Power Machines OJSC completes a large-scale project for SAP ERP implementation

Power Machines OJSC – the Russia’s leading producer and supplier of end-to-end products and solutions for the power-plant industry – and the SAP company – one of the world’s largest suppliers of business management solutions – announced the completion of the project to create an integrated business management system that has allowed to increase the efficiency and transparency of business processes in the engineering holding.

The SAP ERP implementation project has involved most departments and all major business processes: sales, logistics, purchases, finance, investment management, HR. Currently the system is used by 1.5 thousand employers. The SAP Consulting department has acted as the general contractor; the T-Systems and Capgemini companies have become subcontractors.

When realizing the project the management of Power Machines OJSC has aspired not just to significantly enhance its business efficiency but to implement the most advanced developments in the field of production management IT in the company and thus to increase the company’s competitiveness in the global market of power engineering.

One of the first goals of the project has been the restructuring and optimization of business processes in accordance with the experience of the largest companies in the world market of engineering. As a result of the restructuring the business processes, accounting and budgeting have been standardized.

“The project has enabled Power Machines to switch from the territorial to functional principle in the company management, reduce costs and improve the company’s work efficiency as a whole. The implemented system has particular importance for managers and financiers, because it allows to quickly obtain necessary information for making decisions in management,” said Alexander Yankovsky, IT Director of Power Machines OJSC.

At present the system supports the following functions: purchase requests and purchase orders management, client relationships and service management, warehouses management, accounting and tax accounting, management accounting, financial modeling, budgeting, cash flow management, human resources, investment management, regulatory and reference information management. The implementation of the functional of production planning will be completed by the end of 2012. In the future it is planned to expand the functions of product lifecycle management (SAP PLM), as well as the functionality of equipment repair and maintenance control. 

“We are glad that SAP ERP has become the corporate standard for business process management in Power Machines OJSC. The experience of the implementation and operation of SAP solutions in the world’s largest companies shows that SAP ERP is the most effective tool for managing large enterprises with a complex structure of production processes. Having staked on the compliance of business processes with the industry’s best practices integrated in SAP solutions, the company has ensured successful and prompt implementation of the project,” said Roman Zhuravlev, Consulting and Training Director, SAP CIS.