http://sapendusers.com/casestudies.phphttp://computer.financialexpress.com/20100315/casestudy01.shtml

1. Gujarat Heavy Chemicals Ltd (Vapi/ gujarat) sap implemented by OBT Global Pvt. Ltd., (later acquired by Zensar Technologies)

GHCL is into two primary verticals namely Home Textiles and Chemicals (Soda Ash). It implemented mySAP ERP to automate and streamline its transactional systems and supply chain.

The problemSinha said, “We were using spreadsheets (Excel) to manage all five stages of grey fabric manufacturing,

which did not provide any real-time data regarding our business operations because of which we were unable to take decisions quickly and this was affecting our growth plans.”

Procurement (material resource planning for inventory for BOM) was again a complex process. GHCL was sourcing many raw materials, spare parts and chemicals and it did not know the exact status of raw materials procured in the absence of real-time data. Getting a fix on total consumption of raw materials annually was a difficult task as one had to go through a number of files. Sinha said, “We couldn’t locate certain chemicals, raw materials and finished goods inside the plant. To search 500 rolls it used to take two-three days. We saw our inventory load swelling and it started blocking our cash flow.”

In the absence of real-time data, generating MIS reports on monthly stocks, quality, product planning and BOM used to take a lot of time. GHCL had to download the Excel files and physically do the consolidation of procurement, inventory, production planning and financial accounting, which was a cumbersome and resource intensive procedure. Tally was used for accounting and closure of books.

The non-availability of business data across its supply chain led to an increasing inventory load. Sinha said, “There was a lot of inventory in our warehouse and goods in transit between plants. Keeping track of inventories was difficult and this was blocking revenues.” He added that sales revenues and sales dispatch were getting delayed due to improper information flow. “We wanted to have an integrated solution across all business areas and online information tracking.” Monitoring and control checks were absent, which used to lead to a situation of overstocking or stock-out, machine breakdowns etc.

GHCL fully understood that centralized management of business operations across the entire value chain and optimization of key business processes would be imperative in a fast-changing business scenario. Its strategic decision to select SAP’s ERP solution was deemed the right business-fit and suitable across all types of business verticals.

A seamless implementationGHCL chose OBT Global Pvt. Ltd., (later acquired by Zensar Technologies) as its implementation partner to implement mySAP ERP ECC 6.0 at its Vapi plant. The GHCL IT team was convinced that OBT had the right domain knowledge, could custom-build various textile-specific applications and had the experience of having carried out similar implementations in some well-known companies in the Indian textile industry. To address all the core areas of its business process, GHCL implemented FI, CO,MM, PP, QM, SD and OBT Global's own module EMS (Export Management System). OBT global provided overall program management, scope and design, build and test, business process alignment, system data conversion, organizational rollout, communication, training and ongoing application management support.

The GHCL steering committee was involved with the technical evaluation and vendor selection criteria from July 2006. A Project Team was formalized consisting of steering committee, functional users, consulting agency, end users and IT support. The team had 24 members with 18 dedicated to the project on a full time basis. The team was in place by September 2006. The formal order to implement SAP was given in October 2006. GHCL took the big-bang approach for implementation and took six months to complete it. The project went live on 1st March 2007. Sinha added, “Though we went live in 2007, it was only in mid-2009 that our systems stabilized and we achieved 85% of the MIS requirement.”In the first phase, GHCL implemented Sales & Distribution, Materials Management, Production Planning, Quality Management, Finance and Costing modules. SAP modules are basically accessed by all hierarchies. For instance, there are 50 users at the Vapi unit.

Synopsis of the ERP deployment at GHCL

Solution deployed mySAP ERP ECC 6.0

User licenses 50 concurrent licenses

Production ServerIBM p550 2.1GHz dual Power processor with 8 GB memory and 800 GB hard disk

Application server IBM p520 server with 24 GB memory

Quality & development server

IBM p520 (2 x 2.1 GHz) with 8 x 146 GB hard disk and 8 GB memory

Operating System AIX 5.3 V

Database Oracle 10.2

Cost of the projectRs. 4 crores including license, hardware, software and implementation costs

2. Suzlon Energy ( Bangalore) sap implemented by IBM

It went in for an ERP implementation and in the process gained the ability to react proactively to situations and do what-if analysis of the impact of strategic decisions on its operations

The implementation exercise, which began in May 2004, was completed in November 2004 with a simultaneous rollout of SAP ERP at 228 sites. Over time the rollout of ERP is extended to new sites. The company is using around 900 user licenses of SAP and the project cost has been estimated to be around Rs 4.5 crores including the cost of the package, hardware, implementation cost and training. Rao says, “There was total support from the management and we had realised that there was no way we could grow without an integrated system that gave sufficient impetus and drive to all concerned.”

