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ERP Implementation at BPCL

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Group Members

Akshay Kirad-2013G04Omkar Kulkarni-2013G20

Pankaj Khaladkar-2103G22

Prasad Panajkar- 2013G24Rahul Patil-2013G29

Vishal Khatokar-2013G52

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BPCL-How it was started?

1951- GOI entered into an agreement with Burmah-Shell forestablishing a Oil refinery at Bombay

1952- Incorporation of Burmah Shell Oil Refineries Ltd

1955- Refinery starts

1962- Started processing crude oil from Ankleshwar1975- GOI acquired the operation SOR company and namedit as Bharat Refineries. Became the first Indian company tointroduce LPG for domestic cooking purposes.

1976 & 1977- GOI acquired 100% shares in August, 1977and renamed company as Bharat Petroleum Corporation Ltd.

1991- After Economic reforms entered into mktg. contractwith IBP , MRL & CRL.

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BPCL-How it was started?....... continued

1992- GOI disinvested 30 % stake in favor of FIs & MFs.Emerged as 2nd largest oil company in terms of mrkt share.(32% petrol, 27% in diesel)

1993- Partnered with Shell, Launched Shell in 1994

1994- 3.8% equity disinvested and allotted to its employees

1996- Began IT initiatives & organization restructuring

1998- 99, GOI further disinvested 26% from BPCL aNAVRATNA Company.

1999-2000, Acquired 32% stake in IBP.2001- Companies nationwide retail network rose to 4500outlets (60 % of which are company owned)

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Installed Refining capacity

BPCL

Bina9 MTPA Numaligarh

3 MTPA

Cochin7.5 MTPA

Mumbai6.9 MTPA

Manali

6.5 MTPA

*MTPA -million metric tones per annum

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MRP

MRP II

ERPI

ERP II

Evolution of ERP

1960 Inventory Management1970 Raw materialrequirement planning1980 Optimizing Productionprocess

1990 Management of Sales,Production, Accounts, Finance2000 Improvising Businessprocess & gain competitive

edge

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Evolution of ERP

1980

1988-2000

2000

2001

Substantial growth inERP Mkt.

SlowdownERP market $ 23

billion

Pre ERP ERA

Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02

Mkt. Size 270 620 1340 2500 4600 6500

Indian ERP Market

In Rs. millions

Global ERP Market

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Why BPCL went for ERP ?

1991 felt need of ERPoImprove on customer focusoSpeedy deliveryoCost competitivenessoImproved quality at lower price

Pre ERP era companies confined to local markets and alldecision were managed by single set of people.

Organizational restructuringoSpeedy system for effective communicationoIntegration of all business functions

Planned to increase its emphasis on retail business andincrease its non-fuel revenues

Retain its market position by Initiating IT infrastructure.

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ERP Implementation

BPCL Strategy

CommunicationN/W within the

organization

Basic information

N/W for theentire

corporation

N/W to processtransactions with

customers allover the country

Divided organization in six SBUs

Retail Aviations Lubricant LPG Industrial &Commercial Refinery

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ERP Implementation

The ERP implementation was a part of project CUSEC(Customer Service & Satisfaction) to reduce the imbalancebetween refining and marketing.

Selected SAP R/3 as it was successfully used by major oilcompanies in the world.

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Internet

VSAT HUB @

Bangalore

Remote

Locations

WEB Servers

Mumbai

Bina

Kochi

IT Infrastructure

Satellite

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ERP- Why it was successful at BPCL?

Awareness in senior management for process streamliningfor faster decision making.Divided the IT strategy in different categoriesTesting of the solution with the help of pilot implementation.Implementation of proven package across world- SAP R/3Appointed external consultants Coopers & Lybrand(Mergedwith PC in 2000)Emphasis on security determined the success for onlinebusiness. Used best available Sun Ultra firewall system.SAP testing, modification and customization of modules was

carried out on separate Quality Assurance Server(QAS).

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Benefits to BPCL

Intranet connectivity to all usersEstablished corporate database of the companyIntroduced Query by mail system for users to extractbusiness transactionsAchieved 30% saving on long distance communicationBiggest benefit of Well managed inventory.SAP R/3 helped BPCL to successfully launch its e-bizinitiativesAllow I&C customers track orders status online.Successfully introduced Petrocard in 1999-00 with around

2.5 Lac customers and more than 20,000 daily transactions.Introduced Fleetcard for transport companiesIntegrated manufacturing execution system of its refinerywith the system.Introduce online payment system to for credit cardpayments.

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Conclusion

ERP Implementation @ BPCL wasSuccessful !

THANK YOU