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ABSTRACT The Project titled “SAP ERP HUMAN CAPITAL MANAGEMENT” focuses on aligning Employees, Strategies and Processes for Business Success. In the first part of the study, the overall power related activities that have been undertaken by NTPC over the past years have been discussed to give the reader a basic understanding of the work that is performed by the company. In the second part, the need of SAP ERP in different areas of NTPC to effectively deal with business challenges have been discussed. The comprehensive survey was done on the need of SAP ERP in HR department. The secondary research was done on the pre-existing data of employees. Enormous help and support from NTPC Ltd. and all the HR’s that I met during my survey have helped me a lot to give my 100 % to this project. All the data to measure the effectiveness of services through SAP ERP that are offered by the NTPC ;their HR practices for retaining the knowledge workers ,and to identify the changes in management after the implementation of SAP ERP process have all been collected through the help of questionnaire and direct conversation with the HR heads and employees of NTPC. In this project work, the basic aim is to establish a report which can state the importance of SAP ERP in today’s business development. By adopting some of the recommendations identified in the questionnaire, the NTPC Limited could improve their service effectiveness through SAP ERP process, and as a consequence, their customer satisfaction and loyalty. 1 | Page

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Page 1: SAP ERP HCM in NTPC Limited

ABSTRACT

The Project titled “SAP ERP HUMAN CAPITAL MANAGEMENT” focuses on aligning

Employees, Strategies and Processes for Business Success. In the first part of the study, the

overall power related activities that have been undertaken by NTPC over the past years have

been discussed to give the reader a basic understanding of the work that is performed by the

company. In the second part, the need of SAP ERP in different areas of NTPC to effectively deal

with business challenges have been discussed.

The comprehensive survey was done on the need of SAP ERP in HR department. The secondary

research was done on the pre-existing data of employees.

Enormous help and support from NTPC Ltd. and all the HR’s that I met during my survey have

helped me a lot to give my 100 % to this project.

All the data to measure the effectiveness of services through SAP ERP that are offered by the

NTPC ;their HR practices for retaining the knowledge workers ,and to identify the changes in

management after the implementation of SAP ERP process have all been collected through the

help of questionnaire and direct conversation with the HR heads and employees of NTPC.

In this project work, the basic aim is to establish a report which can state the importance of SAP

ERP in today’s business development.

By adopting some of the recommendations identified in the questionnaire, the NTPC Limited

could improve their service effectiveness through SAP ERP process, and as a consequence, their

customer satisfaction and loyalty.

Table of Contents

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CHAPTER DESCRIPTION PAGE NO.

1. Introduction…………………………………………………………...1-7

1.1 Scenario of Power in India………………………………………………2

1.2 Objective & Scope…. …………………………………………………...5

1.3 Methodology…………………………………………………………….5

1.4 Limitations………………………………………………………………6

1.5 Scheme of Chapters……………………………………………………6

2. Company Profile…………………………………………………….8-24

2.1 Director’s Profile…………………………………………………….….9

2.2 Vision & Mission Statement…………………………………………...10

2.3 Background of NTPC………………………………………………......10

2.3.1Market Share…………………….....…………………...…………11

2.3.2Achievements…………………….........…………………………..12

2.3.3Organization structure of NTPC…………………………………..14

2.4 Joint Ventures…………………………………………………………..14

2.4.1Subsidiaries………………………………………………………..16 2.4.2Competitors………………………………………………………..16

2.4.3Acquisition………………………………………………………...16

2.5 Location of NTPC Plants……………………………………………….17

2.5 NTPC’s HR Vision……………………………………………………..18

2.7.1Elements of HR Strategy………………………………………….19

2.7.2HR as a strategic business Partner in NTPC……………………....23

3. SAP AG Profile…………………………………..…………………..25-36

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CHAPTER DESCRIPTION PAGE NO.

3.1 SAP ERP Human Capital Management………………………………...27

3.1.1Benefits of SAP ERP………………………………………….…...29 3.1.2SAP ERP HCM Solution functionality……………………….…....30

3.2 Enterprise Resource Planning……………………………………….…..31

3.2.1Advantages of ERP………………………………………..……….32

3.2.2Issues in ERP…………………………………………..…………...33 3.2.3Depending Factors for Success of ERP implementation…………...33 3.2.4Challenges in ERP implementation…………………………..….....34

3.3 Roles & Responsibilities of Change Management……………………....34

3.3.1Forces for Successful Change Management………………....……..35

3.3.2Change Management in ERP implementation……………....……...36

4. Project Lakshya in NTPC…………………………………..……...…………37-44 4.1 Lakshya Mission…………………………………………………...…….38

4.2 Project Objectives………………………….………………...…………...38

4.3 Implementation of SAP ERP………………….……………...…………..38

4.3.1Importance of Lakshya in NTPC………..……………………...……39

4.3.2ERP Service Providers at NTPC…………………………………....40

4.4 Project Disha………………………………………………………...…...41

4.5 Screen shots for SAP HR modules implemented at NRHQ…..………...42

5. Survey, Feedback & Data analysis…………………………….………..……45

6. Conclusion……………………………………………………………….………58

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7. Recommendations & Suggestions……………………………………………...60

Bibliography……………………………………………………………………...62

Annexure…………………………………………………….…………………....64

List of Figures

Figure 2.1: Growth of NTPC Installed capacity & Generation…………………….…... 11

Figure 2.2: NTPC’s Power Contribution towards India………...……….………….…..12

Figure 2.3: Organization structure of NTPC …………………………………………... 14

Figure 2.4: Joint Ventures of NTPC ………………...…………………………………..15

Figure 2.5: Subsidiaries of NTPC……………………………………………………......16

Figure 2.6: Location of NTPC Plants………………..……………………………….…..17

Figure 2.7: Employee development and growth ………………………………….……..18

Figure 2.7: Role of Human Resource in NTPC ………………………………….……....23

Figure 3.1: ERP Integration with Business ………………………………………...…….31

Figure 3.2: ERP Solution ……………….………………………………………….……..32

Figure 3.3: Factors for success of ERP Implementation…………………………..………33

Figure 3.4: Challenges in ERP Implementation……………………………………..…….34

Figure 5.1: Paper-work…………………….………………………………………...…….53

Figure 5.2: Training sessions………………………………………………………...…….54

Figure 5.3: Customer Satisfaction …………………………………………………..…….55

Figure 5.4: Financial Risk …………………………………………………………..…….56

Figure 5.5: Complaints………………………………………………………………..……57

List of Tables

Table 5.1: Anova test for SAP ERP understanding and decision-making……………….…46

Table 5.2(a), (b), (c): Chi-Square test for SAP ERP understanding and decision-

making ...........................................................................................................................................

47-48

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Table 5.3: Anova test for SAP ERP Training & Business Environment…………………….49

Table 5.4 (a), (b), (c): Chi-Square test for SAP ERP Training & Business

Environment....................................................................................................................... 49-50

Table 5.5 (a), (b), (c), (d), (e): Paired Samples T-test all the paired expectations and

perceptions…......................................................................................................................51-52

CHAPTER 1: INTRODUCTION

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1.1 Scenario of Power in India

Growth of economy calls for watching the rate of growth in infrastructure facilities. Power sector

is one of the major aspects of this infrastructure building. Some prominent people like the Ex

Chairman of GE Jack Welch have gone to the extent of saying, “you don’t have a chance to

stand in the 21st century without lots of power………Without this you miss the next

revolution.”

Moreover, the growth rate of demand for power in developing countries is generally higher than

that of GDP. In India, the elasticity ratio was 3.06 in 1st plan, & peaked at 5.11 during 3rd plan

and came down to 1.65 in 80’s. For 90’s a ratio of around 1.5 was projected. Hence, in order to

support a growth of GDP of around 7%, the rate of growth of power supply of 10% is required.

If we look at current scenario, electricity consumption in India has more than doubled in the last

decade, outpacing the economic growth. If we analyze the various statistics of Indian power

sector, we will find that the generating capacity has gone up tremendously from a meager

1712MW in 1950 to a whooping 147000MW today.

The critical role played by the power industry in the economic progress of a country has to be

emphasized. A self sufficient power industry is vital for a nation to achieve economic stability.