Snapshot

The Company Suzlon Energy is a wind energy systems and solutions company

The Solution SAP ERP R/3 4.7. It recently migrated to SAP ECC 6.0

Operating System AIX

Database Oracle 9i

Servers IBM pSeries p650 dual processor as development server

Modules Implemented Finance and Control, Sales and Distribution, Materials Management, Sales and Distribution, Project Management, Plant Maintenance and Quality Management, HRM, Training and Event Management, Customer Service, PLM Management, CRM and Business Intelligence

Cost of the project Rs 4.5 crores including cost of the package and the hardware along with the implementation and training.

Implementation Partner IBM Global Services

User Licenses 900 user licenses

3. MTR Foods (bangalore) sap Impl by L&T Infotech MTR Foods has been grappling with the intricacies of managing its supply chain to generate a profitable

rate of growth. Among the top-five processed food manufacturing companies in the country, the company has seven diverse businesses—ready-to-eat foods, instant foods, ice-cream, meal accompaniments, frozen foods, spices & masalas, and vermicelli—and 200 products in all. The company also exports its products to the US, Canada, Europe and Australia.

In March 2003, the company settled on SAP R/3 Enterprise Version 4.7. Five key modules were to be deployed: production planning, material management, quality assurance, sales & distribution, and financial accounting. Shenoy says, “Instead of customising R/3 which would have required us to make a further investment, we decided to re-engineer our business processes to suit the R/3 package.” For instance, purchase negotiations used to be conducted at the Bangalore head office; this activity was shifted to the plant. The release of payments (invoicing and verification) was done at the plant; this task was shifted to the head office. The process re-engineering to suit R/3 led to a smooth deployment, with L&T Infotech as the implementation partner. The apex steering committee identified ten key functional heads for training, who, in turn, trained fifty other users. In August 2003, MTR went live with SAP R/3 and cut out the parallel processing (legacy applications).

Quantifiable benefits

Improvement in working capital

In the pre-SAP environment, MTR foods used to procure 65 percent of its raw material requirements on an annual basis. After the ERP implementation, this has come down to 45 percent, and released much working capital. R/3 also lets the company calculate the exact amount of raw materials required, and brings transparency to the supply chain. Now damage, wastage and slow-moving products can be singled out.

Reduced inventoryPre-SAP, MTR used to take 30 percent stock cover (valued at Rs 70 lakh) for 20 days. This has dropped to 14 days.

Cost control

Earlier, MTR relied on historical data to calculate profitability. According to Shenoy, the problem with this approach was that inter-category product profitability could not be determined. To maintain a good margin, product profitability should be at least 60 percent. But if it gives you only 55 percent, then an analysis needs to be conducted as to why the remaining five percent is not being earned. Additionally, there was no mechanism to check profitability on a regional basis. R/3 helps achieve cost control, category- as well as region-wise.

Fatter margins

In the past, the reasons for input or output wastage, and where those wastages happened, were not known. With R/3 in place, the company has saved one percent of the wastage. This has helped MTR raise its gross margins from 45 percent to 49 percent per month, which translates into an improvement from Rs 20 lakh to Rs 25 lakh per month in profitability.

Tabs on defaulters

MTR had to incur a loss of Rs 45 lakh per month due to payment defaults by its distributors (bouncing of cheques, etc.) Today, it has been able to cut its losses by blocking the release of fresh orders until a distributor clears the previous invoice and falls in line with the company’s directions. With this, the company has reduced defaults to Rs 15 lakh per month.

