TECHNICAL TASK

PROJECT NAME: AUTOMATION OF FINANCIAL AND ECONOMIC ACTIVITIES OF THE ENTERPRISE BASED ON THE
“1C8: MANAGEMENT OF THE PRODUCTION ENTERPRISE” SOFTWARE PRODUCT

NAME OF THE CUSTOMER (CLIENT): LLC “Dneprokeramika”

NAME OF THE CONTRACTOR (CONSULTANT): LLC “PROKOM”

1. Introduction

The main reasons why LLC “Dneprokeramika” needs this project are as follows:

1. Replacement of the existing 1C: Accounting 7.7 software product with a modern 1C8: UPP product due to the moral and
technical aging of the 1C: Accounting 7.7 software product.

2. The necessity for analysis and clarification of the defect accounting methodology used at the enterprise.

3. The necessity to track the movement of products across sites.

4. Difficulties in making management decisions due to the lack of operational information.

Description of the enterprise

Brief information about the LLC “Dneprokeramika”, dated 9 April 1998.

company
History and main stages of the
company’s development
There has not been any change in the OLF since 1998.
Manufacture of ceramic and sanitary ware.
Manufacture of bathroom furniture.
The enterprise LLC “Dneprokeramika” was founded on November 28, 1993. It received stable
development in 1998.
The production of ceramic products is based on Italian technology and equipment. The production
capacity of the enterprise has grown 4.2 times since 1998. The purchase of new equipment, as well as
the transfer of firing products using gas facilitated this. This allow entering new sales markets. Now
the production realizes its products to Belarus, Armenia, Latvia, Lithuania, Estonia, Bulgaria,
Uzbekistan, Georgia, Azerbaijan.
Product quality is confirmed by a functioning quality management system in accordance with the
DSGU normative document ISO 9001-2009 ( ISO 9001-2008)

The production of furniture began in May 2011 with a volume of 1200 bedside tables per year. Today
the production volume exceeds 36,000 bedside tables per year. This was facilitated by the purchase of
new, modern, German equipment. This allowed us to enter new sales markets. Now the production
sells its products to Belarus, Armenia, Latvia, Lithuania, Estonia, Bulgaria, Uzbekistan, Georgia,
Azerbaijan.
Products/services The main groups of manufactured goods for ceramic production:
Toilet bowls - 25 %
Toilet tanks - 25 %
Hand sanitizer - 40%
Washbasins - 10 %
The main groups of manufactured goods for furniture production:
Bedside Tables - 80 %
Mirror cabinets - 18 %
Cupboards - 2 %
Clients Ceramic products:
В2С - 0,4 %
В2Б - 99,6 % - large construction companies
- Epicenter K, LLC
Furniture products:
В2С - 0,2 %
В2В - 99,8 % - chain stores, dealers

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Suppliers Ceramic manufacturing suppliers:
Peptapon 1615 EF - LLC “Stasenko and Partners”, Lviv;
Kaolin KS-1 - AKV Ukrayinske Kaolinovo Partnership LLC, Vinnytsia region;
Zirconium silicate Zircosil five - Zircosil (Spain) S.L. Spain;
Talk of grinding LMME-CRA - LLC “Impexinvest”, Kharkov;
Zinc whitewash brand BCOM – LLC engineering center Reagent PMTZ, Dnipro;
Feldspar brand 1210 Міх -Alabanda Madencilik Dis Tic A.S. Turkey;
High-strength packed gypsum of the GV-G-10N-IV – DP of Kamyanets-Podilsky JSC Gypsum
“Podillya-Pypsum” of Kamyanets;
Gypsum binder molding / construction G-10 N-III – LLC “KNAUF GYPSUM”, Kyiv;
Gypsum binder “Almod MP” - Saint-Gobain Formula GmbH Germany;
Clay PLG-3 – LLC “Mineral” Mining Company, Pologi;
Feldspar raw materials PShS-1 – Maidan-Vilsky quarry LLC Polonnoye, Khmelnitsky region;
Thinner for ceramic masses, sodium polyacrylate – FOP Losev Alexander Vasilyevich, Mariupol.

