SAP Implementation in

- Group # 9

Rs. 46,850 Turnover

19 Installations 164 depots 1421 LPG Distributors

12,688 Employees
19 Aviation Stations 38 LPG Plants 4562 Petrol Stations

BPCL - Major Products

Petrol (motor spirit) High Speed Diesel (HSD) Kerosene (SKO) Aviation Turbine Fuel (ATF) LPG, etc.

Bina

Mumbai

BPCL

Numaligarh

Cochin

Before Implementation
Information was Gold

Single person was the key Processes & Hierarchies were difficult To manage Extreme need to establish a centralized Information System Thus company decided to go for ERP

During Implementation

3 Phases - Conceptual Design & Planning - Detailed Design & Implementation - Rollout phase

Coopers and SAP R/3 Lybrand selected Proposals Invited

Started in April 2000

3 phase process

Supply chain in BPCL

Sales and Distribution

Advantages
Info flow seamless, automatic Efficiency in the system Influences decision making Monitoring at various stages, shortages spotted Indenting online, requirement immediately known

FI and CO Module
FI Module:
The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization. It is within this module that Financial Managers as well as other Managers within BPCL business can review the financial position of the company in real time as compared to legacy systems which often times require overnight updates before financial statements can be generated and run for management review.

The FI Module component :

1. Accounts Receivables 2. Accounts Payable 3. Asset Accounting 4. Bank Accounting 5. Consolidation 6. Funds Management 7. General Ledger 8. Special Purpose Ledger 9. Travel Management

Financial Accounting
External Accounting
Financial Position Profit & Loss Balance Sheet

Bankers, Lenders

Stockholders

External Auditors IRS, Taxing Authority SEC

CO Module:
SAP Controlling manual is mainly related to managerial accounting. It represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It too is automatically updated as events occur.

The CO(Controlling )Module components.

1. Cost element accounting 2. Cost centre accounting 3. Internal orders 4. Profit centre accounting 5. Product costing 6. Profitability analysis.

Controlling
Internal Accounting
Departmental Expense Report Salaries 10,000 Overhead 8,000 Other 5,000 Total 23,000

Executives

Controllers

Department Managers

Senior Management

FI and CO comparison
FI
Legal or external reporting Reports by accounts Balance Sheet Income Statement

CO
Internal management reporting Reports by cost centers and cost elements Cost Center Reports

HR Module
On a separate landscape Earlier processing done by COBOL HR to finance dept. to bank account Voucher payment for cash components After ERP Employee self service(ESS) portal

Leave application

Travel application

Claim Disbursement

Balance Score Card

Performance Management System

Eg. 15% of employee on top performance category category 10% of employee on low performance category

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. BPCL's revenues grew by 2.28% in 2000-01, even as the revenues of the petroleum industry declined by 3.4%. BPCL's 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 receivableof inventories

ERP IN PETRO CARD

Introduction of the Petro-card in 1999-00 tested the coordination between the various departments to the fullest Around 2.5 lakh customers were using Petrocard with over 20,000 daily transactions taking place at BPCL's retail outlets Petro-card's success put all doubts about BPCL's ERP implementation to rest throughout the country

THREATS
> Systems crash and hence one needs to create Data Recovery Centres > Malicious attacks on the software, cases of hacking, etc. > Requires highly specialized personnel to troubleshoot in case of bottlenecks and system failures

STRENGTHS
> Checks and controls are provided at various points of segregation > Real time information was available > Paper work is reduced, thus saving costs and increasing efficiency

S.W.O.T
OPPORTUNITIES
> Stocks are available readily and hence, the Customer can be served better > Provides an opportunity to move into the web-based SaaS model

WEAKNESS
> The cost of implementation and running of SAP is very expensive > Organization has to spend money on regular upgradation > When the system is down, it is impossible to work

Thank You