1C ERP - Development and
Implementation based on
1C:Manufacturing Enterprise Management 8
“1С” company
“1С” company was founded in 1991
Focused on software developing, maintenance and distribution
The biggest volume of software sales in CIS
More than 1 000 000 enterprises are using "1С" business solutions
The biggest partnership in Russian IT companies (more than 7000 partners)
 1C Company every year increase market share of ERP System in Russia and Ukraine
based on IDC’s data
 Russian Government Award in scientist and technique for 1C:Enterprise 8 System
development and implementation in economic sectors
2
System of Business Automation Programs
 Among the software developed by 1C the most important
is 1C:Enterprise — system of business automation software products
 1C:Enterprise – is a system of business solutions based
on a unified technological framework
 Famous owing to their flexibility, built with innovative technologies,
scalable from single-user, file-server and to server cluster solutions,
these products are used together or separately with one or
several locations
 An industrial standard in Russia & CIS
 The best in the rapid delivery of updates according to frequent
legislations’ changes in Russia & CIS area
 Developed in close association with government regulators and institutions including:
federal tax and pension services, Ministry of Finance of Russian Federation
 IFRS and GAAP accounting available and developed under a consulting contract with
PricewaterhouseCoopers
 An ability to integrate with other 3rd party solutions through XML, COM-connection,
ActiveX, HTTP, plain text documents, etc
 Corresponds with a specific of local business and management
3
1С:Enterprise applied solutions
1000000
Users
1 000 000
User-specific installations
User-specific installations
User-specific installations
User-specific installations
400
300 - 450
Vertical Solutions
Vertical Solutions
Vertical Solutions
Vertical Solutions
Development partners
Business Applications
6000
7000
Customization, Adaptations
Customization, Adaptations
Customization, Adaptations
Customization, Adaptations
Deployment partners
20 - 30
1C Company
Standard boxed business applications
Standard boxed business applications
Standard boxed business applications
Standard boxed business applications
Platform
1C:Enterprise Platform
1C Company
4
1C Company and our community can provide

Automate IFRS or GAAP reporting on monthly basis and, if requires,
with an export or integration with to 3rd party systems
for consolidation

Cost centers reporting with an export or integration with
to 3rd party systems for consolidation

Automate and correspond with internal business processes and corporate standards

Rapid implementation and easy-to-get training

Smooth import of historical data

Availability and cost of support and maintenance

The best TCO and deployment period of the system on the market

The biggest amount of available staff with a knowledge of the system: users and technical
personal

High level of confidence and liability of local staff to 1C’s products

Modern and innovative technologies even to compare with our international competitors
5
1C Corporate products
1C:Manufacturing Enterprise
Management
Architecture
 “ERP class solution”
...
User and third-party
applications
1С:Payroll & HR Management
1С: Consolidation
 Collecting, processing and
analysis corporative reports
1С: Trade
management
1C:Consolidation
1С: Accounting
 Accounting automation
1С: Manufacturing
Enterprise
Management
APPLICATIONS
1С: Payroll&HR
management
1C:Buhgalteria (1C:Accounting)
 Automatic payroll calculation
1C:Enterprise framework
 Business Software Framework
is a platform for all 1C’s
business automation products
Trade management solutions
Web-extensions
PLATFORM
Execution environment
Libraries of problem-oriented objects
Designer
The platform kernel
(creation of application
solutions, debugging,
profiling)
Execution engine (1C Virtual machine)
Basic functions and objects
6
Functional possibilities of product
Product technological advantages
Scalability V8
1C ERP 8 is application with open source code that allows
to provide a various customizations
Customization level.
Source code is available
Implementations
Application solutions
Business Applications level.
Source code is available.
1C V8 Platform. Internal Language
and Database Management Engine
Technological platform
8
Database interaction model
APPLIED SOLUTION
Data
structure
Queries
DATA
Objects
1C:Enterprise 8
(Client side)
1C:Enterprise 8
Server Cluster
File
mode
Database
server
Database server
TECHNOLOGICAL
PLATFORM 8
Client-server mode
Information base
9
Product technological advantages
“1С:Enterprise 8” platform, version 8.2
Thick client (Windows)
Thin client (Windows)
Web client (Windows, Linux, Mac OS, iOS)
Key characteristics
Web server (IIS, Apache)
Active server cluster
Passive server cluster
Fail safe cluster with Dynamic load balancing
MS SQL
File
PostgreSQL
IBM DB2
Oracle
Database
DBMS
 Support of several DBMS
 Cluster work in Windows OS and
Linux OS
 Fail safety due to cluster backup
 Optimization of system
performance by dynamic balancing
of load
 Thin client
 Web client
 Work in various time zones
 Wide range of development tools
and convenient application
debugging tools
Results
Development of Complex ERP-system
Operative rollout of ERP-systems
IT-infrastructure cost optimization
10
Product technological advantages
Integration possibilities



