VIEWS: 10 PAGES: 19 CATEGORY: MBA POSTED ON: 3/16/2013
all my presentations are going to be very helpful for the MBA students please visit my all documents and download those presentations which are useful for you !!
ERP IMPLMENTATION AT BPCL Case Study Overview The Bharat Petroleum Corporation Ltd. (BPCL) case presents an ERP implementation experience in the context of an integrated energy organisation which is geographically well spread and characterized by large size operating in a rapidly changing competitive environment. This case study focuses on the company and its implementation of ERP with the various advantages This presentation also talks about ERP, its evolution, features, advantages and disadvantages. Company Overview Bharat Petroleum Corporation Ltd. (BPCL), established in 1976 by the Government of India, is among the top three petroleum refinery and marketing companies in India. Its net sales in 2001-02 were Rs 398.29 billion ($ 8.3 billion). The company currently has 22 per cent share of the petroleum products market, and 11 per cent share of petroleum refining capacity in India. The company produces a diverse range of products such as petroleum products, petrochemicals, and specialty lubricants. It has established 190 installations and depots, 19 aviation service stations, over 4,700 retail outlets, and 40 LPG bottling plants. Its total manpower count is 12,586. With over 4,400 petrol pumps, 960 kerosene dealers, 1,180 LPG distributors and scores of industrial consumers spread across the country, the Rs 35,000- crore company was looking for a way to synchronise the entire network. Not to mention its Trombay, Numaligarh and Kochi refineries, and 250 area offices scattered all over the country. Bharat Petroleum has always been on the forefront of harnessing technology initiatives for maximising efficiency and achieving greater customer satisfaction. Company Overview Originally, BPCL as any company was made up of many separate departments: - Accounting / Finance / Sales / Retail outlets / Manufacturing / Purchase etc Each department would have its own mini-system to process information. Under this method, a single customer could have several files relating to his or her basic information, past purchases, and many others. Since none of these systems were connected, getting a complete view of a customer’s profile could be a difficult task. Having duplicate files can cause data redundancy and low data integrity. The more times the same information was repeated, the higher the chance that some of the information will be incorrect due to errors or information not getting updated. This they found was a very inefficient way to store date and led to higher costs. Need for a change The company wanted to keep its lead in the competitive petroleum and refining industry through Constant Learning, Innovation, Refinement Of Its Business Operations. Customer Focus And Orientation Identifying Customers Needs Facilitate Faster Decision Making Facilitate Speedy, Faster And Effective Communication Getting Ready To Face Stiff Competition. It had to transit from a production-driven company to a customer-driven one. The legacy systems in BPCL and other industries had outlived its life and was quite obsolete. How was ERP implemented at BPCL Corporate and cultural needs were mapped and implementation methods were devised to match these needs. A complete Business Process redesign / Reengineering (BPR) was carried out prior to implementation. A good communication network was established across the organisation. Peoples and power users were selected from various units and divisions. A balanced team of implementation engineers were put together from Coopers and Lybrand for implementation of SAP R/3. Implementation methodologies with minimum customization were selected. Mapping of business process was put onto the package with • Gap Analysis • Customization • Development of user-specific reports & transaction Test runs were conducted. Concurrence was taken from user on satisfactory working of the system. Power users and end users were thoroughly trained. IT initiatives by BPCL … Started IT initiatives in the year 1996 and the company began with an elaborate internal restructuring by forming six strategic business units (SBUs). The formation of SBUs -- Industrial Retail Aviation Lubricants LPG & Refinery Commercial The immediate focus was on specific customer segments and identify their needs and was integrated by means of Information systems, Finance, Human Resources etc … IT initiatives by BPCL Established intranet with MS Exchange Server as Platform and MS NT server. Initially connected three locations on a VSAT to share TDM/TDMA Criteria for selecting the VSAT network was Ease of deployment Speed of mail delivery Zero message loss Faster response time Access of employees to personal records •Its corporate office was connected with various regional offices. Servers were deployed at the VSAT hub at Bangalore to provide connectivity to users. •All employees were constantly connected to each other and to the outside world. ERP Implementation at BPCL BPCL began implementation of its SAP R/3 