- The Company continues to operate the Business Transformation Programme. As far as we know, you supervise several projects. Could you tell us about them, please. At what stage of the implementation are they currently?
In 2017 two large projects “Integrated Planning System” (IPS) and “Implementation of the core enterprise management processes” (INT-1) has started in “NC “KTZ” JSC. By the decision of the Company’s leadership I was entrusted with the responsibilities of the Sponsor of these projects. Currently, project teams are actively working to achieve their goals.
The IPS project’s goal is the improvement of the planning process at all stages: that is from determination to overall statement of the freight turnover in the regional scale and production planning to approval of the strategic financial indicators that will affect planning from the line to corporate levels, and in the three planning horizons: strategic (more than 5 years), midterm (1-5 years) and operational (less than 1 year).
IPS project implementation will allow to significantly reduce the timeline for elaboration of forecasts and plans for an upcoming year, increase the accuracy and verifiability of forecasts, immediately consider different scenarios for the future with evaluation of their influence on the production and financial indicators of the Company.
According to the project, all works on “Launch” stage have been completed. This stage has identified the project’s goals and tasks, general scope of work as well as development, approval and formalization of all documents. Moreover, the prototype of the IPS, which was developed by the project team, was transferred to the Company’s servers. In addition, works on compiling a forecast for 2018 have begun.
At present, the project team with the consultants have started works, which are envisaged in the “Design” stage. The scale of changes in the Company and the scope of the forthcoming work on the introduction of changes are assessed in detail.
The project INT-1 allows to enhance the operational performance of the Company by implementing the target business processes and their automation.
Facilitation of the analytical data collection and processing, centralization of the corporate processes, improvement of the management accounting quality and enhancement of the current processes of financial and tax accounting are expected as the results of this project implementation.
Realization of all these events will increase the reliability and transparency of the enterprise management processes, which in aggregate will ensure the qualitative performance of the Company’s strategic KPI.
The project team has completed the replication of the Multifunctional service center at the branches of “NC “KTZ” JSC, has carried out the diagnostics of the current managerial accounting processes, has prepared the Concept of budget planning and management reporting as well as the Concept of separate accounting and calculation of cost.
At present, the project has been transferred to the next stage “Design”, which includes the preparation of relevant transformation methodology.
In April this year the project “Optimization of the stock management” has started. The project is aimed at improving of financial indicators of “NC “KTZ” JSC in terms of management of working capital and material flows and at improving the stock turnover due to the implementation of the replenishment models.
The implementation of the planned tasks for this project will provide an opportunity to develop the logistics service, to reduce the timeline for ordering cycle, to improve the delivery reliability, to increase the warehouse infrastructure utilization performance as well as to develop competencies in the field of stock management and logistic infrastructure.
The project team is already working in the “Launch” stage. The goals and tasks as well as the scope of the planned work are determined. Works on development of formalizing documents are being proceeded in accordance with the Fund’s transformation Methodology.
In addition to the above-mentioned priority projects, a number of additional projects are being implemented within the “NC “KTZ” JSC Business Transformation Programme. One of them is the project “Introduction of a new model of business initiatives and projects portfolio management”. It ensures the implementation of strategic goals through the effective management of investment projects and the investment portfolio of projects through the unification, standardization of methods and automation of investment project management processes.Successful implementation