“1С:Enterprise 8. Manufacturing enterprise management”
configuration is supplied with open code and provides availability to
implement changes of standard configuration and possibility to
develop individual composite function required for specified enterprise
activity
“1С: Enterprise 8” provides an opportunity of integration with
practically any external program and equipment (i.e. instruments or
data storage terminals, printers and bar codes scanners) on the basis
of generally accepted open data standards and protocols
Registered users have access to ”1С:Standard subsystem library”
configuration which may be used as a basis for part modules or entire
subsystems customization
11
Product technological advantages
Integration tools
12
Product technological advantages
Distributed system development
Transaction processing
Business meeting
Holding enterprise
Holding enterprise
Holding enterprise
Partners meeting
- Office, manufacturing plant
- Mobile users
- GPS-control of vehicles and special machinery
Vacation
Business meeting
13
Product technological advantages
Interface
Work with the program begins with desktop and toolbar. Functionality
is provided by commands in two toolbars: navigation toolbar (left
toolbar) and action toolbar (top toolbar):
 Comfortable and
ergonomic interface
 User work history, fast
review of latest data
modifications
 Fast switch to the
frequently used by
users modes and data
 Error messages
procedure “highlights”
form of elements which
shall be corrected
14
Product technological advantages
Simple and easy report preparation
 Reports can be
customized by the
programmer during
customizing or by the user
during work in the System
 User settings for fast
modification may be
placed immediately in the
report form to change
frequently used report
parameters
 User may easily change
report settings and safe
them for the following
use
15
Methodical support
Information sources:
v8.1c.ru
 Total review of all information provided in
“1С:Enterprise 8”

F.A.Q.

Implementation information
Education courses


Process technology service
 more than 700 information pages

development examples

useful tools
Books, articles, booklets
courses of configuration, implementation
and adaptation of the platform and
applications

For entry-levels

For professionals
intramural and internet courses

Theoretical knowledge
Users support
Tutorial software

platform and configuration updating

For developer

test releases (predocumentation)

For accountant
16
1C:MEM 8 System. Product Purpose
Software product “1С:Enterprise 8. Manufacturing enterprise
management” is complex information system of ERP class,
comprising major areas of manufacturing enterprise management and accounting. The solution
helps to organize integrated information system for enterprise management:
Monitoring and analysis of enterprise activities (PM)
Management of:

finances (FRP,PM);

human resources, including salary accounting (HCM, HRM);

relations with customers and suppliers (CRM);

sales (SCM);

purchases (SCM, SRS, DRP);

warehouses (resources) (ITS, WMS);

production (APS,SFC,TPS, FCRP, RCCP, MRP, MPS, SOP);

fixed assets and overhaul scheduling (EAM).
17
“1С:Manufacturing Enterprise Management” —
Widely Known Solution:

“1С: Manufacturing enterprise management” proved to be reliable
ERP–solution, widely used at the enterprises of the Russian Federation,
Ukraine and Kazakhstan.

