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Presented By:Mayur Toshniwal (28)Mohit Bhatia (30)Neha Dhanuka (32)Nitin Kulshreshtha (33)Shilpi Keshri (43)
ONGC : Background
Fortune Global 500 company ranked 152nd
Contributes 77% of India's crude oil production and 81% of India's natural gas production.
Highest profit making corporation in India
Have a vast geographical spread covering almost entire India.
Pre Implementation Scenario
De-centralized IT landscape
Systems typically for limited financial management, HR management and material management without any logistical connectivity
Few function based standalone systems and business applications like UFSOand IMMS
ONGC continuously monitors the activities on daily, monthly, quarterly and annual basis.
Need for an ERP package
Monitoring required comprehensive, exhaustive multi process based data integrated manually with each other
Key executives always had to face time lags between the activity period and data availability
Constraints in logical decision making
Integrated information system for good governance was missing
Project ICEAim to provide a comprehensive IT solution encompassing end-to-end business process requirements through a globally reputed ERP package
All the previous e-centralized IT solutions were to be merged
Total cost of Rs. 136 crores, which includes the cost of Data Centre Systems
• Total Business transaction needs of ONGC• Enabling tactical and strategic decision making• Access to information online • Accessibility from a single platform
Planned to address :
: The Solution
Implementation Approaches
• Entire suite of ERP applications is implemented simultaneously at different locations
Big Bang Approach
• Implemented in phases and sequentially• Two ways:
• Single module implemented at all sites• All modules implemented site by site
Phased Approach
Company Management ERP Vendors
Gap Analysis
Implementation Team Training
Configuration
End-User Training
Reengineering
Testing
Pre-Selection Process
Package Evaluation
Project Planning
Going Live
Post-Implementation Phase
ERP Implementation Life Cycle
Pre Evaluation Screening
Large number of ERP vendors
Search for the perfect package
Screening eliminates those packages that are not at all suitable for the business
Limits packages to be evaluated
Package Evaluation
One of the important phases of the ERP implementation , because the package that one selects will decide the success or the failure of the project
A ‘do-it-right-the-first-time’ proposition
Finding a package that is flexible enough to meet the company’s needs, that is it may be not a perfect fit but a ‘GOOD FIT’
A selection criteria that will permit the evaluation of all the available packages on the same scale
Formation of a selection committee for the evaluation of the packages
Project Planning
Implementation process is designed and a blueprint of all business processes is prepared
Time schedules, deadlines etc for the project are decided
Roles are identified and the responsibilities are assigned
The implementation team members are selected and the task allocation is done
This phase is usually carried out by a committee of the team leaders of each implementation group
Implementation Schedule
Team Structure
GAP Analysis
This is the process to identity the gaps by mapping the expectations of the company with the capabilities of the ERP product
• Directly Supported• Workaround suggested• Extension required• Change in business process – suggested• Not fully supported• Manual – not under the scope of ERP
Results of Gap Analysis
Production Phase
Installing the software & hardware
Tuning the software to meet the customization needs : Configuration
Master & Control data arrival as per the Product data structures
Location & people specific roles & rights
Allocation for module access & security
Trainings
• implementation team of nearly 150 executives from all over ONGC were trained at SAP, India for knowledge building and system understanding
• Team was divided into different groups depending on the module in which they were trained.
Implementation Team training
• Change from legacy system of recording and reporting to adopting of a computer based integrated system required attitudinal change
• Top down approach used : Senior Junior• Till date nearly 10000 users all over ONGC have been trained on
the various modules of SAP• training and retraining made a continuous process
End User Training
Implementation Phase
Conference Room Pilot [Parallel run]
Resolving the Parallel run issues
Training the end users
Live run
Done from the first day of the quarter for ONGC
Geographical Expanse and Implementation Schedule
Post-Implementation Phase
Regular monitoringTuning
[hardware/software] for patching
Performance issues Maintenance
Modules Implemented in ONGC
• To track planned and actual COP of Crude Oil, Natural Gas and VAP• Monitors real time production environment with online availability of
information related to Materials & Products• Generation of customised report for faster decision making
Production Planning
• Gives the cost involved in each maintenance activity• Tracks various audit activities and their follow up actions in ONGC• Provides a system for management and maintenance of technical
systems including the cost incurred in the planned and breakdown maintenance
Plant Maintenance:-
• Integrates General Ledger, Accounts Receivable, Accounts Payable with all the sub ledgers synchronized with the G/L in an on-line, real-time manner
• Participates in comprehensive transaction tracking and reporting facilities in all areas of the Financial Management System
Financial Accounting
• Covers the functionalities of CCA, PCA and Product Costing for wide range of management reporting
• Its features are integrated to operational modules such as Sales & Distribution, Material Management, Plant Maintenance etc
Controlling
Modules Implemented in ONGC
• Covers the Joint Venture activities, starting from Joint operating agreements, Work Programs, Equity equations, Expenditure, Cash Calls, Recovery, Billing and Accounting (as operator and non-operator)
Joint Venture Analysis
• comprises of entire Sales & Distribution activities starting from sales agreements to delivery and generation & printing of invoice in integrated sales process for all products of ONGC
• integrated with financial accounting for account receivable management; material management and production planning for real time stock updating and quality management for quality analysis and reporting
•
Sales and Distribution
Modules Implemented in ONGC
Modules Implemented in ONGC
• encompasses all phases of a project from Project Conceptualization, Budgeting, planning of costs and resources and approval of Estimates to Execution, payment and Completion of the project in an integrated scenario
Project System
• Integrates all transactions and functions necessary for material requirement planning, procurement, inventory management, invoice verification, and material valuation
Material Management
• Covers inspection of procured material, inspection of in-house products, and generation of Quality certificate for issuing finished products to the Customers
•
Quality Management
• The ABAP (Advanced Business Application Programming) development team provides support to functional module team pertaining to any new developments, enhancements, feasibility, data migration etc.
ABAP
• Generates analytical and strategic reports for Business Analysis and performance tracking including the Corporate Key Performance Indicators
Business Information Warehouse
Modules Implemented in ONGC
Project ICE went live at Western Offshore on 1st October,2003, Western Onshore on 1st April, 2004, Southern Onshore on 1st July,2004 , Eastern Region on 1st October,2004 and
Enterprise Wide roll out on 31st December, 2004
Acceptance of the system through out the organization has been very successful
Performance and Results