Presentation Over ERP to ET-2008

7/31/2019 Presentation Over ERP to ET-2008

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PresentationOver ERP

toET BATCH-2008

Dated : 10 September 2008

MANU KHARE

ABHISHEK SRIVASTAV

NTPC,Limited



• What is ERP?

• Major Players

• Customers

• Process Improvement By ERP : Example

• ERP- A Change Process

• Coverage Of ERP

• ERP – Functional and Technical Viewpoint

• Fundamental Design Principle and Key Objectives

• Modules Under ERP and their functionalities

• A typical Network Infrastructure-NTPC Network for ERP

•Project Methodology and Deliverables

• Project Organization & Role of Team Members

• Critical Success Factors for ERP

• Training

• Working With SAP



Enterprise Resource Planning?

Enterprise Resource Planning (ERP)is a multi-module integrated applicationpackage that help manage and automatea business. A single database provides

access to all applications, programs andservices within an enterprise. ERPincorporates all elements of a business,from financial processes to maintenance

and marketing activities, into a unifiedwhole that operates more effectively andefficiently.



PurchasingPurchasing

PayrollPayroll

Stores &Stores &InventoryInventory

FinanceFinance

ServicesServices

H RH R

Maintenance

Costing

MIS

Budgeting

Project Systems

A Typical IT Application Story…



From Functional Silos…

Planning Finance Consultancy

Engineering and R & D Production Sales & Distribution



To an Integrated Enterprise….

Planning

Finance

Consultancy

Production

Sales & DistributionEngineering and R & D

Central

Database



The Players

SAP R/3 - still must maintain mainframe architecture of large R/2user population. Strong finance and accounting. By far the largest

vendor (approx. 30% market share).

Baan - known for manufacturing, distribution, process modelingmodules - web and Internet.

PeopleSoft - known for human resource package.

Oracle - simplest product to install and support. Recentlyadvertising flow manufacturing enhancement.

J.D. Edwards - SCM module

Manugistics - Distribution - truck loading and routing focus.

i2 Technologies - Rhythm product - coordination of flow orientedmanufacturing. Comprehensive forecasting module.



SAP

Systems, Applications and Products in Data Processing,

(SAP)

The name of a company - SAP AG**

The name of a software - SAP R/3

**AG stands for Aktiengesellschaf t (After 2005 general meeting)

http://en.wikipedia.org/wiki/Aktiengesellschaft

http://en.wikipedia.org/wiki/Aktiengesellschaft



SAP Customers in India

Mid-market partnerships…

Discrete Manufacturing flagship partnerships…

Process Manufacturing flagship partnerships…

Consumer & Retail flagship partnership…

Services industries flagship partnerships…



SAP Customers – Public Sector in India

NTPC,Ltd

Delhi Metro Rail Corporation Ltd.

Oil & Natural Gas Corporation of India Limited.

Indian Oil Corporation of India Limited.

Bharat Petroleum Corporation Limited.

Bharat Heavy Electricals Limited

Videsh Sanchar Nigam Limited.

Garden Reach Ship Building

Ship Building Corporation - Vizag

Gujarat Industry Power Co. Limited – Baroda

Bharat Electronics Ltd

General Insurance Corporation of India

Chattisgarh State Electricity Board

Gujarat State Petroleum Corporation

Central Power Distribution Company of Andhra Pradesh

PTC India Ltd (formerly known as Power Trading Corporation of India.)

National Housing Bank



Customers in Engineering & Construction

Plant Contracting & ConstructionPlant Contracting & Construction HomebuildingHomebuilding

Shipbuilding &

TransportationEquipment

Shipbuilding &

TransportationEquipment

http://www.mw-zander.com/en/index/index.jsp

http://www.akerkvaerner.no/Internet/

http://www.techint.com/default.asp?LANG=EN

http://www.fincantieri.it/

http://www.eurovia.com/index.htm

http://www.usa.siemens.com/

http://www.kiewit.com/

http://www.meridianrail.com/mrc/home.asp

http://www.yohindustrial.com/index.cfm

http://www.jimwalterhomes.com/index.php?aid=00&lg=en

http://www.daewooshipbuilding.com/en/



SAP Customers – Engineering and Construction

Hindustan Construction

ABB Ltd

ALSTOM Power Sweden

Austrian Energy & Environment AG

Balkan Ro Trade and Construction

Bechtel Corporation

Bharat Heavy Electricals Limited

Bombardier Transport Inc.

