Integration specialists from ProgramMaster Ltd have automated the Federal Mogul Dimitrovgrad plant – the Russian division of the transatlantic corporation. The new system uses the 1C:Enterprise-based 1C:ERP and 1C:Document Management to unify operations across all departments in the division and ensures the timely generation and submission of US GAAP-compliant financial statements to the parent organization. Operational planning of multi-stage manufacturing was implemented over the course of the project, enabling precise calculation of production costs at every stage of production and improved cost control across the enterprise.
Federal Mogul Corporation is a leading global supplier of technology and components for trucks and cars, and also operates in the energy, aerospace, marine, railway, and industrial fields in Russia, Europe, and the United States.
Federal Mogul’s leadership decided to use 1C: Enterprise 8 as the foundation for improving the Russian division’s management system. Automation of financial reporting was one of the key project requirements, as US GAAP-compliant reporting needed to start within a limited period of time. In addition, Federal Mogul corporate standards required more detailed production cost calculation.
To fulfill the project requirements and reduce reporting times, it was decided to combine operations, accounting, and document management within a single system.
1C:ERP and 1C:Document Management CORP were chosen for the realization of the set task. ProgramMaster Ltd, an official 1C Company partner, was chosen to implement the project. The company has a wealth of experience in implementing information systems on the 1C: Enterprise 8 platform in production, wholesale/retail, road transport, insurance, etc.
The system was deployed at 120 workstations in the production, planning, and technology departments, as well as in accounting, sales, and maintenance.
Key project results:
Automated receipt of detailed financial statements compliant with US GAAP, SOX, and SOD standards in the standard corporate-wide format. Error-free ledger, balance sheet, profit and loss statements, purchase, and sales reports. Reports are submitted to the parent organization in a timely manner.
All documents are registered and stored in electronic form in a single database. As a result, information exchange between different departments has been accelerated and simplified. This helps employees coordinate and process customer orders, and plan procurement, production, and sales.
It is now possible to plan multi-stage production while taking non-standard cost multipliers into account. Detailed calculation of the cost of all semimanufactures at each stage of production has been implemented. Cost controls have been improved across the entire enterprise.
Management promptly receives summary data on the activities of company departments and services and identifies reasons for missed goals or other deviations from company plans.
Company management notes that “Automating production accounting and US GAAP reporting using 1C:ERP was the beginning of a new and important stage of development for the entire company. According to company data, in just the first months that the new system has been in operation, the time taken to prepare reports US GAAP, SOX, and SOD-compliant reports has decreased by 50%, increasing the efficiency of the accounting and financial planning departments. Now, company leaders and managers can focus on analyzing and achieving business objectives, instead of wasting time collecting the needed data from multiple programs. Planning time is reduced by 50%, as planning had previously been done almost by hand. All of this has helped improve planning accuracy and analysis of enterprise performance.
The primary result for company management has been the implementation of detailed production accounting and calculation of the actual cost of production, which thus enables complete control over production processes.