ERP implementation at Indraprastha Gas Limited (IGL)

Abhishek Shandilya 2011063 Abhishek Gautam 2011065

Sanil Pai 2011106 Rahul Garg 2011103

Thakur Keshav Singh 2011119

1 Name of the Project Indraprastha Gas Limited

2 Name of the Client

Client Size (Approx. number of

employees)

Indraprastha Gas Limited

3 Name of the Solution provider Tata Consultancy Services (TCS)

3 Client’s address Name : Mr. S K Behera

Designation : Manager IT

Postal address : GSPC Bhavan, Sector – 9, RK Puram

Contact phone : +91-011-46074607

Fax number +91-011-26184061

e-mail id : skbehera@igl.co.in

4 List of modules and sub-

modules Implemented

Procurement (MM)

Financials (FI)

Controlling (CO)

Human capital mgmt (HCM)

Employee Self Service (ESS)

Project Systems (PS)

Maintenance Mgmt (PM)

India Payroll

Business Information Warehouse (BIW)

Environment, Health and Safety (EHS)

5 Number of User licences 135 for SAP R/3 + 270 for ESS

6 Value of the Work Done (Rs in

Crores)

Cannot be divulged

7 Date of award April 2005

8 Date of completion August 2006

Introduction

Incorporated in 1998, IGL took over Delhi City Gas Distribution Project in 1999 from GAIL

(India).

The project was started to lay the network for the distribution of natural gas in the National

Capital Territory of Delhi to consumers in the domestic, transport, and commercial sectors.

With the backing of strong promoters – GAIL (India) Ltd. and Bharat Petroleum Corporation

Ltd. (BPCL) – IGL plans to provide natural gas in the entire capital region.

The two main business objectives of the company are -

To provide safe, convenient and reliable natural gas supply to its customers in the

domestic and commercial sectors.

To provide a cleaner, environment-friendly alternative as auto fuel to Delhi’s residents.

This will considerably bring down the alarmingly high levels of pollution.

The transport sector uses natural gas as Compressed Natural Gas (CNG), the domestic and

commercial sectors use it as Piped Natural Gas (PNG) and R-LNG is being supplied to

industrial establishments.

Future Outlook

IGL continues to augment its infrastructure so as to meet the increasing demand of CNG

arising out of growing number of CNG vehicles in Delhi. The growth drivers for increase in

demand of CNG are - car manufacturers coming up with CNG variants and Delhi

Government’s directive making it mandatory for all LCVs operating in Delhi to run on CNG.

The company is in the process of enhancing its compression capacity by adding new stations.

On the PNG front, IGL has planned to expand its business activities in Delhi and its

neighboring towns like Noida, Greater Noida and Ghaziabad. Our customers will now be

benefited with supply of PNG for non-cooking applications like Geysers also. IGL is also

working towards expanding its PNG network to cover all charge areas of Delhi by 2012.

Industrial and commercial segments would be the focus areas for the organization in the

future.

LINE OF BUSINESSES

CNG (COMPRESSED NATURAL GAS)

CNG stands for compressed natural gas. It is gaseous fuel and is a mixture of

hydrocarbons mainly Methane. For use in Automobiles as fuel, it is compressed to a

pressure of 200-250 Kg/cm² to enhance the vehicle on-board storage capacity.

PNG (PIPED NATURAL GAS)

PNG is mainly methane – CH4 with a small percentage of other higher hydrocarbons.

The ratio of carbon to hydrogen is least in methane and hence it burns almost completely

making it the cleanest fuel. It is procured from the oil / gas wells and transported through

a network of pipelines across the country.

Commercial & Industrial

Natural gas is a versatile fuel which is gaining immense popularity for Industrial and

commercial usage.

Under the commercial sector all leading hotels, restaurants, malls, commercial

complexes and hospitals in the NCT of Delhi are being supplied PNG by IGL.

