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h z u Brief overview about SAP AG PAGEREF _Toc258458235 h 4<br />Aligning Employees, Processes, and Strategies for Business Success PAGEREF _Toc258458236 h 5<br />SAP ERP HCM provides integrated, enterprise wide functionality that: PAGEREF _Toc258458237 h 6<br />Companies Implemented SAP ERP HCM packages in India PAGEREF _Toc258458238 h 7<br />NTPC PAGEREF _Toc258458239 h 7<br />HR as a Strategic Business Partner in NTPC PAGEREF _Toc258458240 h 8<br />LAKSHYA Mission PAGEREF _Toc258458241 h 10<br />LAKSHYA Objectives PAGEREF _Toc258458242 h 11<br />Implementation of SAP ERP (Project Lakshya) PAGEREF _Toc258458243 h 11<br />Importance of Lakshya in NTPC PAGEREF _Toc258458244 h 12<br />Project Disha : PAGEREF _Toc258458245 h 13<br />Benefits PAGEREF _Toc258458246 h 14<br />Functionality PAGEREF _Toc258458247 h 16<br />Talent Management PAGEREF _Toc258458248 h 16<br />HCM Service delivery PAGEREF _Toc258458249 h 16<br />Workforce analytics PAGEREF _Toc258458250 h 16<br />Workforce process management PAGEREF _Toc258458251 h 16<br />Conclusion PAGEREF _Toc258458252 h 17<br />INTRODUCTION<br />The countless challenges faced today by global businesses are expected to grow in intensity and difficulty as we move further into this century. Prolonged global competition has become the norm rather than the exception, with an unprecedented number and variety of products available to satisfy consumer needs and desires. The dynamics of faster product development, more customized manufacturing, and quicker distribution have benefited the consumer. At the same time, these changes have led to new and very high consumer expectations and standards for companies to meet in the marketplace. Satisfying the customer’s desire for high quality and quick service in the current business environment has added pressures not historically present. To meet these new challenges, companies around the world have invested in IT. <br />“In this age the companies plan more about IT (information technology) than about IT (Income Tax)”<br />The former IT plays a much larger role as a differentiator in the market as the former and hence is looked upon as weapon to spearhead competition in the market. Our Project titled “ERP in NTPC” focuses on aligning Employees, Strategies and Processes or Business Success through an ERP. 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 next part, the need of SAP ERP in different areas of NTPC to effectively deal with business challenges have been discussed along with their HR practices for retaining the knowledge workers.<br />The work has been limited due to non availability of facts and data on the internet and on their websites. But we have tried our best to interpret what ever data we have got to the best of our understanding. <br />Brief overview about SAP AG <br />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.<br />SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("
System Analysis and Program Development"
).The acronym was later changed to stand for System, 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. <br />Products<br />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 "
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).<br />Other products are:<br /> Relationship Management (SAP SRM)<br /> SAP Product Lifecycle Management (SAP PLM)<br /> SAP Net Weaver<br /> SAP Business One<br />SAP focuses on six industry sectors:<br /><ul><li>process industries
Public services.</li></ul>It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro vertical solutions for midsize companies and small businesses.<br />SAP ERP Human Capital Management<br />Aligning Employees, Processes, and Strategies for Business Success<br />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 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.<br />SAP ERP HCM provides integrated, enterprise wide functionality that:<br /><ul><li>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</li></ul>Companies Implemented SAP ERP HCM packages in India are 01) SAP Labs India 02) Hewlett Packard 03) IBM 04) Accenture 05) HCL 06) NTPC 07) BSNL 08) Hero Honda 09) Tata Motors. India 10) Mahindra & Mahindra - TDMS, India 11) Reliance Infocomm Limited<br />NTPC<br />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. 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. 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.<br />Location of NTPC Plants<br />HR as a Strategic Business Partner in NTPC<br />To actualize our HR Vision & the Corporate Vision, an integrated HR model has been developed in NTPC . 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. <br /> Facilitating CSR- NTPC has formulated a comprehensive Corporate Social Responsibility-Community Development (CSR-CD) policy to take up social programs in a systematic manner. <br />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. <br />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. <br />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- <br />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. <br />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. <br />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.<br />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. <br />PROJECT LAKSHYA IN NTPC<br />LAKSHYA Mission<br />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<br />LAKSHYA Objectives<br />Liasen with the Operations Core Team to promote best practice and processes for ensuring effective operation of the business applications. <br />Actively work together as a unit, to ensure all aspects of the project management, fit for purpose. <br />Keep project to time and quality. Suitably ensure that the desired outcome of the specified programme meets the expectations and business requirements of NTPC.<br />Help the Core Team to build upon their knowledge & their specific area of expertise of the RWE products and subsequent support capabilities.<br />Year-on-year SLA’s are appropriately adhered to & delivered to the satisfaction of the customer.<br />Ascertain the business requirements at an early stage<br /> Implementation of SAP ERP (Project Lakshya)<br />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. <br />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. <br />Importance of Lakshya in NTPC<br />To power business needs and facilitate collaboration<br />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.<br />ERPChanging Business NeedsExisting IT scenarioProject DIshaAdoption of Best PracticesUser’s expectations<br />Project Disha :<br />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.<br />Benefits <br />ActivityBenefitIncreased productivityImprove 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 challengesReduced costs through increased flexibilityImprove 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 spendingCut 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 ROIUse 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 enterpriseInnovation without disruptionTake 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<br />Functionality <br />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 <br />Conclusion<br />This project report attempted to analyze the impact of the services through SAP ERP process in HR departments of NTPC Through an overview of the implementation , it was determined that <br /><ul><li>Understanding of SAP ERP process helps in decision making and makes a process prudent
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 up to some extent only because still in some departments like Cen PEEP (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. </li></ul>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<br />Efficiency factor lies in the way people use these technologies. Many information strategies fail for ignoring this issue. <br />References <br />WEBSITES<br />1. www.ntpc.co.in<br />2. www.sap.com<br />3. http://en.wikipedia.org/wiki/SAP_AG<br />4. http://www.sap.com/india/solutions/index.epx<br />