Bpcl final implementation -uVsPresentation Transcript
SAP Implementation in
Background note• 1951- Govt of India entered agreement with Burmah-Shell for estb. Oil ref at Bombay• 1952- agreement led to incorporation of Burmah Shell Oil Refineries Ltd• 1975- company aquired by Govt Of India and named it Bharat Refineries.• 1977- Name changed to BPCL• 1999- Emerged as 2nd largest oil company in terms of mkt share. (32% petrol, 27% in diesel)
Facts Bina 9 Numaligar mtpa h 3mtpa 4,500+ outlets nation wideManali ref BPCL6.5 mtpa Cochin 7.5 mtba Mumbai 6.9 mtpa *MTPA -million metric tonnes per annum
Foresightedness (1996)• BPCL planned to increase its emphasis on retail business and increase its non-fuel revenues, by leveraging on the strength of its retail by providing value-added services like convenience stores, automated teller machines (ATMs) and internet kiosks.• To enhance its customer focus , the company was revamped into six Strategic Business Units (SBUs)- Retail, Aviation, Lubricants, Liquefied Petroleum Gas (LPG), Industrial & Commercial (I&C), and Refinery. (Kind of BPR)
Restructuring• These SBUs were integrated with support entities like Information Systems, Finance, Human Resources, Strategy and Brand Management.• It helped the organization focus on specific customer segments and address their individual needs.• This required streamlining of the processes and integration of organization as a whole. It is when the company decided to implement ERP.
IT initiatives at BPCL (1996)• BPCL divided its IT initiatives into a three- pronged strategy – to create a communication network within the organization; (created intranet) – to create a basic information network for the entire corporation – to process transactions with customers all over the country
Cont:-• Problem areas included – high costs of traditional communications, – No quick access to executives, – need to communicate with recipients over multiple locations.
First step:- Intranet setup.• Microsoft Exchange Server and MS Windows NT Server – platform• Conducted feasibility test: – connected three locations on a Very Small Aperture Terminal (VSAT)-based network – VSAT network was rated on the criteria of • ease of deployment, • speed of mail Microsoft Consulting • delivery, Services • zero message loss • response times.
BPCL IT Infrastructural layout forcountry wide intranet connectivity
Project CUSEC (Customer Service and Satisfaction)• The ERP implementation was part of this project.• Company selected SAP R/3 ERP.• Appointed consultants Coopers and Lybrand.• Existing network was redesigned and restructured – Central cloud connectivity – Ensured security through Sun Ultra 5 firewalls , Real Secure, Internet Scanner , Floodgate, Web Trend and Web Sense.• The server architecture - Compaq Proliant NT server.• Routers and Switches- Cisco
SCM For O & G
SAP O&G’s- Business Process Coverage
After Implementation• In November 2001, BPCL successfully implemented SAP• BPCL was one of the very few Indian companies to have successfully implemented ERP• Each and every person related to the organization was exposed to all the relevant and real time information.• BPCLs revenues grew by 2.28% in 2000-01, even as the revenues of the petroleum industry declined by 3.4%.• BPCLs biggest advantage from the ERP implementation was regarding the management of inventory because it was now possible for the company to know the details of receivable of inventories