BRAKES INDIA LIMITED

SAP ERP HCM ENSURES A SMOOTH DRIVE AHEAD FOR BRAKES INDIA LIMITED, A LEADING PLAYER IN THE AUTOMOBILE COMPONENTS INDUSTRY

QUICK FACTS
It was a pleasure working with SAP Consulting. Thanks to the excellent knowledge transfer from the SAP Consultants to the core team, we are now in a position to maintain and improve the functionality of the system on our own. SAP ERP HCM is very good,
T.N.Ananthakrishnan, General Manager, IT Projects, Brakes India Limited

Summary n Name: Brakes India Limited n Head Office: Chennai n Industry: Manufacturing n Products: Automobile Components (Braking Systems) and Ferrous Castings n Employees: 4,200 n Revenue: INR 1,400 Crores Website n www.brakesindia.com Key Challenges n Eliminate inconsistent, ineffective, paper-based HCM processes n Reduce time and cost of HR administration n Reduce data duplication n Standardize time management n Eliminate data silos and manage data for 4,200 employees within a single system n Boost productivity n Reduce IT and administrative costs n Enable company to meet future needs quickly Project Objectives n A consolidated, single view of the rapidly growing organization n Standardize HR policies and procedures n Transform the HRMS (Human Resource Management System) into a transaction system rather than a database n Achieve integrated process flow Solutions and Services n SAP ERP Human Capital Management (SAP ERP HCM) Solution n SAP HR Service Package- Gold Plus n SAP HR Service Package Training and Event Management-Beta Version

Implementation Time frame: 4 months n SAP ASAP Focus Methodology used to plan and implement the project n Strong implementation partner n Excellent knowledge transfer from collaboration with SAP Consulting n Well-documented process workflows and procedures n Support from senior management n Implementation: Smooth, on-time and within budget
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Why SAP solution n Seamless integration with existing SAP software n SAPs proven track record n Brakes Indias previously successful relationship with SAP and its confidence in the SAP ERP HCM solution n Met companys requirements Key Benefits n Access to more relevant and precise information n Processes and systems are standardized n Greater data accuracy, thanks to reduction in manual processes n Ability to quickly respond to change, thanks to accurate, real-time data n Increased efficiencies n Accelerated processing times n Reduced IT and administrative costs Implementation Partner n SAP Consulting Existing Environment n SAP ERP (FI, CO, PP, SD, MM, QM, PM modules) n Hardware: IBM, n Operating System: AIX 5.3, n Database: Oracle 9i

SAP ERP Success Story Brakes India Limited

BRAKES INDIA LIMITED

SAP ERP HCM ENSURES A SMOOTH DRIVE AHEAD FOR BRAKES INDIA LIMITED, A LEADING PLAYER IN THE AUTOMOBILE COMPONENTS INDUSTRY
Established in 1962, Brakes India Limited is a leading manufacturer of Automotive and Non-Automotive Braking Systems, and Ferrous Castings in India. The company is a joint venture between the TVS Group and Lucas Industries Plc, UK (now integrated with TRW, USA, one of the worlds largest auto component manufacturers). Brakes India Limited, with its Brakes and Foundry Divisions, has nine manufacturing locations spread across India.

Background It was one of the first few Companies in India to be certified for ISO 9002 for its Foundry Division in 1992 and ISO 9001 for its Brakes Division in 1993. Brakes India was also amongst the first few to get certified for ISO 14001, TS 16949 and TPM (Total Productive Maintenance). The company has won the TPM Excellence Award and its Foundry Division the Deming Award for TQM (Total Quality Management). Brakes Indias products are exported to over 35 countries around the world. The Need for SAP ERP HCM Historically, Brakes Indias Human Capital Management (HCM) processes focused on manual, paper-based transactional tasks that required human interactions. Users had to enter and retrieve data from various systems, which created inconsistencies and hampered information sharing. The information could only be integrated through manual entry, resulting in reconciliation and at times outdated data. We had to cope with massive amounts of data using different technologies that combined a homegrown platform and multiple decentralized legacy applications and databases, says T.N.Ananthakrishnan, General Manager, IT Projects, Brakes India Limited. Brakes India had to focus on streamlining HR (Human Resource) operations and internal resources. The company needed to consolidate and update its systems to improve user experience; so that its HR employees could concentrate on more strategic tasks. As the company had implemented other modules of SAP ERP in 2005 and already established a trusted relationship with SAP, Brake Indias choice of the SAP ERP HCM solution made perfect sense.

The right Implementation Partner While selecting the implementation partner for the project, Brakes India turned to the advice of other companies, which had recently implemented SAP ERP HCM. These companies were unanimous in their verdict SAP Consulting was the best choice for implementing the solution. As HCM is a sensitive module affecting the pay of all the employees, the company did not want to take a chance with this implementation. Moreover, the confidence with which SAP Consulting made the preliminary presentation to our management was so good that we did not consider any other partner. We took a good decision in selecting them, says Ananthakrishnan. Implementation The project, which went live on April 1, 2007, had its share of complexities. Being a 45 year old organization, data migration was a big challenge. Further, the time and payroll policies in the company were different across locations with seven different Union Agreements. This was actually seven implementations combined into one, says Ananathakrishnan. Top management commitment was a major factor in overcoming hurdles. A well-planned project Despite a strong internal IT department, the implementation could not have been properly executed without careful planning before, during, and after rollout and going live. Taking into account the age of the organization, the fragmented legacy payroll and HRIS systems, and differing time and payroll policies across locations, we never expected the project to be rolled out in four months. The template based implementation made this possible by reducing the implementation time and the cost, without sacrificing on the quality of implementation, adds Ananthakrishnan.

