NTPC – About the company
Vision
“To be the world’s largest and best power producer, powering India’s growth.”
Mission
“Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.” • largest Indian state-owned electric utilities company based in New Delhi, India. • Government of India holds 84.5% • NTPC's core business is engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad.
All India Coal Gas / Liquid fuel Diesel Thermal Nuclear Hydro RES 77648.88 14876.61 1199.75 93725.24 4120 36877.76 13242.41 NTPC 23895 3955 27850* -
Total
147965.41
27850*
Locations, divisions & operations
Its locations – varied geographically Serial no. 1 2 Headquate r NCRHQ ER-I, HQ City Delhi Patna Its diverse business expanse – varied operationally As per new corporate plan, NTPC envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power based capacity; most of it would be based on carbon free energy sources. • Hydro Power • Renewable Energy • Nuclear Power • Coal Mining • Power Trading • Ash Business • Power Distribution • Equipment Manufacturing
3
4 5 6 7
ER-II, HQ
NRHQ SR HQ WR-I HQ Hydro HQ
Bhubaneshwar
Lucknow Hyderabad Mumbai Delhi
8 WR-II HQ Raipur The power generation plants under it are • 19 Thermal-coal based • 7 Coal based (owned by JVs) • 8 Gas based • 6 hydroelectric power projects including one in Bhutan
Joint Ventures of NTPC
It has formed Joint Ventures with :1. For Capacity addition
• • • • • •
SAIL power Company Limited Tamil Nadu Energy Company Limited Aravali Power Company Private Limited Meja Urja Nigam Private Limited Ratnagiri Gas and Power Private Limited Nabinagar Power Generation Company Private Limited 2. For Services Alstom Power Services Utility Power Tech Limited National High Power Test Laboratory Pvt Ltd For Power Trading and Power Exchange
DIVERSIFICATION : To broad-base the business and ensure growth, diversification in areas Hydro power, Distribution, Trading, Coal mining, LNG etc. have been identified as priority areas. BACKWARD INTEGRATION- COAL MINING • The policy changes provides an opportunity to NTPC to enter captive coal mining business. Pakri Barwadih in the state of Jharkhand and 5 more blocks (~40MTPA) have been allotted to NTPC, including two in JV with CIL. • NTPC is exploring various other options including acquisition of stake in coal mines abroad for sourcing of thermal coal for addressing fuel security concerns.
• • • •
•
National Power Exchange Limited (NPEX)
For Acquisitions
POWER STATIONS TAKEN OVER
3. For Coal Mining • SCCL Global Ventures Pvt Ltd • International Coal Ventures Pvt Limited • BHEL Power Projects • Transformers and Electricals Kerala Ltd • Energy Efficiency Services Ltd • CIL-NTPC Urja Pvt Ltd • Anushakti Vidyut Nigam Ltd
YEAR 1991 1995 2000 2006 ORIGINAL OWNER UP Rajya Vidyut Utpadan Nigam Limited Orissa State Electricity Board UP Rajya Vidyut Utpadan Nigam Limited Central Electricity Authority
2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER STATION 4x60 MW +2x110 MW TALCHER THERMAL POWER STATION Orissa State Electricity Board 4x110 MW TANDA THERMAL POWER STATION 705MW Badarpur Thermal Power Station Central Electricity
Strong presence across all verticals
Enterprise Asset Management
Project Management
Sourcing and Procurement
Human resource management
Billings and settlement
Finance and Reporting
Vendor Selection Process
Analyse the Business Requirements
Vendor Search
Request for Proposal (RFP) and Request for Quotation (RFQ)
Proposal Evaluation and Vendor Selection
Contract Negotiation Strategies
Vendor Evaluation Criteria
Function fit Technology
Company
Cost
• • • •
Support
Direct software cost Hardware cost Annual support cost Implementation cost
Vendor and Business Requirements
Market Capitalisation Specific Qualifications and Working Conditions of Employees Integrated inventory, order processing, and accounting system Robust Payroll and Costing system Transaction history must be available online for a minimum of five years
Evaluation of Vendors against Requirements
Analysing Business and Vendor Specifications
Assigning a Performance Value to each Vendor
Calculating the aggregate score
Why SISL-Siemens Information Systems Limited
Leading "Systems Integrator and Total Solutions Provider" offering high-end consultancy in areas like Healthcare, Telecommunications, Manufacturing, Utilities, Public Sector & Government Good Track record in Implementing ERP solutions across the Energy and Utilities sector Has a partner tie up with SAP and also a center of excellence Quotation competitive with respect to other vendors SISLs previous experience of working with some of the major DISCOMs in the country gave it an edge Global network of 475,000 people, operating in over 190 countries
Contract Negotiation
• Define Any Time Constraints and Benchmarks
• Assess Potential Liabilities and Risks (How will implementation delays be handled? Whose insurance will cover contract workers?)