Indian Power Industry

Before Independence

The British controlled the Indian power industry firmly before Independence. Then legal and

policy framework was contributing to private ownership, with not much regulation with regard to

operational safety.

Post Independence

Immediately after Independence, the country was faced with capacity restraint. India adopted a

socialist structure for economic growth and all the major industries were controlled by public

sector enterprises. By 1970's, India had nationalized most of its energy assets, due to its

commitment to social goals. By the late 1980's, the Indian economy felt the strain of the socialist

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agenda followed since independence. Faced with a serious deterioration in public finance and

balance of payment crisis, the Union government as part of its policy of economic liberalization

allowed greater investment by private sector in the power industry.

The electricity sector in India is predominantly controlled by Government of India's public

sector undertakings (PSUs). Major PSUs involved in the generation of electricity include

National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation

(NHPC) and Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level

corporations, such as Maharashtra State Electricity Board (MSEB), are also involved in the

generation and intra-state distribution of electricity. The Power Grid Corporation of India is

responsible for the inter-state transmission of electricity and the development of national grid.

India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption.

Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum

over the past 30 years. In March 2009, the installed power generation capacity of India stood at

147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual

power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH

in 2006. The Indian government has set an ambitious target to add approximately 78,000 MW of

installed generation capacity by 2012. The total demand for electricity in India is expected to

cross 950,000 MW by 2030.

Electricity losses in India during transmission and distribution are extremely high and vary

between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11%. Due to

shortage of electricity, power cuts are common throughout India and this has adversely effected

the country's economic growth.

Generation

Grand Total Installed Capacity is 147,402.81 MW

Thermal Power

Current installed capacity of Thermal Power (as of 12/2008) is 93,392.64 MW which is 63.3%

of total installed capacity.

Current installed base of Coal Based Thermal Power is 77,458.88 MW which comes to

53.3% of total installed base.

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Current installed base of Gas Based Thermal Power is 14,734.01 MW which is 10.5% of

total installed base.

Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9% of

total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.

Hydro Power

India was one of the pioneering states in establishing hydro-electric power plants, The power

plant at Darjeeling and Shimsa (Shivanasamudra) was established in 1898 and 1902 respectively

and is one of the first in Asia. The installed capacity as of 2008 was approximately 36647.76.

The public sector has a predominant share of 97% in this sector.

Nuclear Power

Currently, 17 nuclear power reactors produce 4,120.00 MW (2.9% of total installed base).

Renewable Power

Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total installed

base with the southern state of Tamil Nadu contributing nearly a third of it (4379.64 MW)

largely through wind power.

Power for ALL by 2012

The Government of India has an ambitious mission of POWER FOR ALL BY 2012. This

mission would require that our installed generation capacity should be at least 200,000 MW by

2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to

400,000MW.

Today’s environment is a tough environment to survive, with the new industries and the new

sectors coming up so strongly and financially sound. But to gain an extra edge over others they

ought to have an extra or special added advantage.

“Our people are our most important asset.” Nearly every organization report contains a phrase

like this & for good reason. Today, the last great source of competitive advantage is human

capital.

The pressure for Human Resource (HR) departments to deliver increased business value is

growing. Executives are seeking to reduce costs, streamline processes, & free up resources to

focus more on core competencies. Business stakeholders need support from HR departments to

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meet human capital demands to drive innovation and growth. Managers want up-to-date

employee information at their fingertips. Employees want the ability to check benefits, track

administrative paperwork, and plan their own retirement accounts.

1.2 Objective of the Survey

The main objective is

1) To check the validity of data of employees and to maintain their backup in SAP ERP

2) To measure the effectiveness of services through SAP ERP that is offered by the NTPC

in different departments.

3) To identify the changes in management after the implementation of SAP ERP process

Scope of the Survey

The project findings will help in

1) Validating the record of all the employees thus reducing the errors

2) Maintaining a good and competitive environment among the employees and also help in

measuring the effectiveness of services through SAP ERP in NTPC.

3) Making better HR practices and proper management of work force in the organization.

4) Improve the company at each level & give a competitive advantage over the other

companies that are into the power sector & ultimately to achieve the organizational goal.

1.3 Methodology

The methodology that is followed to prepare this project is based on the concepts of

preliminary investigations that are gathered directly from the company’s employees and

the data that is easily available on the internet.

Primary Data Collection

• Face-to-face interview with the employees of the organization

• The survey was done through the help of questionnaire

We have gathered the facts from the primary data as far as possible so as to prevent the

outcome being guided by the company biases.

Limited numbers of areas are covered, so as to get the large number of opinions which

proved to be quite helpful in understanding the real underlying scenario.

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Secondary Data Collection through

o company websites,

o magazines &

o employee handbook

Analyzing and interpreting the data by applying various analytical tools like Graphical

methods such as bar charts have also been used.

Various statistical tools have been used to measure the effectiveness of services through

SAP ERP process in the company. The statistical tools used for data analysis are Anova

test, Chi-square test & Paired Samples T-test.

Sampling method used is Simple Random sampling & the sample size taken for a survey

is 50.

1.4 Limitations

This project has been undertaken during the Summer Internship Period as management trainee in

the company which was conducted for 8 weeks.

The report has been prepared on the basis of data which is collected through employee’s face to

face interview, with the help of questionnaire and through secondary sources.

Some of the constraints which evolved during the course of study are as follows:

The most significant limitation has been that the actual effectiveness of the

services through SAP ERP cannot be just presented by doing the survey in some

departments.

Area of study is limited to very few departments

Only human resource aspect of the organization was covered.

There could be some errors, data collection, data interpretation, and even the

environment plays an important role in the outcome of the results.

1.5 Scheme Of Chapters

The report has been presented in seven chapters with the bibliography at the end. The

Scheme of chapters is as follows:

Chapter 1: Introduction

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In this chapter which is the present one, a brief description of the power sector and its

influence on the Indian economy is given. The objective & scope of the report, the

methodology adopted, the limitations and the schemes of the various chapters are presented.

Chapter 2: Company Profile

This chapter contains information regarding company profile, vision and mission statement,

their background and its achievements, joint ventures, subsidiaries, HR vision etc.

Chapter 3: SAP AG Profile

This chapter contains information regarding SAP AG Company, their products, advantages and

challenges of ERP, change management in ERP implementation etc.

Chapter 4: Project Lakshya in NTPC

This chapter deals with ERP implementation project in the company, their mission and objectives

& its different applications in the HR module.

Chapter 5: Survey, Feedback & Data analysis

The data obtained from the questionnaire and the study of the business environment

has been segregated as per the objective of the report and this chapter provides

insights to the findings of the study. This chapter also provides the analysis to measure the

effectiveness of services through SAP ERP Process in the company.

Chapter 6: Conclusion

In this chapter, the entire study and findings have been summarized.

Chapter 7: Recommendations & Suggestions

In this chapter, recommendations & suggestions have given to improve the business

processes.

Bibliography

The bibliography comprising of books, articles, reports & other sources used in the

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preparation of the report has been listed.

CHAPTER 2: COMPANY PROFILE

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2.1 Director’s Profile

Shri R.S. Sharma Chairman and Managing Director, NTPC Limited, since May 01, 2008, has

rich & varied experience spanning over thirty seven years in the Indian power industry out of

which he has spent 30 years in power projects and stations. A graduate in Mechanical

Engineering, Shri Sharma began his career in 1971 as Engineer in Madhya Pradesh Electricity

Board where he laid the foundations of his exceptional expertise in the area of Operation and

Maintenance of power stations.

He joined NTPC in 1980 and worked in equipment erection & plant maintenance areas prior to

becoming head of various projects. He also headed the Southern Region of the Company. Later

he served as Executive Director (Corporate Planning) & Executive Director (Commercial) and

looked after key areas of Strategic Planning and Commercial Functions respectively.

Shri Sharma became Director (Commercial) in October, 2004 & took numerous initiatives to

ensure robust commercial success of NTPC. He led NTPC-Vidhyut Vyapar Nigam (NVVN)

Limited, the trading arm of NTPC, to achieve a substantial share in the power trading market. As

Director (Commercial), he also led the team of New Business Development in setting up various

joint ventures, carrying out the due process for a power exchange & the Company's

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diversification into equipment manufacturing. He guided the efforts for acquisition of coal mines

abroad & led the team in preparing the road-map for nuclear power. Besides his wide-ranging

contribution to the power industry & the Company, Shri Sharma has demonstrated high

commitment to corporate governance, corporate social responsibility and value based leadership.

