Implementation of Microsoft Dynamics AX at Zaporizhtransformator

Solution

In 2003, the plant management completed the diagnostics phase and, having analyzed various alternatives in the ERP-systems market, chose Microsoft Dynamics AX software.

The main requirements to ERP-system were comprehensiveness, productivity and flexibility.

When choosing a partner for implementation, preference was given to companies that recommended making emphasis on the standard Microsoft Dynamics AX functionality, thereby reducing the cost of system ownership, since a large number of modifications in the future would create difficulties in supporting and upgrading to new versions of the product. That is why Innoware, a consulting company with many years of experience in implementing ERP, offering an innovative implementation methodology, became a partner of the implementation project.

Result

Because of the implementation of Microsoft Dynamics AX at ZTR, a unified information environment was created for all divisions of the plant, and that is why the following had become possible:

1. Effective sales management;
2. Precise planning and adherence to production dates
3. Control of production costs and products prices
4. Quality control in different stages of production;
5. Operational analysis of payables, receivables, delivery times;
6. Optimization of expenses, including reorganization of the enterprise (the number of administrative staff decreased).

Maksym Guzhva, CIO of ZTR: “One of the main tasks was to ensure that all specialists work in a single digital space, which would have positive effect on the efficiency of their work and optimization would be reached. For example, we had had 70 accountants, while 30 remained after the project completion, ande the bookkeeping quality level had increased due to the ERP system, and the terms of reports preparation had shortened. At the production, the number of technologists was reduced in about three times. Another positive effect was observed in the field of inventory control, which is considered to be a sore spot for large manufacturing enterprises.

I also want to note, that thanks to the ERP system, we have more analytical data and, accordingly, the ability to make more rational management decisions. As for the assessment of the return on investment, based on the observations of positive changes at the enterprise, I think that the money were paid off in two years. Even if we take only the reduction in the salary fund, the payback would be fast enough».