• Confidentiality, non-compete, dispute resolution, changes in requirements
Various Processes at NTPC
Network Specific Functions
Network Documenta tion Network Calculation s Geographi cal analysis Technical Planning
Operations Functions
Market Related Functions
Work Order Mgnt. Procureme nt
Billing
Meter Reading
Energy Mgnt.
Dispatch
CRM
Pre-ERP Disparate Application Landscape
ERP Software Product Preferences
Power sector prefers SAP over PeopleSoft because of the provision of the ―Utilities‖ vertical Experts in IT software development domain not present in power company Building software in-house is timeconsuming and will shift focus from core operations
NTPC should buy the software product from third party
As Is – To Be Analysis
Pre-ERP System Constraints (As Is) Business Goals That NTPC Aimed to Achieve (To Be) Integration of Process/People/Location/technology Stable and secure system to support growing business needs Improve vendor management and reduce procurement cycle time Empower employees through progressive H.R practices Effective asset management and maintenance tracking across the organization
Multiple systems with varying process maturity Legacy applications could not handle new requirements Duplication of vendor codes and lack of system support for new modes of procurement Lack of systems to provide employees with data access Limited ability to accurately track O&M costs and conduct systematic asset maintenance plans
Limited visibility into inter unit inventory
Increased visibility into inventory levels
Scope
The Scope of the Project as envisaged by the company :
Business Areas
• • • • •
Services Coal Mining Power Trading Power Exchange
Locations •Head Office • Regional Offices • Factories • Warehouses •Area Sales Offices Systems •Interface to Internal Systems •Interface to External Systems (e.g. Tata Chemicals)
Manufacturing
Accounts (incl. Costing) Production Planning and rest of manufacturing processes
Functions
• • • • • • •
Purchase and Inventory
Sales and Distribution Plant Maintenance Quality Assurance HR
•
Asset Management
Genesis of the Project
Define Business Strategy
• Organizational Restructuring and Business Process Reengineering • Long Term Business Strategy, HR Strategy and IT Strategy
Develop Supporting IT Strategy
• Selecting the right approach towards home-grown , best of the breed or COTS
Selecting the right IT Partner
• Evaluate and award contract to the best ERP solution provider • SAP selected as the IT platform
Pilot Implementation
• Whole suite of SAP applications across 5 locations • First pilot project live in 10 months
Complete Rollout
• Rolled out across 25 locations
RoadMap
ERP Transition
Implementation of an ERP and transitioning from legacy systems requires that not only the system be ready but the organization and its people to be ready on many levels. The following aspects are to be considered in the transition phase
Technical Infrastructure Application Software
Data
Organization Operational Third parties Users
Project Initiation
The objective of this phase is to find the package that is flexible enough to meet the company‘s need or in other words, a software that could be customized to obtain a ‗good fit‘.
For example :- Improve vendor management and reduce procurement cycle time Reduce engineering & construction cycle time Once the packages to be evaluated are identified, the company needs to develop a selection criteria that will permit the evaluation of all the available packages on the same scale.
Project Initiation
To choose the best system, the identification of the system that meets the business needs, and that matches the business profile.
It is better to have a selection committee that will do the evaluation process.
Considering the constraints involved:1.Limited visibility into inter unit inventory levels 2.Limited ability to accurately track O&M costs and conduct systematic asset maintenance plans
Project Planning Phase
This is the phase that designs the implementation process. Time schedules, deadlines, etc. for the project are arrived at. The project plan is developed in this phase. Establish the Core Pilot implementation of all the modules at 5 locations Build global template to align organizational processes Go live in 10 months from the date of project kick-off In this phase the details of how to go about the implementation are decided. The project plan is developed, roles are identified and responsibilities are assigned.
Project Planning Phase
The organizational resources that will be used for the implementation are decided and the people who are supposed to head the implementation are identified. The implementation team members are selected and task allocation is done. The phase will decide when to begin the project, how to do it and when the project is supposed to be completed. The phase will also plan the ‘What to do’ in case of contingencies; how to monitor the progress of the implementation; The phase will plan what control measures should be installed and what corrective actions should be taken when things get out of control. The project planning is usually done by a committee constituted by the team leaders of each implementation group headed by CIO.
List of Modules Requirement for NTPC ERP Implementation
Production Plan
Operation Management
Security Monitoring Management
Electric Belt Scale
Bi-Ticket Management
DCS Net-Gate
Technics Monitoring
Salary Accounting
Transportation Management
Finance Reports
Storage Management
Purchase Management
Fuel Management
Equipment Accounting Management
Equipment Fault-Removing Management
Equipment Reliability Management
Human Recourse Management
Environment Protection Management
Management Inquiry
System Management
ERP configuration and set up
Corporate planning Project s
Engineer ing & QA Contract s
Site procureme nt materials
Operati ons
Mainte nance
Fuel Manage ment
Comm ercial
Finance, Human Resource R&D, TCM, IT Rehabilitation and Resettlement Legal & Secretarial Safety, Security, Vigilance Consultancy Corporate communications Employee Health Environment
Why SAP?