Users of flag “1С” product
and industry solutions based on “1С” the acquired more than 15 000 sets
and more than 400 000 licenses of “1С:Enterprise 8”. Total number of
employees using environment “Manufacturing enterprise management”,
makes about five million .

According to the polls, 90% of clients estimate their choice of product “1С:
Manufacturing enterprise management”
as “good” and “excellent”
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“1С: 1С: Manufacturing Enterprise
Management “ provides to:
 Enterprise owner— opportunity to raise business profitability,
controllability and investment potential;
 Enterprise management— opportunities for analysis, planning and
flexible management of company resources in order to raise its
competitive ability;
 Heads of subdivisions and managers — tools which help to raise
the effectiveness of daily work in the branch;
 Employees of accounting branch of the enterprise — tools for
automated accounting in convenient modern interface of platform
“1С:Enterprise 8”.
19
Target audience
 Enterprises with number of workplaces from dozens to
thousands
 Holdings and network structures with more than thousand
workplaces
Environment “Manufacturing Enterprise Management” can be used in a range of
branches and departments of manufacturing enterprises including:
Direction • Director General • Financial Director• Commercial Director • Production
Director • Chief Engineer • Personnel Director • IT Director • Development Director
Production department
Storage of materials and finished products
Departments • Economic planning • Production-dispatching
• Chief designer • Chief technologist • Chief mechanic • Sales department
• Logistic and maintenance support • Marketing • Accounting
• Personnel • Job and labor organization• IT service • Administrative-and-household •
Capital development • Research and information • Strategic development
20
Functional possibilities of product
Monitoring and analysis of enterprise
performance rates
(PM)
Analysis of enterprise performance rates
On the ground of database information, the rates describing current
structure of means and sources of finances of the enterprise, its
operating activities are calculated :

analytical data sheet
Aggregated balance sheet from 2009/01/01 to 2009/12/31.
Actual data.

liquidity and paying capacity
analysis
Profit &Loss Statement from 2009/01/01 to 2009/12/31.
Actual data.

profit & loss statement
Assets & Liabilities turnover
Profitability & Commercial viability analysis

assets and liabilities turnover
analysis

analysis of profitability and
payability of FEA

analysis of capital
consumption effectiveness
Use of equity efficiency analysis
22
Monitoring
Special tool “Efficiency monitor" is focused on day-to-day evaluation
of key efficiency rates by manager and allows:

to have a general picture of business

timely revelation of deviation from a
plan, negative dynamics, points of
increase

to get detailed information

to use of pre-set complex of more than
60 performance indicators

to develop new performance indicators
Possible setting of
report variants on all
types of activities and
areas of responsibility
23
Functional possibilities of product
Financial management
(FRP, PM)
Financial management
Objective
Improvement of capital turnover, effective investment management,
control of undertake expenditures will raise controllability of business
and its marketability.
All the rates of enterprise work such as personnel training and development and efficiency
of internal business processes, administration of customer relationship, are reflected in
financial component of enterprise activity.
25
Financial management
Budgeting
Sub-system of budgeting is to be used
for the following purposes:
Enterprise funds flow planning for any period;
Control of correspondence of applications for payout to the work plan
for the period;
Monitoring of actual activity of the enterprise;
Multivariance analysis of deviations from planned and actual
information;
Drawing of consolidated statements according to monitoring results.
26
Financial management
Cash management
Sub-system of cash management
(treasury) performs the following functions:
 Registration of budgeted revenue and expenses;
 Reservation of cash assets for the
forthcoming payments;
 Drawing of payment schedule;
 Multicurrency accounting of balance and flow of
funds;
 Drawing of all the required basic documents.
27
Financial management
Drawing of monetary operations
Environment “1С:Manufacturing enterprise management”
presupposes two-level circuit of monetary operations drawing:

The purpose of change of cash assets
state is registered in the form of
applications for the cash assets
expenditure or planning of cash inflow.
Resolution on payment is
fixed through funds
reservation under application
in certain storage area

On the ground of basic
documents there is reflected the
payments and inflow.
User activity is
predetermined and
controlled
Payments can be made
through the program
“Bank-client”
28
Financial management
Scheduled accounting
“1С:Manufacturing enterprise management” presupposes:
 Assets and Intangible Assets accounting
 Accounting of banking and cash transactions
 Accounting of contractors settlement
 Payroll accounting and personnel and budget settlements
 Accounting of materials, semi finished goods, defective products,
packing materials, finished products
 Accounting of unfinished goods
 Accounting of expenses and prime cost computation
 Accounting of goods
 Determination of finance result of activity for the purpose of taxation
29
Financial management Scheduled accounting
The order of accounting events is governed by the legislative
instruments: TC of RF, RAS etc. Compliance with the requirement
promotes the economic safety of enterprise.
“1С:Manufacturing enterprise management” comprises:

Use of “stored” methods of
accounting events
organization

Stipulated forms of basic
documents

Full range of scheduled and
regulatory reports
Доступны все системы
налогообложения
и
расчеты отдельных
видов налогов
All reporting forms
correspond to normative
instruments
Качественная
документация залог
спокойствия при
налоговой проверке
30
Financial management
Control of activities in several organizations
in one base

Accounting and tax registration (contrary to management accounting)
on organizations registered in general information base shall be
drawn separately

Plans of business accounts and tax accounting used in information
base are common for all the organizations of information base

Accounting policy is drawn for each organization separately

The organization preserves the numbering scheme of primary
instruments

Number of organizations is not limited

Accounting is performed on the branches having independent balance

In case of considerable territorial distance of the stated branches the
entry of primary instruments shall be performed taking into account
the time zone
31
Financial management
IFRS

For the provision of accounting data for accounting on IFRS in
environment “Manufacturing enterprise management” there is
a separate Book of IFRS accounts

There are software applications for the following variants of automation
of IFRS reporting:
Translation