Vision

“A world class integrated power major, powering India’s growth, with increasing global presence."

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.”

Core Values – BCOMIT

B – Business Ethics

C – Customer Focus (External & Internal)

O – Organizational & Professional Pride

M – Mutual Respect & Trust

I – Innovation & Speed

T – Total Quality for Excellence

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2.3 Background of NTPC

NTPC – a global giant in power sector

NTPC Limited is the largest power generating company of India. A public sector company, it

was incorporated in the year 1975 to accelerate power development in the country as a wholly

owned company of the Government of India. At present, Government of India holds 89.5% of

the total equity shares of the company & the balance 10.5% is held by FIIs, Domestic Banks,

Public and others. Today, it has emerged as an ‘Integrated Power Major’, with a significant

presence in the entire value chain of power generation business.

Based on 1998 data, carried out by Data monitor UK, an ISO 9001:2000 certified company,

NTPC is the 6th largest in terms of thermal power generation & the second most efficient

in terms of capacity utilization amongst the thermal utilities in the world.

Within a span of 33 years, NTPC has emerged as a truly national power company, with power

generating facilities in all the major regions of the country. Driven by its vision to lead, it has

charted out an ambitious growth plan of becoming a 75000 MW plus company by 2017.

2.3.1 Market Share

Source: www.ntpc.co.in Figure 2.1:Growth of NTPC Installed Capacity & Generation

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NTPC's core business is engineering, construction & operation of power generating plants. It

also provides consultancy in the area of power plant constructions & power generation to

companies in India and abroad. As on date the installed capacity of NTPC is 30,144 MW through

its 15 coal based (23,395 MW), 7 gas based (3,955 MW) & 4 Joint Venture Projects (2,794

MW). By 2017, the power generation portfolio is expected to have a diversified fuel mix with

coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro

generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy

Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity

addition through green field projects, expansion of existing stations, joint ventures, subsidiaries

& takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79%

of the total national capacity, it contributes 28.60% of total power generation due to its focus on

high efficiency.

Source: www.ntpc.co.in Figure 2.2:NTPC’s Power Contribution towards India

2.3.2 Achievements

Recognizing its excellent performance and vast potential, Government of the India has identified

NTPC as one of the jewels of Public Sector 'Navratnas'- a potential global giant.

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A) NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest

companies.

B) NTPC has been rated as one of the top most “Best Employer” of the country for the year

2003, 2004 & 2005 in a row.

C) It has also been rated as one of the “Best Companies to Work for in India” by Mercer

HR Consulting- Business Today Survey 2004, it has developed into a multi-location and

multi-fuel company over the past three decades.

D) NTPC has been awarded No.1, Best Workplace in India among large organizations for

the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with

The Economic Times.

E) Leadership Award for CMD, NTPC in the 4th Global Leadership Summit by Amity

University for Sectoral Excellence in Power industry for his outstanding contribution to

the growth of Indian business & bringing glory to the country through his pioneering

leadership.

F) Ranked #1 independent power producer in Asia in the THIRD ANNUAL PLATTS

TOP 250 GLOBAL ENERGY COMPANY AWARDS 2008 for outstanding Global

financial & Industrial performance at the award ceremony in Singapore. The corporation

has been simultaneously ranked #15, overall in Asia amongst the energy companies.

G) NTPC’s excellence in executing power projects & its initiative in Decentralized

Distributed Power Generation has been recognized and awarded at IEEMA Power

Awards 2008. NTPC Vindhyachal Stage-III (2x 500MW) has been conferred the IPMA

SILVER MEDAL for Project Excellence by International Project Management

Association, at the IPMA Congress, held in Rome, Italy, for implementation of project in

record time & achieving excellent environmental, economic performance and giving

outstanding support to the local community.

Some major awards given to the Company in the areas of environment management & Corporate

Social Responsibility include:

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US Environment Protection Agency’s ‘Climate Protection Award’ for the year 2003 won

by NTPC’s Centre for Power Efficiency & Environmental Protection (CenPEEP).

The ‘Climate Technology Initiative (CTI) Award’ by CTI, an initiative of the

International Energy Agency (IEA) & OECD countries also won by CenPEEP.

‘ICC – UNEP World Summit Business Award for sustainable Development Partnership’

for promoting Sustainable Energy Development.

The ‘Platts Global Energy Award for Community Development’ as the best organization

in ‘Community Development’.

‘Shell Helen Keller Award 2002’ given by the National Centre for Promotion of

Employment for Disabled People.

TERI’s ‘Corporate Social Responsibility Award’ for year 2003. 

2.3.3 Organization Structure of NTPC

Source: www.ntpc.co.in Figure 2.3: Organization structure of NTPC

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2.4 Joint Ventures

NTPC has identified Joint Ventures, strategic

alliances as well as acquisitions & diversifications as viable and desired options for its business

development.

NTPC looks for opportunity to create such joint ventures & strategic alliances, in the entire value

chain of the power business. NTPC as a partner endows the Joint Venture Alliances with a

winning edge. Acquisitions & Diversifications in the areas related to the core business not only

ensure growth but also add to the robustness of the company. Diversification is carried out either

directly or through subsidiaries/JVs.

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Joint Ventures

Ratnagiri Gas & Power Pvt. Ltd.28.33 %

NTPC BHEL Power Projects Pvt. Ltd.50 %

NTPC Tamil nadu Energy Co. Ltd.50 %

Aravali Power Co. Pvt. Ltd.

PTC India Ltd.5.28 %

NTPC Alstom PowerServices Pvt. Ltd.50 %

Utility Power Tech Ltd.50 %

NTPC SAIL Power Co. Pvt. Ltd.50 %

NTPC SSCL Global Ventures Pvt. Ltd.50 %

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Source: Self-made Figure 2.4: Joint Ventures of NTPC

2.4.1 Subsidiaries

Figure 2.5: Subsidiaries of NTPC

2.4.2 Competitors

RELIANCE ENERGY LTD. TATA POWER LTD.

NATIONAL HYDROELECTRIC POWER POWER GRID CORPORATION

CORPORATION LTD. (NHPCL) OF INDIA LTD. (PGCIL)

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Nabinagar Power Generating Co. Pvt. Ltd.50 %

BF-NTPC Energy Systems Ltd.49 %

Meja Urja Nigam Pvt. Ltd.50 %

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2.4.3 Acquisition

Business development through Acquisition serves both NTPC's own commercial interest as well

as the interest of the Indian economy.

Taking over being a part of the acquisition process, is also an opportunity for NTPC to add to its

power generation capacity through minimal investment & very low gestation period. NTPC has,

over the years, acquired the following three power stations belonging to other utilities/SEBs and

has turned around each of them using its corporate abilities.

POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER

2x210 MW FEROZE GANDHI UNCHAHAR

THERMAL POWER STATION1991

UP RajyaVidyut Utpadan

Nigam of Uttar Pradesh

4x60 MW + 2x110 MW TALCHER THERMAL

POWER STATION1995

Orissa State Electricity

Board

4x110 MW TANDA THERMAL POWER

STATION2000 UP State Electricity Board

705MW BADARPUR THERMAL POWER

STATION2006 Central Electricity Authority

2.6 Location of NTPC Plants

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Figure 2.6: Location of NTPC Plants

2.7 NTPC’s HR Vision

To enable our people to be a family of committed world class professionals making NTPC a

learning organization.

Goals

Enhance organizational performance and commitment of employees by recognizing and

rewarding high performance

• Build a competency based organization

• Institutionalize core values and create a culture of team-building, empowerment, equity,

innovation and openness which would motivate employees and enable achievement of

strategic objectives

• To be a preferred employer in order to attract and retain world class talent.

Human Resources

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NTPC believes in achieving organizational excellence through Human Resources and follows

"People First" approach to leverage the potential of its 24,500 employees to fulfill its business

plans. 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire

gamut of HR policies at NTPC. NTPC are strongly committed to the development and growth of

all our employees as individuals and not just as employees.

