Unified Finance and Resource Management System

Industry

Railway

Customer

Belarusian Railway, an organization of more than 200 legal entities located in different regions of the Republic of Belarus.

Project Background

IBA implemented its first SAP project for Belarusian Railway (BR) in 2005. It was Forwarder, the system that controls in real time the execution of contractual obligations by forwarding agents when providing transit/export/import cargo transportations. Forwarder features include processing of shipment requests, monitoring contracts with forwarding agencies, tracking online customer accounts (billings and incoming payments), maintaining the rail shipments database, calculating cargo transportation costs before a new shipment is initiated, and providing analytical reports.

Following the Forwarder implementation, IBA was appointed as SAP Service Partner. The system showed BR management that SAP suits the needs of a large–scale railway company and can serve as a basis for its unified resource and finance management system.

Project Overview

In October 2005, IBA jointly with BR launched a project for the implementation of the Unified Finance and Resource Management System (UFRMS) of Belarusian Railway. Based on SAP ERP 2005, the system is designed to unify multiple, non–coordinated workstation software in a single financial, HR and resource system that is built using a standardized approach and is capable of providing economic and financial information to BR management.

The final goal is to integrate the UFRMS with the Information Analysis System to Manage Railway Cargo Transportation that manages BR's technological processes. As a result, BR management will be able to optimize its operations both in terms of functional and financial feasibility.

Project Execution

The UFRMS project was implemented step by step using SAP ERP 6.0, SAP Netweaver 7.0, and SAP Netweaver BI 7.0. IBA implemented and launched a number of subsystems and currently carries out their maintenance. IBA successfully completed the following subprojects:

Forwarder. The system that controls in real time the execution of contractual obligations by forwarding agents when providing transit/export/import cargo transportations. The system was launched in 2005.

Budgeting System. Consolidation System. The aim of the two systems is to provide BR with a flexible tool to plan organizational budgets, control budget execution, distribute and manage funds, and generate and analyze consolidated financial reports. Based on SAP Netweaver BI (BW), both systems were successfully launched in 2007.

Cargo Transportation Accounting and Control. The project includes a centralized preparation, creation, and printing of transportation documents, bank accounting, Accounts Receivables and Payables, revenue and expense accounting, online billing, and different types of reporting (station, logistic, statistic, and financial). The implemented subsystem enables Belarusian Railway to see the online status of financial settlements for transportation services with all of its customers, history for each client on each shipment, and the analysis of incomes by direction, country, region, station, service, and customer).

Using Web services technology, IBA implemented the integration and automatic synchronization of reference data guides with the technological subsystem of reference data developed by IBA.
In January 2010, the system was launched in commercial operation.

Equipment Maintenance System. The system Equipment Maintenance (EM) was implemented in two stages for the period of two and a half years and was put into commercial operation in September 2010. During the first stage of the SAP ERP project, the subsystem was implemented in the Locomotive Depot of the Minsk branch of Belarusian Railway and became a template solution. The second stage included the EM replication to the other departments of Belarusian Railway. During the second stage of the project, the system functionality was expanded to cover different types of repairs for all locomotive series. In addition, IBA introduced electronic certification for major locomotive units, developed a set of functions to keep a fault log with links to the correction checklists. IBA also integrated SAP EM with the transportation management system and with outer diagnostic systems.

Today, the solution provides support for the maintenance and repairs of locomotives, and allows for the quality management of repairs, including monitoring of the technical state of diesel and electric locomotives and their parts. Equipment Maintenance enables Belarusian Railway to anticipate and plan needs in material resources based on actual expenditures, as well as control and analyze movement of material resources, track the execution of work online, and manage the entire process of locomotive repairs.

In his letter of thanks, Alexander Gurshchenkov, Deputy Head of the Locomotive Depot of the Minsk branch of Belarusian Railway, says: “The installation of the EM terminals in the maintenance departments enabled our experts to track and confirm operations directly in the system, and receive online operational information, namely repair manuals, designs and technical specifications, safety instructions, and work history. Locomotive Depot employees are able to generate and maintain the Book of locomotive repairs, material status reports, job sheets, certificates, and other documents electronically”.