Using SAP ASAP Focus Methodology, SAP Consulting implemented the SAP ERP HCM solution in just over 4 months. The clear master data templates and training given by SAP Consulting went a long way in ensuring that accurate and quality data enters into the SAP system. Thanks to the excellent knowledge transfer from the consultants to the core team, we are now in a position to maintain and improve the functionality of the system on our own, says Ananthakrishnan. Efficient Collaboration and a Smooth Implementation SAP Consulting provided the company with solution-specific expertise and hands-on experience. Constructive collaboration between the core team and the SAP Consultants was the key to the success of the project. It was a pleasure working with SAP HCM Consultants. They handled change management issues in a sensitive area like HCM with tact, says Ananthakrishnan. Brakes India believes that SAP Consulting committed itself fully in this area by identifying various critical changes that were likely to come about after the introduction of the new system. The company was impressed with their functional knowledge, quick grasp of its requirements, and in-depth SAP knowledge. The functional scope of the SAP ERP HCM solution implemented includes Organization Management, Personnel Administration, Time Management, India Payroll, Training and Event Management. Today, there are 32 users in the company who have taken the implementation well. Benefits With SAP ERP HCM in place, the company can spend less time reacting to problems and more time proactively seeking ways to improve and support managers and

Moreover, the confidence with which SAP Consulting made the preliminary presentation to our management was so good that we did not consider any other partner. We took a good decision in selecting them,
T.N.Ananthakrishnan, General Manager, IT Projects, Brakes India Limited

employees. The software has cut down on manual tasks significantly reducing scope for errors and eliminating data redundancies. By automating many processes that were formerly manual tasks, HR has become a more efficient and costeffective part of the organization. For example, the company has been able to reduce administrative effort, while still maintaining a consistently high level of service. SAP ERP HCM lays a new foundation: n Process re-engineering and standardization have been achieved as part of the project. Varying policies and practices have been streamlined across different locations in the organization
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since SAP ERP HCM has a single database.

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Employee profile is visible at the touch of a button, leading to significant time saving. More control over business processes. Faster, more flexible response to changing business needs.

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Standardized processes, enhanced efficiencies Before the project, payroll processing was time-consuming with limited or very little integration. The variable performance component for each employee was determined manually by the time officer on a monthly basis, while keeping track of employee leaves of absence. Running the earlier legacy payroll system required skill and effort. With SAP ERP HCM, the company has been able to significantly reduce processing times for HR-related tasks, cut data error rates, provide more responsive employee service, and increase overall efficiencies. Now, errors and data duplication have been eliminated. There is no need for any reconciliation between payroll and HR data. Further, the system also takes care of Income Tax requirements. Payroll processes are standardized across the organization, confirms Ananthakrishnan. Using SAP ERP has streamlined HR-related tasks and opened up several opportunities. Data is now available in a uniform format across the organization at all locations. For instance, it is simpler to issue an appointment letter or a promotion letter. The implementation of the companys policies across the organization has become faster and easier.

The SAP ERP HCM implementation has improved internal communication (such as issue of confirmation orders, Increment letters, Promotion letters etc.) to the employees across the organization. Processing time for annual increments and promotions has reduced by more than 50% within two months of go-live

Chances of errors in time-related payments (overtime, attendance incentive, late coming deductions, etc.) have been eliminated due to TimePayroll integration. Chances of errors in variable wage payments have been eliminated. For example, if a car is provided, conveyance allowance should not be given, or if housing is provided, HRA (house rent allowance) should not be given, etc. These conditions are built in the system which prevents manual errors. There is no need to reconcile data between the HRIS (Human Resource Information System) and Payroll systems,

Moreover, integration between personnel administration, time management and payroll eliminates data entry at various levels. An entry or correction made at one place is logically carried over to relevant areas, leading to a reduction in the duplication of work. The company is in the process of abandoning paper-based pay slips, which can result in the reduction of printing and stationary costs. Tighter integration of functions has facilitated a culture of operational control. With SAP ERP HCM, a structured information system enables the management to have access to accurate real-time data which forms the basis for strategic and operational decisions; leading to faster decision- making and enhanced efficiency in the organization.

The management is able to gain deeper insight and more accurate organizational analyses by the automatic capture of information. Future Plans SAP ERP HCM offers ongoing support for the growing companys overall business goals. The organization operates faster, managers are better informed, and employees are more satisfied. Now our employees would like to view and transact their data directly in the system, on their own. We are looking at solutions, which can fulfill this requirement and enable the organization to move towards paper less working in the near future, concludes Ananthakrishnan.