Source: www.ntpc.co.in Figure 2.7: Employee development and growth

2.7.1 Elements of HR Strategy

Competence building, Commitment building, Culture building and Systems building are the four

building blocks on which our HR systems are based.

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(A).Competency Building Measures

• Talent Hiring and Management

Key Focus of HR: Attracting, Developing & Retaining Talents to be done on

sound manpower planning system based on benchmarking of international

practices of manpower norms.

The cost and quality of manpower hired to be competitive.

Development of Business orientation, commercial, marketing and legal skills

• Competency based Performance Management System

Shift the focus from performance appraisal to performance management at all

levels

Define, document and circulate competencies of all employees

Measures like KPA, Review & feedback system, identifying developmental needs

and linkage with T&D and Rewards & Recognitions

Online Module of PMS

Equipping Executives with Performance counseling , coaching & giving positive

feedback to improve performance, transparency and objectivity

Performance Evaluation to bring out developmental needs and linking it to

Training and Development Initiatives

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Identifying Performers and Non-performer

Coaching and counseling the Non-Performers to enhance performance

System for suitably dealing the persistent Non-Performance.

• Leadership Development Program

Leadership Development at all levels with special focus on developing strategic

leaders, functional leaders, business leaders, entrepreneurial leaders and

transformational leaders

Review & reinforcement of current leadership development program with

emphasis on people orientation and culture building.

Development of Global Competencies

• Transition of Development Center to Assessment Center at different transitional levels

involving role change

• Multi-source Feedback through 360° appraisals

• Integrated Career planning, development and succession planning

Focus on employee Development & Job enrichment

Identifying various career paths leading to business leaders/functional leaders

Short-term and long -term career rotation plans

Strengthening succession planning for senior level positions- Leadership

succession criteria upto two levels below the Board

Identifying the functions and Jobs which are specialist in nature and development

of growth opportunities.

• Training and Development, E-Learning & Global Exposure

Build functional Competency in all areas. Strengthen Core competencies of the

people in the company through state of the art practices.

Adopting Training Evaluation Model

Measuring effectiveness of training and transfer of the skill to the workplace

E-Learning modules for distant learning

Global exposure of executives for global competencies and mindset

• Strengthening R&D

Revitalized R&D and Technology Centre

Significant role through applied & basic research

Global competencies

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(B).Commitment Building Measures

• Enabling Organizational Climate

Motivation and commitment through tangible & intangible motivators

The employee welfare systems will be designed and maintained by way of

providing best of quality of life to employees, their children and family

members so as to make NTPC a preferred employer.

Enhancing employee satisfaction through regular surveys and addressing the areas

of concern to transform NTPC a great place to work.

• Compensation

Compensation on the principle of differentiated compensation based on

performance and merit

• Involvement and Attitude

Use of participative fora

Positive attitude through training, role models, value based behavior and rewards

(C).Culture Building Measures

• Core-Values Actualization

Value Handbook, Values workshop, Value Actualization Teams, Value Audit &

Rewards

Development of value based leadership.

• Culture of Respect, Trust and Openness

Value based behavior campaign

New PMS system built around competency, feedback etc

• Culture of Team Work

Shift from hierarchical to flexible team based work teams

• Customer Focus

Culture of working as per the needs and expectations of customers

Measurement for customer orientation of executives

System for interaction, feedback and evaluation of HR services by the internal

customers.

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Communication (Top Down, Bottom Up, Forums, E-Communication/ outside

world for a socially responsive Orgn.)

Communication to be used as tool for removing misconceptions, managing

perception and promoting openness, trust and transparency.

• Managing Globalization

Competency for multi-cultural nuances, diversity, law of the land, language &

etiquettes

Addressing compensation, Organization Cultures, competency and commitment

development issues by developing suitable systems and processes.

• Managing Mergers and Acquisitions

(D).System Building Measures

• Focus on core-competency

Identifying core-competencies of HR & out-source, automate/simplify the non-

core activities so that time spent for routine and repetitive activities are released

for core-activities

Competitive and comparable cost for providing HR services

Hassle free and quality service for achieving high customer satisfaction

Continuous feedback from the customers on the service provided.

• IT enabled Systems

Implementation of SAP ERP process

Making NTPC a paperless office through state of art technology

• Knowledge Management System

• Process Improvement Tools

ISO standards in HR, Six Sigma

• Strategy Measurement and Alignment Tool

Implementation of Balance Score Card in HR

• Customer Relationship Management

• Managing Change

• Productivity Enhancement measures

• Discipline Management

• Measuring impact of HR Initiatives through research and Feedback

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2.7.2 HR as a Strategic Business Partner in NTPC

To actualize our HR Vision & the Corporate Vision, an integrated HR model has been

developed. As per the model, at the periphery lies the role of HR to facilitate the organization in

fulfilling its Corporate Social Responsibility & facilitate good governance practices. Within

this framework, lies the role of HR to establish good customer relationship.

At the heart of the Model, lies the role of HR to create a Learning Organization based on four

building blocks i.e. building Competence, Commitment, Culture and Systems. All these HR

roles are performed by a dynamic mechanism namely as Systems Designer, Internal Consultant,

Systems Monitor and Impact Assessors.

Source: www.ntpc.co.in Figure 2.7: Role of Human Resource in NTPC

Facilitating CSR- NTPC has formulated a comprehensive Corporate Social Responsibility-

Community Development (CSR-CD) policy to take up social programs in a systematic manner.

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Facilitating Good Governance- It involves two aspects of the organization- Hard and Soft.

“Hard” aspect includes designing the organizational architecture, delegation of power etc. so as

to allow for maximum speed in working, empowerment, innovation etc. “Soft” aspect includes

Vision, Mission, Values and their actualization, culture building, strengthening internal

communication system etc. so as to create an enabling environment for full actualization of

individual potential as well as team potential.

Sound Customer Relationship- The foundation for development lies on establishing peace and

harmony in the organization through establishing good customer relationship i.e. relationship

with internal as well as external customers. A number of participative forum have been created at

unit, region and corporate levels for information sharing, consultation and finally joint decision

making with the representatives of employees.

Based on the four building blocks of HR i.e. building Competence, Commitment, Culture and

Systems, HR function will achieve creating Learning organization by performing roles of-

1. Systems Designer-Designing HR systems & HR strategies for achieving its business goals

and realizing its business strategy. HR professionals have to assess and articulate the needs

explicit or implicit of the employees as well as the organization and develop appropriate systems

to fulfill those needs.

2. Internal Consultant-Act as Internal consultant to Line Managers and equip them with people

skills for effective implementation of HR systems in their departments/units. A number of such

enabling systems have been created such as HR ambassador, Training coordinators, QC

facilitators, Mentors, Assessors, HR for Line Managers workshops etc.

3. Systems Monitor- HR department constantly monitors whether HR processes are delivering

in terms of fulfilling the intended objectives. It is being done through constant reviews, HRIS,

EDIS etc.

4. Impact Assessor-HR measures the effectiveness of HR systems/processes, the value they

have created and show how HR adds value and helps organization to achieve its goals through

undertaking various introspection studies such as Organization Climate survey, Best Employer

Survey, Vidya(Educational audit), e-darpan etc.

This is a dynamic process to continuously update the people systems and enhance the HR

delivery for improved business results and ultimately achieving the corporate goals.

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CHAPTER 3: SAP AG PROFILE

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THE BEST-RUN BUSINESSES RUN SAP

SAP AG is the largest European software enterprise & the third largest in the world, with

headquarters in Walldorf, Germany. It is best known for its SAP ERP Enterprise Resource

Planning (ERP) software.

SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("System Analysis and

Program Development").The acronym was later changed to stand for Systeme, Anwendungen

und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data

Processing").SAP AG became the company's official name after the 2005 annual general

meeting (AG is short for Aktiengesellschaft).

SAP is the only enterprise applications software vendor that is both building service-orientation

directly into its solutions and providing a technology platform (SAP Net Weaver) and guidance

to support companies in the development of their own service-oriented architectures spanning

both SAP & non-SAP solutions.

SAP is a world market leader in E-Business applications, modernizing business and government

operations worldwide, making them more efficient.

Over 21,000 businesses and government worldwide customers.

The US government is SAP’s largest customer including; NASA, GSA, DOJ, DOT, DHS

(customs), army, DLA, NAVY and treasury.