 Snapshot of the implementation

Solution implemented SAP R/3 Enterprise Version 4.7

Modules usedProduction Planning, Material Management, Quality Assurance, Sales & Distribution, Financial Accounting

Number of users 100-user licence

ServersSun Microsystems Sun Fire 480R (2 CPUs) used as production and backup servers. A Sun Fire 280R is used as a development server

Operating system Solaris 9

Database Oracle 9i

Cost of the implementation

Approximately Rs 3 crore, including 100-user licences, hardware and software costs, and implementation and training

4. Coal miners log into PF & pension accounts (Dhanbad) sap impl by IBM

Established in 1948, CMPF is an autonomous body under the Ministry of Coal, Government of India, headquartered in Dhanbad and consists of 13 regional offices in 17 locations primarily in coal bearing areas. CMPF has the distinction of having a computerized and networked centralized processing Social Security Organization in the country. EPFO has yet to achieve this although it started six years back.

Over six lakhs members (coal miners) and more than 2.5 lakhs pensioners of Coal Mines Provident Fund Organization (CMPF) employed in 10 private sector companies (their employers) are happy after CMPF’s implementation of mySAP ERP 5.0.

  mySAP R/3 5.0 ERP went live at the CMPF headquarters in Dhanbad, 3 regional offices in Dhanbad, Deoghar and Kolkata on 31st August 2007. Later in Nov 2007 SAP ERP was rolled out in other region—Jabalpur, Hyderabad, Nagpur, Bilaspur and Assansol

Snapshot

Company CMPF is an autonomous body under the Ministry of Coal, Government of India established in1948 through an Act of parliament to look after the social security of coal miners.

Solution deployed mySAP R/3 5.0 ERP

Hardware There are two identical IBM servers used for production and development. Each server is an IBM p550 series dual CPU deployed in clusters in active-active mode.

Operating System AIX 5.3 version

Database Oracle 10g

No of licenses 650 user licenses

5. Hindustan Construction Company (mumbai) With projects across difficult and inaccessible terrain in the pipeline HCC needed to upgrade its project

control systems. Satish Pendse, Chief Information Officer, HCC and Mangesh Wadaje, Project Manager-SAP, HCC talk to Akhtar Pasha about the deployment of SAP ECC for Engineering Construction and Operations.

The implementation of SAP ECC deployment began on 1st January 2006 and it took eight months to complete the implementation. The company went live on 7th August 2006.

Snapshot

About HCC HCC is a leading construction and infrastructure development specialising in executing large-scale infrastructure development in segments such as transportation, power generation infrastructure, marine projects, oil & gas pipeline constructions, irrigation & water supply, utilities and urban infrastructure.

Solution deployed SAP ECC 5.0 for Engineering Construction and Operations (ECO)

Servers used Application servers: 3 HP Integrity rx2620 dual CPU (Itanium 2 processor-1.6 GHz (6M)), 12 GB RAM, 72 x 2 GB HDD (Mirrored) Database server: HP Integrity rx4640 dual CPU (Itanium 2 processor-1.6 GHz (6M)), 12 GB RAM, 72 x 2 GB HDD (Mirrored) (This is a 4-way server populated with two CPUs) CI server: HP Integrity rx2620 dual CPU (Itanium 2 processor -1.6 GHz (6M)), 12 GB RAM, 72 x 2 GB HDD (Mirrored) The database is clustered with CI using SGSAPv

Operating system Unix HP UX b.11.23

Database Oracle 9i

Cost the deployment Rs 25 crores including the cost of user licences, training, software and hardware.

6. Gulf Oil Corporation     Limited (hyderabad) sap impl by SAP Labs

Gulf Oil Corporation  Limited, a Hinduja Group company has successfully implemented SAP ERP, in its quest to restructure its business processes and improve its operational efficiencies. Gulf Oil is a Hyderabad based global player in the diverse business areas such as industrial explosives, mining products and services, infrastructure, lubricants, specialty oils and chemicals, active pharma ingredients (bulk drugs) and pharma formulations.

7. NITCO Tiles (Bangalore) sap impl by Coconut Software (mumbai)

NITCO Tiles is a well-known brand in the glazed tiles industry and is a major manufacturer and importer of a wide variety of tiles. Having achieved a turnover of Rs 311 crores [in March 2006] the company has big plans. It has done away with its legacy and manual systems and has embraced SAP, integrating its operations at manufacturing plants and depots across the country in the process. The standardised ERP system has helped the company to embark on a successful growth path.