Capstone Turbine Corporation

Hyundai Engineering & Construction

SCHNEIDER ELECTRIC INDUSTRIES SA

Halliburton Energy Services.

Walter Industries Inc

Mitsui Engineering & Shipbuilding

Larsen & Toubro Limited



Elapsed Time:

20 days

Existing Process

Check

Common

spares status

Raise Indent

requisitionGet HOD

Approval

Get FQA/FES

Clearance

Get MPIC

Clearance

Req. validation

by screening.

comm

Get Budget

Certification

High Value

Yes

No

Send PR to

C&MUser

FQA/FES

MPIC

S.C.

F&A

Common Spares D/B

Process : Indent Requisition of Spares

Can be

Eliminated in

case, yearly

Spares Budget

is approved

once.

Elapsed Time:

40 daysCan be eliminated, once

a central database is available

User checks against item/value

Budget

Approved Yearly Maint. Budget

•Check stock across NTPC•Check Item

Budget•Check Value

Budget•Assess Technical

Spec.

•AssessRegistered

Vendors•Assess LPP

across NTPC

Raise Indent

requisitionGet HOD

Approval

CENTRAL

DATABASE

Yearly

MaintenancePlan Approval

Yearly

ProcurementPlan Approval

Send PR to

C&M

Elapsed Time:

few hours



ERP involves Change

Change in Processes

Change in Roles and Responsibilities

Change in organization’s working culture – Department

to Process Perspective

Change in attitude and mindset of people

Change Management Strategy would focus on bringing about above

changes in Organisation smoothly



An extensive change mangement concept ensures theacceptance and motivation of the end users

= rejectionvision skills tools action planincentives+++ ++

= fearvision communi-cation

tools action planincentives+++ ++

=

frustration

vision communi-cation

skills action planincentives+++ ++

= slowchange

communi-cation

skills tools action planvision +++ ++

=confusio

n

communi-cation

skills tools action planincentives+++ ++

= chaosvision communi-cation

skills tools incentives+++ ++

communi-cation tools action planincentivesvision + ++ ++ skills = real change



Senior Management Commitment &

Participation Readiness to Change

Best People Full Time

Good Project Management Skills

Using Standard Functionality

End User Empowerment

Project Management

Project Review & Quality Audit

Teamwork

Sound Methodology

Able Implementation Partner

Infrastructure Availability

Communication

Critical Success Factors for ERP Project



Action Points to facilitate Change

Workshop

Training of Change Agents to facilitate change in the organization

Facilitate awareness of ERP in employees by Change Team conducting seminars

CMD/Directors/EDs addressing employees during their visits

Newsletters, Intranet, Cable TV

Competitions

Team Vision Workshops

Process Engagement Workshops

Benefit Realization Workshops

Change Impact Analysis

Role Mapping

Post Go Live Reviews



Who initiates Change?

ChangeManagement

Team

Process

OwnersProcess

OwnersProcess

Owners

ERP

Project

Team

Change

Enablers



Coverage of ERP

Corporate

PlanningProjects

Engineering

and Q A

C o ntracts O pe ratio ns M aintenance C o m m ercia l

Consul tancy

A sh Utilisation

Environment

R & D, TQM , IT

Safety, Security, Vigi lance

Corporate Comm unication

Site

Procurement

& Materials

F u el

M an ag em en t

Employee H eal th

Legal & Se cretar ial

Rehabil i tation and Resettlemen

Finance, Hum an Resources



Coverage of ERP

In addition SAP will also include the following Business Intelligence

Knowledge Management

Workflow

Document Management System

Xchange Infrastructure (XI) for integration with other packages / legacy

applications Capability to support future business areas of NTPC including Coal

Mining, Power Distribution, Power Trading etc. (Not included in the currentpackage cost)



