erp igl group 1
TRANSCRIPT
ERP implementation at Indraprastha Gas Limited (IGL)
Abhishek Shandilya 2011063 Abhishek Gautam 2011065
Sanil Pai 2011106 Rahul Garg 2011103
Thakur Keshav Singh 2011119
1 Name of the Project Indraprastha Gas Limited
2 Name of the Client
Client Size (Approx. number of
employees)
Indraprastha Gas Limited
3 Name of the Solution provider Tata Consultancy Services (TCS)
3 Client’s address Name : Mr. S K Behera
Designation : Manager IT
Postal address : GSPC Bhavan, Sector – 9, RK Puram
Contact phone : +91-011-46074607
Fax number +91-011-26184061
e-mail id : [email protected]
4 List of modules and sub-
modules Implemented
Procurement (MM)
Financials (FI)
Controlling (CO)
Human capital mgmt (HCM)
Employee Self Service (ESS)
Project Systems (PS)
Maintenance Mgmt (PM)
India Payroll
Business Information Warehouse (BIW)
Environment, Health and Safety (EHS)
5 Number of User licences 135 for SAP R/3 + 270 for ESS
6 Value of the Work Done (Rs in
Crores)
Cannot be divulged
7 Date of award April 2005
8 Date of completion August 2006
Introduction
Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL
(India).
The project was started to lay the network for the distribution of natural gas in the National
Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors.
With the backing of strong promoters – GAIL (India) Ltd. and Bharat Petroleum Corporation
Ltd. (BPCL) – IGL plans to provide natural gas in the entire capital region.
The two main business objectives of the company are -
To provide safe, convenient and reliable natural gas supply to its customers in the
domestic and commercial sectors.
To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s residents.
This will considerably bring down the alarmingly high levels of pollution.
The transport sector uses natural gas as Compressed Natural Gas (CNG), the domestic and
commercial sectors use it as Piped Natural Gas (PNG) and R-LNG is being supplied to
industrial establishments.
Future Outlook
IGL continues to augment its infrastructure so as to meet the increasing demand of CNG
arising out of growing number of CNG vehicles in Delhi. The growth drivers for increase in
demand of CNG are - car manufacturers coming up with CNG variants and Delhi
Government’s directive making it mandatory for all LCVs operating in Delhi to run on CNG.
The company is in the process of enhancing its compression capacity by adding new stations.
On the PNG front, IGL has planned to expand its business activities in Delhi and its
neighboring towns like Noida, Greater Noida and Ghaziabad. Our customers will now be
benefited with supply of PNG for non-cooking applications like Geysers also. IGL is also
working towards expanding its PNG network to cover all charge areas of Delhi by 2012.
Industrial and commercial segments would be the focus areas for the organization in the
future.
LINE OF BUSINESSES
CNG (COMPRESSED NATURAL GAS)
CNG stands for compressed natural gas. It is gaseous fuel and is a mixture of
hydrocarbons mainly Methane. For use in Automobiles as fuel, it is compressed to a
pressure of 200-250 Kg/cm² to enhance the vehicle on-board storage capacity.
PNG (PIPED NATURAL GAS)
PNG is mainly methane – CH4 with a small percentage of other higher hydrocarbons.
The ratio of carbon to hydrogen is least in methane and hence it burns almost completely
making it the cleanest fuel. It is procured from the oil / gas wells and transported through
a network of pipelines across the country.
Commercial & Industrial
Natural gas is a versatile fuel which is gaining immense popularity for Industrial and
commercial usage.
Under the commercial sector all leading hotels, restaurants, malls, commercial
complexes and hospitals in the NCT of Delhi are being supplied PNG by IGL.
In the industrial sector, PNG is being used to run boilers, furnaces, ovens, hot water
generators, and thermifluid heaters, gas turbines for power generation and Vapor
Absorption Machines (VAM) for heating and cooling applications. Industries have saved
on cost and storage space by using PNG and in turn pollution levels have also gone
down.
Industrial and commercial segments are expected to see a significant growth and would
be the focus areas for the organization in the future. IGL aims to have over 1000
Industrial and commercial customers across NCT & NCR by 2014.
Package Implemented
The solution offered encompassed implementation of the mySAP ERP solution.
The SAP Modules implemented constitute:
Industry Solution – Utilities
FI-Contract Accounting
Sales and Distribution
Materials Management
Quality Management
Project Systems
Plant Maintenance
Customer Service
Finance
Controlling
Human Resources
India-Payroll
BASIS
ABAP
End-to-end SAP implementation (mySAP R/3 ERP, mySAP HR etc.) including mySAP IS-
Utilities for contracts & Invoice and contract accounting
Post implementation support for all the SAP and ancillary applications
Solution delivery services
Integration testing services for new releases and during roll outs
Defect resolution services
Organizational change management
Identifying KPI’s and work-out solutions to optimize them
Packages/Initiatives under Implementation
Process initiative for technology enhancement at primary data center along with up-
gradation of SAP (ERP System).
An initiative has also been taken for advanced surveillance of CNG stations.
GIS (Geographical Information System) Project which has been taken up for effective
Asset Management, Network to Planning and Operations Management is in advance
phase and is scheduled to be completed during the financial year 2012-13.
