ERP REPORT ON TATA

STEELBY, VIKASH KUMAR

INTRODUCTIONTATA Steels was founded and established in the year

1907. It is one of the leading giants in the country and has the

USP of offering multiple products and successfully running many subsidiary corporations successfully.

They regularly undergo scrutiny and internal audit, even after being such a large entity.

This regular scrutiny is implemented with the help of different committees, who report to the selected members from the senior management.

The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly.

BackgroundTATA steel is India’s largest integrated private

sector steel company that started its corporate journey in the year 1907.

Tata Steel runs state-of-the-art Cold Rolling Mill complex at Jamshedpur, backed by captive iron ore and coalmines in the Eastern India.

Tata Steel's Jamshedpur plant has a capacity of 4 MN tons per year, and produces flat as well as long products which is being expanded to accommodate another million

Tata Steel has set up an ambitious target of 15 MN ton capacity per year by 2010

Tata Steel uses SAP as their ERP package.

Reason behind choosing ERPTISCO wanted to bring forth a culture of continuous

learning and change with this implementation.

This would have enabled TISCO to strengthen its leadership position in the industry and achieve a world-class status for its products and services.

The software would have resulted ina) Quick decision-makingb) Transparency and credibility of data c) Improve responsiveness to customers across all

areas.

TIME TAKEN IN IMPLIMENTING THE PROJECT

CHALLENGES FACED DURING ERP IMPLIMENATION

 CHALLENGES FACED BEFORE ERP IMPLIMENATION1. TISCO IT systems was not well integrated.2. There were too many different systems, and too

many gaps between them.3. A legacy of the company’s history of mergers,

acquisitions, and improvement initiatives.4. There was no common information backbone.5. There were chances that ERP implementation, if

done in wrong manner, have caused havoc to organizations more than bringing profits.

Should the implement ERP in the whole systems in one single spree or not.

Challenge to building a conducive environment where SAP will be embedded in the hearts and minds of the people and the customers of Tata steel

CHALLENGES FACED DURING ERP IMPLIMENATION 1. MORE THAN ONE PLANNING STRATEGY

2. COMPLEX PRODUCT VARIATIONS

3. FLEXIBLE PLANNING

4. SPECIFIC CUSTOMER SERVICE REQUIREMENTS

5. COMPLEX PRODUCTION SCHEDULING COMBINING BOTH CONTINUOUS AND BATCH PRODUCTION

  CHALLENGES FACED AFTER ERP IMPLIMENATIONThe reliability of information obtained was

questionable because of inconsistency and duplication of data from different departments.

There was no built-in integrity check for various data sources.

Several times the information against certain items was found missing.

 REASONS FOR CHOOSING ERP

TISCO faced two major problems from the systems that existed for a long time:1. They were not customer friendly. The whole

system was tuned to the process and very little attention was paid to the customer demands.

2. The systems were outdates and the modalities of operation were too complex and not error free.

MONEY SPENT ON IMPLIMENTATION

After Implementation

Was Saved within few Months

OUTPUT AFTER THE IMPLIMENTATION OF ERPSAP ERP solutions produced a remarkable

result to the company in terms of financial technical and managerial parameters.

The effective handling and speed delivery resulted in greater sales.

Similarly there was a drastic fall in the amount owned to creditors.

The systems were made more user friendly without any complexities and procedural lacunas.

It improved the quality of work and lessened the time taken for work and thereby increased the productivity.

This was followed by a massive change in terms of accountability administration and control.

The manpower cost has reduced from over $200 per ton two years ago, to about $140 per ton in 2000.

The overdue outstanding has been brought down from Rs 5,170 million in 1999 to Rs 4,033 million by June 2000.

The inventory carrying cost has drastically deflated from Rs 190 per ton to Rs 155 per ton.

Besides the streamlined business process reduces the levels of legacy system and also provides consistent business practices across locations and excellent audit trail of all transactions.

The availability of online information has facilitated quicker and reliable trend analysis for efficient decision-making.

With SAP's solution Tata Steel can now update their customers on a daily basis and provide seamless services across the country improving customer management.