Borlas Group developed a workstation to design production schedule, which allows:

Building InMemory production schedule, given all required constraints, without generating intermediate documents.
Building schedule in automated and manual modes.
Adjusting production schedule by means of drag-and-drop technique in manual mode
Accounting for production limiting factors (materials availability, workcenters availability).
Accounting for production orders priorities and the estimated dates of raw materials, supply and accessories entry in estimating materials availability.
Splitting stages into optimal batches, given the equipment capabilities, in automated mode.

Borlas Group implemented the concept of paperless production guaranteed by data terminals, which allows:

Ensuring full traceability of consumption of material batches in production (compliant with the GMP standard).
Registering performers by operations to comply with quality control requirements and ensure fair settlements in automated mode.
Reducing the time to deliver products to end customer by registering partial releases of products efficiently.

Project results

Here are all the major and auxiliary operations automated to plan and account for production:

Major operations:
- Operational planning—production scheduling;
- Production process initiation;
- Production process;
- Quality control.
Auxiliary operations:
- Governing and accounting of the material flow movement based on barcode labels;
- Master data management;
- Registering equipment and planning work center availability;
- Inventory of stocked items in production;
- Production and analysis and control.

The implementation of information system to manage production at Faberlic made it possible to fully replace previous IT system, as well as automate operations not included in the automation circuit. The new information system helped to reduce the time to deliver products to end customer by increasing the efficiency of registering business transactions and improving the quality of production planning, to ensure full traceability of consumption of materials in production (compliant with the GMP standard).

The number of automated workstations is 300.

Economic effect of implementation (%):