Furniture manufacturing suppliers:

MDF – Korosten MDF Factory;
DSP – LLC “SVIS KRONO”;
Accessories – PE “DASk-Center” Krivoy Rog;
Paints and varnishes - INDUSTRIAS QUIMICAS IRIS SA (Spain);
Competitors Ceramic competitors:
PJSC Slavuta Combine “Budfarfor” (Khmelnytsky region)
LLC “Tersanit Invest” (Zhytomyr region)

Furniture competitors:
LLC “YUVVIS”, Slavuta;
LLC “SanService”, Slavuta;
LLC “Aqua Rhodos”, Slavuta.

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 Competitive STRUCTURE OF MAIN EXPORTERS OF SANITARY AND TECHNICAL PRODUCTS
advantages/disadvantages

The dynamics of export deliveries of sanitary ware from ceramics to the main countries of contactors
by the Ukrainian manufacturers is negative.
Export supplies decreased by 52% From 2011 to 2017, if earlier manufacturers worked with one or
two countries to which they exported products, now several countries are active.
Until recently, the largest customers of sanitary products were Russia and Kazakhstan, but due to the
political crisis and aggravation of relations between the countries, the structure of exports is
reoriented in the western direction.

VOLUMES OF EXPORT OF DOMESTIC MANUFACTURERS OF SANITARY AND

TECHNICAL PRODUCTS FROM CERAMICS thousand US dollars

Importing 2011 2012 2013 2014 2015 2016 2017

Countries
RF 28552 28957 23584 18215 10513 2079 -
Belarus - 4296 5180 - - - 1717
Kazakhstan 78914 9978 7955 5516 3041 - -
Moldova 2827 - - - - 1463 -
Poland - - - 5652 9903 11547 12459
Germany - - - - - - 1458
Others 7243 6358 7365 10100 6757 5481 5208
In All 46510 49288 44083 39482 30214 20571 20841

The demand for bathroom furniture products is constantly growing. Our advantage is the lowest price
with high quality products. We work on modern German equipment from HOMAG; we have highly
qualified specialists, reliable and proven suppliers for years. The main disadvantage is the
impossibility of satisfying customer demand with our products.

Dniprokeramika LLC works in conditions of very tough competition.

Fixed assets Production area – 11 137, 9 m2.
Office premises – 2 584, 4 m2.
Warehouse – 2 550, 0 m2.
Ceramics production:
The total cost of production equipment as of July 1, 2020 is 33 675 919, 83 UAH.
Depreciation of equipment is 62,6 %
Furniture production:
The total cost of production equipment as of July 1, 2020 is 9 253 873, 64 UAH.
Depreciation of equipment is 15,4 %

Management Structure:

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 COMPANY STRUCTURE

Statistics for the last 3 years:

2017(exchange 2018(exchange 2019(exchange

Index Comments
rate 30.06) rate 32.18) rate 28.98)
Number of sales / volume of pieces
products produces
- ceramics production 376 051 398 297 383 871
- furniture production 22 718 23 768 29 585
Annual turnover (EUR) Revenue from F2 divided by rate
- ceramics production 4 097 838 5 017 772 5 921 614
- furniture production 478 030 531 190 797 650
Number of employees From financial reporting
- ceramics production 369 386 384
- furniture production 31 30 35
Export (EUR) 2 150 653,0 2 039 415,0 1 445 440,0

Description of business needs

Strategic development plan of the Company:

1. Marketing:
 Increase in sales of products
2. Production:
 Increasing product quality;
 Growth of labor productivity;
 Reduction of production costs.
3. Finances:
 Increase in profits.

