Presentation Over ERP to ET BATCH-2008

Dated : 10 September 2008 MANU KHARE

ABHISHEK SRIVASTAV
NTPC,Limited

What is ERP? Major Players Customers Process Improvement By ERP : Example ERP- A Change Process

Coverage Of ERP
ERP Functional and Technical Viewpoint Fundamental Design Principle and Key Objectives Modules Under ERP and their functionalities A typical Network Infrastructure-NTPC Network for ERP Project Methodology and Deliverables Project Organization & Role of Team Members

Critical Success Factors for ERP

Training Working With SAP

Enterprise Resource Planning?

Enterprise Resource Planning (ERP) is a multi-module integrated application package that help manage and automate a business. A single database provides access to all applications, programs and services within an enterprise. ERP incorporates all elements of a business, from financial processes to maintenance and marketing activities, into a unified whole that operates more effectively and efficiently.

A Typical IT Application Story

Services

Payroll

Project Systems

MIS

Finance

Costing

Stores & Inventory Purchasing

HR
Budgeting Maintenance

From Functional Silos

Planning

Finance

Consultancy

Engineering and R & D

Production

Sales & Distribution

To an Integrated Enterprise.

Finance Consultancy Planning

Central Database

Engineering and R & D

Sales & Distribution

Production

The Players
SAP R/3 - still must maintain mainframe architecture of large R/2 user population. Strong finance and accounting. By far the largest vendor (approx. 30% market share).

Baan - known for manufacturing, distribution, process modeling modules - web and Internet.
PeopleSoft - known for human resource package.

Oracle - simplest product to install and support. Recently advertising flow manufacturing enhancement.
J.D. Edwards - SCM module Manugistics - Distribution - truck loading and routing focus. i2 Technologies - Rhythm product - coordination of flow oriented manufacturing. Comprehensive forecasting module.

SAP
Systems, Applications and Products in Data Processing, (SAP)

The name of a company

SAP AG**

The name of a software

SAP R/3

**AG stands for Aktiengesellschaft (After 2005 general meeting)

SAP Customers in India

Discrete Manufacturing flagship partnerships

Process Manufacturing flagship partnerships

Services industries flagship partnerships

Consumer & Retail flagship partnership

Mid-market partnerships

SAP Customers Public Sector in India

NTPC,Ltd Delhi Metro Rail Corporation Ltd. Oil & Natural Gas Corporation of India Limited.

Indian Oil Corporation of India Limited.

Bharat Petroleum Corporation Limited. Bharat Heavy Electricals Limited Videsh Sanchar Nigam Limited. Garden Reach Ship Building Ship Building Corporation - Vizag Gujarat Industry Power Co. Limited Baroda Bharat Electronics Ltd General Insurance Corporation of India Chattisgarh State Electricity Board Gujarat State Petroleum Corporation Central Power Distribution Company of Andhra Pradesh PTC India Ltd (formerly known as Power Trading Corporation of India.) National Housing Bank

Customers in Engineering & Construction

Plant Contracting & Construction Homebuilding

Shipbuilding & Transportation Equipment

SAP Customers Engineering and Construction

Hindustan Construction ABB Ltd ALSTOM Power Sweden Austrian Energy & Environment AG Balkan Ro Trade and Construction Bechtel Corporation Bharat Heavy Electricals Limited Bombardier Transport Inc. Capstone Turbine Corporation Hyundai Engineering & Construction SCHNEIDER ELECTRIC INDUSTRIES SA Halliburton Energy Services. Walter Industries Inc Mitsui Engineering & Shipbuilding Larsen & Toubro Limited

Existing Process

Process : Indent Requisition of Spares

Check stock across NTPC No Check Item Check Raise Indent High Value Get HOD User Budget Common requisition Approval Check Value spares status Yes Budget Common Spares D/B Assess Technical Raise Indent Send PR to Get HOD Spec. FQA/FES Get requisition C&M Approval Assess FQA/FES Clearance Approved Yearly Maint. Budget Registered Vendors Assess LPP Get MPIC User checks against item/value across NTPC Clearance Budget MPIC Send PR to C&M

Can be Eliminated in case, yearly Spares Budget is approved once.

S.C.

