127593711 erp ntpc final ppt
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ddddTRANSCRIPT
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ERP – SAP Implementation at NTPC
Project By:
Group 2
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All India NTPC
Coal 77648.88 23895
Gas / Liquid
fuel
14876.61 3955
Diesel 1199.75 -
Thermal 93725.24 27850*
Nuclear 4120 -
Hydro 36877.76 -
RES 13242.41 -
Total 147965.41 27850*
Mission
“Develop and provide reliable power, related products and services at competitive prices,
integrating multiple energy sources with innovative and eco-friendly technologies and
contribute to society.”
Vision
“To be the world’s largest and best power producer, powering India’s growth.”
• largest Indian state-owned electric utilities company based in New Delhi, India.
• Government of India holds 84.5%
• NTPC's core business is engineering, construction and operation of power generating plants
and providing consultancy to power utilities in India and abroad.
NTPC – About the company
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Locations, divisions & operations
Serial
no.
Headquate
r City
1 NCRHQ Delhi
2 ER-I, HQ Patna
3 ER-II, HQ Bhubaneshwar
4 NRHQ Lucknow
5 SR HQ Hyderabad
6 WR-I HQ Mumbai
7 Hydro HQ Delhi
8 WR-II HQ Raipur
As per new corporate plan, NTPC envisages to have an
installed capacity of 128 GW by the year 2032 with a well
diversified fuel mix comprising 56% coal, 16% gas, 11%
nuclear energy, 9% renewable energy and 8% hydro
power based capacity; most of it would be based on
carbon free energy sources.
• Hydro Power
• Renewable Energy
• Nuclear Power
• Coal Mining
• Power Trading
• Ash Business
• Power Distribution
• Equipment Manufacturing
The power generation plants under it are
• 19 Thermal-coal based
• 7 Coal based (owned by JVs)
• 8 Gas based
• 6 hydroelectric power projects including
one in Bhutan
Its locations – varied geographically Its diverse business expanse – varied operationally
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Joint Ventures of NTPC
It has formed Joint Ventures with :-
1. For Capacity addition
• SAIL power Company Limited
• Tamil Nadu Energy Company Limited
• Aravali Power Company Private Limited
• Meja Urja Nigam Private Limited
• Ratnagiri Gas and Power Private Limited
• Nabinagar Power Generation Company
Private Limited
2. For Services
• Alstom Power Services
• Utility Power Tech Limited
• National High Power Test Laboratory Pvt Ltd
• For Power Trading and Power Exchange
• National Power Exchange Limited (NPEX)
DIVERSIFICATION : To broad-base the business and ensure
growth, diversification in areas Hydro power, Distribution,
Trading, Coal mining, LNG etc. have been identified as priority
areas.
BACKWARD INTEGRATION- COAL MINING
• The policy changes provides an opportunity to NTPC to
enter captive coal mining business. Pakri Barwadih in the
state of Jharkhand and 5 more blocks (~40MTPA) have
been allotted to NTPC, including two in JV with CIL.
• NTPC is exploring various other options including
acquisition of stake in coal mines abroad for sourcing of
thermal coal for addressing fuel security concerns.