What is an ERP - Functional View

Covers Processes across multiple functions through a single

system

Operations & Logistics

Materials and Contracts Management

Maintenance Management

Project Management

Human Resources & Payroll

Personnel Administration

Personnel Development

Administration Financials, Planning, Budgeting, Control & Audit

Cross-Application Components

Workflow

Document Management System

System Management Tools

System Administration

Security



What is an ERP – Technical View

A database application which supports the running of Business

Processes

Configurable – Tailoring without writing any code

Extendable – by writing additional code without modifying standard

code

Set of master data for various objects – materials, resources,

suppliers etc. that is used for all processes

The applications sit on a OPEN “application server” that can be usedfor writing new applications

Consists of standard tools and technologies for developing

interfaces

Contains standard data migration tools

Has built-in comprehensive Security and Access Controls



Central Themes / Fundamental Design Principles of SAP

Data & Information Centralize storage

Secure Access Adhere to Data & Information Exchange Standards

Processes / Operations Integration of Processes

Run from Anywhere

Secure Access

Standardize as much as feasible

Offer Multiple Options to suit customer requirements

Support Universally accepted practices in different functions (Accounting,Materials Management, Project Management)

Technology Platform (OS & DB) independent

Open based on Standards

Access from any standard device

Secure Access



SAP Solution - An integrated system design

Finance

Enterprise

Management

Asset

Management

Budgetary

Control

Human

Resources

Maintenance

Management

Management

Information

System

Project

Management

Material

Management



Addresses Key Objectives

Improve Efficiency

Improve efficiency through better processes

and practices

Faster ROI on IT investments

Solutions aimed at customer’s pain points

Leverage existing application, through integration wherever possible

Better visibility

Business performance management

“Real-time” (event-driven) integrated extended organization

Actionable Knowledge

Solutions that adapt to changes

Solutions that support and enable transformation

Solutions that are focused on improving efficiency in administration

and logistics



eb browser access

singlesign-on

Access from Anywhere Anytime

legacy

Portalindustry-specific

role-basedpersonalizeddrag & relate

Market-place

R/3FI CO

HR

CRM

SEMSupplyChain BW

mySAP.com solutions

non mySAP.com

Partner

SAP

Cock-pits

BWProductionReports.lnk

NTPC.URL

M d l i SAP

http://sapmats-de.sap-ag.de/ZAdhikari/Documents%20and%20Settings/ongc/Documents%20and%20Settings/ongc/adhikariD/GAIL/mySAPcomWorkplace.scm





Modules in SAP

Fi i l M t



Financial Management

General Ledger

Legal Consolidation

Accounts Receivables

Accounts Payable

Asset Accounting

Budgeting

Overhead Cost Controlling

Activity Based Costing

Cash Management

Treasury

Funds Management

Payroll

Check Printing

Parallel Accounting

Analytics

Expense Management

Billing

Profitability Analysis

Streamlines information

control, analysis, and

delivery

Enables performance

planning, measurement,

and management

Optimizes the financial

supply chain

Most comprehensive,functionally-rich solutionon the market

Market-leading solutionsand customers in allindustries

Reliable, proven businesspartner with solution andindustry expertise

P t d M t i l M t



Procurement and Material Management

Initiation Planning & Approval

ProjectExecution

Closing

ExecuteCheck deliverables of the supplier & sub

contractor based on contracts & confirm

using service entry sheets

Purchase Requisition

RFQ & Purchase Orders

Tendering

Supplier Evaluation & Blacklisting

Delivery Schedules

Approvals & Workflows

Service Masters

Warehouse Management

Goods Movements

Shelf Live & Status

Physical Inventory Audits

Quality Inspection

Supplier Payments

Knowledge Management

Contract Management

Supplier Collaboration

Define

Define the project requirements.Select Source & complete detailing

Monitor Monitor progress & payments as

per schedule.