More than 20% of SAP revenue is reinvested into research & development activities.

Products

SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is

SAP ERP. The current version is SAP ERP 6.0 & is part of the SAP Business Suite. Its previous

name was called R/3. The "R" of SAP R/3 stood for real time even though it is not a real-time

solution. The number 3 related to the 3-tier architecture: database, application server & client

(SAPgui).

Other products are:

o Relationship Management (SAP SRM)

o SAP Product Lifecycle Management (SAP PLM)

o SAP NetWeaver

o SAP Business One

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o SAP Business ByDesign

o SAP Business All-in-One

SAP IN INDIA

– Established in 1996

– Market Leader - 750+ Customers

– Country wide Offices , 1600+ Employees & Growing

– SAP Labs – R&D Centre at Bangalore & Delhi

– Mature India Localization & India Payroll

– Customer Care Centre at Bangalore

– Large & Leveragable Skill Base

– Knowledge Services

– India SAP user Forum – Indus

SAP focuses on six industry sectors:

process industries

discrete industries

consumer industries

service industries

financial services, and

Public services.

It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro-

vertical solutions for midsize companies and small businesses.

3.1 SAP ERP Human Capital Management

Aligning Employees, Processes, and Strategies for Business Success

The SAP ERP Human Capital Management solution offers a complete & integrated set of tools

to help organization – regardless of industry or geographic location – more effectively manage

company’s most important asset. Automation of core human resource processes, such as

employee administration, legal reporting, payroll increases efficiency and supports compliance

with changing global & local regulations. For e.g., organization can create project teams based

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on skills & availability, monitor their progress on specific projects, track the time they spend,

and analyze the results. Equally important, integrated talent management functions in SAP ERP

give HR managers insight into organizational talent to more effectively plan, acquire, educate,

align, & retain the talent need to maximize the effectiveness of the organization. Identifying top

performers and potential successors helps organization minimizes disruption when executives

and senior managers leave or retire. To compete effectively, one need to align all corporate

resources – including employees – with business objectives. To do so, one need to transform

traditional HR functions into a comprehensive program for human capital management (HCM).

It maximizes the value of employees and integrates employees, processes, & strategies to support

business goals.

That's why you need SAP ERP Human Capital Management (SAP ERP HCM). The solution

optimizes each employee's contribution by aligning employee skills, activities, & incentives with

business objectives and the strategies to reach them. It also provides tools to manage, measure, &

reward individual and team contributions.SAP ERP HCM enables employees to maintain

personal information & control administrative processes. So HR department can focus on value-

generating projects instead of administration.SAP ERP HCM supports payroll functions,

regulatory requirements, integrates with existing business systems and can be customized to

meet your requirements.

SAP ERP HCM provides integrated, enterprise wide functionality that:

Streamlines HCM processes & seamlessly integrates them across global operations

Provides real-time access to information that accelerates workforce decision-making

Allows you to assign the right people to the right projects at the right time

Supports both employees & managers throughout the employee life cycle

Empowers employees to manage processes in a collaborative environment

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3.1.1 Benefits of SAP ERP

Activity Benefit

Increased productivity

Improve cost control through integrated management of key business processes across your organization

Improve operational efficiency by extending the reach of business processes throughout and beyond the enterprise

Accelerate response to market changes & competitive challenges

Reduced costs through increased flexibility

Improve process standardization, efficiency, & adaptability by utilizing enterprise service-oriented architecture

Gain access to transactions, information, & collaborative activities across a broad business community

Add specific functionality as needed to support evolving business requirements

Protect and leverage existing investments in SAP® solutions

Optimized IT spending

Cut IT costs by tightly integrating and optimizing core business processes

Reduce capital outlay by eliminating the need to purchase third-party software

Lower costs by standardizing enterprise software on a single integration platform

Enable faster, more cost-effective business expansion by eliminating the complexity of managing homegrown or heterogeneous software applications

Faster, higher ROI Use rapid implementation techniques that cost less than half of what traditional approaches cost

Gain rapid access to needed functionality through preset defaults & prepackaged, industry-specific versions

Enhance the value of existing software investments by increasing their use throughout the enterprise

Innovation without disruption

Take advantage of new functionality through SAP ERP enhancement packages rather than upgrades

Implement functionality to support business processes incrementally as your business requires – an evolutionary approach that protects your existing IT investments & reduces costs

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3.1.2 SAP ERP HCM Solution Functionality

Functionality Supported capabilities

Talent Management Support and integrate all talent management processes to attract, hire and quickly secure qualified candidates

Educate & develop employees Identify & nurture future leaders Motivate & align the workforce with corporate objectives to

improve organizational performance

HCM Service delivery

Automate & standardize the provision of HR processes and services through a centralized delivery channel or shared-services organization

Achieve high-quality HR services at low cost Perform analytics to measure the performance and effectiveness

of HR teams

Workforce analytics Gain reporting and analysis options that offer real-time insight into workforce-related data

Manage the workforce more effectively Predict human-capital investment demands Accurately track workforce costs

Workforce process management

Automate and integrate all core workforce processes for employee administration, organizational management, global employee management, time management, benefits management, payroll, and legal reporting

Ensure adherence to local regulations and laws

Global integration Consolidate all workforce-related processes & data onto a single global platform

Leverage country-specific legal compliance guidelines & best practices

Reduce operational costs Ensure better insight into workforce deployment

3.2 ERP (Enterprise Resource Planning)

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A set of applications that help manage and automate a business involving best practices, thereby

improving the performance.ERP incorporates all elements of a business – finance, materials,

maintenance, production, projects and marketing activities etc into a unified system that operates

more effectively and efficiently.

Figure 3.1: ERP Integration with Business

ERP involves change

1) Change in processes

2) Change in roles & responsibilities

3) Change in organization’s working culture- Department to Process perspective

4) Change in attitude & mindset of people

Change Management Strategy would focus on bringing about above changes in NTPC

smoothly

JUST LIKE THE ICEBERG WHAT IS VISIBLE IS THE PRODUCT

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Figure 3.2: ERP Solution

3.2.1 Advantages of ERP

Uniform Application Across the enterprise

Availability of Integrated Information System

Adoption of Best Practices & Procedures

Access to real time information for effective decision making

More productive time for managerial & strategic decision making

Well tested & proven system

Up gradation of Package is taken care

Reduction of paper reports

Effective Cost Budgetary control

Improved planning and support for future business needs

Reduction in inventory

Reduction in Procurement cycle time

Better Maintenance practices, leading to improved equipment availability

Linkage with extranet applications

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Extensive information warehousing

Reduction in time and effort for reconciliation , closing of accounts & monthly reporting

3.2.2 Issues in ERP

Head of Project(HOP) ,Head of Department( HOD) & Section heads must act as Change

Agents in their areas and mobilize the people for this big change.

Functional people have a major role to play in the success of ERP.

ERP is business initiative – NOT IT initiative – and everybody's responsibility , IT is

only the support backbone.

Implementation of ERP is project and requires considerable time management and effort.

NON Compliance / Deviation from ERP’s Best Practices should be avoided.

To successfully take an ERP system, Orgn. needs to change its “Working Culture”

3.2.3 Depending Factors for Success of ERP Implementation

Figure 3.3: Factors for success of ERP Implementation

3.2.4 Challenges in ERP Implementation

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Figure 3.4: Challenges in ERP Implementation

3.3 Roles & Responsibilities of Change Management

1). Change Agents

• Bring clarity on the purpose of ERP implementation

• Create ownership in the locations for the SAP implementation

• Bring awareness about positive aspects of change

• Facilitate acceptance of the SAP system

• Facilitate the benefit realization workshops

• Ensure maintenance of the desired change

• Key link between end users and project team

• Help to address the concerns, apprehensions, issues of people at the locations

• Update self on ERP Implementation

2). Process Owner

• Take ownership of the improved processes and give approval.

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3). Head of Projects

• Act as driver to ensure effective implementation of ERP at their location.

• Motivate all location people to adopt to the new way of working.

• To ensure availability of infrastructure facilities in time.

• To ensure completion of codification exercise well in time at their location.

• To expedite data migration activities at their location.