3. For Coal Mining
• SCCL Global Ventures Pvt Ltd
• International Coal Ventures Pvt Limited
• BHEL Power Projects
• Transformers and Electricals Kerala Ltd
• Energy Efficiency Services Ltd
• CIL-NTPC Urja Pvt Ltd
• Anushakti Vidyut Nigam Ltd For Acquisitions
POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER
2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER
STATION 1991 UP Rajya Vidyut Utpadan Nigam Limited
4x60 MW +2x110 MW TALCHER THERMAL POWER STATION
Orissa State Electricity Board 1995 Orissa State Electricity Board
4x110 MW TANDA THERMAL POWER STATION 2000 UP Rajya Vidyut Utpadan Nigam Limited
705MW Badarpur Thermal Power Station Central Electricity
Authority 2006 Central Electricity Authority
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Strong presence across all verticals
Enterprise Asset
Management
Sourcing and Procurement
Billings and settlement
Finance and Reporting
Human resource
management
Project Management
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Vendor Selection Process
Analyse the Business
Requirements
Vendor Search
Request for Proposal
(RFP) and Request for Quotation
(RFQ)
Proposal Evaluation and Vendor Selection
Contract Negotiation Strategies
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Vendor Evaluation Criteria
Function fit Technology
Company Support
Cost
• Direct software cost
• Hardware cost
• Annual support cost
• Implementation cost
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Vendor and Business Requirements
Market Capitalisation
Specific Qualifications and Working Conditions of
Employees
Integrated inventory, order processing, and
accounting system
Robust Payroll and Costing system
Transaction history must be available online for a
minimum of five years
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Evaluation of Vendors against
Requirements
Analysing Business and Vendor Specifications
Assigning a Performance Value to each Vendor
Calculating the aggregate score
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Why SISL-Siemens Information Systems Limited
Leading "Systems Integrator and Total Solutions
Provider" offering high-end consultancy in areas like
Healthcare, Telecommunications, Manufacturing, Utilities,
Public Sector & Government
Good Track record in Implementing ERP solutions across
the Energy and Utilities sector
Has a partner tie up with SAP and also a center of
excellence
Quotation competitive with respect to other vendors
SISLs previous experience of working with some of the
major DISCOMs in the country gave it an edge
Global network of 475,000 people, operating in over 190
countries
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Contract Negotiation
• Define Any Time Constraints and Benchmarks
• Assess Potential Liabilities and Risks (How will implementation delays be handled? Whose insurance will cover contract workers?)
• Confidentiality, non-compete, dispute resolution, changes in requirements
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Various Processes at NTPC
Operations
Functions
Work Order Mgnt.
Procurement
Energy Mgnt.
Dispatch
Network Specific
Functions
Network Documenta
tion
Network Calculation
s
Geographical
analysis
Technical Planning
Market
Related Functions
Billing
Meter Reading
CRM
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Pre-ERP Disparate Application
Landscape
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ERP Software Product Preferences
Power sector prefers SAP over PeopleSoft because of the provision of the ―Utilities‖ vertical
Experts in IT software development domain not present in power company
Building software in-house is time-consuming and will shift focus from core operations
NTPC should buy the software product from third party
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As Is – To Be Analysis
Pre-ERP System Constraints (As Is) Business Goals That NTPC Aimed
to
Achieve (To Be)
Multiple systems with varying process
maturity
Integration of
Process/People/Location/technology
Legacy applications could not handle
new
requirements
Stable and secure system to support
growing business needs
Duplication of vendor codes and lack
of system support for new modes of
procurement
Improve vendor management and
reduce
procurement cycle time
Lack of systems to provide employees
with data access
Empower employees through
progressive H.R practices
Limited ability to accurately track O&M
costs and conduct systematic asset
maintenance plans
Effective asset management and
maintenance tracking across the
organization
Limited visibility into inter unit
inventory
levels
Increased visibility into inventory levels
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Scope
Business Areas
• Services
• Coal Mining
• Power Trading
• Power Exchange
• Manufacturing
Functions
• Accounts (incl. Costing)
• Production Planning and rest of
manufacturing processes
• Purchase and Inventory
• Sales and Distribution
• Plant Maintenance
• Quality Assurance
• HR
• Asset Management
Locations
•Head Office
• Regional Offices
• Factories
• Warehouses
•Area Sales Offices
Systems
•Interface to Internal Systems
•Interface to External Systems (e.g.
Tata Chemicals)
The Scope of the Project as envisaged by the company :
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Genesis of the Project
Define Business Strategy
• Organizational Restructuring and Business Process Reengineering
• Long Term Business Strategy, HR Strategy and IT Strategy
Develop Supporting IT Strategy
• Selecting the right approach towards home-grown , best of the breed or COTS
Selecting the right IT Partner
• Evaluate and award contract to the best ERP solution provider
• SAP selected as the IT platform
Pilot Implementation
• Whole suite of SAP applications across 5 locations
• First pilot project live in 10 months
Complete Rollout
• Rolled out across 25 locations
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RoadMap
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ERP Transition
Implementation of an ERP and transitioning from legacy systems
requires that not only the system be ready but the organization and its
people to be ready on many levels.
