7 february 2011
GMCS develops the financial and business management system at OGK-4
GMCS reports the completion of yet another stage of work in the development of an automated financial and business operational management system at OGK-4.

The peculiarity of the project was the parallel tackling of the issues related to the transition of the OGK-4 automated information system to the Microsoft Dynamics AX 2009 version and the development of the system functionality, including the adaptation of the new version of the system to the needs of OGK-4.

The project currently implemented became a sequel of the long-term cooperation between GMCS with the energy generating company. In 2008 GMCS specialists had in the shortest possible time completed the implementation of an information system based on Microsoft Dynamics AX 3.0, linking the OGK-4 executive staff in Moscow and the 5 territorially distant power generating plants into one single information space. This project has become one of the major examples of Microsoft Dynamics AX implementation in the Russian power generating industry.

According to Konstantin Simakin, Head of the ERP system implementation project at OGK-4: "This project had become the first full-scale implementation of the ERP solution in the whole of the post-reforms power generation sector. Yet its main distinguishing characteristic has become rather the fact that the whole process was carried out in the context of major reformation of the company – integration of 5 historically very different companies into one and subsequent integration of the company into a large international concern. There is a general opinion that in the absence of stable established processes a large system cannot be implemented. Nevertheless, both the project and the system itself have become and continue to be two of the most important tools of integration, transformations and standardisation of the company's business process."

In May 2010 a joint team of OGK-4 specialists and GMCS formed a complex development programme for the OGK-4 automated financial and business operational management. As early as in 2011, thanks to the well-coordinated work of the project team, OGK-4 has undergone the transition to Microsoft Dynamics AX 2009.

Transition to the latest version of the system opens wide possibilities for deeper integration of the geographically dispersed business units of OGK-4 into one single information space. For example, deep integration of Microsoft Dynamics AX 2009 with the corporate portal will enable OGK-4 to create unified approaches to internal document flow, benefit from safe access to operational data via Internet, set up a personalised ergonomic interface to the system for each user.

"The modern rapidly changing global economy compels even such a stable and somewhat conservative business sector as generation of electricity to react far more promptly and flexibly to all changes in the external environment," comments Oleg Kapitulov, Deputy IT Director General at OGK-4. "The purpose of IT in this situation is to provide business with management tools which would be, on the one hand, sufficiently reliable and, on the other, sufficiently flexible and adaptable, capable of supporting the changing management processes. The challenge also lies in the fact that costs and expenses related to these continuous changes shall not exceed significantly the usual level of expenses related to system maintenance. In my opinion, the ERP system built in OGK-4 by GMCS combines the above-listed requirements of the business sector in the best manner possible, and this is what favourably distinguishes it from the more "heavy" ERP platforms."

In the framework of the system functionality development stage the development of a single common methodology of automated planning and control over the processes of providing OGK-4 with material and technical equipment is being realised. The methodology developed by a team of GMCS and OGK-4 specialists covers both classical MTP support processes and processes specific for OGK-4. In compliance with the developed methodology, the most labour-intensive sectors, including bid campaign procedures for MTP support and the creation of a complex procurement programme, monthly and annual equipment repair and technical maintenance programmes planning, as well as procurement procedures, will undergo automation. Currently, the creation of a supplier interaction management subsystem and of mechanism for holding bid campaigns for MTP support is underway in Microsoft Dynamics AX 2009. The completion of the MTP support processes automation is scheduled for the third quarter of 2011.

"The scope of goals and tasks pertaining to this project is in fact comparable to the implementation project scale. Application of available experience of complex project management in geographically dispersed companies and of integrated solutions building on the basis of Microsoft Dynamics AX helps to achieve designated targets in shortest time possible," noted Ivan Yevtyukhin, head of the power generation branch at the Microsoft products department at GMCS. "In our turn, thanks to the expertise we have accumulated in the field of power generation, we will be able to simultaneously solve such complicated, in terms of organisation, tasks as transition to the new version of the system and creation of a planning and procurement activity control mechanism."

About E.ON Russia

E.ON Russia was founded in 2005 on the basis of five power stations. The Company incorporated Surgutskaya GRES-2, Berezovskaya GRES, Shaturskaya GRES, Smolenskaya GRES and Yaivinskaya GRES with the aggregate capacity of 10345 MW. There is one more branch of E.ON Russia – Thermal supply network of Berezovskaya GRES, which supplies thermal power to consumers in Berezovskaya GRES activity area.
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