Russian Rocket Engine Maker Hits Business Afterburner With SAP

Proton-Perm Motors Open Joint Stock Company to Reboot Business, Manufacturing and Human Resources Management Systems;

Targets 20-Percent Materials-in-Stock Reduction and 15-Percent Shorter Production Cycle

PERM, RussiaSAP AG (NYSE: SAP) today announced that Russian aerospace company Proton-Perm Motors (Proton-PM) has selected SAP® software over Oracle applications to overcome constraints of its current information systems and optimize production planning, gain better insight into resource utilization and profitability. The signing of the contract took place on September 3, 2010, in Perm, Russia.

With approximately 4,400 employees, Proton-PM produces propulsion units for a variety of aircraft including the Proton carrier rockets and components and parts of the RD-191 rocket engines for the new family of Angara space-launch carrier rockets. To support this project and ongoing conversion of former military production sites into civilian use, the company is ramping up its manufacturing capacities, integrating new and more distinct technologies.

Proton-PM sought to better regulate the business processes and the IT systems running its day-to-day production planning and status reports to keep it on track with its strategic plans. It needed a single, automated information system to improve its enterprise resource planning (ERP), manufacturing and human capital management (HCM) processes. It also sought to enhance its investment potential, strengthen its ties with long-standing and potential business partners, and to expand its product portfolio.

With SAP® Business Suite applications, Proton-PM intends to free itself of the restrictions of its existing automated information systems and to optimize day-to-day and discrete production planning in stride with advances in its production equipment. Deploying the software in accordance with manufacturing resource planning (MRP II) standards, the company aims to decrease stock by 20 percent and shorten its production cycle by 15 percent.

“These days, public enterprises of our caliber need world-class information technologies, thus integration of SAP solutions turns out to be not only a strong optimization project aimed at securing financial stability, but also an efficient tool to enhance our company’s reliability with the help of the best global business management practices,” said Igor Arbuzov, director general of Proton-Perm Motors, OJSC. “We hope that this will offer us an additional set of competitive advantages and further potential for growth.”

The three-stage rollout of suite applications is scheduled to begin in November 2010, and will address human resource management, production management, financial management, management accounting, procurement, inventory management, sales management and budgeting. Further deployments include quality management, customer relationship management and management analytics.

“The success of enterprises such as Proton-PM is crucial for our country,” said Vladislav Martynov, managing director of SAP CIS. “These companies need the most state-of-the-art information technologies. SAP solutions can help them gain competitive advantages and enhance their further development. Proton-PM manufactures products that are competitive and have great potential in the international rocket and space arena, and SAP software will help gear the company to optimize operations and seize its potential. The SAP deployment marks a true milestone – not only for Proton-PM’s own business, but also from the perspective of raising Russian competitiveness in the global market.”

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