© Photo: PGNiG Termika

PGNiG Termika —Poland’s largest producer of combined heat and power—implemented IFS Applications™ 8 to enhance its key business processes, including finance, project management, fuel management, maintenance, electronic invoicing, and document management.

PGNiG Termika, one of the top Polish enterprises in the energy and utilities sector, producing 11% of the country’s heat, has been an IFS client for over 15 years (earlier under the name of Elektrociepłownie Warszawskie or Vattenfall Heat Poland). PGNiG Termika has been using the previous version of IFS Applications™ for 10 years. Because of the company’s growing needs, in 2013 its management decided to upgrade the existing system to IFS Applications™ 8.

AIMS OF THE UPGRADE The aims of the upgrade, set by the company’s board of management, primarily comprised a further optimization of processes currently in progress, more effective data organization, and the ability to support new processes. The key areas to be improved are maintenance management, project management, finances, and fuel distribution and management.

For each of the key areas, new features have been identified to be implemented using mainly the standard functionality of IFS Applications™ 8 —with minimal adjustments. The improvement in maintenance and project management was of the greatest importance. With the upgrade, the board also wanted to eliminate redundant data system had gathered during 10 years of use, as this data was slowing down its operation.

IMPLEMENTING IFS APPLICATIONS™ 8 The implementation project started by preparing business concepts for each of the areas, as well as settling technical and technological matters. The work of implementing the solution started in February 2014.

In the new version of the system the process of asset management has changed. Now, we register technical faults on our machines and devices directly in the ERP system. This means that a production worker detecting any incorrectness in a manufacturing unit registers this fact directly in IFS Applications™.

The transition to the new version was planned for January 2015. Coordination of individual actions was the major challenge because in January the company finalizes operational reports for the previous December and for the entire year. In addition to this, the company was undergoing an audit.

To avoid piling up the work, the management decided to start registering the faults in the new system from mid-December 2014, so it was possible for us to quickly and effectively start maintenance and repair work as soon as possible in January 2015. To do this, the management had to plan the transition process and train all the production workers in advance. The IFS consultants helped us a lot in this process.

BENEFITS• Better processes and data

organization

• Efficient project management

• Automation of accounting processes

• Improved maintenance management

• Enhancements in fuel management area

• Agile document flow and processing

• Enhanced internal communication

ABOUT PGNIG TERMIKAPGNiG TERMIKA is Poland’s largest producer of combined heat and power. With its effective production method, the company produces electricity to satisfy approximately 65% of total electricity demand of the city of Warsaw. PGNiG TERMIKA provides heat to ca. 70% of inhabitants of Warsaw, and ca. 60% of inhabitants of Pruszków, Piastów and Michałowice. The heat is supplied to our clients as hot water in taps and radiators. The heat is generated in five plants: CHP Siekierki, HP Kawęczyn, CHP Żerań, HP Wola, and CHP Pruszków. In total, PGNiG TERMIKA’s combined heat and power plants produce over 3.7 TWh of electricity and approximately 12 TW of heat annually. www.termika.pgnig.pl

PGNIG TERMIKA ENHANCES EFFECTIVENESS OF KEY PROCESSES WITH IFS APPLICATIONS™ 8

The deployment of IFS Applications™ 8 in all areas was planned to be performed in phases. It started on January 15 2015 and ended on February 18 with an automatic costs calculation for January. The system is currently used by 620 members of staff.

EFFECTIVE PROJECT AND ASSET MANAGEMENT With the upgrade to IFS Applications™ 8, PGNiG Termika was able to use new, innovative functions such as budgeting and forecasting in the project management module. One of the main challenges was implementing the system in a place where project-related jobs along with their costs are automatically transferred to the general ledger.

Automatic cost calculation is an important functionality, which works even better in the new version of the system. We also achieved a significant improvement in accounting. Extended invoice accounting mechanisms significantly speeded up one of the most important accounting processes, which—in connection with

electronic invoicing we have been using for the last couple of years—provides a powerful tool that supports the efficiency of our business.

Implementing IFS Applications™ 8 allowed to optimize processes in terms of new business requirements and the organization of the company. Particularly important are the new solutions in the area of asset management. They allow to conduct an effective maintenance policy for manufacturing units. From the point of view of IT, it is now easier to manage the solution environment, the system works efficiently, and the interface allows each employee to configure their own screen according to individual preferences.

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SOFTWARE• IFS Financials™

• IFS Projects™

• IFS Distribution™

• IFS Maintenance™

• IFS Fuels™

• IFS Document Management™

Further information, e-mail to info@ifsworld.com, contact your local IFS office or visit our web site, IFSworld.com

©Photo: PGNiG Termika