Req. validation by screening. comm

CENTRAL DATABASE

Can be eliminated, once a Get Budgetcentral database is available

F&A
Certification Yearly Procurement Plan Approval

Elapsed Time: Elapsed Time: 40 20 days few hours days

Yearly Maintenance Plan Approval

ERP involves Change

Change in Processes

Change in Roles and Responsibilities

Change in organizations working culture Department to Process Perspective

Change in attitude and mindset of people

Change Management Strategy would focus on bringing about above changes in Organisation smoothly

An extensive change mangement concept ensures the acceptance and motivation of the end users

vision

communi+ cation

skills

tools

+ incentives + action plan

= real change = confusion = rejection = fear = frustration = slow change = chaos

+ communi- +
cation

skills

tools

+ incentives + action plan

vision

skills

tools

+ incentives + action plan

vision

+ communi- +
cation

tools

+ incentives + action plan

vision

+ communi- +
cation

skills

+ incentives + action plan

vision

+ communi- +
cation

skills

tools

+ action plan

vision

+ communi- +
cation

skills

tools

+ incentives +

Critical Success Factors for ERP Project

Senior Management Commitment & Participation Readiness to Change Best People Full Time Good Project Management Skills Using Standard Functionality End User Empowerment Project Management Project Review & Quality Audit Teamwork Sound Methodology Able Implementation Partner Infrastructure Availability Communication

Action Points to facilitate Change

Workshop Training of Change Agents to facilitate change in the organization Facilitate awareness of ERP in employees by
Change Team conducting seminars CMD/Directors/EDs addressing employees during their visits Newsletters, Intranet, Cable TV Competitions

Team Vision Workshops Process Engagement Workshops Benefit Realization Workshops Change Impact Analysis

Role Mapping
Post Go Live Reviews

Who initiates Change?

Change Management Team

Change Enablers
Process Process Process Owners Owners Owners ERP Project Team

Coverage of ERP

Corporate Planning

Engineering Projects and QA Contracts

Site Procurement & Materials Operations Maintenance

Fuel Management

Commercial

Finance, Human Resources R & D, TQM , IT Rehabilitation and Resettlement Legal & Secretarial Safety, Security, Vigilance Consultancy Corporate Communications Employee Health Ash Utilisation Environment

Coverage of ERP

In addition SAP will also include the following

Business Intelligence Knowledge Management Workflow Document Management System Xchange Infrastructure (XI) for integration with other packages / legacy applications Capability to support future business areas of NTPC including Coal Mining, Power Distribution, Power Trading etc. (Not included in the current package cost)

What is an ERP - Functional View

Covers Processes across multiple functions through a single system
Operations & Logistics

Materials and Contracts Management Maintenance Management Project Management Personnel Administration

Human Resources & Payroll

Personnel Development

Administration Financials, Planning, Budgeting, Control & Audit Cross-Application Components

Workflow Document Management System System Administration Security

System Management Tools

What is an ERP Technical View

A database application which supports the running of Business Processes
Configurable Tailoring without writing any code Extendable by writing additional code without modifying standard code Set of master data for various objects materials, resources, suppliers etc. that is used for all processes The applications sit on a OPEN application server that can be used for writing new applications Consists of standard tools and technologies for developing interfaces Contains standard data migration tools Has built-in comprehensive Security and Access Controls

Central Themes / Fundamental Design Principles of SAP

Data & Information
Centralize storage Secure Access Adhere to Data & Information Exchange Standards

Processes / Operations
Integration of Processes Run from Anywhere Secure Access Standardize as much as feasible Offer Multiple Options to suit customer requirements Support Universally accepted practices in different functions (Accounting, Materials Management, Project Management)

Technology
Platform (OS & DB) independent Open based on Standards Access from any standard device Secure Access

SAP Solution - An integrated system design

Finance

Budgetary Control

Maintenance Management

Human Resources

Enterprise Management

Project Management

Asset Management

Material Management

Management Information System

Addresses Key Objectives

Improve Efficiency
Improve efficiency through better processes and practices

Faster ROI on IT investments

Solutions aimed at customers pain points Leverage existing application, through integration wherever possible

Better visibility
Business performance management Real-time (event-driven) integrated extended organization Actionable Knowledge

Solutions that adapt to changes

Solutions that support and enable transformation Solutions that are focused on improving efficiency in administration and logistics

Access from Anywhere Anytime

legacy

non mySAP.com mySAP.com solutions FI single signon

R/3
CO HR Supply Chain SEM BW

Portal
industry-specific Cockrole-based pits personalized drag & relate

Web browser access

CRM

NTPC.URL

Marketplace

Partner

SAP

Modules in SAP
FI Finance CO Controlling MM Material Management PS Project System