4). Process Anchors

• To finalize the “To Be” processes to be implemented across the organization

• To get involved with the integration testing of processes configured for

implementation

• To get trained in the processes in their respective functions and train others

3.3.1 Forces for Successful Change Management

Successful management of change needs four forces to drive the change. These are:

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3.3.2 Change Management in ERP Implementation

Today, people are the most important assets in by any business, and managing employees with

SAP HR properly is important for growing the top and bottom line, becoming more productive,

and achieving competitive advantage in the marketplace. Information technology alone can't

achieve those goals, but it can set you on the path to proper asset management in the human

resources arena.

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CHAPTER 4: PROJECT LAKSHYA IN NTPC

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4.1 LAKSHYA Mission

To make every employee in NTPC information enabled by providing holistic and integrated

business approach through speedy implementation of enterprise wide, state-of-the art,

comprehensive, centralized and integrated solution, thereby supporting NTPC’s Vision of being

A World Class Power Major

4.2 Project Objectives

Liase with the Operations Core Team to promote best practice and processes for ensuring

effective operation of the business applications.

Actively work together as a unit, to ensure all aspects of the project management, fit for

purpose.

Keep project to time and quality.

Suitably ensure that the desired outcome of the specified programme meets the expectations and

business requirements of NTPC.

Help the Core Team to build upon their knowledge & their specific area of expertise of the RWE

products and subsequent support capabilities.

Year-on-year SLA’s are appropriately adhered to & delivered to the satisfaction of the customer.

Ascertain the business requirements at an early stage

4.3 Implementation of SAP ERP (Project Lakshya)

NTPC Ltd has mandated German business software major SAP AG for the implementation of an

enterprise resource planning (ERP) package. While the move is broadly aimed at overall

operational efficiency improvement, it comes in the wake of critical fuel shortages that some of

NTPC's stations had to face in year 2006, which was finally mitigated through coal imports and

resulted in some loss in generation.

NTPC, a thermal power generating company, has gone live on SAP ERP implementation. Titled

project 'Lakshya', the pilot implementation of the project at Ramagundam, Faridabad, Koldam,

NCR HQ and Corporate were completed on schedule, in a span of 10 months.

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The contract for “Procurement of ERP and its Implementation” has been awarded to SAP

India on 2nd May’2006 with Siemens Information Systems Limited (SISL) as their

Implementation Partner.

According to R.S. Sharma, chairman and managing director, NTPC, "Given the large scale

of NTPC’s operations and the complexity of our structure, we wanted to implement a business

software solution that would establish uniform business processes, better decision support and

better control over operations."

The SAP solution is expected to help NTPC achieve improved exchange of information,

productivity & reduction of costs, better data consistency, knowledge sharing and unification of

planning & budgeting process.

NTPC will use applications from the SAP for utilities solution portfolio including wall-to-wall

implementation of the core SAP ERP, IS-U, Business Analytics, SEM, SRM, Enterprise Portal

and C-Folders for project-based collaborations across all locations of NTPC.

4.3.1 Importance of Lakshya in NTPC

To power business needs and facilitate collaboration

Implementing of ERP system has become one of the best practices of modern management

techniques. Also with the company undergoing a makeover from a purely thermal generation

utility to an integrated energy firm, organizational efficiency & better coordination across newly

diversified businesses is expected to be honed through the implementation of the ERP.

The ERP project called `LAKSHYA’ is likely to impart a cutting edge to the Company in terms

of efficiency, flexibility of functioning, transparency, and quicker response to internal and

external stakeholders.

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4.3.2 ERP SERVICE PROVIDERS AT NTPC (PROJECT LAKSHYA)

4.4 Project DISHA

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NTPC is a well-known power corporation serving people since 1975. The company has entered

into Hydro sector and plans to enter nuclear power soon. To match its growth plans, the company

needed to have uniform processes throughout the organization, irrespective of the location and

area it belongs to, providing seamless integration among all its processes with one view of the

company as a whole.

To achieve this, NTPC started ‘Project Disha!! Organizational Transformation’ which aimed

at implementing SAP at its all locations. All major functions of NTPC such as Planning, Project

Mgmt, vendor mgmt; financial accounting; invoicing etc, are done through this. The project aims

at shortening cycle time, procurement lead time, realization cycle, account closure time, etc. It is

also expected to provide better mgmt & mobilization of diversified workforce and online

visibility of status on sales, inventory, receivables with improved search facility. To ensure that

implementation works smoothly at all locations NTPC deployed MPLS-VPN through BSNL.

During implementation, change mgmt and user training were the two major challenges faced.

Disha led to use of standardized processes throughout NTPC with seamless integration. It has

also resulted in effective use of manpower.

Project Disha is a comprehensive organization transformation project with a view to positioning

the NTPC as a globally comparable utility, aligned with global best practices in various areas of

its processes and functions. The project is focused on important areas, such as core business

strategy, portfolio diversification, globalization, services business model, IT strategy, structural

initiatives, planning process, unit level processes (maintenance, procurement and inventory),

engineering initiatives, project planning and execution, performance management system,

rewards and incentives, career development system and knowledge management system.

NTPC has implemented SAP to bring all functions of the organization under one roof with

uniformity in all processes throughout the organization.

Objective of Project Disha

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4.5 Screens Shots for SAP HR Modules Implemented at NRHQ

There are different modules in SAP-ERP such as:-

FI – Finance

CO – Controlling

MM – Material Management

PS – Project System

PM – Plant Maintenance

QM – Quality Management

SRM – Supplier Relationship Management

PP – Production Planning

SD – Sales & Distribution

LDM – Lifecycle Data Management

IS-U – Industry Solution - Utilities

HCM – Human Capital Management

BW – Business Warehouse

BPS – Business Planning & Simulation

KM – Knowledge Management

Some of the screenshots of HR module - ESS (Employee Self Service) are:-

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CHAPTER 5: SURVEY, FEEDBACK & DATA

ANALYSIS

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The survey was done in 3 departments namely Human Resource (HR), Finance & Accounts

(F&A), and Contracts & Materials (C&M) of total of 50 employees in Northern Region

Headquarters (NRHQ). On the basis of various responses; following tests were done on different

variables.

(A)Independent Variable1-SAP ERP understanding (undrstng)

Dependent Variable2- Decision-making (decision)

Following tests were done so as to analyze the data. These are:

1. One-way Anova test

2. Non-Parametric Tests-Chi-Square Test

1. ONE-WAY ANOVA TEST

H0: There is no significant difference between understanding of SAP ERP process

and its help in decision-making

2.033 3 .678 1.068 .372

29.187 46 .634

31.220 49

BetweenGroups

WithinGroups

Total

Decisionmaking

Sum ofSquares df

MeanSquare F Sig.

ANOVA

Table 5.1

Inference:

F from the above table significant value is 0.372 which is more than the hypothetical value 0.05;

hence the null hypothesis is accepted. It infers that there is a no significant difference between

understanding of SAP ERP process and its help in decision-making.

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2. NON-PARAMETRIC TESTS- CHI-SQUARE TEST

The value of X2-test statistic:

X2 = ∑ (O-E)2 /E

Where O= an observed frequency in a particular category

And E= an expected frequency for a particular category

Degree of freedom, df = (No. of rows-1)*(No. of columns-1) = (r-1) (c-1)

H1: There is a significant difference between understanding of SAP ERP process

and its effect on decision making.

Frequencies

1 10.0 -9.0

1 10.0 -9.0

18 10.0 8.0

24 10.0 14.0

6 10.0 -4.0

50

Stronglydisagree

Disagree

Neitheragree nordisagree

Agree

Stronglyagree

Total

ObservedN

ExpectedN Residual

Decision making

Table 5.2(a)

11 12.5 -1.5

8 12.5 -4.5

26 12.5 13.5

5 12.5 -7.5

50

Disagree

NeitherAgree norDisagree

Agree

StronglyAgree

Total

ObservedN

ExpectedN Residual

SAP ERP understanding

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Source: Self-made

Table 5.2(b)

43.800 20.880

4 3

.000 .000

Chi-Square a,b

df

Asymp. Sig.

Decisionmaking

SAP ERPunderstanding

Test Statistics

0 cells (.0%) have expectedfrequencies less than 5. Theminimum expected cell frequencyis 10.0.

a.

