Group Chairmans Quote

6 years of Sustained Efforts towards Business Excellence

Company Profile
Turnover (FY 2007-08)

Rs. 2445 Cr* (enhanced from Rs 1100 in FY

03)

Peak Load

1100 MW

Annual energy requirement (FY 2007-08)

6273.14 Mn. Units

Total registered consumers (0.743 Mn on T/o)

0.91 Mn. (Actual estimated 1 Mn.)

Number of employees

3800 (5600 in July 2002)

Area

510 Sq Kms

Population serviced in Network area (approx)

4.5 Mn.

Per Capita Consumption (Units)

1245 (National Average of 500,

Mumbai close to 850)

Number of consumers per Sq.Kms

1784 (Only Registered)

Employees per `000 consumers

4.2

Employees per Mn. Unit input

0.6

Load / Energy Growth

07% / 05%

6 years of Sustained Efforts towards Business Excellence

Geographic Description
Joint Venture of TATA Group with Delhi Govt.
51 : 49 %

NDPL

NDPL

BSES
BSES
Rajdhani
Rajdhani

BSES
YamunaBSES
Yamuna
NDMC
MES

NDMC

MES

6 years of Sustained Efforts towards Business Excellence

Power Distribution

6 years of Sustained Efforts towards Business Excellence

Reduction in AT&C Losses

6 years of Sustained Efforts towards Business Excellence

Power Distribution Key Functional Areas

6 years of Sustained Efforts towards Business Excellence

GENERAL QUESTIONS

What is an E.R.P. ?
Why E.R.P. is needed ?

Who are Global E.R.P. Vendors?

What is SAP ?

6 years of Sustained Efforts towards Business Excellence

WHAT IS MEANT BY E.R.P. ?

E.R.P. : ENTERPRISE RESOURCE PLANNING
For managing 4Ms of enterprise EFFECTIVELY.

MONEY
MATERIAL
MACHINE
MEN
6 years of Sustained Efforts towards Business Excellence

GENERAL QUESTIONS

What is an E.R.P. ?
Why E.R.P. is needed ?

Who are Global E.R.P. Vendors?

What is SAP ?

6 years of Sustained Efforts towards Business Excellence

WHY E.R.P. IS NEEDED ?

A single, standard software package, taking care of all
enterprise needs.
E.R.P. integrates business processes across the whole
company.
E.R.P. provides & helps the enterprise to adopt latest
technology & international business practices with
minimum ease

6 years of Sustained Efforts towards Business Excellence

GENERAL QUESTIONS

What is an E.R.P. ?
Why E.R.P. is needed ?

Who are Global E.R.P. Vendors?

What is SAP ?

6 years of Sustained Efforts towards Business Excellence

GLOBAL E.R.P. VENDORS

SAP
Oracle
BAAN
JD-Edwards
Marshall
Mapics
MFG / Pro
BPCS
People-soft
Globally @ 11 Vendors

6 years of Sustained Efforts towards Business Excellence

GENERAL QUESTIONS

What is an E.R.P. ?
Why E.R.P. is needed ?

Who are Global E.R.P. Vendors?

What is SAP ?

WHAT IS SAP ?

Systems, Applications, Products

in
Data Processing
Walldorff, Germany

Current Version my ERP 2005(ECC 6.0)

Programming language - ABAP / 4

Why SAP?
Limited functionalities in existing software resulting in high lead times &
cost for customization
To adapt best practices and standardized solution
Integration with other applications e.g. SCADA, GIS, Sambandh etc.
Application for managing Planned/ un-planned maintenance and
breakdowns
Improved application / control for Asset Management
Projects capitalization was a major challenge
Common reporting platform

Employee Self Service Facility

6 years of Sustained Efforts towards Business Excellence

Implementation mandate at NDPL

To adopt the SAP Best

Practices with least developments

6 years of Sustained Efforts towards Business Excellence

Project SAMANVAY
SAP Implementation Project -

The project name signifies;

INTEGRATION OF END TO END WORK FLOW

IN BUSINESS PROCESSES

The objective of SAP implementation in NDPL was to assimilate key support

processes such as Human Resources, Finance & Controlling, Plant
Maintenance, Project System, Procurement and Inventory Management etc.

6 years of Sustained Efforts towards Business Excellence

Implementation Team
SAP Implementation Project No. of SAP Users 500
Core Team Members 40 ( Full Time )

SAP Consulting Team 20 (Peak)

Application replaced by SAP
Energise : Finance , Procurement , Stores , Projects & Payroll
Suyojana ( Custom Developed ) : Project Monitoring
MTS ( Custom Developed ) : Material Tracking System

6 years of Sustained Efforts towards Business Excellence

Implementation Timelines

Kick Off 3rd June 2005

Business Blueprint Signoff 27th July 2005
Realization Phase signoff 30th Sept 2005
GO LIVE 1st Dec 2005
End of PGLS 31st Jan 2006

Project
Preparation
Business
Blueprint

Realization

Final
Preparation

6 years of Sustained Efforts towards Business Excellence

Go Live &
Support

Critical Success Factors for Implementation Project

Senior Management Commitment & Involvement
Readiness to Change
Good Implementation Partner

Project Management
Project review & Audit
Infrastructure Availability
Effective Communication
Training of more than 500 end-users by NDPL core team

6 years of Sustained Efforts towards Business Excellence

Implementation Scope - Geographical

Corporate Office

Administrative Office
Circles 5
Districts - 12
Zonal Office 47
Grids 42
Project offices - 6

