Presented By:

SUJIT KUMAR SINGH

Objective

BPR calls for a radical redesign and systematic

overhauling of strategic systems and processes in an
organization

In the technology-centric business environment of today,

more and more organizations are using IT tools in their
mainstream processes

Hence, for BPR, it is required that the functionalities of

these IT systems are modified
Assumptions

In leading
edge
It can practices,
fundamentall information
y reshape the technology
way business makes BPR
IT is more is done and possible and
than a enable the worthwhile
collection of process
tools for design
automating
or
mechanizing
processes
 INTRODUCTION
BPR
Business Process Re-engineering (BPR) is
an approach that recommends going
through business processes to
reengineer them and improve them.
To reduce useless steps that might be in
the process that does not add any value
or benefit to the process.
ERP
Enterprise resource planning (ERP) is
a software platform that helps
business owners determine how to
best use their available resources.
Business process re-engineering
(BPR) involves observing and
analyzing how the business works to
determine changes that may
streamline operation at the business.
 PRE-ERP DAYS
ONGC used PC-based legacy system for material
management, project monitoring and maintenance
planning.
DATABASE: Oracle & SQL
HARDWARE: HP, Compaq, IBM and Sun
OPERATING SYSTEM: Microsoft Win NT, Sun
Solaris, and Unix
Collation, consolidation, and analysis of operational
data were difficult and time consuming
Standardize more than 200 business processes for
13,000 users across a total of more than 500 offshore
and onshore locations- all in under 30 months
Cleanup and migration of huge amount of data from
legacy systems and creation of data from hard copies
Replication of data and configuration in real-time via
satellite as well as linking to existing systems
The SAP project was slated to be completed in 30
months including a stabilization phase
 PRE-ERP DAYS

Unstable system and slow performance Client-Server computing environment

User friendly database application S/W
Growing paper problem POSC compliant data model
Production schedule delays Extensive GUI capabilities
SOLUTION Fast data communication Network
Inaccurate cost calculations Concurrent data accessibility
Multilevel data security
Employees building reports manually
Integration with Seismic & Electro log archive
Selling out-of-stock products & Asset database
Errors tracking time and equipment
Document delays slow month-end
Service and warranty confusion
Excessive overhead costs
Inaccurate inventory levels
Cash flow and project profits
Disconnected Point of Sale system
Unsupported inventory practices
 OBJECTIVE
Optimization and standardization of business
processes
Higher visibility of operations to improve
productivity
More efficient processes with higher visibility of
costs
Integration and extension of value chain
Integrate all scientific systems
Integration system to provide the data validation
to ensure correct numbers are sent to integrated
systems
The companys hardware investment would
relate high power computing systems and PC
clusters and grid computing using several PC
clusters.
In 2000, started Project ICE- Information Consolidation for
Efficiency - Achieve global standards in operations and
introduce new business processes
Called as One Organization, One Data, One Information
ERP package was to enable the availability of information
on a real time basis and the elimination of duplicate
activities across business processes by capturing data at
the source point
Facilitate decision support, better operation control, and
efficient cost management
Overall ONGC has kept aside Rs 1000 Cr to invest in IT
Invested Rs 95 Cr in SAP implementation
Invest Rs 45 Cr every year towards software
implementation
Rs 600 Cr in project for a communication and control
network
 IMPLEMENTATION

SAP India signed its largest ever deal in

India ONGC for implementation of the ICE
(Information Consolidation for Efficiency)
project
The deal worth Rs 950 million ($19 million)
would provide a comprehensive IT-
enabled system for the oil and gas PSU
right from its well heads all the way to its
boardrooms.
It was also the largest consulting deal for
SAP Asia Pacific
In terms of sheer size (with 8,500 licensed
users across ONGC) it would be Asias
largest ERP project
 Comprehensive implementation
SAP for Oil & Gas solution portfolio

mySAP Business Suite

SAP Strategic Enterprise Management (SAP SEM ) SAP

Business Information Warehouse component
Part of the SAP NetWeaver Business Intelligence
component)
SAP portal.

