Agricultural Production Enterprise “Yug”

"Agricultural Production Enterprise "Yug"

"Agricultural Production Enterprise "Yug" LLC (APE "Yug") produces red and white sauces, vegetable oil under several well-known brands: "Family Secrets," "Kuban Favorite, Culinary Secret." The company receives about 80 incoming orders daily. Based on these orders and current sales plans, company management forms an operational production schedule. Orders must be completed promptly, taking into account the expiration dates of the products.

Before the implementation of the project:

• The company used an information system of self-made design to process orders, plan the procurement of raw materials and materials, and create a production schedule. 

• Warehouse, financial, and accounting records were kept in separate databases in an outdated accounting program. 

• Scattered data slowed down the work of units. It was difficult to plan production, to control the remains of raw materials and finished products in the warehouse. Customer orders were often delayed, which led the company to suffer losses.

Project goals:

• An information system that would allow combining the work of departments, speed up the processing of incoming orders, and improve production planning. 
• A new equipment management system and repair planning, to evaluate the efficiency of production equipment, reduce downtime, and the number of breakdowns. 
• Organization of the targeted accounting at the warehouse, optimize purchases, and reduce losses associated with the expiration of the shelf life of raw materials and finished products.
• Increase in the accuracy of costing, accelerate the preparation of managerial and regulated reporting.  

Solution architecture

To cover all the needs of the company, the implementation partner decided to set up the system "1C:ERP Enterprise Management".

The implementation partner was "Intersoft" LLC NPVF, which has the status 1C:ERP Center and specializes in the automation of production enterprises.

Project results

• All divisions of the company now work in a universal information system in online mode. Thus, this eliminated duplication of data. The work of departments became more coherent and efficient.

• The system helped to improve production planning considerably. The company can correctly assess the reserves of production capacities and optimize its load.

• The implementation company managed to reduce equipment downtime to a third. The workshops managers are now able to carry out production and write-off of raw materials around the clock in online mode. The number of line readjustments and the marriage associated with these readjustments have been reduced. Production volumes increased by 20%.

• The system promptly generates orders for maintenance of production equipment. This point allows managing effectively the loading of production lines. Equipment maintenance plans, including during installation and changeovers, are rationally integrated into the overall production plan. It avoids delays in order fulfillment, downtime, breakdowns, and accidents. Spare parts purchase is optimized. Also, it has become easier to predict the consumption of spare parts.

• The accuracy of calculating production costs has improved. The management has tools to control the costs of producing each type of product, analyze the cost structure, and take measures to reduce them.

• One more solution for the warehouse is organized address storage of products: pallets are now installed on racks in specific cells, each cell has its bar code. The system reflects all the necessary information about the product, including the production date, series, and expiration date. As a result, the loss of goods from spoilage and marriage was minimized. Due to the increased speed of order assembly, customers receive products of the right quality in the correct configuration on time. The turnover of warehouses increased by two times.

• The procurement department now always has up-to-date information on stock balances and current production orders. This information helps to plan orders for suppliers and reserve storage space for ordered goods. There is an opportunity to quickly control the timeliness of payment of formed orders, which accelerates the supply of necessary raw materials and components.

• The work in the sales department has been simplified. Managers have up-to-date data on stock balances, which allows them to reserve products in the warehouse in real-time and form orders for shipment. The system promptly displays information on settlements with customers, on the delivery of goods and closing of documents.

Besides, the company management notices that accounting labor costs have crucially reduced after the installation of 1C:ERP. Regulated reporting is generated automatically, and using the "1C-Reporting" service is timely submitted to regulatory authorities.