SAP ECC 5.0 ERP went live in January 2006 with seven modules—Sales and Distribution, Materials Management, Production Planning, Quality Management, Plant Maintenance, Finance and Inventory. Coconut Software was the implementation partner for this project.

Implementation in a nutshell

The Company Headquartered in Mumbai, the NITCO Group manufactures and imports a wide variety of tiles.

The Solution SAP ECC 5.0 ERP

Operating System Windows 2003

Database Oracle 9i

Servers Two Production servers: One application and one database server. Both are identical HP ProLiant, DL 380 G4s with a dual Xeon processor and 6 GB of memory. One development server: HP ProLiant DL 380, a single processor box with 2 GB of memory.

Cost of the project Estimated project cost is Rs 1.2 crores, which includes the cost of the package and the hardware along with implementation and training.

Implementation Partner Coconut Software

User Licenses 50-user licenses.

7. Tata Ryerson (pune) sap impl by tata technologies

Tata Ryerson is a 50:50 joint venture between Tata Steel and Ryerson Tull of the US which manufactures hot and cold-rolled coils, strips, plates, sheets and blanks. The company is headquartered in Kolkata with manufacturing facilities at Jamshedpur and Pune, and more are planned in northern and southern India. Tata Ryerson has distribution points at Howrah, Pune, Jamshedpur, Faridabad, Chennai, Raipur and Bangalore and proposes to open fifty new sales offices by 2006.

IT infrastructure at Tata Ryerson

Industry Steel: Hot & cold-rolled steel coils, strips, plates and sheets.

Hardware

The production server is a HP ML570 with a Pentium III Xeon processor, a 240 GB hard disk and 2.4 GB of memory. The quality and development server is a HP DL380 with a 120 GB hard disk and 2 GB memory.

Software SAP R/3 3.0F upgraded to R/3 4.0B and later to R/3 4.7.

Operating System Windows 2000

Database Oracle 9i

Implementation partner Tata Technologies, Pune

Cost

The ERP package (R/3 3.0F version) cost Rs 3 crore to implement. The upgrade to version R/3 4.0B cost Rs 2.5 lakh as there was no change in the hardware infrastructure. The later upgrade to R/3 4.7 enterprise version cost Rs 45 lakh as the entire hardware infrastructure was also replaced.

Source :Tata Ryerson

8. INDIAN OIL CORPORATIONImplementation Partner : SAP Active Global SupportSAP R/3® software, functionalitynow found in the mySAP™ ERPDatabase : Oracle Hardware : HPOperating System : UNIX

New Delhi–based Indian Oil Corporation, the world’s 18th-largest petroleum company, is also India’s largest enterprise and is ranked 170th in the FORTUNE Global 500 list (2005). For fiscal 2003, the company generated profits of US$1.6 billon on sales of US$29.8 billion.

9. TRIVENI Engineering & Industries () sap impl by TCS

TRIVENI Engineering & Industries started in the sugar business in 1933. Today it is a Rs 750 crore enterprise with diverse business lines. Along the way, the group diversified from sugar to sugar machinery. In 1964 the company began manufacturing, in technical collaboration with Peter Brotherhood, UK, steam turbines for mill drives and power generation. It now has over 2,500 installations across a range of industries including sugar, fertilisers, petrochemicals, chemicals, carbon black, solvent extraction, paper, pig iron and sponge iron. With a production capacity of over 200 turbines a year, the company has emerged as a leader in the Indian market for turbines rated at a capacity of up to 6 MW. Triveni now manufactures turbine models up to 15 MW.

It also makes high-speed gearboxes.

The implementation began in January 2001. While it was going on SAP brought out a new version, R/3 4.6C. Triveni went live with R/3 4.6C on March 2003 after an implementation that took all of two years.

Snapshot of implementation

IndustryTriveni Engineering Industries is a manufacturer of sugar machinery, steam or gas turbines and high speed gear boxes.

Solution

The company deployed SAP R/3 4.6C with 11 modules—sales & distribution, project systems, financial, cost accounting, product planning, quality management, customer support, executive information system (EIS), workflow and payroll.

HardwareSun Sparc E450 server with two CPUs, 2 GB memory and a Sun E250 with one CPU and 1 GB memory

Operating systems Sun Solaris 2.8Database Oracle 8.1.7

10. VISA Steel Limited sap impl by SAP LabsVISA Steel Limited, a part of the VISA Group and a global organisation in metals, has multiple plants in

India catering to diverse businesses such as glass furnace, power plant, rolling plant etc.