The following aspects are to be considered in the transition phase
Technical Infrastructure
Application Software
Data
Organization
Operational
Third parties
Users
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Project Initiation
The objective of this phase is to find the package that is flexible enough to meet the company‘s need or in other words, a software that could be customized to obtain a ‗good fit‘.
For example :- Improve vendor management and reduce procurement cycle time
Reduce engineering & construction cycle time
Once the packages to be evaluated are identified, the company needs to develop a selection criteria that will permit the evaluation of all the available packages on the same scale.
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Project Initiation
To choose the best system, the identification of the system that meets the business needs, and that matches
the business profile.
Considering the constraints involved:-
1.Limited visibility into inter unit inventory levels
2.Limited ability to accurately track O&M costs and conduct systematic asset maintenance plans
It is better to have a selection committee that will do the evaluation process.
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Project Planning Phase
This is the phase that designs the implementation process. Time schedules, deadlines, etc. for the project are arrived at. The project plan is developed in this phase.
Establish the Core
Pilot implementation of all the modules at 5 locations
Build global template to align organizational processes
Go live in 10 months from the date of project kick-off
In this phase the details of how to go about the implementation are decided. The project plan is developed, roles are identified and responsibilities are assigned.
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Project Planning Phase
The organizational resources that will be used for the implementation are decided and the people who are supposed to head the implementation are
identified.
The implementation team members are selected and task allocation is done.
The phase will decide when to begin the project, how to do it and when the project is supposed to be completed.
The phase will also plan the ‘What to do’ in case of contingencies; how to monitor the progress of the implementation;
The phase will plan what control measures should be installed and what corrective actions should be taken when things get out of control.
The project planning is usually done by a committee constituted by the team leaders of each implementation group headed by CIO.
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List of Modules Requirement for NTPC ERP
Implementation
Production Plan Operation
Management
Security Monitoring
Management
Electric Belt Scale
Bi-Ticket Management
DCS Net-Gate Technics
Monitoring Salary
Accounting Transportation Management
Finance Reports
Storage Management
Purchase Management
Fuel Management
Equipment Accounting
Management
Equipment Fault-Removing
Management
Equipment Reliability
Management
Human Recourse
Management
Environment Protection
Management
Management Inquiry
System Management
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ERP configuration and set up
Corporate planning
Projects
Engineering & QA
Contracts
Site procureme
nt materials
Operations
Maintenance
Fuel Manage
ment
Commercial
Finance, Human Resource
R&D, TCM, IT
Environment
Employee Health
Corporate communications
Rehabilitation and Resettlement
Legal & Secretarial
Safety, Security, Vigilance
Consultancy
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Why SAP?
Worlds largest ERP product company with proven track record
Support for easy setup and ongoing changes
Predictable long term financial cost with buying only what is needed
Multiple channel access using mobile, computer and other platforms
Complete integration of people, Information and Business processes
Integrates existing IT investment without data loss
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Solution Architecture-MySAP Business suite
– SAP R/3 enterprise
my SAP Product Lifecycle
Management (mySAP PLM)-
Engineering and design
and management of on going engineering
changes
mySAP Supplier
Relationship Manager (mySAP
SRM)—e-Procurement
mySAP Supply Chain Management
(mySAP SCM)
mySAP Customer
Relationship Manager
(mySAP CRM)
Strategic Enterprise
Management (SEM)
Industry Solution for
Utilities covering
Energy Data Management,
Billing & Contract
Management (mySAP Utilities)
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Platform and Integration Components - SAP NetWeaver
Application platform for all SAP solutions - SAP Web Application Server (SAPWAS)
Information Integration- mySAP Business Intelligence (mySAP BI)
Access Integration - mySAP Enterprise Portals (mySAP EP)
Process Integration -mySAP Xchange Infrastructure (mySAP XI)
Third Party Product-Powermaster from Siemens, Optibiz software technologies & RWE npower
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ERP data migration
Materials
• 30000+items
Transaction Data
• Master data material and Service
Plant
• 15000+ equipments
Equipment Master and Task list
• List of activities
Employees
• Employee data
Finance
• Accounting data
Operations
• Plant parameters history data
Vendors: 5000+vendors
• 5000+vendors
Extract data from source
system
Data cleansing, transformation and
harmonization
Data migration and
Accounting
Renter incomplete transaction
Data Validation
Auditing data migration
Documentation
Existing Data
Migration architecture
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Challenges and points of failures in Data
Migration
Lack of proper methodology
Improper classification of data
Unrealistic scope
Lack of understanding of the tools
Inattention to data quality
Lack of experience
Heterogeneous transition between two different platforms
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Extended Role Based Access Control
• access to one or more objects in the system.
