- Location: Russia
- Industry: Metals
- Number of Stores: 2
- Web site: www.zinc.ru
Responding Quickly to Business Requirements in the Remotest of Locations for Chelyabinsk Zinc Plant
"Epicor allows us to quickly respond to new business requirements. Being able to upgrade within just two to three months gives us the chance to continually provide advanced features to business users."
Oleg Baydin, Head of IT | Chelyabinsk Zinc Plant
JSC Chelyabinsk Zinc Plant (CZP) mines and processes ore through to refined zinc
and zinc alloys.
The company's market share is more than 60% of the domestic and 2% of the
The CZP Trade-mark (Chelyabinsk Zinc Plant Special High Grade) is registered at the London Metals Exchange.
Like most Russian enterprises today, CZP has passed a stage of automating separate business processes and including isolated workstation into an integrated system.
However, in the process of modernizing and developing the manufacturing part of the company, it became clear that a fully-featured enterprise resource planning (ERP) system was necessary to provide information support according to current and future requirements from the plant management team.
When selecting the new ERP solution, CZP involved PricewaterhouseCoopers as an adviser. Based on the agreed criteria, the team chose Epicor iScala as the best solution. Deciding factors were: a positive experience from Russian companies that already use Epicor successfully, as well as an acceptable buying cost.
The implementation began in 1999. To start with the budget decided which system modules to implement, and CZP started by automating the processes accounting, logistics, sales, and fixed assets management. Following the initial implementation, CZP created a unified information space, including warehouses, main and auxiliary plant shops.
Next, CZP proceeded to solve the problems of adherence to IFRS accounting regulations, and how to better control the budget. The team then implemented the human resource management modules, including payroll accounting (where calculations are conducted for 1600 persons), and investment management.
In 2006 CZP acquired mining-and-processing integrated works Nova-Zinc in Kazakhstan, a zinc and lead concentrate manufacturer, for the purpose of creating their own raw materials base. At the moment of acquisition, Nova-Zinc's processes were not automated and they decided to implement Epicor.
Providing Information for Efficient Management
Because the new plant suffered from a shortage of qualified financial and IT experts, CZP decided to provide them with remote access to the Epicor system to support the employees as quickly as possible.
Additionally, the plant is located in a very remote area, 120 kilometers from the nearest communication center, making it technically impossible to use a radio relay link for telephone communication-a difficult problem to solve.
However, the team found a solution and automated the processes at Nova-Zinc in record time, implementing Epicor in just three months from the project start to go live.
The project started in November, and by January of the New Year, the management team started to receive accurate accounting reports. The modules for accounting, logistics, and fixed assets were implemented first. For remote access and e-mail connection, Nova-Zinc uses the Kazakhstan satellite communication system 'Kulan'.
According to Oleg Baydin, the head of the IT department, running Epicor for over seven years has proved the efficiency of the solution. He concludes: "Epicor allows us to quickly respond to new business requirements. Being able to upgrade within just two to three months (including all stages of preparation) gives us the chance to continually provide advanced features to business users."
Epicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit www.epicor.com.