2. INTRODUCTION
TATA Steels was founded and established in the year 1907.
It is one of the leading giants in the country and has the
USP of offering multiple products and successfully running
many subsidiary corporations successfully.
They regularly undergo scrutiny and internal audit, even
after being such a large entity.
This regular scrutiny is implemented with the help of
different committees, who report to the selected members
from the senior management.
The company is dedicated to providing laudable services to
the stakeholders improve on the quality and as thrive for
innovations and improvements constantly.
3. Background
TATA steel is India’s largest integrated private sector
steel company that started its corporate journey in the
year 1907.
Tata Steel runs state-of-the-art Cold Rolling Mill
complex at Jamshedpur, backed by captive iron ore
and coalmines in the Eastern India.
Tata Steel's Jamshedpur plant has a capacity of 4 MN
tons per year, and produces flat as well as long
products which is being expanded to accommodate
another million
4. Tata Steel has set up an ambitious
target of 15 MN ton capacity per
year by 2010
6. Reason behind choosing ERP
TISCO wanted to bring forth a culture of continuous
learning and change with this implementation.
This would have enabled TISCO to strengthen its
leadership position in the industry and achieve a world-class
status for its products and services.
The software would have resulted in
a) Quick decision-making
b) Transparency and credibility of data
c) Improve responsiveness to customers across all areas.
9. CHALLENGES FACED BEFORE ERP
IMPLIMENATION
1. TISCO IT systems was not well integrated.
2. There were too many different systems, and too
many gaps between them.
3. A legacy of the company’s history of mergers,
acquisitions, and improvement initiatives.
4. There was no common information backbone.
5. There were chances that ERP implementation, if
done in wrong manner, have caused havoc to
organizations more than bringing profits.
10. Should the implement ERP in the whole systems in
one single spree or not.
Challenge to building a conducive environment where
SAP will be embedded in the hearts and minds of the
people and the customers of Tata steel
11. CHALLENGES FACED DURING ERP
IMPLIMENATION
1. MORE THAN ONE PLANNING STRATEGY
2. COMPLEX PRODUCT VARIATIONS
3. FLEXIBLE PLANNING
4. SPECIFIC CUSTOMER SERVICE REQUIREMENTS
5. COMPLEX PRODUCTION SCHEDULING COMBINING
BOTH CONTINUOUS AND BATCH PRODUCTION
12. CHALLENGES FACED AFTER ERP
IMPLIMENATION
The reliability of information obtained was
questionable because of inconsistency and duplication
of data from different departments.
There was no built-in integrity check for various data
sources.
Several times the information against certain items
was found missing.
13. REASONS FOR CHOOSING ERP
TISCO faced two major problems from the systems that
existed for a long time:
1. They were not customer friendly. The whole system
was tuned to the process and very little attention was
paid to the customer demands.
2. The systems were outdates and the modalities of
operation were too complex and not error free.
16. OUTPUT AFTER THE IMPLIMENTATION
OF ERP
SAP ERP solutions produced a remarkable result to the
company in terms of financial technical and
managerial parameters.
The effective handling and speed delivery resulted in
greater sales.
Similarly there was a drastic fall in the amount owned
to creditors.
17. The systems were made more user friendly without any
complexities and procedural lacunas.
It improved the quality of work and lessened the time
taken for work and thereby increased the productivity.
This was followed by a massive change in terms of
accountability administration and control.
18. The manpower cost has reduced from over $200 per
ton two years ago, to about $140 per ton in 2000.
The overdue outstanding has been brought down from
Rs 5,170 million in 1999 to Rs 4,033 million by June
2000.
The inventory carrying cost has drastically deflated
from Rs 190 per ton to Rs 155 per ton.
19. Besides the streamlined business process reduces the levels
of legacy system and also provides consistent business
practices across locations and excellent audit trail of all
transactions.
The availability of online information has facilitated
quicker and reliable trend analysis for efficient decision-making.
With SAP's solution Tata Steel can now update their
customers on a daily basis and provide seamless services
across the country improving customer management.
