24 january 2007
Frontstep and GMCS complete unique project to implement two ERP systems at GOTEC
A joint Frontstep and GMCS task force has successfully implemented a dual Infor ERP SyteLine and Microsoft Dynamics AX-based automated management system at GOTEC, Russia's major packaging industry company.

A holding company comprising 11 enterprises, GOTEC employs a workforce of over 3 thousand operatives. The new automated management system was phased in simultaneously at four manufacturing enterprises, a services company and the holding's management companies.

The idea to use two international-level software packages in a single information space reflected GOTEC management's desire to maximize effect from implementing best solutions for each of the business processes to be automated while fully taking into account the specifics of the company's operations.

The requirement to commission the new ERP system simultaneously at all the enterprises only made the task harder for the project team members who had to factor in the individual needs of specific enterprises that differed in size and line of business.

The Frontstep team, using the Infor ERP SyteLine package has automated such key processes as logistics and production management, APS and the budgeting process at the holding company level.

Business consultants from GMCS were using a Microsoft Dynamics AX platform to take care of such issues as automation of management, cost and tax accounting, and financial flow management.

The project became the first case in the IT practice that involved integration of such ERP systems as Infor SyteLine and Microsoft Dynamics AX. Reliable integration within the framework of a single information space was ensured by the Microsoft technology, on which both ERP systems are based.

Thanks to a smooth teamwork, the task force comprised of Frontstep, GMCS and GOTEC experts was able to complete this large-scale and complicated assignment in just over a year. Today, the new system is being used by more than 250 GOTEC personnel.

Says Sergey Barabanov, Frontstep's project manager: "This project did not only pioneer a new solution integrating two ERP systems, it became a test facility for it. This solution creates a sound foundation for further development of the holding company's ERP system. By now, the solution is ready for dissemination at other enterprises within the GOTEC group of companies."

According to Ilya Drozman, Director of Microsoft Software Products at GMCS, "This assignment stands apart from other GMCS assignments because it expanded our expertise in implementing Microsoft Dynamics AX at a packaging industry company. In addition, we acquired valuable teamwork experience relating to a simultaneous implementation of different software packages by two contractors."

As a result of the joint Frontstep and GMCS project, the GOTEC group of companies now has at its disposal a powerful management tool for optimizing and synchronizing production planning based on reliable on-line data input. This made possible a better production cost management, reduction in lead time, obtaining reliable and current information for analyzing production cost deviations. The most important thing however is that the company is now in a better position to respond to the current and future market demands in a dynamic way.

"Successful implementation of a unique project always makes you proud of the large-scale effort made to achieve the objective," says Vladimir Tchuikov, GOTEC Chairman of the Board. "To implement and efficiently operate modern-day ERP systems, you have to understand the logics of interaction between the company's business processes and its resources. GOTEC personnel has proved that it could measure up to a task of this complexity. We believe that modern IT tools will ensure an additional competitive edge for our company in a constantly changing business environment."


GOTEC is an engineering company specializes in the repair of hydraulic jacks and coal conversion technologies without water. The company develops and implements at coal plants cleaner complexes on enrichment of raw coal without using water.
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