PM Plant Maintenance
QM Quality Management SRM Supplier Relationship Management PP Production Planning SD Sales & Distribution LDM Lifecycle Data Management IS-U Industry Solution - Utilities HCM Human Capital Management BW Business Warehouse BPS Business Planning & Simulation KM Knowledge Management

Financial Management
Analytics Parallel Accounting Billing Expense Management Check Printing Payroll Funds Management Treasury Cash Management Activity Based Costing Profitability Analysis Asset Accounting Budgeting Overhead Cost Controlling General Ledger

Legal Consolidation
Accounts Receivables Accounts Payable

Streamlines information control, analysis, and delivery Enables performance planning, measurement, and management Optimizes the financial supply chain

Most comprehensive, functionally-rich solution on the market

Market-leading solutions and customers in all industries Reliable, proven business partner with solution and industry expertise

Procurement and Material Management

Knowledge Management Purchase Requisition RFQ & Purchase Orders Tendering Supplier Evaluation & Blacklisting Contract Management Quality Inspection Physical Inventory Audits Approvals & Workflows Shelf Live & Status Goods Movements Warehouse Management Service Masters Workflows Delivery Schedules

Supplier Payments
Supplier Collaboration

Define

Execute
Check deliverables of the supplier & sub contractor based on contracts & confirm using service entry sheets

Monitor
Monitor progress & payments as per schedule.

Define the project requirements. Select Source & complete detailing

Initiation

Planning & Approval

Project Execution

Closing

E-Procurement Components
3
Tender fee payment

Publish Requirements

1 2
Consolidate Requirement ERP EBP

Payment Gateway Download Tender

4 6
Supporting documents

5
Upload Bid

7
(Secure Network) Reverse Auction Bid opening & Comparision
Enhanced Supply base

8
Tender Award

Reduced Spend

Project Management
Project Reuse Project Initiation Project Team Project Estimation & Budgeting Project Planning & Scheduling Project Base lining & Simulation Multi -Project Management Project Progress Tracking Capacity Management

Project Archiving
Project Status Management

Project Procurement
Project Production Project Costing

Project Claims
Project Confirmations Project Document Distribution

Project EH&S

Integrated Viewing / Maintenance

Life-Cycle Data Management

Flexible Search/E-Publishing

All originals of assigned document masters can be viewed/maintained directly from the projects maintenance environment.

Project documents can be searched by Full integration into the Document various search engines and can also be Management System of mySAP Life-Cycle published for external access on the Data Management; assignment of all various documents supported by all DMS Internet. functions (i.e. versioning, vaulting)

Initiation

Planning & Approval

Project Execution

Closing

Maintenance Management

Equipment History GPS Interface Early Warning System Meter Reading & Counter Based Mobile Device Valuation & Status Management

Work Force Management Location & Asset Mapping Maintenance Planning & Scheduling Budgeting & Sanctions Tools & Documents Complaint Management Warranty & AMC

Preventive / Predictive / Breakdown / Internal Techn. Object Shutdown Maintenance /

Condition description Item data Activities / Tasks Priorities

External resourceWork Clearance planning Release / Print Control / Execution

Time- / Contracts & Subcontracting Material Objects confirmation Spares Management Orders / Technical Notifications completion Costs Order Downtimes settlement

Life-Cycle Data Management

Document management
Versions and structures Approval and change management Open interfaces: computer-aided design, Microsoft Office, and so on Data Management

Product master and structure management

Product master management Product structure management Routings Classification and variant configuration

Specification and recipe management

Specification management (for example, ingredients, products, and packaging) Multilevel recipe and formula management (for example, S88 compliance)

Service and maintenance structure management Change and configuration management

Engineering change request/engineering change order Order change management Configuration management Product data replication

mySAP HR A Total, Integrated HCM Solution

Lifecycle Management Career Planning Recruiting and Talent Management Shift Planning Performance Management Compensation Management Learning Training & Events Management Relationship Management Expert Finder Manager Self-Service Employee SelfService Employee Interaction Center Collaboration Tools Workforce Planning Workforce Cost & Headcount Planning & Simulation Employee Succession Planning Balanced Scorecard

Skills/Qualification Management

Transaction Management Organizational Management Personnel Administration Payroll Claims , Loans Time Management Reporting Global Employee Management