Over the next 3 years, the Company plans “Dneprokeramika” LLC due to:

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 1) Expanding the range for the needs of the Customer, with considering the differentiation of market requirements

2) Mastering the production of new types of products, the most popular sanitary ware, with increased added value
3) Improving the accounting policy of the enterprise for the prompt solution of production commercial problems .

Funding requirements - 40 000, 0 EUR:

 Own funds;

 Investment funds.

The main problem of the enterprise, for which solution a consulting projects is needed:

Insufficient operational information for making management decisions.

2. Description of the project

The main goal of the consulting project:

The main goal of the project is to improve management efficiency and reduce the costs of the beneficiary enterprise by automating the
financial and economic activities of the enterprise based on the “1C: Manufacturing Enterprise Management 8” software product.

Tasks required achieving the main goal:

Objectives of IT projects:

1) Reorganize and / or optimize internal business processes, distribution of responsibilities and current activities of the Company
2) Optimize business processes by implementing automated systems for bookkeeping and tax accounting, inventory management,
CRM, logistics, sales and personnel management, cost accounting, document management
3) Improve the quality of financial planning, analysis and preparation of financial reporting

Expected economic effect from project implementation:

IT

Performance Indicator Indicator Unit Initial Value Expected Value Data Source

Labor productivity growth Labor productivity (revenue in F2

EUR/ number of employees)
- ceramics production 15 707,0 17 000,0
- furniture production 22 790,0 26 208,0
Increase in the share of profit in revenue Share of profit in revenue (%) F2
- ceramics production 3,5 10,0
- furniture production 5,82 6,69
Revenue growth Annual revenue (EUR) F2
- ceramics production 5 921 614,0 7 000 000,0
- furniture production 797 653,0 917 300,0
Time spent (hours per week) calculation
Reduction of time spent on preparation of
internal/ external reporting
- ceramics production
440 395
- furniture production
44 46

3. Implementation of the project

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The following key employees of the Client will be involved in the project:

Full Name Position Telephone E-mail

Cheberko Andrey Ivanovich General director 050 322 57 01 andreycheberko4@gmail.com
Cheberko Larisa Alexandrovna Commercial director 050 322 72 60 dniproceramica@gmail.com
Khizhnyaya Elizaveta Ivanovna CFO 050 322 84 39 k2.fin@gmail.com
Sironozhenko Natalia Ivanovna Chief Accountant 050 450 52 57 dksni@ukr.net
Kolesnik Kirill Sergeevich Furniture Production Director 050 469 28 54 duke.kirill@gmail.com
Pedina Vita Viktorovna Chief accountant of Furniture 099 785 49 79 duke.buh@gmail.com
Production
Olishuk Nadezhda Sergeevna Chief Economist of Furniture 099 068 98 89 duke.econom@gmail.com
Production

Choosing a Consultant

“PROKOM” LLC was chosen for the implementation of this consulting project. The Consultant provides the following services:
1) Implementation of projects for the introduction of automation systems for financial and economic activities of enterprise on the 1C:
Enterprise 8 platform.
2) Sites and systems for online trading Development
3) Network infrastructure creation and support
4) Audit of Information systems and implementation projects

The Consultant’s qualification are confirmed by:

1) 1С: Professional on the knowledge of the capabilities and application of the standard “Management of a manufacturing enterprise for
Ukraine” configuration of the “1C: Enterprise 8” program system, 1С: Specialist in the configuration and implementation of the
payroll and personnel management subsystem in applied solutions 1C: Enterprise 8, Certificate CSOUUU000032 since 27/04/2013,
for the compliance of the qualification level with the requirements set by 1C Company while organizing the educational process in
the Centers for Certified Course Training “Maintenance of bookkeeping and tax accounting in the “1C: Management of a
manufacturing enterprise 8 for Ukraine” applied solution”
2) Member of the “Union of Business Automators” since 13/10/2017, Certified Training Center since 2003, Authorized Training Center
since 2001, Participant of the “1C: Consulting” project
3) Competence Center for Manufacturing since 2005, Candidate for 1C: ERP Center since 2017

The Consultant was selected as follows: A market research of consulting services was conducted and a Consultant was selected based on
an acceptable price-quality ratio.

