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Anjana
IM Group 2: Anjana, Chetan, Prachi, Puneet, Rajesh & Swapnil * Chetan * Prachi * Puneet * Rajesh * Swapnil
IM Group 2
Summary
When Oil and Natural Gas Corporation Limited- India's largest oil exploration and production company- set out to completely transform its business, it turned to SAP solutions and services. As a result, the company was able to overcome the challenge of standardizing business processes across its 500-plus locations. At the same time replication of data and configuration in real-time via satellite as well as linking to existing systems was also required. Thats where ABB with SCADA (Supervisory Control and Data Acquisition) ONGC, a fortune 500 company, is the flagship company of India; and making this possible is a dedicated team of nearly 33,000 professionals. With market capitalization over USD 22 billion, ONGC contributes more than 80% of India's oil and gas production. The company has adopted progressive policies in scientific planning, acquisition, utilization, training and motivation of the team. It has a unique distinction of being a company with in-house service capabilities in all the activity areas of exploration and production of oil & gas and related oil-field services.
Anjana
Chetan
Prachi
Puneet
Rajesh
Swapnil
IM Group 2
Anjana
Chetan
Prachi
Puneet
Rajesh
Swapnil
IM Group 2
Table of contents
Pre ERP days Existing Environment IT initiatives by ONGC Project Objective The Implementation phase Implementation Plan Implementation Highlights Post Implementation SCADA System Architecture Reverse Auction process References . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Business Process Re-egineering changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 . . . . . . . . . . . . . . . . 06 . . . . . . . . . . . . . . . . . . . . . 09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Challenges: Transform Business Operations Business Process Re-engineering plan
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Anjana
Chetan
Prachi
Puneet
Rajesh
Swapnil
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Anjana
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Swapnil
IM Group 2
Existing Environment
Database: Hardware: Operating system: Oracle HP, Compaq, IBM and Sun Microsoft Win NT, Sun Solaris, and Unix
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Project Objective
Objective for SAP implementation: 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
Other objectives of Project ICE: Integrate all scientific systems: Integration system to provide the data validation to ensure correct numbers are sent to integrated systems The rest of the amount will be spent on EPNet, its exploration and production network, being implemented in two phases by Schlumberger. The companys hardware investment would relate high power computing systems and PC clusters and grid computing using several PC clusters.
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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.
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Implementation Plan
Comprehensive implementation of mySAP Business Suite and the SAP for Oil & Gas solution portfolio, including the SAP Strategic Enterprise Management (SAP SEM) application, SAP Business Information Warehouse component (part of the SAP NetWeaver Business Intelligence component), and SAP portal. The 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.
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Implementation highlights
Project started with clear motto of "One data, one system". As far back as 1996, the company undertook Project Kuber, wherein it implemented SAP R/3 ERP (Enterprise Resource Planning) system for its finance function. Thereafter, in Dec 1999, ONGC started another project, Project Shramik, where it deployed SAP for automation of all HR modules including payroll and administration. ICE implementation started in mid 2000 and it went live in 2004 The project was envisaged by core design and engineering team of ONGC under the initiative of Chairman of ONGC Limited. It had best brain from different departments working on it- text book example of best practice. The team looked like mini ONGC- the perfect team. The western offshore business division (Headquarter at Mumbai) of ONGC was the first to go live in its exhaustive ERP deployment. The first rollout was for 3,000 users in the companys offshore operations centered at Mumbai. One key test was making the transition at the most challenging sites: offshore and onshore oil drilling platforms, where daily activity reports are required by 6 a.m. without fail. Instead of trying a soft target first, ONGC chose the hardest and most critical areas first: production and drilling to go live with. This required processes and actions had to be
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documented in a standardized format and recorded in a time-bound period. Idea was if hard target succeed then all the others would fall in line. First day of a quarter as a go-live date. By the time the project was completed in May 2005, the project team had added other geographical locations and functions to the implementation, making new solutions available to a total of 13,000 users 65% more than the user base originally planned. SAP Consulting blended expertise with ability to improvise as complexities of project required Excellent knowledge transfer from collaboration with SAP consultants Project team consultants from SAP played critical role in rollout and education of users SAP used ONGC as training centers for its employees to learn about Oil & Gas industry The ABB SCADA system was deployed in 179 onshore servers, 8 offshore servers, 2 plants in tier 1, and 13 redundant servers in Tier 2 control centers. As well, the system will be implemented in the corporate centre in Delhi with a backup centre in Bombay. The ABB SCADA project covers 157 offshore platforms and 247 onshore installations, pipelines and 2 processing plants with a cost of approximately 100 Million dollars. Enterprise Wide SCADA for all Production and Drilling Facility of ONGC Spread across India and in Arabian Sea.
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The Automation system was integrated with the SAP is must to ensure the error free production, Sale numbers reporting on day to day basis. The project management group also excelled in meeting the logistical challenge of connecting hundreds of sites across India even on nomadic drilling rigs and seismic field parties. Innovative solutions included secure satellite and radio-based communication network access to offshore locations and other remote locations deployed through a tightly coordinated schedule between the ONGC project team and service providers. Main reason for ONGC to think about such LARGE architecture o Efficient Real time Monitoring of the Production and Drilling Parameters across all the assets in India o Remote control of the production well in case of Offshore platform o Facilitate offline analysis of the Valuable/ High Producing Wells through third party E&P Applications. o Provide summarized information to the management for effective decision making o Total Facelift in the day to day operation of ONGC Production and Drilling facility to improve the efficiency
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Post Implementation
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 up to the job. And the partnership was a great success.
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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.
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The potent combination of a new business culture supported by a new IT tool and the flexibility to adopt new business innovations, along with an in-house leadership capability, prepares ONGC to explore new frontiers, including joint ventures overseas. ONGC has also implemented the employee self-service (ESS) functionality of the mySAP ERP solution, thereby expanding its to reach to cover 36,000 users, making it one of the largest ESS implementation in India. ESS christened SAMPARC, meaning connect facilitates employees to apply for leave, submit their claims, and view their payment details online. For ONGC, SAP solutions have equipped the worlds secondlargest oil exploration and Production Company with the reliable, available data it needs to manage the magnitude of the 21st century challenges it will face.
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At end of the day, SAP Consulting excelled, I must say. They gave us a good support and tried to understand our business to deliver the product we were looking for KS Jamestin, General Manager and Head of Project, ICE, ONGC
ONGC strongly believes in adopting worldclass processes and technologies to generate better value for its stakeholders.On the basis of the pilot project it is estimated that reverse auction will be able to accrue a cost saving of nearly 10%. Mr. U.N. Bose, Director (T&FS), ONGC
"Our plant maintenance solution now has a service history and a method of capturing the total cost of ownership. Decisions are made faster and are more informed by data from across the entire organization. KS Jamestin, General Manager and Head of Project, ICE, ONGC
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References
With interaction with few ONGC employees who were involved in implementation http://infotech.indiatimes.com/articleshow/943355.cms http://www.brplindia.in/news_erp_sap.htm http://www.sapendusers.com/oilIndia.php http://www.ongc.net/press_release1_new.asp?fold=press&file=press112.txt www.sap.com www.Abb.com Various news items from sites like NDTV, rediff etc Various reports available on public domain
Anjana
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Prachi
Puneet
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Swapnil
IM Group 2