In the industrial sector, PNG is being used to run boilers, furnaces, ovens, hot water

generators, and thermifluid heaters, gas turbines for power generation and Vapor

Absorption Machines (VAM) for heating and cooling applications. Industries have saved

on cost and storage space by using PNG and in turn pollution levels have also gone

down.

Industrial and commercial segments are expected to see a significant growth and would

be the focus areas for the organization in the future. IGL aims to have over 1000

Industrial and commercial customers across NCT & NCR by 2014.

Package Implemented

The solution offered encompassed implementation of the mySAP ERP solution.

The SAP Modules implemented constitute:

Industry Solution – Utilities

FI-Contract Accounting

Sales and Distribution

Materials Management

Quality Management

Project Systems

Plant Maintenance

Customer Service

Finance

Controlling

Human Resources

India-Payroll

BASIS

ABAP

End-to-end SAP implementation (mySAP R/3 ERP, mySAP HR etc.) including mySAP IS-

Utilities for contracts & Invoice and contract accounting

Post implementation support for all the SAP and ancillary applications

Solution delivery services

Integration testing services for new releases and during roll outs

Defect resolution services

Organizational change management

Identifying KPI’s and work-out solutions to optimize them

Packages/Initiatives under Implementation

Process initiative for technology enhancement at primary data center along with up-

gradation of SAP (ERP System).

An initiative has also been taken for advanced surveillance of CNG stations.

GIS (Geographical Information System) Project which has been taken up for effective

Asset Management, Network to Planning and Operations Management is in advance

phase and is scheduled to be completed during the financial year 2012-13.

Applications (as part of SAP) Implemented

Employee Self Service

Employee Self Service (ESS) Applications allow employees to view benefits, update personal

information, submit time cards, make vacation requests, and request travel expense

reimbursement from their Web browsers. The ESS Applications free human resources staff to

deal with more complex tasks, but do not require training and supporting employees on a

specialized application. ESS is an effective means for providing real-time access and data

maintenance capabilities to the source or owner of the data. It has the ability to offload much

of the data entry and related customer service activities that may be typically performed in an

organization's human resources, payroll, benefits and purchasing departments.

Timesaving

These departments are freed up from many of the routine, day-to-day processing functions.

Instead, resources can be assigned to activities that are more critical to your organization's

success. Overall, service levels and efficiency increase and costs per transaction can be

drastically reduced. The return on investment is significant.

No SAP Training Required

With SAP ESS, employees can maintain their own data and can access their information

without having SAP training or core SAP applications on their desktops. Because there's no

"dummy database" or batch update, employees have access to the most up-to-date, accurate

data on record. And, there are none of the out-of-sync situations that can occur with third

party, "bolted on" ESS solutions.

Inherently international

Because SAP™ R/3™ architecture is inherently international, with unsurpassed language and

currency management capabilities, SAP ESS is also inherently international. It takes full

advantage of SAP R/3 global capabilities, including country localization and all SAP

supported language and currency management facilities.

Accessible, up-to-date information

Employees can access and change any of the following data and have it reflected

immediately in the database:

Personal Information

Review and update address, dependent information and emergency contacts.

Change tax filing status, number of exemptions and withholding information.

Add or update bank information for direct deposit and expense reimbursement.

New Hires

Establish new hire address, dependents, emergency contact, tax filing and banking

information with ease.

Organization Directory

Look up employee information including name, contact data, office location, title, etc.

Paycheck Inquiry

Display and print pay stub information for each pay period, including gross pay, taxes, other

deductions and net pay, with pay period and year-to-date totals.

SAP Employee Self-Service provides you with:

Extensive functionality beyond basic human resources functionality, including travel

management and purchasing.

Inherent integration between SAP™ R/3™ business applications, ESS and workflow.

ESS functionality that leverages the strengths of the underlying SAP infrastructure.

Unsurpassed global capabilities. A proven track record for continuous evolution and

new functionality.

