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17 December 2014

"The deployment of a comprehensive ERP system is a key step for us in the implementation of the holding's strategy. SAP solutions will help ensure transparency of our processes for the holding's suppliers and customers. We will be able to manage risk and transform our business in line with the international standards, solving the problem of the competitiveness of our products on the world market," said Maxim Kuzyuk, the CEO of the holding. "The unified information platform encompasses all parts of the company's industrial planning and financial and management accounting, and coordinates the economic processes of production, procurement, and sales. It enables us to plan more accurately, better control inventory levels, and facilitate effective intercompany cooperation by incorporating data from suppliers to track the entire supply chain."

The SAP ERP information platform is scheduled to be fully implemented by 2017. The economic effect of the introduction of the system for Technodinamika has been calculated to be around 600 million rubles and will be achieved by accelerating cash turnover and release of working capital, improving employee efficiency, equipment utilization, and reducing production costs. Additionally, according to expert assessments, the implementation of the project may increase the capitalization of the company by up to 10%.

"The world's leading aircraft manufacturers such as Airbus, Sikorsky, Safran, Pratt & Whitney, and Honeywell, have long ago implemented and operate on the SAP platform," said an representative of SAP. "By implementing SAP, they improved accuracy of production planning to 98%, increased staff efficiency by 30%, and increased customer satisfaction by 10-20%. Rolling out a system of this size and depth is unprecedented in the Russian aviation industry."

Without taking into account the growth of capitalization, the ROI period is estimated at 3-3.5 years maximum, and the newly introduced system is expected to bring first tangible results within a year after the launch of the first module.

The objectives of the ERP system include a radical improvement in planning accuracy and depth, which lowers costs through improved machine utilization, reduced inventories in warehouses, a streamlined production cycle, as well as lower non-fulfillment risks due to improved predictability of manufacturing times, workloads and material delivery times. The system will also enhance the quality and speed of making critical decisions that improve the utilization of all the company's resources. A transparent system will reduce risks and increase investment attractiveness for investors and banks.

"The use of SAP software by one of the leading Rostec holdings is an important step not only for the Technodinamika holding, but for other companies within the State Corporation as well. Our company has taken an active part in negotiating the purchase of SAP software in the interests of the holding. Acting as an IT Center of Expertise for enterprises within the State Corporation, we are ready not only to take part in the implementation of this ambitious project, but also in the subsequent maintenance on the whole complex of problems - from supporting the system infrastructure to supporting users. We are ready to provide assistance to the other Rostec holding companies using SAP to meet the challenges of building and developing their unified normative reference database," said Kamil Gazizov, General Director of RT-Inform.

By 2017, SAP ERP will be implemented on all of Technodinamika's key production sites. During the implementation, a Center of Expertise will be established to develop and support ERP systems.

Technodinamika Holding specializes in development, production, and after-sales support of aircraft systems and individual components. The Holding’s companies also manufacture a wide range of products for the oil and gas, automotive, transport, and energy industries.Technodinamika incorporates 35 companies of the aviation industry located throughout the country: in Moscow, the Moscow region, Ufa, Samara, Ulyanovsk, Omsk, the Arkhangelsk region, and other regions of Russia. The Holding is one of 12 integrated organizations forming the “Rostechnology” State Corporation (Rostec).

The Holding’s main customers include United Aircraft Corporation; Russian Helicopters; United Engine Corporation; Russian Railways, Aeroflot; Sibir; UTair; and more.

RT-Inform is the infrastructural, 100% subsidiary of Rostec State Corporation. In accordance with the decision of the Corporation, RT-Inform is a single center of expertise for implementing trade and procurement activities of the holding companies and organizations of the Corporation in the field of information technologies, information security systems and other equipment, for acquiring, implementing, and maintaining management and cost accounting software, and for providing services in the field of information technology.

Rostec State Corporation is a Russian corporation established in 2007 to promote the development, production, and export of high-tech products for civilian and military purposes. It includes approximately 700 organizations, of which there are currently 9 holding companies in the defense industry and 5 in civilian industries. Rostec's organizations are located in 60 regions of the Russian Federation and market their products in more than 70 countries. Rostec's revenue in 2013 amounted to 1.04 trillion rubles, its net profit being 40 billion rubles. Rostec's tax payments at all levels exceeded 138 billion rubles.