“ it is important to understand that increases productivity, and that — simply toy “the Largest manufacturer of dairy products in Finland company Valio has begun
“ it is important to understand that increases productivity, and that - simply toy “
the Largest manufacturer of dairy products in Finland company Valio has begun scale reorganisation of a control system. And, as admitted interview AJVANU the president and CEO Valio OLAVI KUUSELA (Olavi Kuusela), now it are tormented by a question: and whether all these changes are necessary now?
- Why you have decided to introduce new technologies?
- Sales volume Valio - 1,4 mlrd we export euro, and third of production. At us the branched out structure: factories in the USA, Estonia, other Scandinavian countries; we export dairy products to Russia from the beginning of the century. But now we have changed strategy: in the beginning of May we have made the decision on factory sale in the USA, and controllability of others we want to raise to make manufacture by more effective. We concentrate the operations in the countries of the Baltic region: at us about 60 % of the local market of dairy production, we buy up 80 % of all milk made in Finland. And we want to strengthen here the positions. The decision of this problem will depend on successful introduction of new electronic technologies.
the matter is that within last several years our manufacture has considerably changed. We use the technology focused on consumers, - half of our production is made under the order. But in the dairy industry the specificity as production has certain working life. And for us it is very important to receive orders in advance to have possibility to plan purchase and manufacture.
the program of re-structuring Valio is calculated for five years; by 2006 we will have three factories and some information systems. By this time we should leave completely from release of mass products and make only under the order. Means, our manufacture, systems of distribution and purchases, logistics should work faultlessly. Consumers should have access to order system then we can refuse expensive warehouses - refrigerators. We, of course, are not going to serve thus each buyer of milk and cheese, but we hope to include in system of all our large distributors.
- how many you are going to spend for the program of re-structuring and on what results count?
- for five years we will spend about 100 million euro. And as a result we plan to reduce production costs on 15 - 20 %.
- As you chose new information system?
- uniform system we do not plan to introduce. Basically, us arrange existing, and we only want to build in them a uniform program cover in which quality have chosen MySAP. com. However, it is possible to find defects in each offered system. Last year at Stanford University me have acquainted with results of poll of 140 directors of the companies. And so, directors of manufactures were very happy SAP, and directors of service services - are very dissatisfied. Apparently, such polarity of estimations is connected by that SAP the children well knowing productions created and it is not so good - service. However at us already costs them ERP - system R/ 3 with which we basically are happy, and for us it is important to unite with it other systems. They from different manufacturers - are a product from Oracle, there are also our own workings out. SAP has offered us the combined decision, besides our basic customers too have established at themselves systems SAP. Anyhow, laboratories, dairy manufacture, logistics, sales will go through systems SAP, administrative functions - through Oracle, the basic manufacture - through our own system. And here we have given accounts department on outsourcing to company ICL at the expense of what have reduced the personnel in department at once to 80 %.
- you have faced what problems?
- the project only has begun, and the basic fears while have been connected with uncertainty that SAP which has some experience in dairy branch, can cope with a problem. After all in our system should be “ it is registered “ more than 50 thousand different products, “ life “ many of which it is very short. By the way, even before introduction R/ 3 we asked SAP: Whether the system will keep efficiency if we, for example, want to open other manufacture or to buy absolutely another on a profile the company - for example, the manufacturer of sports stock. They have answered: most likely, yes. For us it is important, that the main system was very flexible that it was possible to build in modules it easily. If we, for example, want to construct dairy factory the control system should include easy it in " in Russia; sphere of the interests “.
However, the problem even is wider: we have begun the big project, we are going to spend a heap of money, and me, the director, the question torments: and whether all these changes are necessary to us now? Suppliers of decisions surround us with advertising, hold presentations, but it is not enough of it to understand, as at what stage it is necessary for us, and that - are not present. We have already passed through some stages of automation and on the experience were convinced that all not so is simple, as it seems. After all there is no necessity to change a mobile phone with revolution of the season, but manufacturers let out new models of tubes almost every quarter. For me it is very important question: with what periodicity and at what level to change our information systems. Some of them already on 10 - 15 years, but work they quite tolerably. Though, of course, all time is to be had more possibilities. Therefore it is very important to understand, what functions really increase productivity, and what - simply toy. My opinion such: before to increase functionality, it is necessary to think how effectively to use all information which already is available in system.
completely interview to Olavi Kuusela is published on a site www. ione. ru.