Workflows

E P t C t

http://images.google.com/imgres?imgurl=www.meieasitrax.com/img/pictures/warehouse.jpg&imgrefurl=http://www.meieasitrax.com/02.htm&h=156&w=207&prev=/images%3Fq%3Dwarehouse%26start%3D100%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN



E-Procurement Components

22

66

44

33 Consolidate

Requirement

Payment Gateway

EBP

11

Tender Award

Bid opening &

Comparision

Supporting

documents

Upload Bid

Download Tender

Publish

Requirements

55

ERP

Reverse Auction

Tender fee payment

77

88

99

(Secure Network)

Enhanced Supply base

Reduced Spend

P j t M t



Project Management

Initiation Planning & Approval

ProjectExecution

Closing

Life-Cycle Data ManagementFull integration into the Document

Management System of mySAP Life-Cycle

Data Management; assignment of allvarious documents supported by all DMS

functions (i.e. versioning, vaulting)

Project Initiation

Project Team

Project Estimation & Budgeting

Project Planning & Scheduling

Capacity Management

Project Procurement

Project Production

Project Costing

Project Document Distribution

Project Confirmations

Project Claims

Project Progress Tracking

Multi -Project Management

Project Archiving

Project Reuse

Project Base lining & Simulation

Project Status Management

Integrated Viewing /

Maintenance

All originals of assigned document

masters can be viewed/maintaineddirectly from the project’s maintenance

environment.

Flexible Search/E-PublishingProject documents can be searched by

various search engines and can also be

published for external access on theInternet.

Project – EH&S





Work Force Management

Location & Asset Mapping

Maintenance Planning & Scheduling

Budgeting & Sanctions

Tools & Documents

Complaint Management

Warranty & AMC

Contracts & Subcontracting

Spares ManagementWork Clearance

Preventive / Predictive / Breakdown /

Shutdown Maintenance

Valuation & Status Management

Mobile Device

GPS Interface

Equipment History

Meter Reading & Counter Based

Early Warning System

Objects

Orders /Notifications

Costs Downtimes

H i s

t o r y

Time- /Materialconfirmation

Technicalcompletion

Order settlement

C o m

p l e t i o n

Internal /Externalresource-planning

Release / Print

Control /Execution

P M

O r d

e r

Techn. Object

Conditiondescription

Item data

Activities /Tasks

Priorities

N o t i f i c

a t i o

n

Life Cycle Data Management



Life-Cycle Data Management

Document managementVersions and structures

Approval and change management

Open interfaces: computer-aided design,

Microsoft Office, and so on

Product master and structure managementProduct master management

Product structure management

Routings

Classification and variant configuration

Specification and recipe managementSpecification management (for example, ingredients,products, and packaging)

Multilevel recipe and formula management (for example,S88 compliance)

Service and maintenance structuremanagement

Change and configuration managementEngineering change request/engineering change order

Order change management

Configuration management

Product data replication

Data

Management

mySAP HR A Total Integrated HCM Solution



mySAP HR – A Total, Integrated HCM Solution

Pre-defined Key Performance

Indicators

SAP Business Warehouse

Integration

Expert Finder

Manager Self-Service

Employee Self-Service

Employee Interaction

Center

Collaboration Tools

Workforce Cost & HeadcountPlanning & Simulation

Employee Succession Planning

Balanced Scorecard

Career Planning

Recruiting and Talent

Management

Shift Planning

PerformanceManagement

CompensationManagement

Learning

Training & EventsManagement

Skills/QualificationManagement

Organizational Management

Personnel Administration

Payroll

Claims , Loans

Time Management

Reporting

Global Employee Management

Knowledge Management : Collaboration



Knowledge Management : Collaboration

Project rooms and team rooms

Feedback for specific users Feedback (to author)

Rating (to author)

