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Companies Implemented SAP ERP HCM packages in India 7 NTPC 7 HR as a Strategic Business Partner in NTPC 8 LAKSHYA Mission 11 LAKSHYA Objectives 11
Implementation of SAP ERP (Project Lakshya) 12
Importance of Lakshya in NTPC 12 Project Disha : 13 Benefits 14 Functionality 16 Talent Management 16 HCM Service delivery 16 Workforce analytics 16 Workforce process management 16 Conclusion 17
INTRODUCTION
The countless challenges faced today by global businesses are expected to grow in intensity and difficulty as we move further into this century. Prolonged global competition has become the norm rather than the exception, with an unprecedented number and variety of products available to satisfy consumer needs and desires. The dynamics of faster product development, more customized manufacturing, and quicker distribution have benefited the consumer. At the same time, these changes have led to new and very high consumer expectations and standards for companies to meet in the marketplace. Satisfying the customers desire for high quality and quick service in the current business environment has added pressures not historically present. To meet these new challenges, companies around the world have invested in IT. In this age the companies plan more about IT (information technology) than about IT (Income Tax) The former IT plays a much larger role as a differentiator in the market as the former and hence is looked upon as weapon to spearhead competition in the market. Our Project titled ERP in NTPC focuses on aligning Employees, Strategies and Processes or Business Success through an ERP. The overall power related activities that have been undertaken by NTPC over the past years have been discussed to give the reader a basic understanding of the work that is performed by the company. In the next part, the need of SAP ERP in different areas of NTPC to effectively deal with business challenges have been discussed along with their HR practices for retaining the knowledge workers. The work has been limited due to non availability of facts and data on the internet and on their websites. But we have tried our best to interpret what ever data we have got to the best of our understanding.
SAP focuses on six industry sectors: process industries discrete industries consumer industries service industries financial services, and Public services. It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro vertical solutions for midsize companies and small businesses.
insight into organizational talent to more effectively plan, acquire, educate, align & retain the talent need to maximize the effectiveness of the organization. Identifying top performers and potential successors helps organization minimizes disruption when executives and senior managers leave or retire. To compete effectively, one need to align all corporate resources including employees with business objectives. To do so, one need to transform traditional HR functions into a comprehensive program for human capital management (HCM). It maximizes the value of employees and integrates employees, processes, & strategies to support business goals. That's why you need SAP ERP Human Capital Management (SAP ERP HCM). The solution optimizes each employee's contribution by aligning employee skills, activities, & incentives with business objectives and the strategies to reach them. It also provides tools to manage, measure, & reward individual and team contributions.SAP ERP HCM enables employees to maintain personal information & control administrative processes. So HR department can focus on value generating projects instead of administration.SAP ERP HCM supports payroll functions, regulatory requirements, integrates with existing business systems and can be customized to meet your requirements.
NTPC
NTPC Limited is the largest power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company & the balance 10.5% is held by FIIs, Domestic Banks, Public and others. Today, it has emerged as an Integrated Power Major, with a significant presence in the entire value chain of power generation business. NTPC is the 6th largest in terms of thermal power generation & the second most efficient in terms of capacity utilization amongst the thermal utilities in the world. Within a span of 33 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Driven by its vision to lead, it has charted out an ambitious growth plan of becoming a 75000 MW plus company by 2017. NTPC's core business is engineering, construction & operation of power generating plants. It also provides consultancy in the area of power plant constructions & power generation to companies in India and abroad. As on date the installed capacity of NTPC is 30,144 MW through its 15 coal based (23,395 MW), 7 gas based (3,955 MW) & 4 Joint Venture Projects (2,794 MW). By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and
around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries & takeover of stations. NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the total national capacity, it contributes 28.60% of total power generation due to its focus on high efficiency.