In addition, the EM implementation reduced workload of the non-linear departments. The accounting department received automatic accounting of the materials used for repairs, while labor and wages department, automatic formation of orders.

Template Accounting System. The system Template Accounting (TA) is based on SAP ERP 6.0, and was implemented to automate the accounting of Belarusian Railway. Since 2007, the system has been in commercial operation.
The project covers finance, accounting, fixed assets accounting, costs accounting and controlling, and material accounting. Within the project, IBA experts developed a corporate chart of accounts (COFA) and COFA instructions.
The Template Accounting subsystem is designed to automate accounting in accordance with the Belarusian legislation and includes:

  • Fixed assets accounting
  • Accounting of inventory holdings, equipment and protective clothing
  • Cost accounting and allocation
  • Monetary assets accounting
  • Calculations accounting
  • Results accounting.

Within the subsystem’s localization, all business processes, forms, and accounts were brought in line with requirements of the Belarusian legislation. Moreover, TA replication is planned at all the enterprises of the Belarusian Railway.

Human Resource Management.The project is designed to create a unified automated SAP ERP 6.0-based system to manage human resources and organizational divisions of BR.

The HR Management subsystem was launched simultaneously with Template Accounting subsystem in October 2007.

The system automates HR records management in accordance with the Belarusian legislation and includes:

  • Organizational structure, manning table
  • HR recordkeeping (hiring, dismissal, labor agreement, and retirement), planning and time sheets, and labor protection. IBA developed and implemented a Template Album of Printing Forms for HR recordkeeping.

Labor and Payroll Accounting. In March 2011, IBA launched the SAP subsystem Labor and Payroll Accounting that automates time wages calculation. The system also automates calculation of piecework wages typical for locomotive depots of the customer.

Material and Technical Supply Management. In November 2010, IBA launched the corporate system Material and Technical Supply Management at 46 companies of Belarusian Railway. The subsystem is a solution that allows for centralized management of Material and Technical Supply. The system integrates into a single functional unit:

  • All planning processes, from calculation of material requirements to hierarchical purchase approval process
  • Procurement activities
  • Multiple purchase orders, a procurement process specific for the customer
  • Warehouse operations from registration to transportation control
  • Processing of applications for the maintenance of Unified Directory of Materials. A process specific for the customer.

This structure of the subsystem allows for transparent and integrated procurement processes, and provides analysis of financial and logistics reporting from different perspectives and in various time slices.

Roll-out of Template Accounting and HR Management subsystems at all BR branches. Both subsystems are implemented at more than 70 enterprises of Belarusian Railway and the rollout is carried out at the rest of BR’s companies within the work schedule.

SAP Integration with Technological Software of Belarusian Railway. The project includes implementation of SAP interfaces to the railway's technological software.

SAP Basis Services. The project deals with the deployment of an SAP landscape (six systems) on RISC (application servers) and mainframe (databases) platforms.

Project Results

With assistance from IBA consultants, Belarusian Railway has automated and unified its business processes related to accounting, finance (budgeting and consolidation), and HR management. The further task is to extend the functionality and to roll out the system to all BR branches.

Belarusian Railway appreciates IBA for a unique knowledge base and experience in international projects, resulting in the introduction of state–of–the–art methods and technologies. Using the new system, BR management achieves cost reduction, receives a possibility to analyze and plan finances and resources, increases controllability and transparency, and improves management effectiveness.

Valeriy Shubadyorov, Vice President of Belarusian Railway, says: “On behalf of the Belarusian Railway, I would like to thank IBA for assistance in the automation of business processes at our organization. We look forward to continued and fruitful cooperation with IBA”.

Alexander Gurshchenkov, Deputy Head of the Locomotive Depot of the Minsk branch of Belarusian Railway, says: “The Equipment Maintenance system was implemented in two stages for the period of two and a half years. As a result of hard work, the SAP ERP-based system Equipment Maintenance was put into commercial operation in September 2010.”

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