Services provided within the project

The Consultant undertakes to provide the following services:

Project Stage Services Provided Result/Package of accounting documents

Stage 1. Express survey
and modeling
1. Gathering information about the current 1. The Customer received the 1C: UPP
business processes at the enterprise and software product, license cards, and
developing “as will be” processes in the new software products transfer
system. certificate.
2. Modeling the developed processes based on 2. The Customer received an
the typical functionality of the 1C: UPP information base with the created
system (preparation of an end-to-end model (electronic).
example). 3. The document “Technical and
3. Preparation of a description of the methodological solution”, which
developed business processes in the describes the methodological
“Technical and Methodological solution”. solutions on which this end-to-end
4. Analysis of the current production example is built (paper)
accounting program at the enterprise. 4. List of works – technical
5. Preparation of a description of the functional specification for the development in
accounting for the production of ceramic 1C: UPP of the functional of
products in the technical specification ( List operational accounting of the
of works) for the development in 1C: UPP. production of ceramic products with
established approval marks (paper)

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 Project Stage
Stage 2. Revision of a
typical 1C: UPP software
product for operational
accounting of the
production of ceramic
products
Stage 3. User Training
Stage 4. Trial operation of
the typical functionality of
1С: UPP : “Sales
Management”,
“Procurement
Management”, “Inventory
Management”, “Cash
Management”,
“Bookkeeping and Tax
accounting”, “Payroll” (in
accounting) subsystems on
the data of one reporting
period
Stage 5. Trial operation of
the developed subsystem
“Operational accounting
of the production of
ceramic products” on data
of one week
Stage 6. Support
throughout industrial
exploitation during one
reporting period (October
2021)
Services Provided Result/Package of accounting documents
1. Development of the “Operational 1. List of works – technical
accounting pf the production of ceramic specification for the development
products” subsystem based on the technical in 1C: UPP of the functional of
documentation (list of works). operational accounting of the
2. Testing of the developed “Operational production of ceramic products
accounting of production of ceramic with established marks of works
products” subsystem on the data of end-to- acceptance (paper).
end reflection 1-2 items production. 2. Acceptance certificate of work
performed.
Enterprise personnel training 1. Journal of training courses
attendance (paper) with signatures
of participants in the following
areas:
 Accounting in the “1C:
Manufacturing Enterprise
Management 8" applied solution
 Sales, purchases, stocks and cash
flow Management in the “1C:
Manufacturing Enterprise
Management 8” application
solution.
 Personnel management and payroll
calculation in the “1C:
Manufacturing Enterprise
Management 8” application
solution.
 Operational management of the
production of ceramic products in
the “1C: Manufacturing Enterprise
Management 8” applied solution.
2. Test results (paper)
3. User manual
Provision of trial operation based on the standard 1. Protocol of the trial operation of the
functionality of the 1C: UPP system on the data of one typical functionality of 1C: UPP
reporting period (month). During which the specialists subsystems (paper)
of the enterprise will enter the regulatory information,
initial balances, documents on the developed business
processes and receive a financial result for one
reporting period (month), namely:
 Performing consulting and support for
enterprise users
 Monitoring of data entry and correctness
 Analysis and clarification of the accounting
methodology, if necessary, making
adjustments to the diagrams of “Technical and
Methodological solutions” business processes
Provision of trial operation of the “Operational 1. Protocol of the trial operation
accounting of production of ceramic products” “Operational accounting of the
subsystem developed in 1C: UPP on the data of one production of ceramic products”
week, during which the specialists of the enterprise subsystem developed in 1C: UPP
will carry out parallel input into the existing (paper)
accounting system and the 1C: UPP database, namely:
 Performing consulting and support for
enterprise users
 Monitoring of data entry and correctness
Consulting and support of users’ operational work 1. Protocol of industrial operation
during one reporting period (October 2021) (paper)
2. Brief Final Report in English
(paper)
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At the end of the consulting project, the Customer and the Contactor sign an acceptance certificate for the work performed, which is an
integral part of the Final Report.