To actualize our HR Vision & the Corporate Vision, an integrated HR model has been developed in NTPC . As per the model, at the periphery lies the role of HR to facilitate the organization in fulfilling its Corporate Social Responsibility & facilitate good governance practices. Within this framework, lies the role of HR to establish good customer relationship. At the heart of the Model, lies the role of HR to create a Learning Organization based on four building blocks i.e. building Competence, Commitment, Culture and Systems. All these HR roles are performed by a dynamic mechanism namely as Systems Designer, Internal Consultant, Systems Monitor and Impact Assessors. Facilitating CSR- NTPC has formulated a comprehensive Corporate Social Responsibility-Community Development (CSR-CD) policy to take up social programs in a systematic manner. Facilitating Good Governance- It involves two aspects of the organization- Hard and Soft. Hard aspect includes designing the organizational architecture, delegation of power etc. so as to allow for maximum speed in working, empowerment, innovation etc. Soft aspect includes Vision, Mission, Values and their actualization, culture building, strengthening internal communication system etc. so as to create an enabling environment for full actualization of individual potential as well as team potential. Sound Customer Relationship- The foundation for development lies on establishing peace and harmony in the organization through establishing good customer relationship i.e. relationship with internal as well as external customers. A number of participative forum have been created at unit, region and corporate levels for information sharing, consultation and finally joint decision making with the representatives of employees. Based on the four building blocks of HR i.e. building Competence, Commitment, Culture and Systems, HR function will achieve creating Learning organization by performing roles of1. Systems Designer-Designing HR systems & HR strategies for achieving its business goals and realizing its business strategy. HR professionals have to assess and articulate the needs explicit or implicit of the employees as well as the organization and develop appropriate systems to fulfill those needs. 2. Internal Consultant-Act as Internal consultant to Line Managers and equip them with people skills for effective implementation of HR systems in their departments/units. A number of such enabling systems have been created such as HR ambassador, Training coordinators, QC facilitators, Mentors, Assessors, HR for Line Managers workshops etc.
3. Systems Monitor- HR department constantly monitors whether HR processes are delivering in terms of fulfilling the intended objectives. It is being done through constant reviews, HRIS, EDIS etc. 4. Impact Assessor-HR measures the effectiveness of HR systems/processes, the value they have created and show how HR adds value and helps organization to achieve its goals through undertaking various introspection studies such as Organization Climate survey, Best Employer Survey, Vidya(Educational audit), e-darpan etc. This is a dynamic process to continuously update the people systems and enhance the HR delivery for improved business results and ultimately achieving the corporate goals.
LAKSHYA Mission
To make every employee in NTPC information enabled by providing holistic and integrated business approach through speedy implementation of enterprise wide, stateof-the art, comprehensive, centralized and integrated solution, thereby supporting NTPCs Vision of being a World Class Power Major
LAKSHYA Objectives
Liasen with the Operations Core Team to promote best practice and processes for
ensuring effective operation of the business applications.
Actively work together as a unit, to ensure all aspects of the project management, fit
for purpose.
Keep project to time and quality. Suitably ensure that the desired outcome of the
specified programme meets the expectations and business requirements of NTPC.
Help the Core Team to build upon their knowledge & their specific area of expertise of
the RWE products and subsequent support capabilities.
Year-on-year SLAs are appropriately adhered to & delivered to the satisfaction of the
customer.