Feedback for everyone

Public feedback

Public rating

Discussion groups

Chats

Collaborative authoringRatingRating

Discussion GroupsDiscussion Groups

Security



Security

User Authentication

Role / Group / Job / Position Access Control

Transaction Access

Process Access

Field Access

Firewall Protection

Encryption

Administration

Portal Security

Master Data Security

Access Effectivity

Time-Out

Multiple Access Locking

Mass Change

Transaction History

Interface to LDAP

Digital Signature

Drag &

Drop

Drag &

Drop

Troubleshooting

Authorizations

Transport of Security

Related Objects

Integration with

Organizational Management



Application

Server

ERP DATACENTRE

Central

Database

Server

2 MBPS Leased Line

VSAT LinkPlants

Regional

HQ’s

Different Seismic Zones

DISASTER

MGMT. SITE

Corporate

Office

4 MBPS Leased Line



Project Methodology and Deliverables

Implementation Methodology



Training, licensing training material,

support, project reviews

Training, licensing training material,

support, project reviews

Methodology

Services

•Implementation

Assistant•Q&A db•Implementation Guide•Profile Generator

•Transport System

•Implementation

Assistant•Q&A db•Implementation Guide•Profile Generator

•Transport System

ProjectManagement

Change

Management

Risk analysis

Review

Project-related

knowledgeTools

ProjectPreparation

BusinessBlueprint

Realization

FinalPreparation

Go Live &Support

Continuous

Improvement

ASAP Roadmap

Implementation Methodology

Project Deliverables by Milestones




Milestone Deliverables from SAP Prerequisites

Milestone 1: ProjectPreparation

Project Infrastructure Plan

Preliminary Project Plan

Detailed Resource Deployment Plan

Enterprise Scope Document

Training Plan for core team members

Project Charter Document

Set-up of Project Infrastructure

Identification of Core Team Members as per

detailed resource deployment plan

Deployment of core team members on full-timebasis to the project.

Milestone 2: Business

Blueprint

Final detailed enterprise scope document

“To-Be“ Business Blueprint Document

SAP Organization Structure definitiondocument

List of Critical Reports and Layouts

List of Enhancements

Data Migration strategy

Testing Strategy document

Final project plan (based on detailed ESD)

Training Strategy for power users

Sign-off on all deliverables of Project Preparation

Milestone

Formation / Identification of Steering Committee,Process Owners, Executive Committee andChange management team

Production Server Sizing detailed questionnairefilled

Core Team Training (Functional and Basis)

Hardware and Infrastructure for Development &QA Environment






Milestone 3:

Realization

Final Integration Test Plans

Final Integration Test Procedures

Final Integration Test results

Manual data transfer procedure

Established Authorization procedure andmanagement

Draft Cut over plan

End user training strategy and plan

Sign-off on Deliverables of Business BlueprintMilestone

Hardware and Infrastructure for TrainingEnvironment

Identification and deployment of Power users andMaster Data Management team

Identification of Technical team (Legacy and thirdparty systems)

Core Team Training (ABAP)

Powers Users are trained

Identification of business roles and businessauthorization profiles






Milestone 4: Final

Preparation

Go-Live and Cutover plans

SAP System Operating Manual for Basisadministration

Production support (internal helpdesk) plan

Procedure for handling calls and questionfor end user are established and distributed

User IDs and authorizations created

Customizing setting & repository objecttransported from QA to Production System

Sign-off on deliverables of Realization milestone

Identification and deployment of team for end-user training

Training Infrastructure (rooms, PCs, Connectivity,projectors, etc) at locations commissioned

End-User documentation and manuals ready

Identification of users mapped to business rolesand business authorization profiles

Production system procured, commissioned andOS Installed

Stress and Volume Test completed (by hardwareprovider) on production system

Connectivity to all identified go-live sitesestablished and tested

Requisite hardware (PC, Printers, Routers, LAN,etc) and software (MSOffice, Antivirus, SAPGUI,etc) are installed and tested for all end-users






Milestone 5:

Go-Live & Support

Issue arises during & after go live aredocumented, assigned & resolved

Formal agreement to closure for implemented sites

Sign-off on deliverables of Final Preparationmilestone

Completion of End User training

Conversion programs executed, master andcutover data transferred to productive system,validated

Manual entry data from legacy system entered intoproduction system where applicable and validated



Project Organisation &Role of Team Members

Project Organisation Structure



Project Organisation Structure

Project Team –

Full Time

TeamTeam

LeadsLeadsTeamTeam

LeadsLeadsTeamTeam

LeadsLeads

IntegrationIntegration

Manager Manager ABAPABAP

LeadLeadBasisBasis

LeadLead

BW &BW &

ReportsReports

LeadLead

LeadLead

InterfacesInterfaces

TrainingTraining

Manager Manager

Executive CommitteeExecutive CommitteeProject Sponsor Project Sponsor

Steering CommitteeSteering Committee

Project Manager-NTPCProject Manager-NTPC

Project Manager… SAPProject Manager… SAP

ABAP ABAPDevelopersDevelopers

BusinessBusiness

ConfiguratorsConfigurators

BusinessBusiness

Analysts Analysts

Basis TeamBasis Team

Change

Management

Team

Process

Owners

Power User

Team

Lead InternetLead Internet

TechnologyTechnology

WebWebProgrammersProgrammers

NTPC Project Team Profile




Steering Committee Members Chaired by CMD of NTPC NTPC Project Sponsor

NTPC Project Management Team Heads of Key Business Functions for SBU Head of Location operations

