SAP Business Transformation Study

Utilities Power Generation

INDRAPRASTHA POWER GENERATION
COMPANY LIMITED (IPGCL)
JOURNEYING TO OPERATIONAL
EXCELLENCE WITH SAP SOLUTIONS
Key Challenges
Integrate people, processes, and power
plants across the entire business
Improve operational and management
decision making with better access to
accurate data
Automate manual and paper-based
processes
Adopt best practices for generation
company
Optimize the performance of aging
assets
Implementation Best Practices
Strong and resolute support from man-
agement throughout the implementation
Formation of core team of key people
representing functional areas to support
the project from conceptualization to
implementation
Extensive training for core-team members
and end users
Involvement of all key stakeholders during
documentation business processes
Financial and Strategic Benets
Automated creation of request for quotes
from purchase requisitions, eliminating
manual data entry by personnel in con-
tracts and materials (C&M) department
Gained complete visibility into asset
maintenance history and spare-parts
movement
Reduced effort required to manage pre-
ventive maintenance schedules
Streamlined performance appraisal pro-
cess with online performance manage-
ment function
Decreased manual effort required to
carry out transfers and promotions of
executives
Why SAP Was Selected
Demonstrated understanding and exper-
tise in the power generation industry
Integrated solution that supports best
practices for power generation companies
One-stop solution for transactions and
reporting through the use of interactive
dashboards
Integration of business processes
Total Cost of Ownership
Completed the implementation across
the entire organization in 7 months by
knowledge transfer and training from
SAP Consulting to build an internal team
that supports postimplementation
requirements
Eliminated manual processes, spread-
sheets, and duplicate efforts with auto-
mated and integrated applications
Operational Benets
Key Performance Indicator Impact
Procurement lead time
Single tender -58% (from 128 to 54 days)
Limited tender -46% (from 147 to 79 days)
Open tender -51% (from 283 to 140 days)
Adherence to preventive +5% to 10%
maintenance schedule
Accuracy of cost distribution Improved
between preventive and from 80%
breakdown maintenance to 99%
Time for vetting indents -80% (from
5 to 1 day)
Effort to maintain fault -100%
register, docket filing, (from manual to
and work permit filing automated process)
QUICK FACTS
Industry
Utilities power generation
Revenue
Rs15.3 billion (US$328 million)
(FY 20072008)
Employees
1,400+
Headquarters
New Delhi, India
Web Site
www.ipgcl-ppcl.gov.in
SAP Solutions and Services
SAP ERP application, SAP NetWeaver
Process Integration offering, SAP Pro-
ductivity Pak application, SAP Solution
Manager application management solu-
tion, SAP BusinessObjects business
intelligence solutions, services for SAP
BusinessObjects solutions
Implementation Partner
SAP Consulting
Indraprastha Power Generation
Company Limited (IPGCL) is a
government-owned utility that
generates and sells electricity to
distribution companies in the state
of Delhi, India. IPGCL implemented
the SAP ERP application to provide
much-needed integration for pro-
curement and maintenance opera-
tions along with business tools for
effective decision making.
www.sap.com/contactsap
SAP ERP has helped us integrate and streamline operations across our power
plants, leading to increased visibility into data and better informed decision
making. It has also optimized resources and reduced paperwork.
A.K. Handa, Deputy General Manager (ERP & IT), Indraprastha Power Generation Company Limited
Indraprastha Power Generation
Company Limited (IPGCL), a govern-
ment-owned utility in the state of Delhi,
India, took over the generation business
from erstwhile DVB w.e.f. on July 1,
2002. Its associate company, Pragati
Power Corporation Limited (PPCL), was
incorporated on January 9, 2001. The
main function of IPGCL-PPCL is the
generation and sale of electricity to
power distribution companies operating
in Delhi.
Establishing an Agile and
Integrated Organization
Business drivers, such as paper-based
processes and a lack of integrated data,
prompted the company to look for soft-
ware that could help drive excellence
across the organization. IPGCL-PPCL
implemented the SAP ERP application
to support operations, and other SAP
software, such as SAP BusinessObjects
business intelligence (BI) solutions, to
deliver decision-making tools to
management.
A team of 12 employees from functional
areas across IPGCL was assisted by
consultants from SAP Consulting who
provided expertise, knowledge transfer,
and training for the core team and end
users. With strong support from man-
agement, the team completed the
implementation in seven months.
Creating the Road to Excellence
The road to excellence was built on
improvements in the areas of procure-
ment, maintenance, HR, and finance.
Using an automated procurement
process, employees create indents
(requests for equipment and supplies)
in SAP ERP, often using historical data
from previous purchase orders or
approved indents for cost estimation.
This not only decreases the time needed
to create indents but also speeds up the
vetting process. This entire process can
be completed within one day, down from
five days.
On the plant maintenance side, where
each plant has approximately 600 pieces
of equipment, IPGCL has standardized
maintenance procedures across all plants.
Online maintenance schedules have
reduced the effort for monitoring adher-
ence to schedules. Furthermore, 100%
cost allotment of labor and spare parts
during maintenance has improved the
accuracy of cost allocation, maintenance
history, and spare-parts movement.
The HR function has seen improvement
through the use of the payroll engine in
the SAP ERP Human Capital Manage-
ment solution, which reduced manual
efforts and unified payroll processing.
Online performance management func-
tionality replaced traditional manual per-
formance management, resulting in
improved satisfaction for managers and
all other staff. Transfers, promotions, and
the employee skills database are now
maintained online. Using self-services
offered in a portal, employees can update
personal data, such as address and
dependent status, thus freeing the time
that HR employees used to spend main-
taining this data.
With the SAP ERP Financials solution,
the finance function has up-to-date cost
records. The software supports adher-
ence to company policies and procedures,
while role-based access to an integrated
financial application helps improve data
consistency and security. Thanks to
better and faster means of communica-
tion, no time is lost in the delivery of
paperwork such as requests and notes.
Ready to Generate More Benefits
Through BI
IPGCL-PPCL is now looking to extract
intelligence from its integrated SAP
solutions. The company has already
implemented SAP BusinessObjects BI
solutions. IPGCL-PPCL is also exploring
the option of implementing the SAP
Supplier Relationship Management
application for supplier collaboration,
specifically reverse auctions, which can
help the organization achieve savings in
procurement. In addition, IPGCL-PPCL
is looking at software that can help the
company become a paperless business.
Clearly IPGCL-PPCL is on the road to
becoming an integrated, intelligent, and
agile enterprise.
50 101 656 (10/09)
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Picture Credit
Electricity pole (stock photo by ontzy), www.sxc.hu