enterprise-wide resource planning package in April 2000. Perhaps the largest ``brick-and-mortar'' company in India to undertake an exercise of this kind, considering the sheer size of the corporate. ERP was planned to be part of BPC's three-pronged initiative -- to create an intra-company communication network, process transactions with customers across the country and to create a basic information backbone for the entire corporation. The implementation project known as ENTRANS (Enterprise wide Transformation) ERP implementation was part of ``Project CUSEC (Customer Service and Satisfaction) for Bharat Petroleum, a predominantly marketing company which had to meet the challenge of an imbalance between refining and marketing. In the first six months beginning February 1999, the company undertook thorough conceptual designing and planning for each SBU with actual implementation for SAP R/3 starting only by April 2000. ERP Implementation at BPCL The company redesigned and restructured its network with all its branches linked to a central connectivity cloud through routers and switches. These were connected to servers and workstations. Security was ensured by using Sun Ultra 5 firewalls Real secure Internet Scanner Floodgate Web trendstarting only by April 2000 Web Sense Server architecture Contents of server architecture Compaq Proliant NT server SCO box Sun firewall Servers CISCO routers 2610 CISCO 1900 switches for distribution Set up a data warehouse with business object and query by mail and implemented enterprise system management. Benefits of ERP implementation at BPCL Bharat Petroleum is reaping the benefits of the integrated system in many areas of its operations. The early gains of implementation are in the areas of Tracking Customer-receivables, Monitoring Credit-management, Inventory Management, Besides Easing The Operations In A Large Number Of Areas. Helped in launching e-biz initiatives – tracking of orders online Management of inventory and cash management Helped launch Petrocard – which tracked around 20000 daily transactions at BPCL retail outlets A fleet card using the same technology was introduced. Also, the manufacturing execution system of the refinery is currently being integrated with the system. With the use of GSM technology, the fleet card is expected to make it easier to track the position of inventory. Benefits of ERP implementation at BPCL Real time connectivity with multi-location and multi-groups in the business. Increased motivation level of employees with adoption of technology Bharat Petroleum has also set up one of the biggest 'Centres of Excellence' in Asia to provide online support to the end users and also work towards continuous improvement in business processes and handle product upgrades and new generation products. A large data warehouse project has also been implemented, which facilitates access to real-time accurate information on key performance indicators at all Bharat Petroleum locations. This enables the management to take strategic and business decisions, thus ensuring value-added services, better customer satisfaction and enhanced shareholder value. Has Reduced operating costs of the company with estimated annual savings attributable to ERP = Rs.42 Crores Benefits of ERP implementation at BPCL •Transaction-centric benefits are referred to those directly conceived to be the effect of ERP •Management-centric benefits are the other synergic benefits because of ERP implementation. ERP thus is not just a product to be purchased but a process which needs efforts to align the product to the business processes Thank you and Happy ERPeeeeeing • Intranet is a private network that is contained within an enterprise. It may consist of many interlinked area networks and also use leased line in WAN. The main purpose of an intranet is to share company information and computing resources among employees. • VSAT ( Very Small Aperture Terminal) is an earthbound station used in satellite communication of data, voice and video signals, excluding broadcast television. For one end user to communicate with another, each transmission has to first go to the hub station, which retransmits it via the satellite to the other end users VSAT. • TDM (Time Division Multiplexing) / TDMA (Time Division Multiple Access) is a protocol, which operates within a point to multipoint environment and adapts dynamically to traffic conditions on a computer network. This protocol assigns more user time to those computer having traffic in order to optimize the response time. • Router is a device that connects any number of LAN. Routers use headers and forwarding table to decide where the information flows and use Internet Control Message Protocol (ICMP) to communicate with each other and configure the best route between any two hosts. • A switch is a device that filters and forwards packets (piece of message or information) between LAN segments. • Firewall is a system used to prevent unauthorized access to or from a private network. Helps prevent hacking and intrusions to private networks.
Pages to are hidden for
"bpclerpimplementation"Please download to view full document