Program Manager Part of the Senior Management

Direct Empowerment from MD for taking project related decisions Experience of working in cross-functional areas in Senior positions Preferable Full time involvement Wide acceptance within the company Drives Change Management Initiative in the Company

Project Manager

Manager -- Full functional knowledge, IT orientation Exposure to cross-functional processes Full time involvement Wide acceptance within the company





Team Members

Experienced Functional representatives

Ability to Appreciate cross-functional issues

Change leaders in their functions

Full Time availability

Representatives from all Locations/Functions

Process Owners


Empowered to take process related decisions for the Organization


Part Time availability





Power Users



Ability to understand integration issues

Ability to train end users in respective processes

Part Time availability

Representatives from all Locations/Functions



Training

Training



g

Training is not an expenditure; it is an investment

Training early gets better returns

Training for project team

Product training in functional areas

Methodology training

Change management

Training for end users

Overview training

Customised system training

Training Strategy for NTPC



g gy

Professional Training

This training shall be for the core NTPC ERP implementation team.

This NTPC team will comprise of members from all the Business Functionsand IT.

Each member would be trained in the relevant function / module.

The training will enable Core team members to get a high level of conceptual

and functional understanding of the product

Power User Training

The extensive involvement of key users makes SAP Implementation projectsparticularly suited for the "train the trainer" approach. Extensive use of workingprototypes, coupled with a stable group of active users, results in a trained setof potential, high-quality trainers. These trainers are effective because theyhave been involved with the project since its inception.

A detailed training approach will be developed along with the NTPC Teamduring future phases of the Project.



Working With SAP

The SAP Window



Status Bar

Title Bar

Standard Tool Bar

Menu Bar

SAP System ID

Server

Screen Body

Application Tool Bar

Using the Navigation Area



g g

You can expand and

collapse menus in the

navigation area by

choosing the dropdown

arrows to the left of the

menu items, as in the

example below

To open an application in

the navigation areaDouble-click its node

Transaction Codes



A transaction code can be entered in the Command field.

If you precede the transaction codewith /n then the transaction is the

next screen opened in the current session.

If you precede the transaction codewith /o then a new session is openedfor the transaction. This means you then have multiple sessions.

To start a transaction, there are 4 options:

Position the cursor on the required transaction in the tree structure and press enter

Double-click on the required transaction in the tree structure

Position the cursor on the required transaction in the tree structure and select Edit Execute (or press F2)

Expand the command field and enter the transaction code

Standard Toolbar



The Standard Toolbar contains the Command field and the standard SAP

Toolbar buttons.

Command Field: The Command field is used to enter transaction codes that

take you directly to a system task without using menus.

Button Keyboard Shortcut Description Button Keyboard Shortcut Description

Enter Key Enter/Continue Ctrl + Page Up First page

Ctrl + S Save to database Page Up Previous page

F3 Back Page Down Next page

Shift + F3 Exit System Task Ctrl + Page Down Last page

F12 Cancel None Create New session

Ctrl + P Print None Create shortcut on Desktop

Ctrl + F Find F1 F1 Help

Ctrl + G Find next Alt + F12 Customize Local Layout



User Settings



Users can maintain their own settings by choosing System User Profile Own Data

Defaults

Change default printer, language, and date and decimal display formats.

Parameters

Allow user to create default information for frequently used fields.

Messages



Messages appear either in the status bar or in a pop-up window, depending on user settings

Messages starting with:

“E” indicate an Error message

“W” indicate a Warning message

Messages not beginning with an “E” or a “W‘’ are simply Information messages

Required fields are denoted by a check mark





Thank You ….