Business Benefits

SAP implementation at IGL had multi-pronged benefits. IGL was looking for a technology

solution which could help them integrate all the business functions on a common platform.

They also wanted a technology partner which could work alongside its complex business

model. Their requirement was of a solution which could provide a solution which would cater

to all the services along the value chain. SAP was implemented during FY 2005-06. SAP

implementation helped them in optimizing their operations, improve return on their assets,

identify and deliver new products, which subsequently has a long term effect on realizing

their growth potential. The more tangible benefits attached with the project were as follows

Automation of end-to-end business functionality for Piped Natural Gas and

Compressed Natural Gas distribution business in the National Capital Region

Meter Readings Consolidation and History and Centralised Pricing Management and

Control for CNG Marketing

New Service Connections – Status reports at the level of Areas and Colonies for PNG

Marketing

Centralised Management and Control for Items and Vendors, Materials Reconciliation

of Project Materials.

Reduced cost of short cycle work processes e.g. Outages move in/out, turn on/off,

new service requests etc.

Meter Reading collections and Meter reading entry from CNG Stations and

Customers in one PNG Area.

Billings and Contract Accounting

Inventory Tracking and Updating

Breakdown maintenance, Preventive maintenance, Refurbishment and Calibration

process.

Tracking of multiple projects and materials reconciliation.

ERP implementation helped IGL in syncing its objectives with the quality of service it

wanted to provide without compromising on the technology platform. A look at the figures

below will tell us the architecture of the technology model they employed in the

implementation and sustenance of their business model.

Business Process Model

Interface Framework

Salient features of Package

Phases of Deployment

Salient features of technology deployed- mySAP R3 ERP- SAP R3 uses the SAP Web

application Server, which is based on open technology standards and connectivity protocols.

It includes Core 4.7 with Extension set and provides comprehensive Internet enabled

processing, portal integration and flexible upgrade strategies. They have a shorter upgrade

cycle in future. All future enhancements are provided in smaller pre-packaged extension sets

which can be added at user's convenience. In terms of cost benefits this doesn't require new

license.

TEAM MOBILIZATION

TRAINING

INFRASTRUCTURE

PROJECT CHARTER

DEFINITION

ENTERPRISE VISIONING

ENTERPRISE STRATEGIC

VALIDATION

PERFORMANCE

DRIVERS

FUTURE STATE

DEFINITION

BUSINESS CASE

VALUE PROPOSITION

FIT, GAP ANALYSIS AND

GAP STRATEGY

CORE PROCESS(ES)

IMPROVEMENT

IMPLEMENTATION

PLANNING

DEFINE DATA

CONVERSION AND

MIGRATION STRATEGY

PREPARE PROJECT

CHARTER

REFINED PROJECT

CHARTER

PROTOTYPE

DEVELOPMENT

CONFIGURE ERP BASED

ON PROCESS

PRIORITIZATION

TRAINING OF CORE

TEAM

TESTING & QUALITY

CHECKS

PREPARATION FOR

GOING LIVE

DATA CONVERSION &

MIGRATION

GO LIVE

PHASE 1: EXPLORE

PHASE 2: ENGAGE

PHASE

3:ENABL SKILLS TRANSFER

MANAGEMENT

COMMITMENT TO

CHANGES

IMPLEMENTATION

MONITORING

PERFORMANCE

MEASUREMENT

MECHANISM

My SAP HR-

Key benefits that SAP HR brings to the client are-

Infotypes - Master data in SAP HR is held in infotypes. Since master data is the key data

element on which users need to be restricted infotype restrictions become extremely

important in the context of SAP HR.

Structural Authorisations - In SAP HR the population that a user can access can be restricted

using either the enterprise structure (Personnel Areas, Employee Groups, Company Codes,

etc) or the organisational structure. Structural authorisations allow restrictions to be

configured on the organisational structure.