The package was zeroed upon in September 2005 and the project went live in April 2006.

Snapshot

Company VISA Steel Limited is a part of the VISA group and a global organisation in the metals and minerals industry. It expects a turnover of Rs 750 crores this year and has 400 employees on its rolls.

Solution mySAP ERP 5.0 version

System Integrator PricewaterhouseCoopers

Number of user licenses 80

Database SQL Server 2003

Operating System Windows 2003 Enterprise Edition

Servers The production server is a HP 2-way ProLiant with 4 GB memory.The development server is an exact replica of the production server but with 2 GB memory.

11. Alstom Power India Alstom Power India is a heavyweight in the areas of power generation, power transmission and

distribution. The company undertakes fast track power projects and has offices across 14 locations in India. Given the line of business that Alstom is into and the degree of operations it has in the country, a sound and efficient networking infrastructure is an essential requirement.

The power major has spent around Rs 8 crore for the ERP implementation.

12. Daikin Shriram sap impl byDaikin Shriram (DS) Airconditioning is the Indian subsidiary of the Japan-based Daikin Industries. The

Japanese company has operations across the globe with seven to eight manufacturing units, and has good brand value in Asia Pacific countries.

13. Madura Garments by sap labsHandling as it does some of India’s leading brands including Peter England, Allen Solly, Van Heusen and

Louis Philippe, the company has eight factories and a warehouse. It also has a network of 120 exclusive franchisee showrooms, 15 agents, 22 distributors and 3,500 retail outletsThe implementation kicked off in August 2001, and it went live in July 2002.

Snapshot of the ERP deployment at Madura Garments

Company Madura Garments has a turnover of Rs 395 crore. It is one of the fastest-growing branded apparel companies in India, with a CAGR of 30 percent

Solution implemented mySAP AFS, APO and BIW

Number of users 200 user licences have been purchased

Servers For production, Madura is using three Sun Fire V880R, 8-way servers. (The Sun Fire machines are used as a database, application and fail-over server respectively.) Two IBM RS6000 dual CPU machines are used for development and quality assurance

Operating systems Solaris 8 is the operating system for Sun Fire. The IBM RS6000 machines run AIX 5.1

Database Oracle 9i

Cost of implementation Rs 9 crore. This cost includes the mySAP AFS and BIW packages, training, implementation charges, as well as all supporting hardware and software

  Source: Madura Garments

14. Paradeep Phosphates Limited sap impl by IBM(PPL), which is in the business of manufacturing and selling phosphatic fertilizers, was a PSU posting revenue losses till January 2002. Post disinvestment in February 2002, a new management took over this unit with KK Birla Group holding the major share along with OCP Group of Morocco and the Government of India.

Implementation in a nutshell

IT systems

Software SAP ERP ECC 6.0

Hardware 2X IBM p550 dual core servers for production and development with IBM p520 as failover server. PPL has implemented FC SAN solution using IBM 4780 box with 2TB of capacity that can scale to 5 TB.

OS IBM AI

Database Oracle 10g

Key challenges

Meet strict quality control requirements Comply with government product subsidy policies Improve management of imported raw materials Gain greater control of complex, multiproduct manufacturing environment

Financial and strategic benefits

Gained greater transparency across all business operations Integrated cross-functional business processes throughout the organization Improved ability to measure process effectiveness and efficiency

Operational benefits

Increased efficiency in management of raw materials, daily production, and finished goods Improved visibility into field stocks, sales and distribution, and dealer payments Reduced purchase cycle times

15. SVH Energy (hyd) by intelligroupSHV Energy is an LPG distribution company with the brand name of ‘Super Gas’ and is

headquartered in Hyderabad. The company specialises in providing energy solutions and has an extensive infrastructure that includes LPG import terminals, LPG filling plants and a distribution network to service its industrial and commercial customers across the country. The company had been using legacy applications which were not integrated and were incapable of meeting with its growth plans.The project was kicked off on February 1, 2006 and was completed on August 1, 2006. 

Snapshot of project

Company SHV Energy is an LPG distribution company with the brand name of ‘Super Gas’ and is headquartered in Hyderabad. It is part of the $19 billion SHV Holdings, a Fortune 500 Dutch Multinational Company, which is the world's largest distribution and marketing company.