Partial parallel accounting
Shared use of software products “1С: Manufacturing enterprise management” and
“1С:Consolidation” helps to draw full reports IFRS, corresponding to all requirements of
International Financial Institutes both for certain enterprise and within the frames of holding
structure
Principles of work with information comprised in “Manufacturing enterprise
management” correspond to the requirements of Sarbanes-Oxley act, obligatory
legislative act for the companies, whose securities are registered by the Securities and
Exchange Commission. Provision of financial transparency and audit of all operations ,
drawing of corporate financial accounting and formation of corporate liability–a new step
to new standards of business conduct.
32
Functional possibilities of product
Human resources
(HRM, HCM)
Human resources
Purpose
Today more and more enterprises realize the importance of effective
Human resources management scheme, as competent, initiative and
loyal employees can raise the efficiency of enterprise business.
Data management on hundreds and thousands of employees, events on personnel selection
and training, estimation of qualification of production and management personnel
presupposes the use of software products, helping to effectively plan and carry out personnel
policy of the Enterprise.
34
Human resources
Functional capabilities
Subsystem presupposes information support of personnel policy of
the company as well as automation of personnel settlements.
Sub-system comprises:
 Planning of personnel requirements and resolution of personnel
provision to business structures — selection, questionnaire survey
and estimation;
 Personnel records and analysis of full-time personnel;
 Analysis of rate of turnover and the reasons for that;
 Keeping of scheduled document control
and salary accounting of enterprise employees;
 Automatic calculation of charges, fees and deductions regulated by
the legislation;
35
Human resources management
Salary accounting
Sub-system helps to automate the whole complex of personnel
settlement, starting from document entry on actual output, sick pay and
leave pay up to drawing of documents for salary payment and reporting
to state regulatory authorities.
Results of salary accounting are reflected in management,
financial reporting and tax accounting with the required level of
specification of:
 Management salary in management accounting;
 Scheduled salary in accountancy and for the purpose of
computation of income tax, insurance contributions to Pension
Fund, Social Security System and Obligatory Health Insurance
Fund
36
Functional possibilities of product
Customers and suppliers relations
management
(CRM)
Customer relations management
Effective work with clients is one of the key factors of business
profitability and reliability increase within highly competitive
circumstances.
“1С:Manufacturing enterprise management” includes a set of
measures enabling industrial basis of customers care such as:
 control of every application
 effective use of every contact
 building relations providing optimal work of different customers
categories.
The system enables effective respond to customers requirements,
distinct planning of interrelations with customers, estimating the
results of various marketing and advertising actions for customers
acquisition.
38
Control and estimation of managers work
“1C:Manufacturing enterprise management”
enables estimation and comparison of managers work who are
responsible for sales and customer service according to various
factors such as:
 data bases completeness with contact information;
 amount of contacts with customers;
 customers retention factor;
 amount of orders completed, sales and income.
The estimations may be used to generate an objective employees motivation system
representing particularity of problems solved by various categories of managers.
39
Interaction with e-mail
E-mail sending:
 Possibility to send e-mails from “Event” document
 Choosing of receiver address from contractors and related persons contact
information
E-mail registration:
 Incoming e-mails registration mechanism
 Sender search and identification mechanism
 Re-receiving elimination mechanism
 Adding contact information such as “E-mail address”
 Possibility to change message text during its registration
40
Functional possibilities of product
Sales, purchases and storage
management
(SCM, SRS, DRP, ITS, WMS)
Sales management
Implementation of an effective information system will be sooner or
later a necessary organizational reassignment for enterprises,
developing their sales markets and channels, increasing and
renewing their production range.
Sales management subsystem provides straight through automation
of goods production and distribution processes.
The subsystem includes planning and sales control tools and
provides solution for customer orders management.
Retailing management system with sales auxiliaries is implemented
in the product
42
Purchases management
Purchases management subsystem provides:
 Information required by managers responsible for purchases to make timely decisions on
commodities and materials resupply to decrease purchase costs and to provide distinct
organization of interaction with suppliers
 Operating planning of purchases, supply ordering and orders execution control
 Support of different goods delivery schemes
 Possibility to make allowance for forecasting stockholding level, to use actual purchase
data, supply orders and other purchase plans.
43
Warehouse (storage) management
Warehouse (storage) management implements:
 Support of order accounting function, commodities and materials
booking
 Possibility to specify random batch features (color, size etc.)
 Implementation of storage batch accounting including serial
number, effective life and certificate accounting
 Providing control of writing off accuracy of serial numbers and
goods with specified effective life and certificates
 Commodities and materials accounting according to various units
of measure at variety of warehouses
