About Tarbagatay Munay
Tarbagatay Munay is a rapidly developing oil and gas production company. This company is currently engaged in the exploitation of "Sarybulak" oil and gas deposits and proceed to the oil and gas extraction.
Staff, assets, business processes, document turnover, information flows, and the company needs to increase during company development. On that score, the company management decided to implement a comprehensive information system already at the oil exploration phase.
Extra reasons were a discrepancy between the data of management and compliance accounting, significant complication and failures to approve documents, damage or loss of paper documents.
Business challenge
- All remote departments should work in a unified information system with a maximum time of availability despite the potential disruption of communication
- In addition to the compliance functionality, the main part of the processes of procurements, payments, and planning should be automated
- Reporting, including financial, supply, etc. reports should be automated as much as possible
- The information system should be prepared before the oil extraction
- English-language for international administration staff should be provided
Solution description
The 1C-Rating company was outsourced for the tasks solving. The major factors for choosing this company were: 1C-Rating company is an official representative and distributor of "1C" and has wide experience in the implementation of corporate information systems, including systems for the oil and gas industry.
The previous information system was the modified accounting application based on the “1С”, with elements of management accounting. The specialists of the 1С-Rating company choose the “1C:ERP for Kazakhstan” business application as the basis for the system development. The key factors for choosing this business application were the system portability and low cost of implementation.
Project results
During the project, 1C-Rating specialists performed the impact analysis, the system development, the customization of the business application, training of the customer personnel, data transfer from the previous system and the developed system implementation.
The data input to the system by field staff was ensured (supervisors, foreman, storekeepers, inventory managers). Phased staff training on the use of the information system was conducted.
Recognition of procurement procedures in the information system allowed monitoring the state of the initiators` needs up to the actual purchase.
Document approval subsystem allowed streamlining significantly routes and approval time of documents electronic versions, taking into account the document turnover between remote departments and central office.
English translations of system blocks for the international personnel were performed together with the customer’s employees. A user-friendly English interface was developed for management reporting and document approval tasks. The company management gained the ability to control directly the most important processes in the information system.
Own-designed subsystem for the accounting of assets in functional currency (USD) and currency reporting was implemented to the management company. As a result, all transactions in accounting are recognized at the historical rate of functional currency. Counterparts of compliance reporting and forms of currency regulations are formed in the USD currency, and as well, budgets and variance analysis.
The implementation of a new system allowed to save the functionality of compliance accounting subsystem and improved the accumulation of compliance reporting. During the implementation, financial, management and production accounting were automated. The following subsystems and functional blocks were implemented:
- Inventory management
- Funds management
- Customer Service Processing
- Procurement management, including:
- Supplier relationship management (SRM)
- Management of internal needs for materials
- Procurement planning, annual procurement plan scheduling, and monitoring
- Accounting of regulated procurement procedures
- Supplier order management
- Production management
- Sales management
- Special clothing accounting
- Assets management, including Accounting of construction facilities
- HR management
- Budgeting
- Financial and tax accounting
At present, the majority of company departments operate in the implemented system.
Nowadays the system is in product operation with 150 automated workplaces.
The plans for further development are the following: more detailed elaboration of budgeting processes, procurement planning after production initiation, product prime cost calculation.