Workforce Analytics
Pre-defined Key Performance Indicators SAP Business Warehouse Integration

Knowledge Management : Collaboration

Project rooms and team rooms Feedback for specific users
Feedback (to author)

Rating (to author)

Feedback for everyone

Public feedback Public rating Discussion groups Chats

Discussion Groups

Collaborative authoring Rating

Security
Transaction History User Authentication Role / Group / Job / Position Access Control Transaction Access Process Access Interface to LDAP Multiple Access Locking Time-Out Access Effectivity Master Data Security Portal Security Administration Field Access

Mass Change
Digital Signature

Firewall Protection
Encryption

Drag & Drop

Troubleshooting Authorizations Transport of Security Related Objects Integration with Organizational Management

Drag & Drop

IT ARCHITECTURE

Central Database Server

Regional HQs Corporate Office

Application Server

ERP DATA CENTRE

DISASTER MGMT. SITE Different Seismic Zones

Plants

2 MBPS Leased Line VSAT Link

4 MBPS Leased Line

Project Methodology and Deliverables

Implementation Methodology

ASAP Roadmap
Continuous Project Preparation Business Blueprint Realization Final Preparation Improvement Go Live & Support

Project Management Change Management Risk analysis Review

Methodology Projectrelated knowledge

Implementation Assistant Q&A db Implementation Guide Profile Generator Transport System

Tools

Services

Training, licensing training material, support, project reviews

Project Deliverables by Milestones

Milestone Deliverables from SAP Project Infrastructure Plan Preliminary Project Plan Detailed Resource Deployment Plan Enterprise Scope Document Training Plan for core team members Project Charter Document Prerequisites Set-up of Project Infrastructure Identification of Core Team Members as per detailed resource deployment plan

Milestone 1: Project Preparation

Deployment of core team members on fulltime basis to the project.

Milestone 2: Business Blueprint

Final detailed enterprise scope document

To-Be Business Blueprint Document SAP Organization Structure definition document List of Critical Reports and Layouts List of Enhancements Data Migration strategy Testing Strategy document Final project plan (based on detailed ESD) Training Strategy for power users

Sign-off on all deliverables of Project Preparation Milestone

Formation / Identification of Steering Committee, Process Owners, Executive Committee and Change management team Production Server Sizing detailed questionnaire filled Core Team Training (Functional and Basis) Hardware and Infrastructure for Development & QA Environment

Project Deliverables by Milestones

Milestone Deliverables from SAP Final Integration Test Plans Final Integration Test Procedures Final Integration Test results Manual data transfer procedure Prerequisites Sign-off on Deliverables of Business Blueprint Milestone Hardware and Infrastructure for Training Environment Identification and deployment of Power users and Master Data Management team Identification of Technical team (Legacy and third party systems) Core Team Training (ABAP) Powers Users are trained Identification of business roles and business authorization profiles

Milestone 3: Realization

Established Authorization procedure and management

Draft Cut over plan End user training strategy and plan

Project Deliverables by Milestones

Milestone Deliverables from SAP Go-Live and Cutover plans SAP System Operating Manual for Basis administration Production support (internal helpdesk) plan Procedure for handling calls and question for end user are established and distributed User IDs and authorizations created Customizing setting & repository object transported from QA to Production System Prerequisites Sign-off on deliverables of Realization milestone Identification and deployment of team for end-user training Training Infrastructure (rooms, PCs, Connectivity, projectors, etc) at locations commissioned End-User documentation and manuals ready Identification of users mapped to business roles and business authorization profiles

Milestone 4: Final Preparation

Production system procured, commissioned and OS Installed

Stress and Volume Test completed (by hardware provider) on production system Connectivity to all identified go-live sites established and tested

Requisite hardware (PC, Printers, Routers, LAN, etc) and software (MSOffice, Antivirus, SAPGUI, etc) are installed and tested for all end-users

Project Deliverables by Milestones

Milestone Deliverables from SAP Issue arises during & after go live are documented, assigned & resolved Formal agreement to closure for implemented sites Prerequisites Sign-off on deliverables of Final Preparation milestone Completion of End User training Conversion programs executed, master and cutover data transferred to productive system, validated Manual entry data from legacy system entered into production system where applicable and validated