 Support of separate accounting of proper goods, accepted and
provided for realization and returnable packaging accounting
44
Manufacturing management
Complex industrial logistics support
Assembly parts
manufacturing
Custom
manufacturing
Order
Modules
manufacture
Custom
manufacturing
Procuring
manufacturing
Logistics center
Assembly parts
manufacturing
Series
manufacturing
Final
Assembling
Assemble to
order
Auxiliaries
manufacturing
Series
manufacturing
45
Functional possibilities of product
Production enterprise management
(APS, SFC, TPS, FCRP, RCCP, MRP, MPS, SOP)
Manufacturing enterprise management
Product related
information management
Reference data
management
History and ERP data
management
Item structure
management
Enterprise reference data
management
Documents history
management
Team operations
Electronic handbooks
Change management
Manufacturing technology
management
Computing tasks
ERP data management
47
Manufacturing enterprise management
Key possibilities
Reference data (engineering data) management :
 Possibility to input unlimited amount of specifications
 Possibility to use alternative specifications with terms of each specification validity term
specified
 Complete list of manufacturing operations with principal characteristics
 Full-range possibilities to maintain list of work centers in tree
 Universal input mechanism of unlimited process charts number with all required
parameters (GOST)
 Flexible mechanisms of specific process chart mapping of required specification in
specified period of time;
Working schedule management:
 Universal setting mechanism of work centers charts with temporary validity
 Setting of working schedules for different charts
 Universal setting mechanism of work centers charts
48
Manufacturing enterprise management
Multilevel interrelated targets
Sales targets subsequently used by other subsystems are developed
on the basis of a strategic business plan of the enterprise and orders
on hand:
Planning and plan-fact analysis is provided under the number of analytical viewpoint:
organization, project, subproject, scenario, manager, resources and executive body,
subdivisions, financial responsibility center, nomenclature or nomenclature group, order,
working center or technological resource, plan specification.
49
Manufacturing enterprise management
Item data management
Manufacturing standard consumption accounting function and
deviations analysis function are implemented
Material consumption rates are specified in BOM
All production processes may be represented as a set of operation sequence implemented
for the purposes of shift planning. Such set imposes an operation flow chart of the
manufacturing. Each operation may be characterized by its own set of input material
requirements and output production set.
50
Manufacturing enterprise management
Shift production planning
Shift production planning
 Production planning including details of individual items and
estimation of exact production terms;
 Determining of explosion procedures breaking points in technological tree;
 Scheduling final assembling with production terms specified.
Determining of available resource power
 Maintenance of work centers and technological operations list
 Support of specified work centers availability calendar
 Scheduling manufacturing requirements
 Work centers load estimation.
Workshop management and execution control
 Organizing shift and daily tasks
 Scheduling of manufacturing requirements
 Plan factorial analysis of manufacturing progress, deviations control and analysis
51
Manufacturing enterprise management
Planning chart
52
Production enterprise management
Cost management and net cost calculation
Full net cost of every accounting method:
 Accounting net cost
 Tax accounting net cost
 Management accounting net cost
 Net cost under the International Accounting Standards
Cost management subsystem enables:
 Actual cost accounting of fiscal period by required cost and actual measurement
 Current quantitative material accounting in work in progress (WIP)
 Actual WIP balance accounting at the end of fiscal period
 Actual output cost estimation over a period of main and auxiliary products output
manufactured by processors
 Actual output cost estimation within a month under the output documents – according to
direct costs and planned net cost
 Accounting of customer-owned raw materials and other advanced cost accountability.
53
Functional possibilities of product
Capital assets and repairs
management
(EAM)
Goods production and repairs
management; asset accounting
The subsystem enables automation of all typical asset accounting
operations:
 entry in accounting records
 state change
 depreciation extra fee
 change of depreciation costs parameters and specification methods
 capital assets actual output accounting
 configuration and reconfiguration, transferring, modernization, final disposal and selling
of Fixed Assets
Upon depreciation calculation not only calculation method but also monthly diagram of annual
depreciation distribution may be specified.
55
Goods production and repairs
management; asset accounting
Due to the management subsystem enterprises may plan and account
their equipment service and repair activity:
 Maintain service legal framework
 Plan Fixed Assets service
and service resources
 Take into account results of service
performed
 Analyze deviations of terms and
scope of service
56
Major Projects based on “1С: Manufacturing
Enterprise Management “ Solution
Major projects (number of automated workplaces) indicated
by reference letters (TOP 10)
6632 — KAMAZ (in group of companies)
5010 — TRANSMASHHOLDING (in group of companies)
1760 — JSC «UniMilk» (in group of companies)
1350 — JSC «RusGidro»
1200 — JSC «MOSTOTREST»
1200 — JSC «OGK-5»
1170 — Tatneft MehServis management company
1000 — LLC «Publishers' EKSMO»
1000 — JSC «Experimental Design Bureau
Mechanical Engineering. I.I.Afrikantova»
818 — Company "TransTeleCom“
You can read customer feedback on site www.1c.ru
in the catalogue of implemented solutions
57
Thanks for attention!