Worlds largest ERP product company with proven track record
Support for easy setup and ongoing changes
Predictable long term financial cost with buying only what is needed
Multiple channel access using mobile, computer and other platforms
Complete integration of people, Information and Business processes
Integrates existing IT investment without data loss
Solution Architecture-MySAP Business suite – SAP R/3 enterprise
my SAP Product Lifecycle Management (mySAP PLM)Engineering and design and management of on going engineering changes
Industry Solution for Utilities covering Energy Data Management, Billing & Contract Management (mySAP Utilities)
Platform and Integration Components - SAP NetWeaver Application platform for all SAP solutions - SAP Web Application Server (SAPWAS) Information Integration- mySAP Business Intelligence (mySAP BI)
Third Party Product-Powermaster from Siemens, Optibiz software technologies & RWE npower
ERP data migration
Existing Data
Materials • 30000+items Transaction Data • Master data material and Service Plant • 15000+ equipments Equipment Master and Task list • List of activities Employees • Employee data Finance • Accounting data Operations • Plant parameters history data Vendors: 5000+vendors • 5000+vendors
Migration architecture
Extract data from source system
Data cleansing, transformation and harmonization Data migration and Accounting
Renter
incomplete transaction
Data Validation
Auditing data migration Documentation
Challenges and points of failures in Data Migration
Lack of proper methodology Improper classification of data Unrealistic scope Lack of understanding of the tools Inattention to data quality
Lack of experience
Heterogeneous transition between two different platforms
Extended Role Based Access Control
Permission
Obligation
• access to one or more objects in the system. • DB System :create/delete or insert record • Accounting app.:rights such as account creation/deletion, credit/debit
• NTPC researchers have to fill up his/her personal information before s/he can have the rights to read or download white papers.
• Environmental or System Requirements
Condition
Condition Obligation Permission
Policies at NTPC
Need to know Need to Share Trust Integrity
• Whether the user needs to know? • An accountant might need to know the current status of a consignment dispatch • Whether information sharing help? • Finance and Manufacturing can share inventory levels to forecast costs • Trusted parties are allowed sharing. • CFO & CEO are allowed to share anything • Data modified by authorized individuals? • Leave status of employees can be changed only by NTPC-HR
ERP Testing
Initiate planning and gather requirements Define test goals and select appropriate tests Identify functionality test cases Develop modular test components Set up a test lab Understand and leverage the ―smoke test‖ Execute regression tests Analyze defects and create test reports.
Change & Change management strategies
ERP helpdesk
Processes
Roles & Responsibilities
Deployment of power users
NTPC Change management
User Involvement
Work culture
Attitude and mindset of people
End user training
Components in change management
GAP Analysis: As Is and To Be analysis
Job Assignment: Individuals to To Be jobs
HR Alignment: Create new job descriptions and hiring Communications plan: Notifying existing employees about the transition Transition strategy and budgets: Decision to do In-house or Out house
ERP Closure
Clear Pending Items after referring BRD of NTPC Finalize knowledge transfer to the different departments of NTPC Document the lessons learnt Go-Live Support by a SISL tech team Establish on-going quality and testing strategy Conduct performance tuning
Benefits achieved
Implementation of Works Bill processing
Centralized Payroll and Employee Self Service for 25000 employees
Energy Billing as per availability based tariff
Implementation of Fuel management functionality to meet business requirement of capturing and handling data
Vendor Collaboration-Both Internal and External
E tendering and Reverse Auctions
Claims , travel and Loans Processing automated and workflow cycle optimized
The Major Risks
The Risk of High Initial Cost Changeover from Old Legacy System to new ERP System Collapse of the new System Non customization of ERP software to existing business processes Improper integration of modules Non availability of Bandwidth / internet facility at remote rural areas Employees not at ease with the new System
The Mitigation Process by NTPC
Pre Implementation
• Awareness of the new system • Proper communication and Information dissemination among the NTPC workers across multiple sites • Data Validity • Infrastructure readiness and Worker/Manager training across levels.
During ERP Implementation
• Data migration from NTPC legacy to ERP System • Alignment of the ERP System to NTPC s vision
Post ERP Implementation
• Live Support by SISL • Customization of features by SISL as per NTPC demands Change Control via regular and periodic information disbursal Continuous NTPC User Staff and Executive Training to put them at ease Involvement of NTPC top Executives right from day 1
What led to the Success- The NTPC Way
Ensuring Top management Commitment and Support (CEO and CFO) Ensuring that the Businesses owns the process to be implemented (Enterprise Asset management, Sourcing & Billing etc.) Assess and address policy change proactively
Hiring Consultants (SISL)who have had prior experience in the same industry
Regular awareness programs through change agents and process anchors Improve and adapt the rollout approach based on ground realities (e.g.: Data Centre, Training)
Make realistic and detailed estimates on the effort needed to migrate existing legacy data