Applications (as part of SAP) Implemented
Employee Self Service
Employee Self Service (ESS) Applications allow employees to view benefits, update personal
information, submit time cards, make vacation requests, and request travel expense
reimbursement from their Web browsers. The ESS Applications free human resources staff to
deal with more complex tasks, but do not require training and supporting employees on a
specialized application. ESS is an effective means for providing real-time access and data
maintenance capabilities to the source or owner of the data. It has the ability to offload much
of the data entry and related customer service activities that may be typically performed in an
organization's human resources, payroll, benefits and purchasing departments.
Timesaving
These departments are freed up from many of the routine, day-to-day processing functions.
Instead, resources can be assigned to activities that are more critical to your organization's
success. Overall, service levels and efficiency increase and costs per transaction can be
drastically reduced. The return on investment is significant.
No SAP Training Required
With SAP ESS, employees can maintain their own data and can access their information
without having SAP training or core SAP applications on their desktops. Because there's no
"dummy database" or batch update, employees have access to the most up-to-date, accurate
data on record. And, there are none of the out-of-sync situations that can occur with third
party, "bolted on" ESS solutions.
Inherently international
Because SAP™ R/3™ architecture is inherently international, with unsurpassed language and
currency management capabilities, SAP ESS is also inherently international. It takes full
advantage of SAP R/3 global capabilities, including country localization and all SAP
supported language and currency management facilities.
Accessible, up-to-date information
Employees can access and change any of the following data and have it reflected
immediately in the database:
Personal Information
Review and update address, dependent information and emergency contacts.
Change tax filing status, number of exemptions and withholding information.
Add or update bank information for direct deposit and expense reimbursement.
New Hires
Establish new hire address, dependents, emergency contact, tax filing and banking
information with ease.
Organization Directory
Look up employee information including name, contact data, office location, title, etc.
Paycheck Inquiry
Display and print pay stub information for each pay period, including gross pay, taxes, other
deductions and net pay, with pay period and year-to-date totals.
SAP Employee Self-Service provides you with:
Extensive functionality beyond basic human resources functionality, including travel
management and purchasing.
Inherent integration between SAP™ R/3™ business applications, ESS and workflow.
ESS functionality that leverages the strengths of the underlying SAP infrastructure.
Unsurpassed global capabilities. A proven track record for continuous evolution and
new functionality.
Business Benefits
SAP implementation at IGL had multi-pronged benefits. IGL was looking for a technology
solution which could help them integrate all the business functions on a common platform.
They also wanted a technology partner which could work alongside its complex business
model. Their requirement was of a solution which could provide a solution which would cater
to all the services along the value chain. SAP was implemented during FY 2005-06. SAP
implementation helped them in optimizing their operations, improve return on their assets,
identify and deliver new products, which subsequently has a long term effect on realizing
their growth potential. The more tangible benefits attached with the project were as follows
Automation of end-to-end business functionality for Piped Natural Gas and
Compressed Natural Gas distribution business in the National Capital Region
Meter Readings Consolidation and History and Centralised Pricing Management and
Control for CNG Marketing
New Service Connections – Status reports at the level of Areas and Colonies for PNG
Marketing
Centralised Management and Control for Items and Vendors, Materials Reconciliation
of Project Materials.
Reduced cost of short cycle work processes e.g. Outages move in/out, turn on/off,
new service requests etc.
Meter Reading collections and Meter reading entry from CNG Stations and
Customers in one PNG Area.
Billings and Contract Accounting
Inventory Tracking and Updating
Breakdown maintenance, Preventive maintenance, Refurbishment and Calibration
process.
Tracking of multiple projects and materials reconciliation.
ERP implementation helped IGL in syncing its objectives with the quality of service it
wanted to provide without compromising on the technology platform. A look at the figures
below will tell us the architecture of the technology model they employed in the
implementation and sustenance of their business model.
Business Process Model
Interface Framework
Salient features of Package
Phases of Deployment
Salient features of technology deployed- mySAP R3 ERP- SAP R3 uses the SAP Web
application Server, which is based on open technology standards and connectivity protocols.
It includes Core 4.7 with Extension set and provides comprehensive Internet enabled
processing, portal integration and flexible upgrade strategies. They have a shorter upgrade
cycle in future. All future enhancements are provided in smaller pre-packaged extension sets
which can be added at user's convenience. In terms of cost benefits this doesn't require new
license.
