Kurdistan Pipeline Company

Project Overview:

This project describes the implementation of 1C:ERP World Edition and other 1C solutions for the Kurdistan Pipeline Company (KPC) in Erbil, Iraq. The project was completed by First Bit Company and NFP project office.

Solutions Implemented:

• 1C:ERP World Edition (enterprise resource planning) 
• 1C:Document Management (document management system) 
• 1C:HR &Payroll (human resources and payroll management) 
• 1C:HSE (health, safety, and environment management)

Functional Scope:

• Local Accounting  and IFRS (International Financial Reporting Standards) 
• Reporting 
• Cash Management (Treasury) and Budgeting 
• Procurements and Warehouse 
• Claim Management 
• Document Management (BPM) 
• HR and Payroll 
• Calculation Tendering (Supplier Private Office) 
• HSE

Key Project Metrics:

• 19,200 man-hours spent 
• 350 seats (users) 
• 150+ catalogs 
• 30 types of documents 
• 400+ new system documents created per day 
• 10+ lines in a system document on average
• Infobase size: 56,320 Mb

About Kurdistan Pipeline Company

Kurdistan Pipeline Company Pte. Ltd. (KPC) is a joint venture of RN Middle East Pte. Ltd. and KAR Pipelines Ltd. It was established in 2017 with the purpose of managing and operating the export pipeline in the Kurdistan Region of Iraq for the period of 20 years as specified in the Concession Agreement signed between KPC and the Kurdistan Regional Government (Iraq). The Kurdistan Crude Oil Pipeline (KCP), operated by the company, comprises several stations and two feeder lines. The pipeline receives crude oil from several oil fields. The pipeline is located in the Kurdistan Region and connects to the Iraq-Turkey Pipeline, which is located in Turkey.

The Level of Automation Before the Project

Project Objectives

1. Implement an integrated solution to automate the company’s key business processes.
2. Enable fail-safe local accounting and smooth generation of management reports.
3. Eliminate paper document flow in crucial business processes of the company
4. Optimize the procurement management and the contractor payment processes.
5. Establish budget control for purchases and outgoing payments
6. Optimize the quality and speed of purchase request completion.
7. Establish an optimized standard process for payroll calculation and utilize this newly developed methodology for the payroll calculation.
8. Reduce labor costs on accounting and payroll calculations
9. Enable warehouse control and provide remote warehouse employees with workstations.
10. Improve control over the supply chain of goods, improve the quality of stock, reduce defects in stock, and improve the efficiency of claims management.
11. Eliminate paper and email approval processes.
12. Increase the efficiency and utilization of commodity stock
13. Establish a standard process for submitting supplier quotations and optimize supplier selection and contracting processes.
14. Optimize the process of providing employees with personal protective equipment per both the specification and individual biometric data.
15. Establish efficient and controversy-free HSE reporting by organizing a unified infobase covering all HSE aspects.
16. Improve employee discipline in all HSE-related aspects by establishing a unified monitoring system.

Unique and Innovative Project

• 1C:ERP WE was implemented in combination with industry software products for a foreign company in the Iraq region. 
• Local accounting was automated with the mechanisms of the IFRS subsystem 1C:ERP WE with minimal changes to the basic configuration. In essence, we have created a ready-made software and methodology kit allowing rapid implementation of a record-keeping system per Iraq legislation. 
• Automated payroll calculation and personnel records management in compliance with Iraq legislation. We have developed a range of architectural and methodology solutions to preserve most of the standard logic in the subsystem and still comply with the local legislation, which is very different from the one in Russia. In fact, we got a ready-made software and methodology kit for the rapid implementation of accounting and payroll in Iraq. 
• A supplier self-service portal designed by the team. Suppliers monitor and register the provision of services or delivery of goods per contract stages. Also, they submit payment requests when their contractual obligations are fulfilled. 
• Localized industry-specific HSE product, 1C:Health, Safety & Environment. 
• Supplier tender platform built on 1C web client interfaces. 
• The implemented and customized modules have a high potential for replication and implementation in other companies of this type.

Solution Architecture and Project Scale

A set of seamlessly integrated solutions includes 1C:ERP WE, 1C:Document Management, 1C:ERP (HR&Payroll subsystem), 1C:HSE. The 1C:Document Management configuration is used as the business process engine.

Project Outcome

• The listed above project objectives have been achieved
• The system is in the production stage 
• KPC highly appreciates the results of the implementation and their positive impact on the company’s critical business processes
• KPC plans to continue automation of other functional business areas using 1C software products

Additional Information

A prerequisite for the project implementation was the presence of the main members of the project team on the KPC site (office). The project allowed a mixed mode of the team operation (on-site and remote). Among the things that made the project unique was the need for high-quality and accurate planning of the rotation of consultants at the KPC site, as all visas were single-entry, valid for 30 days, and obtaining each subsequent visa could take up to a month. It was necessary to plan in such a way that the necessary consultants were on site at the required time and did not fall into the visa expiration period / long period of obtaining a visa.

Source:

https://eawards.1c.ru/projects/kompleksnoe-vnedrenie-1s-erp-world-edition-dlya-kurdistan-pipeline-company-133229/ (translated to English)