Implementation also includes other SAP solutions, such as the

Collaboration Projects suite, as well as Supplier Relationship
Management and Upstream Oil and Gas Exploration And
Production Solutions
The enterprise-wide project was designed to integrate with
existing SAP Financials and Human Resource Solutions used in
more than 500 ONGC locations
SAP solutions support ONGCs exploration, production,
maintenance, procurement, finance, payroll, sales, offshore
logistics, joint ventures, treasury, and quality management
processes, including the monitoring of key performance
indicators
 Project started with clear motto of "One data, one
system" Project Kuber, implemented SAP R/3 ERP
SAP Consulting blended expertise with ability to 1996 system for its finance function
improvise as complexities of project required
Project was Completed in May 2005
ONGC started another project, Project Shramik
Efficient Real time Monitoring of the Production and
Drilling Parameters across all the assets in India It deployed SAP for automation of all HR
Remote control of the production well in case of 1999 MODULES including PAYROLL and
ADMINISTRATION
Offshore platform
Facilitate offline analysis of the Valuable/ High
Producing Wells through third party E&P Applications.
Provide summarized information to the management
ICE implementation started in mid
for effective decision making 2000
Total Facelift in the day to day operation of ONGC
Production and Drilling facility to improve the
efficiency Stated Live
2004
 From its earliest interactions in the project,
SAP Consulting quickly recognized that Project
ICE meant far more to ONGC than simply the
implementation of new hardware and
software
And this realization affirmed ONGC's decision
to use SAP Consulting in the first place
What ONGC had in mind was a total
transformation of its business, and the SAP
track record and experience with customers in
oil and gas industries worldwide was a key
reason ONGC believed SAP Consulting was
upto the job
And the partnership was a great success.
Improved, disciplined approach to
accounting, procurement and financial
systems
Rapid acceptance and improved
performance by workers
Improved ability to compete through
the strategic use of new IT platform
Improved visibility of business
processes across different business
functions from exploration to
production to sales and offshore joint
ventures
Supplied 16 Data Centers including the
corporate data centres across India to
enable efficient operation of respective
Assets.
UPS for all the 250 plus tier 1 control room
of production and drilling SCADA along with
FCBC (Float cum boost charger)for 85 no of
remote RTU (Remote Terminal Unit) with
solar chargers.
SAP, EPINET, VRC- Integrations of Real-time
and History Data.
Disaster Recovery Solution for the corporate
data centre
 More than 200 end-to-end, daily business processes were
replaced, yielding unparalleled insights into operations, real-
time reporting on oil exploration and production, inventory,
financial analysis, and accurate and efficiently delivered data.
Redefinition of work roles and duties meant greater
transparency and accountability.
Daily and weekly reports replaced quarterly data and
facilitated real-time reconciliation.
For example, in the area of procurement using SAP business
intelligence functionality the team built in validations to
ensure that users could place a purchase order only with an
approved requisition and available budget
In addition, the company now sends out payments for
purchased products only after invoice verification
Likewise, payments for services are made only after service
entries have been completed and the projects progress has
been updated
Raising the Visibility of Critical Data: A key benefit of the new
solution is that it creates high visibility for critical data. The
new solution ensures that critical operational data is available
online for all levels of management
REVERSE AUCTION PROCESS
Benefit of ERP implementation
One of the benefits of using SAP was the launch of
Reverse Auction process, first PSU to do so
Termed as "Live Action Cockpit" (LAC), the system will
enable ONGC to collect and compare price and bid
information of various suppliers in a real-time, open
bidding environment
The reverse auction will ensure transparency in the
tendering process and thereby generate confidence
amongst the bidders
It will also add speed to the process of procurement
which will allow ONGC to source best in class
technology. On the basis of the pilot project it is
estimated that reverse auction will be able to accrue a
cost saving of nearly 10%
The reverse auction process enables supplier selection
process by facilitating vendors worldwide to
participate in the bidding process seamlessly