Milestone 5: Go-Live & Support

Project Organisation & Role of Team Members

Project Organisation Structure

Project Sponsor Executive Committee

Steering Committee

Change Management Team

Power User Team

Project Manager-NTPC Project Manager SAP

Process Owners

Project Team Full Time

Team Team Leads Team Leads Leads

BW & Reports Lead

Training Manager

Integration Manager

ABAP Lead

Lead Interfaces

Lead Internet Technology

Basis Lead

ABAP Developers

Web Programmers

Basis Team

Business Analysts

Business Configurators

NTPC Project Team Profile

Steering Committee Members
Chaired by CMD of NTPC NTPC Project Sponsor NTPC Project Management Team Heads of Key Business Functions for SBU Head of Location operations Part of the Senior Management Direct Empowerment from MD for taking project related decisions Experience of working in cross-functional areas in Senior positions Preferable Full time involvement Wide acceptance within the company Drives Change Management Initiative in the Company Manager -- Full functional knowledge, IT orientation Exposure to cross-functional processes Full time involvement Wide acceptance within the company

Program Manager

Project Manager

NTPC Project Team Profile

Team Members
Experienced Functional representatives Ability to Appreciate cross-functional issues Change leaders in their functions Full Time availability Representatives from all Locations/Functions

Process Owners
Experienced Functional representatives Empowered to take process related decisions for the Organization Ability to Appreciate cross-functional issues Part Time availability

NTPC Project Team Profile

Power Users
Experienced Functional representatives Ability to Appreciate cross-functional issues Ability to understand integration issues Ability to train end users in respective processes Part Time availability Representatives from all Locations/Functions

Training

Training
Training is not an expenditure; it is an investment Training early gets better returns Training for project team
Product training in functional areas Methodology training Change management

Training for end users

Overview training Customised system training

Training Strategy for NTPC

Professional Training This training shall be for the core NTPC ERP implementation team. This NTPC team will comprise of members from all the Business Functions and IT. Each member would be trained in the relevant function / module. The training will enable Core team members to get a high level of conceptual and functional understanding of the product

Power User Training

The extensive involvement of key users makes SAP Implementation projects particularly suited for the "train the trainer" approach. Extensive use of working prototypes, coupled with a stable group of active users, results in a trained set of potential, high-quality trainers. These trainers are effective because they have been involved with the project since its inception. A detailed training approach will be developed along with the NTPC Team during future phases of the Project.

Working With SAP

The SAP Window

Menu Bar Standard Tool Bar Title Bar Application Tool Bar

Screen Body
Status Bar SAP System ID Server

Using the Navigation Area

You can expand and collapse menus in the navigation area by choosing the dropdown arrows to the left of the menu items, as in the example below To open an application in the navigation area Double-click its node

Transaction Codes
A transaction code can be entered in the Command field.
If you precede the transaction code with /n then the transaction is the next screen opened in the current session. If you precede the transaction code with /o then a new session is opened for the transaction. This means you then have multiple sessions.

To start a transaction, there are 4 options:

Position the cursor on the required transaction in the tree structure and press enter
Double-click on the required transaction in the tree structure Position the cursor on the required transaction in the tree structure and select Edit Execute (or press F2)

Expand the command field and enter the transaction code

Standard Toolbar

The Standard Toolbar contains the Command field and the standard SAP Toolbar buttons.

Command Field: The Command field is used to enter transaction codes that take you directly to a system task without using menus.

Button

Keyboard Shortcut Enter Key Ctrl + S F3 Shift + F3 F12 Ctrl + P Ctrl + F Ctrl + G

Description Enter/Continue Save to database Back Exit System Task Cancel Print Find Find next

Button

Keyboard Shortcut Ctrl + Page Up Page Up Page Down Ctrl + Page Down None None F1 Alt + F12

Description First page Previous page Next page Last page Create New session Create shortcut on Desktop F1 Help Customize Local Layout

SAP Easy Access Settings

Users can set how SAP displays the Menu by choosing Extras Settings. Here, you can specify whether:

Your favorites should appear before or after the menu Only your favorites, and not the menu, should appear

The SAP Easy Access graphic should appear on the right-hand side of the screen.
Technical names of menu options should appear in the navigation area

User Settings
Users can maintain their own settings by choosing System User Profile Own Data Defaults

Change default printer, language, and date and decimal display formats.
Parameters

Allow user to create default information for frequently used fields.

Messages
Messages appear either in the status bar or in a pop-up window, depending on user settings Messages starting with:
E indicate an Error message W indicate a Warning message

Messages not beginning with an E or a W are simply Information messages

Required fields are denoted by a check mark

Thank You .