Packaged used SAP ERP ECC 5.0 Version

Hardware Two IBM p520 power5 dual CPU machines are being used as quality and development servers with 16 GB of memory

OS AIX 5.3

Database Oracle 9i

No of user license 100 user license

Implementation partner Intelligroup

16. Kemwell byPharma industry operates in a specialised environment where requirements are unique. A

highly customised ERP package is required to meet the needs of a pharma company. Kemwell is a pharma that does contract manufacturing for pharma majors such as Johnson & Johnson, Himalaya, AstraZeneca and GSK. The company has two manufacturing plants and has been in this field for more than 25 years now. Its turnover was Rs 30 crore in fiscal 2003-04 and this doubled to Rs 60 crore for the year ending March 2005.

Snapshot of the implementation

Enterprise application software

mySAP ERP from SAP

Hardware Production Server: IBM x255(Xeon Processor with 6 GB RAM) Development Server: IBM x225 (Xeon Processor with 4 GB RAM)

Operating Systems Windows 2003

Database Oracle 9i

Number of user licences 45

Cost Rs 1.5 crore for the hardware, software, networking & training

17. Ranbaxy Fine Chemicals Limited by price waterhouse coopers

[now called RFCL] had the privilege of access and hands on experience on SAP ERP systems, when it was a part of the Ranbaxy Group. RFCL was bought over by ICICI Ventures and had plans for a global footprint and it wanted to broaden its product portfolio. 

A total of 20 people were involved in the implementation, which included members of the IT team from RFCL. The SAP ECC 5.0 ERP went live across 22 Sales and Distribution and five manufacturing locations in June 2006 using the big bang approach. 

Implementation in a nutshell

The Company RFCL operates in four major business segments--Animal Health Care, In Vitro Diagnostics, Scientific Laboratory Solutions and Custom Synthesis business. It offers products and services to a range of industries including the veterinary, aqua and poultry farms.

The Solution SAP ERP ECC 5.0

Operating System Microsoft Windows 2003

Database Oracle 9i

Servers Production servers are HP rx2620 dual 1.6 GHz/3MB CPU For development RFCL is using a single 1.6GHz CPU HP rx1620

Cost of the project The estimated cost of the project is Rs 1.25 crores, which includes cost of the package and the hardware along with the implementation and training.

Implementation Partner PricewaterhouseCoopers

User Licenses 50

18. Bhilai Steel Plant by IT & IBM(BSP) is the flagship unit of Steel Authority of India Limited, the largest producer of steel in

India and one of the leading players worldwide. According to World Steel Dynamics, SAIL—with a turnover exceeding $10 billion—ranks second in the league of ‘world class’ steel makers, evaluated in terms of a slew of performance measurement yardsticks. Currently producing five MT of steel, BSP—the largest in the SAIL family after a capacity expansion program that's currently underway—is set to produce seven MT of crude steel per annum by 2012.

IT is a partner in the progress of the Bhilai Steel Plant. From ‘IBM’ to ‘EDP’ and now to ‘C&IT’, the department has led the charge of IT intervention in the plant. Unit Record Machines (IBM 402) yielded their place to auto coders (IBM1401) followed by mainframes (Burroughs 5900) and servers of different hues (Sun SPARC - 20) along with evolving databases (Oracle version 6 to 10g).

The process of metamorphosis commenced decades ago and reached a crescendo with the commencement of a SAP ERP project in April 2009 preceded by the roll out of two state-of-the-art data centers in 2008, all designed to catapult the plant to a higher trajectory of growth.

Implementation highlights

Approximately 300 man years of effort were invested in the project About 2,500 end users were trained in SAP Six business areas of BSP were covered through seventeen different modules of SAP 200 as-is processes mapped to 140 to-be processes in ERP after rationalization More than 650 unit tests were carried out to ensure working of the software 174 scenarios were tested during integration testing of the software 647 developments were carried out in the system to suit the plant’s specific needs Interface with CMO, HRIS, Pay Roll, HMMS, OPEX, TRAMS

Involvement of sister plants in detailed designing

19. SAP India partnered with Siemens Information Systems for the implementation of its ERP solution at Delhi Metro Rail Corporation (DMRC)

20.