better coordination across newly diversified businesses is expected to be honed through the implementation of the ERP. The ERP project called `LAKSHYA is likely to impart a cutting edge to the Company in terms of efficiency, flexibility of functioning, transparency, and quicker response to internal and external stakeholders. Existing IT scenario
Project DIsha
ERP
Users expectations
Project Disha :
NTPC is a well-known power corporation serving people since 1975. The company has entered into Hydro sector and plans to enter nuclear power soon. To match its growth plans, the company needed to have uniform processes throughout the organization, irrespective of the location and area it belongs to, providing seamless integration among all its processes with one view of the company as a whole. To achieve this, NTPC started Project Disha!! Organizational Transformation which aimed at implementing SAP at its all locations. All major functions of NTPC such as Planning, Project Mgmt, vendor mgmt; financial accounting; invoicing etc, are done through this. The project aims at shortening cycle time, procurement lead time, realization cycle, account closure
time, etc. It is also expected to provide better mgmt & mobilization of diversified workforce and online visibility of status on sales, inventory, receivables with improved search facility. To ensure that implementation works smoothly at all locations NTPC deployed MPLS-VPN through BSNL. During implementation, change mgmt and user training were the two major challenges faced. Disha led to use of standardized processes throughout NTPC with seamless integration. It has also resulted in effective use of manpower. Project Disha is a comprehensive organization transformation project with a view to positioning the NTPC as a globally comparable utility, aligned with global best practices in various areas of its processes and functions. The project is focused on important areas, such as core business strategy, portfolio diversification, globalization, services business model, IT strategy, structural initiatives, planning process, unit level processes (maintenance, procurement and inventory), engineering initiatives, project planning and execution, performance management system, rewards and incentives, career development system and knowledge management system. uniformity in all processes throughout the organization. NTPC has implemented SAP to bring all functions of the organization under one roof with
Benefits
Activity Increased productivity Benefit Improve cost control through integrated management of key business processes across your organization Improve operational efficiency by extending the reach of business processes throughout and beyond the enterprise Accelerate Reduced costs through increased flexibility response to market changes & competitive challenges Improve process standardization, efficiency, & adaptability by utilizing enterprise service-oriented architecture Gain access to transactions, information, & collaborative activities across a broad business community Add specific functionality as needed to support evolving business requirements Protect and leverage existing investments in SAP solutions
Optimized IT spending
Cut IT costs by tightly integrating and optimizing core business processes Reduce capital outlay by eliminating the need to purchase third- party software Lower costs by standardizing enterprise software on a single integration platform Enable faster, more cost-effective business
expansionimplementation techniques that cost less than Use rapid by eliminating the complexity of managing homegrown traditional approaches costapplicationsaccess to half of what or heterogeneous software Gain rapid needed functionality through preset defaults & prepackaged, industry-specific versions Enhance the value of existing software investments by increasing their use Take advantage of new functionality through SAP ERP throughout the enterprise enhancement packages rather than upgrades Implement functionality to support business processes incrementally as your business requires an evolutionary approach that protects your existing IT investments & reduces costs
Functionality
Support and integrate all talent management processes to
Talent Management
attract, hire and quickly secure qualified candidates Educate & develop employees Identify & nurture future leaders Motivate & align the workforce with corporate objectives to improve organizational performance Automate & standardize the provision of HR processes
and services through a centralized delivery channel or shared-services organization Achieve high-quality HR services at low cost Perform analytics to measure the performance and effectiveness of HR teams Gain reporting and analysis options that offer real-time
Workforce analytics
insight into workforce-related data Manage the workforce more effectively Predict human-capital investment demands Accurately track workforce costs Automate and integrate all core workforce processes for
employee administration, organizational management, global employee management, time management, benefits management, payroll, and legal reporting Ensure adherence to local regulations and laws
Conclusion
This project report attempted to analyze the impact of the services through SAP ERP process in HR departments of NTPC Through an overview of the implementation , it was determined that Understanding of SAP ERP process helps in decision making and makes a process prudent After giving adequate training of SAP ERP process, employees does not adapt quickly to business environment. It takes some time to adjust to new environment. Process owners are knowledgeable about SAP ERP process and it provides better data consistency and knowledge sharing. After the implementation of SAP ERP process in NTPC, paper work is reduced but up to some extent only because still in some departments like Cen PEEP (Centre for Power Efficiency and Environment Protection), paper work is not reduced. After the implementation of SAP ERP process in NTPC, employees feel that more training sessions are required as ERP software has very vast applications. SAP ERP process increases the customer satisfaction because of quicker response and faster delivery of services without any delay. SAP ERP process greatly reduces the financial risks as all transactions have done in real-time. SAP ERP process has greatly helps in addressing the complaints of employees without any delay as Application Tracker act as an efficient tool in this regard. A cautious, evolutionary, bureaucratic implementation process backed with careful change management, network relationships and cultural readiness can lead to successful ERP implementations. An ERP implementation is not simply a large IT implementation project- it is a sizable organizational project. Organizational benefits will not be achieved if the enterprise focuses on the technical aspects only. Information technologies cannot by itself influence the productivity of a company. The main Efficiency factor lies in the way people use these technologies. Many information strategies fail for ignoring this issue.
References