6 years of Sustained Efforts towards Business Excellence

Implementation Scope Functional 1/3

Finance & Controlling
General Ledger
Accounts Payable

Accounts Receivables
Asset Management
Funds Management
Investment Management
Cost Center Accounting
Profit Center Accounting
6 years of Sustained Efforts towards Business Excellence

Implementation Scope Functional 2/3

Logistics
Materials Management
Procurement.
Inventory Management

Project System

Project Planning
Project Execution
Project Monitoring
Project Capitalization

Plant Maintenance

Managing Technical Objects

Preventive Maintenance
Break Down Maintenance
Refurbishments

SD Scrap Sale
6 years of Sustained Efforts towards Business Excellence

Implementation Scope Functional 3/3

Human Capital Management

Organizational Management
Recruitment
Training and Event Management
Time Management
Payroll
ESS ( Employee Self Service )

BW & SEM
BW Reports
SEM Balanced Score Card

6 years of Sustained Efforts towards Business Excellence

Broad Implementation Benefits

TANGIBLE BENEFITS

Reduction in lead time

Improvement in quality
Performance Improvement
Improvement in Power Supply Reliability
Monitoring & control of expenses
Integration with operational systems

NON-TANGIBLE BENEFITS
Employee (End User) satisfaction
Improved employee efficiency
Management by facts

6 years of Sustained Efforts towards Business Excellence

Reduction in Lead Time

Automatic Creation of Preventive Maintenance orders

Improved Customer Service
Efficient System Management
Approx Savings/Year Rs.100 Lacs

Online receipt of Material Reservation at stores

Elimination of physical movement of Material Reservation to stores 24 hrs to
online availability
Savings/Year Rs. 31.5 Lacs

Stock visibility at all storage locations

Dual Payroll processing (FRSR/NDPL)

Retroactive effect in Payroll process has reduced the arrear processing time

6 years of Sustained Efforts towards Business Excellence

Reduction in Lead Time

Down payment request made available ensuring fast response and proper
monitoring of Vendor advance payment
Approx Savings/Year Rs.14 lacs

Automated Project capitalization process

Approx Savings/Year Rs.18 lacs

Online Material Reconciliation

Average Issue time of material from stores reduced from 12 minutes to 4

minutes
Approx Savings/Year Rs.5 lacs

6 years of Sustained Efforts towards Business Excellence

ROI / Pay Back period evaluation

S No

Factors

Approx. Cost
saved per year
(in Lacs)

22.50

Time saved through Online indent system for store

Reduction in conveyance cost

Faster capitalization process reconciliation

Reduction in document processing time at store from 12 to 4 min

Rationalization of work force in A/c payable

Asset creation process improvement and time saved

8.00

Speedier bank reconciliation and rationalization of work force

4.00

Improvement in zonal maintenance process

100.00

Support activities taken over by SCC from external consultants

106.00

Total Saving

6 years of Sustained Efforts towards Business Excellence

9.00
10.00
5.00
10.00

274.50

Improvement in Quality
Fixation of Tariff Determination to serve the requirement of DERC

Creation of preventive maintenance schedule

Creation of scheduled notification for vehicle insurance/ fitness due date
Prompt and timely internal reporting for dependable decision support
system
Capturing of positive time attendance
Online Cheque Printing
Facility to simulate the various accounting scenario before executing the
transactions
Serialization of transformers

6 years of Sustained Efforts towards Business Excellence

Performance Improvement

Organizational Performance Improved significantly from FY05-06

after implementation of SAP in terms
Improvement in ROA & ROE
Reduction in AT&C losses
ROA (%)

ROE (%)

18

60

16.37

16

54.22
50

14
12
6.66

8
6
4

26.81

30

3.91
1.84

35.76

40

9.46

10

17.03

20

2.29

7.51

10

0
FY 02-03

03-04

04-05

05-06

06-07

07-08

FY 02-03

03-04

04-05

AT&C Loss Reduction (%)

60.00

54.00
47.9

50.00

44.86

40.00

33.79

30.00

26.52

23.7
18.5

20.00
10.00
0.00
Jul-02

FY 02-03

03-04

04-05

05-06

06-07

07-08

6 years of Sustained Efforts towards Business Excellence

05-06

06-07

07-08

Monitoring & Control of expenses

Real-Time cost Calculation at the time of order creation
Cost Control using Cost centre accounting approach
Budgetary Control

6 years of Sustained Efforts towards Business Excellence

Integration with Operational Systems

NDPL has successfully achieved the SAP-GIS integration for project
preparation, creation, movement & retiring of assets

6 years of Sustained Efforts towards Business Excellence

Integration of Applications Reporting Platform

6 years of Sustained Efforts towards Business Excellence

34

Integration with Operational Systems

SAP-BW as Strategic Reporting Tool
Integration with Sambandh (Billing Software) to capture daily cash inflow
in financial books of account
NDPL is using Enterprise Portal as the default portal for MIS for all
applications. MIS of various IT applications in NDPL, namely, Sambandh,
BIRD besides SAP standard reports

6 years of Sustained Efforts towards Business Excellence

Employee Satisfaction & ESS

Increased Employee (End User) Satisfaction
User Satisfaction Survey conducted in FY 07-08 showed 90% satisfaction
level among SAP users

Employee Self Service

To apply their leave online,

View the status and take printouts of Salary slip
View the status and take printouts of Form -16 etc.
Submitting Tax Saving particulars
Employee Search
Update Personal Information
Booking against Training Calendar
To submit claims for all type of reimbursement.
Submission, approval and settlement of Travel claims.

6 years of Sustained Efforts towards Business Excellence

SAP implementation is a Journey and not a Destination

Thank You
6 years of Sustained Efforts towards Business Excellence

37