0 cells (.0%) have expectedfrequencies less than 5. Theminimum expected cell frequencyis 12.5.

b.

Table 5.2(c)

Inference:

The critical (or table) value of X2 = 9.49 at α= 0.05 and df =4 for decision making & X2 = 7.81 at

α= 0.05 and df =3 for SAP ERP understanding. Since the calculated values of X2 = 43.80 for

decision making & X2 =20.880 for SAP ERP understanding are more than its critical value, the

alternative hypothesis is rejected. Hence, we conclude that there is no significant difference

between understanding of SAP ERP process and its effect on decision making.

From the table, out of 50 employees, it has found that 26 employees agree that they were aware

about the understanding of SAP ERP process and 24 employees agree that SAP ERP helps in

decision-making. It infers that better the understanding of SAP ERP process, more it help the

employees to take correct decisions.

(B).Independent Variable1-SAP ERP training (training)

Dependent Variable2- Business Environment (busenvrn)

Following tests were done so as to analyze the data. These are:

1. One-way Anova test

2. Non-Parametric Tests-Chi-Square Test

1. ONE WAY ANOVA TEST

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H1: There is a significant difference between SAP ERP training and employees

adapt quickly to changing business environment.

Table 5.3

3.938 4 .985 1.279 .292

34.642 45 .770

38.580 49

BetweenGroups

WithinGroups

Total

Businessenvironment

Sum ofSquares df

MeanSquare F Sig.

ANOVA

Inference:

F from the above table significant value is 0.292 which is more than the hypothetical value 0.05;

hence the alternative hypothesis is accepted. It infers that there is a significant difference

between SAP ERP training and employees adapt quickly to changing business environment.

2. NON-PARAMETRIC TESTS-CHI-SQUARE TEST

The value of X2-test statistic:

X2 = ∑ (O-E)2 /E

Where O= an observed frequency in a particular category

And E= an expected frequency for a particular category

Degree of freedom, df = (No. of rows-1)*(No. of columns-1) = (r-1) (c-1)

H0: There is no significant difference between SAP ERP training and its effect on

Business environment

Frequencies

Table 5.4(a)

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2 10.0 -8.0

8 10.0 -2.0

15 10.0 5.0

24 10.0 14.0

1 10.0 -9.0

50

StronglyDisagree

Disagree

NeitherAgree norDisagree

Agree

StronglyAgree

Total

ObservedN

ExpectedN Residual

SAP ERP training

3 10.0 -7.0

4 10.0 -6.0

24 10.0 14.0

17 10.0 7.0

2 10.0 -8.0

50

Stronglydisagree

Disagree

Neitheragree nordisagree

Agree

Stronglyagree

Total

ObservedN

ExpectedN Residual

Business environment

Table 5.4(b)

Source: Self-made

37.000 39.400

4 4

.000 .000

Chi-Square a

df

Asymp. Sig.

SAP ERPtraining

Businessenvironment

Test Statistics

0 cells (.0%) have expectedfrequencies less than 5. Theminimum expected cellfrequency is 10.0.

a.

Table 5.4(c)

Inference:

The critical (or table) value of X2 = 9.49 at α= 0.05 and df =4. Since the calculated value of X2 =

37.00 for SAP ERP training & X2 =39.40 for business environment is more than its critical value,

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the null hypothesis is rejected. Hence, we conclude that there is a significant difference between

SAP ERP training and its effect on Business environment.

From the table, out of 50 employees, it has found that 24 employees agree that they have been

given adequate SAP ERP training and 17 employees agree that SAP ERP helps in adapting

quickly to changed business environment but 24 employees are neither agree nor disagree.

So it can be inferred from the above test that still more training is required to maintain accuracy

and that will help the employees to easily adapt themselves to changed business environment.

PAIRED SAMPLES T-TEST

Variable 1- Data Consistency (cnsistnc)

Variable 2- Process Owners (proowner)

H0: There is no significant difference between process owners’ knowledge of SAP

ERP process and it provides better data consistency & knowledge sharing.

3.7200 50 .7296 .1032

3.8600 50 .8809 .1246

Dataconsistency

ProcessOwners

Pair1

Mean NStd.

DeviationStd. Error

Mean

Paired Samples Statistics

Table 5.5(a)

50 .192 .182

Dataconsistency& ProcessOwners

Pair1

N Correlation Sig.

Paired Samples Correlations

Table 5.5(b)

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-.1400 1.0304 .1457 -.4328 .1528 -.961 49 .341

Dataconsistency- ProcessOwners

Pair1

MeanStd.

DeviationStd. Error

Mean Lower Upper

95% ConfidenceInterval of the

Difference

Paired Differences

t dfSig.

(2-tailed)

Paired Samples Test

Table 5.5(c)

2 12.5 -10.5

16 12.5 3.5

26 12.5 13.5

6 12.5 -6.5

50

Disagree

Neitheragree nordisagree

Agree

Stronglyagree

Total

ObservedN

ExpectedN Residual

Data consistency

4 12.5 -8.5

11 12.5 -1.5

23 12.5 10.5

12 12.5 -.5

50

Disagree

NeitherAgree norDisagree

Agree

StronglyAgree

Total

ObservedN

ExpectedN Residual

Process Owners

Table 5.5(d) Table 5.5(e)

Inference:

F from the above table significant value is 0.341 which is more than the hypothetical value 0.05;

hence the null hypothesis is accepted. It infers that there is no significant difference between

process owners’ knowledge of SAP ERP process and it provides better data consistency &

knowledge sharing.

From the table, out of 50 employees, it has found that 23 employees agree that Process owners

has knowledge about SAP ERP Process and 26 employees agree that it provides better data

consistency & knowledge sharing.

Process owners have full authority to access all the modules of SAP ERP process and they share

their knowledge with other employees to work effectively on the process. So they keep on

updating their knowledge to maintain data consistency.

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1). Based on the responses on whether the paper work is actually reduced or not, following graph

is drawn.

Variable- Paper work (paperwrk)

Out of 50 employees,

Strongly disagree- 1

Disagree- 10

Neither agree nor disagree- 16

Agree- 17

Strongly agree- 6

Paper work

Strongly agree

Agree

Neither agree nor di

Disagree

Strongly Disagree

Co

un

t

20

10

0

Source: Self-made

Figure 5.1: Paper-work

Inference:

From the above graph it can be inferred that out of 50 employees 17 employees agree that

paper work has been reduced but 16 employees are not satisfied with this point. They still

believe that inspite of the fact that all the work has been made computerized but still in

many cases hardcopy proof is needed like that for receipts, approval, etc. so in this case

we can infer that paper work is still there. Thus after the implementation of SAP ERP

process in NTPC, paper work is reduced but upto some extent only because still in some

departments like CenPEEP (Centre for Power Efficiency and Environment

Protection), paper work is not reduced.

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2). Based on the responses on whether more training sessions are required or not, following

graph is drawn.

Variable- Training sessions (sessions)

Out of 50 employees,

Disagree- 1

Neither agree nor disagree- 6

Agree- 14

Strongly agree- 29

Training sessions

Strongly AgreeAgreeNeither Agree nor DiDisagree

Co

un

t

40

30

20

10

0

Source: Self-made

Figure 5.2: Training Sessions

Inference:

From the above graph it can be inferred that out of 50 employees 29 employees strongly

agree that more training session are still required on regular basis as ERP software has

very vast applications.

3). Based on the responses on whether the SAP ERP process increases the customer satisfaction

or not, following graph is drawn.

Variable- Customer satisfaction (satsfctn)

Out of 50 employees,

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Strongly disagree- 3

Disagree- 1

Neither agree nor disagree- 14

Agree- 22

Strongly agree- 10

Customer satisfaction

Strongly agree

Agree

Neither agree nor di

Disagree

Strongly disagree

Co

un

t30

20

10

0

Source: Self-made

Figure 5.3: Customer Satisfaction

Inference:

From the above graph it can be inferred that out of 50 employees 22 employees agree and

10 employees strongly agree that the implementation of SAP ERP process has increased

the customer satisfaction because of quicker response and faster delivery of services

without any delay.

4). Based on the responses on whether the financial risk is actually reduced or not, following

graph is drawn.