Schedule

Project start date: 12/10/2020

Project completion date: 30/11/2021

October 2020 November 2020 December 2020

Stage of work/ month, week
Н1 Н2 Н3 Н4 Н5 Н6 Н7 Н8 Н9 Н10 Н11 Н12 Н13 Н1
Stage 1: Express survey and modeling
Execution of works
Reporting documents package 1
Agreement of the results
February 2021 March 2021 April 2021
Stage of work/ month, week
Н18 Н19 Н20 Н21 Н22 Н23 Н24 Н25 Н26 Н27 Н28 Н29 Н30 Н3
Stage 2: Revision of a typical 1C: UPP software product for operational accounting of the production of ceramic products
Execution of works
Reporting documents package 2
Final report/ Agreement of the
results, acceptance of works
Stage 3: User Training
Execution of works
June 2021 July 2021 August 2021
Stage of work/ month, week
Н35 Н36 Н37 Н38 Н39 Н40 Н41 Н42 Н43 Н44 Н45 Н46 Н47 Н4
Execution of works
Reporting documents package 3
Final report/ Agreement of the
results, acceptance of works
Stage 4: Trial operation of the typical functionality of 1С: UPP : “Sales Management”, “Procurement Management”, “Inventory Managem
“Bookkeeping and Tax accounting”, “Payroll” (in accounting) subsystems on the data of one reporting period
Execution of works
Reporting documents package 4
Final report/ Agreement of the
results, acceptance of works
Stage 5: Trial operation of the developed subsystem “Operational accounting of the production of ceramic products” on data of one week
Execution of works
Reporting documents package 5
Final report/ Agreement of the
results, acceptance of works
October 2021 November 2021
Stage of work/ month, week
Н53 Н54 Н55 Н56 Н57 Н58 Н59 Н60 Н61
Stage 6: Support throughout industrial exploitation during one reporting period (October 2021)
Execution of works
Reporting documents package 6
Final report/ Agreement of the
results, acceptance of works

4. Budget

 DIRECT EXPENSES

Full Name of the expert from the Quantity of Daily rate in EUR Total in EUR
Position
Consultant working days (excluding VAT) (excluding VAT)
Zimnitskaya Lidia Viktorovna Project manager, Methodist 137 107 14 655

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 Boyko Olga Leonidovna Methodist 120 90 10 800
Vinokurova Irina Alekseevna Methodist 110 90 9 900
Kirilenko Liana Viktorovna Training center teacher 60 90 5 400
Kravchenko Alexander Alexandrovich Programmer 53 90 4 770

TOTAL DIRECT EXPENSES: = [45 525] EUR

 OTHER EXPENSES ( overhead costs (transport)):

Price in EUR per Total in EUR

Name Quantity
unit(excluding VAT) (excluding VAT)
1С: Enterprise 8. Management of the production enterprise for 1 4 273 4 273
Ukraine (electronic delivery)
BAF. User license for 20 jobs (electronic delivery) 1 1 293 1 293
BAF. User license for 5 jobs (electronic delivery) 1 354 354
BAF. User license for 10 jobs (electronic delivery) 1 680 680
BAF. Server license (х86-64) (electronic delivery) 1 1 300 1 300

TOTAL OTHER EXPENSES 7 900,00 EUR

 TAXES (VAT) 9 105,00 EUR

 TOTAL TO PAYMENT (DIRECT + OTHER + TAXES) 62 530,00 EUR

 Advance payment to the Consultant 12 680,00 EUR

5. SIGNATURES OF THE PARTIES:

Customer: Consultant:

Cheberko Andrey Ivanovich Butenko Sergey Nikolaevich

LLC “Dneprokeramika” LLC “PROKOM”
General Director Director