• DB System :create/delete or insert record
• Accounting app.:rights such as account creation/deletion, credit/debit
Permission
• NTPC researchers have to fill up his/her personal information before s/he can have the rights to read or download white papers.
Obligation
• Environmental or System Requirements
Condition
Condition Obligation Permission
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Policies at NTPC
• Whether the user needs to know?
• An accountant might need to know the current status of a consignment dispatch
Need to know
• Whether information sharing help?
• Finance and Manufacturing can share inventory levels to forecast costs
Need to Share
• Trusted parties are allowed sharing.
• CFO & CEO are allowed to share anything Trust
• Data modified by authorized individuals?
• Leave status of employees can be changed only by NTPC-HR
Integrity
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ERP Testing
Initiate planning and gather requirements
Define test goals and select appropriate tests
Identify functionality test cases
Develop modular test components
Set up a test lab
Understand and leverage the ―smoke test‖
Execute regression tests
Analyze defects and create test reports.
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Change & Change management strategies
NTPC Change
management
ERP helpdesk
User Involvement
End user training
Deployment of power
users
Processes Roles &
Responsibilities
Work culture Attitude and mindset of
people
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Components in change management
GAP Analysis: As Is and To Be analysis
Job Assignment: Individuals to To Be jobs
HR Alignment: Create new job descriptions and hiring
Communications plan: Notifying existing employees about the transition
Transition strategy and budgets: Decision to do In-house or Out house
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ERP Closure
Clear Pending Items after referring BRD of NTPC
Finalize knowledge transfer to the different departments of NTPC
Document the lessons learnt
Go-Live Support by a SISL tech team
Establish on-going quality and testing strategy
Conduct performance tuning
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Benefits achieved
Implementation of Works Bill processing
Centralized Payroll and Employee Self Service for 25000 employees
Energy Billing as per availability based tariff
Implementation of Fuel management functionality to meet business requirement of capturing and handling data
Vendor Collaboration-Both Internal and External
E tendering and Reverse Auctions
Claims , travel and Loans Processing automated and workflow cycle optimized
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The Major Risks
The Risk of High Initial Cost
Changeover from Old Legacy System to new ERP System
Collapse of the new System
Non customization of ERP software to existing business processes
Improper integration of modules
Non availability of Bandwidth / internet facility at remote rural areas
Employees not at ease with the new System
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The Mitigation Process by NTPC
Pre Implementation
• Awareness of the new system
• Proper communication and Information dissemination among the NTPC workers across multiple sites
• Data Validity
• Infrastructure readiness and Worker/Manager training across levels.
During ERP Implementation
• Data migration from NTPC legacy to ERP System
• Alignment of the ERP System to NTPC s vision
Post ERP Implementation
• Live Support by SISL
• Customization of features by SISL as per NTPC demands
Change Control via regular and periodic information disbursal
Continuous NTPC User Staff and Executive Training to put them at ease
Involvement of NTPC top Executives right from day 1
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What led to the Success- The
NTPC Way
Ensuring Top management Commitment and Support (CEO and CFO)
Ensuring that the Businesses owns the process to be implemented (Enterprise Asset management, Sourcing & Billing etc.)
Assess and address policy change proactively
Hiring Consultants (SISL)who have had prior experience in the same industry
Regular awareness programs through change agents and process anchors
Improve and adapt the rollout approach based on ground realities (e.g.: Data Centre, Training)
Make realistic and detailed estimates on the effort needed to migrate existing legacy data
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NTPC recognized as the Best Run Business-
SAP ACE