TEAM MOBILIZATION
TRAINING
INFRASTRUCTURE
PROJECT CHARTER
DEFINITION
ENTERPRISE VISIONING
ENTERPRISE STRATEGIC
VALIDATION
PERFORMANCE
DRIVERS
FUTURE STATE
DEFINITION
BUSINESS CASE
VALUE PROPOSITION
FIT, GAP ANALYSIS AND
GAP STRATEGY
CORE PROCESS(ES)
IMPROVEMENT
IMPLEMENTATION
PLANNING
DEFINE DATA
CONVERSION AND
MIGRATION STRATEGY
PREPARE PROJECT
CHARTER
REFINED PROJECT
CHARTER
PROTOTYPE
DEVELOPMENT
CONFIGURE ERP BASED
ON PROCESS
PRIORITIZATION
TRAINING OF CORE
TEAM
TESTING & QUALITY
CHECKS
PREPARATION FOR
GOING LIVE
DATA CONVERSION &
MIGRATION
GO LIVE
PHASE 1: EXPLORE
PHASE 2: ENGAGE
PHASE
3:ENABL SKILLS TRANSFER
MANAGEMENT
COMMITMENT TO
CHANGES
IMPLEMENTATION
MONITORING
PERFORMANCE
MEASUREMENT
MECHANISM
My SAP HR-
Key benefits that SAP HR brings to the client are-
Infotypes - Master data in SAP HR is held in infotypes. Since master data is the key data
element on which users need to be restricted infotype restrictions become extremely
important in the context of SAP HR.
Structural Authorisations - In SAP HR the population that a user can access can be restricted
using either the enterprise structure (Personnel Areas, Employee Groups, Company Codes,
etc) or the organisational structure. Structural authorisations allow restrictions to be
configured on the organisational structure.
Personnel Number Restrictions - In SAP HR a special authorisation object (P_PERNR)
allows users to be restricted to accessing infotypes for their own data only. This facilitates
functionality such as Employee Self Service (ESS.) The P_PERNR authorisation can also be
used to prevent administrators from maintaining their own data whilst still allowing them
access to others.
mySAP ISU Invoice & Contract Accounting
This component creates FI-CA documents for :
IS-U consumption billing
External billing
SD billing (sales, installation)
Clears bill receivables with posting items, in particular with budget billing payments that
have been made
Creates and prints bills
Supports reversal processes
Manages the budget billing plans and provides functions for processing the budget billing
amounts
Supports the determination and levying of taxes, charges and duties
- Contracting component is a subledger developed for industries with a large customer base
and a correspondingly high volume of documents to post. This includes insurance companies,
utilities, telecommunication, and public service companies.
ERP Contribution to Business benefits-
Business Challenges
Integration & streamlining of various business processes such as
• Marketing
• Finance
• Projects
• O &M
• Procurement
• HR
Change management and risk management
A robust enterprise application backbone supporting the business of IGL
Facilitated ‘End User Training’ – Around 50 users trained
Value Proposition to the client
• Availability of Cross-Functional expertise
• Ability to access Utility Industry best practices
• Capability to leverage end-to-end IT consulting
Business Benefits for IGL
Organization Customization
to maintain
user status at
installation
level Variant
program to
maintain tariff
structure for
large
commercial customer
Process For new connection
marketing has been
integrated with back
office. One Standard format for
management reporting
output to optimize
street route. Implemented workflow
for ISU processes to suit
the customer
requirement. Linking MS Word in
Devnagri script for output.
Financials Flexible
receivables
management
Learning &
Growth Facilitated
‘End User
Training’ –
Around 50
users trained
• Access to leading technology and subject matter expertise through our alliances
• Reduce technology risk profile
• Optimal combination of reduced cost, improved service delivery and quality
Learning’s/Comments
Future trends of ERP @ IGL
With the ERP applications evolving towards greater levels of flexibility, business experts at
IGL increasingly play a more active role in defining the business processes, rules,
organisational structures and performance metrics within the software. Already, IGL
recognises that buying decisions and ownership responsibility for applications such as
customer relationship management (CRM) and human resource management (HRM), and
potentially enterprise resource planning (ERP), is shifting more to the business side of the
house. ERP experts refers to this ownership shift as "IT to BT", and it represents a unique
opportunity for business process professionals to help IT and business stakeholders leverage
innovative technology to transform business processes and improve application flexibility
and value.
Trend 1: Cloud deployment models – IGL realizes that traditional on-premises
applications have reached breaking point: software upgrades have become costly and
difficult. Customisation further complicates the upgrade challenge, and supplier support
deadlines and technical obsolescence, rather than business value, drive upgrade decisions.
However, SaaS - and, more broadly, cloud computing - represents an alternative
deployment model that is much more predictable. With SaaS adoption, IGL expect that
application economics will change for itself and supplier alike.
Trend 2: Mobile technology to accelerate business processes – Experts at IGL realize
that Mobile technology - including devices, software, networks and product distribution
channels - is evolving at breakneck pace. IGL believes that the potential of mobile
applications to transform business processes hinges not only on the speed and
convenience of mobility itself, but also on the unique capabilities of the devices to sense,
respond to, deliver and capture information in real time. This application will help the
officials at IGL respond to the ERP on the go and will ensure minimum time wastage.
Trend 3: Business process flexibility via embedded modelling tools – Managers at
IGL know that the enterprise application configuration and process management has
historically been the domain of technical specialists within IT, prioritising and queuing
the change requests coming from business stakeholders. The end result has been a low
level of business flexibility, where processes often adapt to the limitations of the software
or customisation layers are built onto the applications. Package configuration tooling that
is flexible, graphical and model-based - no coding required - is evolving and will become
a way to differentiate between packaged application suppliers. IGL along with TCS is
working towards accomplishing this goal.