Variable- Financial risk (finrisks)

Out of 50 employees,

Disagree- 3

Neither agree nor disagree- 14

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Agree- 25

Strongly agree- 8

Financial risk

Strongly agreeAgreeNeither agree nor diDisagree

Co

un

t

30

20

10

0

Source: Self-made

Figure 5.4: Financial Risk

Inference:

From the above graph it can be inferred that out of 50 employees 25 employees agree that

implementation of SAP ERP process has greatly reduced the financial risks as all

transactions have been done in real-time and even for small transactions, entry is done in

SAP ERP process.

5). Based on the responses on whether the complaints are addressed by concerned authority

without any delay or not, following graph is drawn.

Variable- complaints (cmplaint)

Out of 50 employees,

Disagree- 6

Neither agree nor disagree- 13

Agree- 25

Strongly agree- 6

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complaints

Strongly agreeAgreeNeither agree nor diDisagree

Co

un

t

30

20

10

0

Source: Self-made

Figure 5.5: Complaints

Inference:

From the above graph it can be inferred that out of 50 employees 25 employees agree that

the implementation of SAP ERP process has greatly helped in addressing the complaints

of employees without any delay as Application Tracker act as an efficient tool in this

regard.

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CHAPTER 6: CONCLUSION

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This project report attempted to answer the following question:”How effective are the services

through SAP ERP process in HR departments?” Through an analysis, it was determined that:

Understanding of SAP ERP process helps in decision making

After giving adequate training of SAP ERP process, employees does not adapt quickly to

business environment. It takes some time to adjust to new environment.

Process owners are knowledgeable about SAP ERP process and it provides better data

consistency and knowledge sharing.

After the implementation of SAP ERP process in NTPC, paper work is reduced but upto

some extent only because still in some departments like CenPEEP (Centre for Power

Efficiency and Environment Protection), paper work is not reduced.

After the implementation of SAP ERP process in NTPC, employees feel that more

training sessions are required as ERP software has very vast applications.

SAP ERP process increases the customer satisfaction because of quicker response and

faster delivery of services without any delay.

SAP ERP process greatly reduces the financial risks as all transactions have done in real-

time.

SAP ERP process has greatly helps in addressing the complaints of employees without

any delay as Application Tracker act as an efficient tool in this regard.

A cautious, evolutionary, bureaucratic implementation process backed with careful change

management, network relationships and cultural readiness can lead to successful ERP

implementations. An ERP implementation is not simply a large IT implementation project- it is a

sizable organizational project. Organizational benefits will not be achieved if the enterprise

focuses on the technical aspects only.

Information technologies cannot by itself influence the productivity of a company. The main

efficiency factor lies in the way people use these technologies. Many information strategies fail

for ignoring this issue.

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CHAPTER 7: RECOMMENDATIONS &

SUGGESTIONS

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Following suggestions were made to improve the effectiveness of SAP ERP process:

1) Required level of training should be given to employees. Training must stress the need

for more disciplined work habits and make it clear that even simple mistakes can create

consequences in other areas. Regular training should be a strong feature.

2) More training sessions should be given to employees regarding SAP ERP process as it

has very vast applications. Everyone must become familiar with new roles, revised

processes, and new control mechanisms.

3) Reports and Returns as well as query system need to be strengthened.

4) Training regarding Application Tracker should be given since it works as a window to get

the correct status of processing of forms applied in the SAP ERP process such as

Reimbursement, advances & allowances.

5) Feedback of the users of SAP-ERP process should be addressed properly through training

sessions.

6) Overall training sessions & workshops should be provided on quarterly basis to the SAP

ERP process owners of each department.

7) Process owners should be made aware of the new updating in SAP ERP process at

regular basis either through mails or workshops, whichever is required.

8) Top management should formulate some guidelines on how to reduce the paper-work.

9) Along with Entry facility, Approval facility should also be provided in the SAP ERP

process so as to reduce the paper-work to some extent.

Example- In case of claim of the Medical bill, hard copy is taken of all the receipts and

forwarded to the TOP MANAGEMENT for the approval, then again it is returned to the

Process owners for its entry in the SAP ERP process. Then again the hard copy of that

entry is attached to the previous documents and is forwarded to the Finance Management

for further process.

So, Instead of forwarding the hard copy of the receipts to the TOP MANAGEMENT if

there has been an approval facility in the SAP ERP process, then this extra paper-work

would have been reduced to a great extent and in addition, the processing of documents

will take less time than usual.

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BIBLIOGRAPHY

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BOOKS

Sharma J.K., Business Statistics, Delhi, 4th Edition, Pearson Education, 2008, Pages 381-420

JOURNALS AND MAGAZINES –

NTPC manuals, New Delhi, updated as on 1997, G.IV/S.7 Pages 1-27 & G.V/S1-S7

Pages 1-105

Employee Handbook, NTPC( New Delhi),updated as on 31-01-2006, Pages 30-32 &

87-102

WEBSITES

www.ntpc.co.in

www.sap.com

‘SAP AG’ Wikipedia Edition 2009, viewed 18 June 2009,

<http://en.wikipedia.org/wiki/SAP_AG>

SAP ERP Human Capital Management, viewed 19 June 2009,

<http://www.sap.com/solutions/business-suite/erp/hcm/index.epx>

NTPC intranet, Northern Region Headquarters(NRHQ),

<http://191.254.173.5/nrhq>

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ANNEXURE

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SERVICES THROUGH ‘SAP ERP’ EFFECTIVENESS SURVEY

Instruction – The following questionnaire has been designed to measure the effectiveness of services through SAP ERP process in the company. Please give your free and candid opinion. Your responses shall be treated with utmost confidentiality.

Q.No Statement Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

1. I have achieved the required level of understanding regarding SAP-ERP(ESS) process

 1 2 3 4 5

2. I have been given adequate training regarding SAP-ERP(ESS) process

1 3 3 4 5

3. More training sessions regarding SAP-ERP(ESS) process is required

1 2 3 4 5

4. Process Owner dealing with SAP-ERP(ESS) process in various departments are knowledgeable about that process

1 2 3 4 5

5. Services provided through SAP-ERP(ESS) are of high quality

 1 2 3 4 5

6. Introduction of SAP-ERP(ESS) has increased productivity

 1 2 3 4 5

7. SAP-ERP(ESS) process helps in reducing time and faster delivery of services

 12 3 4 5

8. I am aware about the uses of Application Tracker in SAP-ERP(ESS) Process

 1 2 3 4 5

9. My complaints are addressed by the concerned authority without delay

 1 2 3 4 5

10. Their services are available as and when required

 1 2 3 4 5

11. Improves speed of transaction/processes

 1 2 3 4 5

12. SAP-ERP(ESS) provides real-time access to critical information

 1 2 3 4 5

13. SAP ERP(ESS) is more accurate than older systems

 1 2 3 4 5

Q.No Statement Strongly Disagree Neither Agree Strongly

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Disagree Agree Nor Disagree

Agree

14. Reduces the paper-work and more cost-effective

 1 2 3 4 5

15. Increases efficiency of employees and better compliance with changing global and local regulations

 1 2 3 4 5

16. Increases customer satisfaction  1 2 3 4 5

17. Maximizes transparency and control of organization

 1 2 3 4 5

18. Helps in decision-making  1 2 3 4 5

19. SAP-ERP(ESS) helps in improving the business performance

 1 2 3 4 5

20. Provides better management of work force

 1 2 3 4 5

21. Provides better data consistency and knowledge sharing

 1 2 3 4 5

22. Helps in reducing financial and environmental risks

 1 2 3 4 5

23. Enhanced primary user’s knowledge and skills

 1 2 3 4 5

24. Employees adapt quickly to changing business environment

 1 2 3 4 5

25. SAP-ERP(ESS) systems and process are user friendly

 1 2 3 4 5

REMARKS: (SUGGESTIONS FOR IMPROVEMENT)

Department: _________________

Grade: _________________

NOMINATION FORMAT

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EMPLOYEE

CODE

EMPLOYEE

NAME

NOMINATIONS

FEEDED IN

SAP-ERP

PRESENT

BOTH IN

PERSONAL

FILE AND

SAP-ERP

PRESENT IN

PERSONAL

FILE BUT

NOT IN SAP-

ERP

PRESENT IN

SAP-ERP BUT

NOT IN

PERSONAL

FILE

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