Personnel Number Restrictions - In SAP HR a special authorisation object (P_PERNR)

allows users to be restricted to accessing infotypes for their own data only. This facilitates

functionality such as Employee Self Service (ESS.) The P_PERNR authorisation can also be

used to prevent administrators from maintaining their own data whilst still allowing them

access to others.

mySAP ISU Invoice & Contract Accounting

This component creates FI-CA documents for :

IS-U consumption billing

External billing

SD billing (sales, installation)

Clears bill receivables with posting items, in particular with budget billing payments that

have been made

Creates and prints bills

Supports reversal processes

Manages the budget billing plans and provides functions for processing the budget billing

amounts

Supports the determination and levying of taxes, charges and duties

- Contracting component is a subledger developed for industries with a large customer base

and a correspondingly high volume of documents to post. This includes insurance companies,

utilities, telecommunication, and public service companies.

ERP Contribution to Business benefits-

Business Challenges

Integration & streamlining of various business processes such as

• Marketing

• Finance

• Projects

• O &M

• Procurement

• HR

Change management and risk management

A robust enterprise application backbone supporting the business of IGL

Facilitated ‘End User Training’ – Around 50 users trained

Value Proposition to the client

• Availability of Cross-Functional expertise

• Ability to access Utility Industry best practices

• Capability to leverage end-to-end IT consulting

Business Benefits for IGL

Organization Customization

to maintain

user status at

installation

level Variant

program to

maintain tariff

structure for

large

commercial customer

Process For new connection

marketing has been

integrated with back

office. One Standard format for

management reporting

output to optimize

street route. Implemented workflow

for ISU processes to suit

the customer

requirement. Linking MS Word in

Devnagri script for output.

Financials Flexible

receivables

management

Learning &

Growth Facilitated

‘End User

Training’ –

Around 50

users trained

• Access to leading technology and subject matter expertise through our alliances

• Reduce technology risk profile

• Optimal combination of reduced cost, improved service delivery and quality

Learning’s/Comments

Future trends of ERP @ IGL

With the ERP applications evolving towards greater levels of flexibility, business experts at

IGL increasingly play a more active role in defining the business processes, rules,

organisational structures and performance metrics within the software. Already, IGL

recognises that buying decisions and ownership responsibility for applications such as

customer relationship management (CRM) and human resource management (HRM), and

potentially enterprise resource planning (ERP), is shifting more to the business side of the

house. ERP experts refers to this ownership shift as "IT to BT", and it represents a unique

opportunity for business process professionals to help IT and business stakeholders leverage

innovative technology to transform business processes and improve application flexibility

and value.

Trend 1: Cloud deployment models – IGL realizes that traditional on-premises

applications have reached breaking point: software upgrades have become costly and

difficult. Customisation further complicates the upgrade challenge, and supplier support

deadlines and technical obsolescence, rather than business value, drive upgrade decisions.

However, SaaS - and, more broadly, cloud computing - represents an alternative

deployment model that is much more predictable. With SaaS adoption, IGL expect that

application economics will change for itself and supplier alike.

Trend 2: Mobile technology to accelerate business processes – Experts at IGL realize

that Mobile technology - including devices, software, networks and product distribution

channels - is evolving at breakneck pace. IGL believes that the potential of mobile

applications to transform business processes hinges not only on the speed and

convenience of mobility itself, but also on the unique capabilities of the devices to sense,

respond to, deliver and capture information in real time. This application will help the

officials at IGL respond to the ERP on the go and will ensure minimum time wastage.

Trend 3: Business process flexibility via embedded modelling tools – Managers at

IGL know that the enterprise application configuration and process management has

historically been the domain of technical specialists within IT, prioritising and queuing

the change requests coming from business stakeholders. The end result has been a low

level of business flexibility, where processes often adapt to the limitations of the software

or customisation layers are built onto the applications. Package configuration tooling that

is flexible, graphical and model-based - no coding required - is evolving and will become

a way to differentiate between packaged application suppliers. IGL along with TCS is

working towards accomplishing this goal.