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Creation of Corporate Information System (CIS) in Moscow United Energy Company (MOEK)

The Moscow United Energy Company (MOEK) was founded in 2004 by order of the Moscow Government. The activities of MOEK are spread through all segments of the energy market of Moscow: production, distribution and marketing of thermal energy, as well as the production of electrical energy.

 
MOEK provides stable and high quality heating energy to more than two thirds of the capital’s territory and is not only one of the largest and most strategic enterprises in Moscow, but also in Russia. Some statistics of MOEK include

  • 29 enterprises and segments
  • 8,127 central heating stations
  • about 8,000 km of heat connection units and distribution networks
  • 4 thermoelectric power stations (3 district thermoelectric power stations and 1 mini-thermoelectric power station)

Objectives of implementation

  • Creation of unified enterprise information management tool
  • Making the activity of the enterprise transparent to management decision making process
  • Operational control and monitoring of all business processes

Implemented Functions:

  • Maintenance service and repair (PM)

  • Materials management (MM)

  • Financial management (accounting and reporting, budget management, tax accounting, general ledger, fixed assets accounting / FI)

  • Planning and accounting of actual costs (CO)

  • Fees assessment for electrical and thermal energy consumption (IS-U)

  • Supplier relations management (SRM)

  • Strategic enterprise management (SEM)

  • Business information Warehouse (BW)

Implementation Results

All production, financial and logistics activities of branches of MOEK were fully automated during the implementation of the Corporate Information System (CIS). As a result there was:

  • Considerable reduction in the reporting and analysis lead time,

  • Increased efficiency of document flow;

  • Real-time control of the structure and nature of technical equipment;

  • Reduction of yard-stock and expenditures connected with inventory procurement;

  • Reduction of possible errors.

An expert review concluded that the medium term results of the implementation will be:

  • Lump sum improvements in the financial parameters of the enterprise - profits, revenue, return on equity;

  • Reduction of receivables;

  • Reduction in the number of emergency situations;

  • Increased attractiveness of the company to customers.

"This project is implemented under the strategy to enhance the efficiency of business management through the consistent implementation of unified management standards and principles on the basis of modern software”, said Alexander A. Lebedev, CIO of MOEK, “Our consumers will assess the role of new technologies shortly. Implementation of SAP brings transparent tariff and billing mechanisms."

 

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