"Rusatomservice" developed and implemented a budget management system. The project was aimed at budget consolidation of the customer's enterprise and its subsidiaries, the formation of financial statements on a tight schedule, and in full accordance with the parent company's specific industry requirements. The task was rendered more difficult due to the project nature of the enterprise activity. As a result, "Rusatomservice" got a system that quickly generates and controls the budget in full compliance with the native management team's tasks and the parent organization's requirements.
"Rusatomservice" is a service provider of global service infrastructure for supporting nuclear power enterprises, infrastructure, and engineering companies. The company develops long-term services in the corporate footprint implemented over 200 international projects with local partners in more than 15 countries.
It employs more than 1,500 people
Goals and tasks
⮚ Project goal: to develop and implement an effective budgeting method, considering the development of the organizational structure, project management system modernization, and reporting to the parent organization based on consolidated data of the conglomerate.
⮚ Project tasks: to prepare a concept for deploying an automated management system based on the implemented budgeting method.
Before project launch
The company's existing budgeting system had to be optimized and automated due to the following factors:
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Due to the enterprise's rapid growth, the budgeting system no longer met the needs of a modernized project management system, management by objectives system.
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After creating a holding entity (by including affiliates), there was a need to unify the group's budgeting model and budget generation and consolidation regulations.
Due to the stiffening of the parent organization's requirements regarding the volume and complexity of data and prompt data delivery, it became necessary to properly automate the collection and preparation process of reporting information to integrate the enterprise into the industry structure properly.
Solution architecture and project scope
The enterprise uses the following software programs for operation automation:
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"1С:ERP Enterprise Management"
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Software for automated energy accounting, software for reading water, heat, gas, and electricity meters
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Power BI
The number of automated computers:
Types of consulting works on the project.
- Establishment of budget management in the conglomerate, including the management statements consolidation.
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Problem diagnostics of the existing financial management system and solution development for their elimination.
- Development and implementation of an IT service management system.
Unique features and exclusivity of the project
- The diagnostics of the existing financial management system was carried out. The system was in place at the enterprise when the project began. The weaknesses requiring elimination have been identified. The development goals of the budget management system are determined.
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The budget management system concept for the customer's enterprise was developed, considering its subsidiaries' budget consolidation.
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The financial structure of the enterprise was developed.
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The budget model of the enterprise was developed, considering the generation of both separate and consolidated budgets.
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The provision has been developed for managing the budgets of the customer's enterprise projects, including its subsidiaries.
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The indicators for the financial productivity of the economic structure departments of the customer's enterprise were developed.
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Budget planning and control processes were developed.
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The information system was chosen to automate the budget management system.
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Presentation and protection of the development results were held.
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Staff training was conducted.
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The customer's enterprise budget management system was migrated to the new system with a consultant's assistance.
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Together with the customer, evaluated the performance and summarized the results of the project. The company outlined the goals and concept of the next project - the budget management system's automation.
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All of the solutions mentioned above are designed to meet the requirements, are adapted for automation, and are modeled based on the functionality of "1C:CPM (Corporate Performance Management)".
As a result, the company obtained a functioning budget management system:
- The mechanism of strategic and budgetary planning, including a financial structure, a budget model, and budgeting regulations.
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The mechanism of budget consolidation of subsidiaries into the budget of the enterprise.
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The mechanism of sales variance.
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The mechanism of factor analysis.
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The mechanism for generating specialized reports for the parent organization has made the data more transparent.
Cutting the annual budgeting process duration in half was an important attribute, indicating the company's results. Besides, by reducing the sales variance process three-fold, the company moved from quarterly to monthly monitoring budget performance. It allowed increasing the promptness and validity of management decisions.
