SAP Implementationin

Background note

• 1951- Govt of India entered agreement with Burmah-Shell for estb. Oil ref at Bombay

• 1952- agreement led to incorporation of Burmah Shell Oil Refineries Ltd

• 1975- company aquired by Govt Of India and named it Bharat Refineries.

• 1977- Name changed to BPCL• 1999- Emerged as 2nd largest oil company in

terms of mkt share. (32% petrol, 27% in diesel)

Facts

BPCL

Bina 9 mtpa

Numaligarh 3mtpa

Cochin 7.5 mtba

Mumbai 6.9 mtpa

Manali ref 6.5 mtpa

*MTPA -million metric tonnes per annum

4,500+ outlets nation wide

Foresightedness (1996)

• BPCL planned to increase its emphasis on retail business and increase its non-fuel revenues, by leveraging on the strength of its retail by providing value-added services like convenience stores, automated teller machines (ATMs) and internet kiosks.

• To enhance its customer focus , the company was revamped into six Strategic Business Units (SBUs)- Retail, Aviation, Lubricants, Liquefied Petroleum Gas (LPG), Industrial & Commercial (I&C), and Refinery. (Kind of BPR)

Restructuring • These SBUs were integrated with support

entities like Information Systems, Finance, Human Resources, Strategy and Brand Management.

• It helped the organization focus on specific customer segments and address their individual needs.

• This required streamlining of the processes and integration of organization as a whole. It is when the company decided to implement ERP.

IT initiatives at BPCL (1996)

• BPCL divided its IT initiatives into a three-pronged strategy– to create a communication network within the

organization; (created intranet)– to create a basic information network for the

entire corporation – to process transactions with customers all over

the country

Cont:-

• Problem areas included – high costs of traditional communications,– No quick access to executives,– need to communicate with recipients over multiple

locations.

First step:- Intranet setup.• Microsoft Exchange Server and MS Windows

NT Server – platform• Conducted feasibility test:– connected three locations on a Very Small

Aperture Terminal (VSAT)-based network – VSAT network was rated on the criteria of• ease of deployment, • speed of mail• delivery, • zero message loss • response times.

Microsoft Consulting Services

BPCL IT Infrastructural layout for country wide intranet connectivity

'Project CUSEC (CustomerService and Satisfaction)

• The ERP implementation was part of this project.• Company selected SAP R/3 ERP.• Appointed consultants Coopers and Lybrand.• Existing network was redesigned and restructured– Central cloud connectivity– Ensured security through Sun Ultra 5 firewalls , Real Secure,

Internet Scanner , Floodgate, Web Trend and Web Sense.• The server architecture - Compaq Proliant NT server. • Routers and Switches- Cisco

SCM For O & G

SAP O&G’s- Business Process Coverage

Functional Environment

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 receivable of inventories