Bpcl erp casestudy by Vishal Khatokar

ERP Implementation at BPCL

Group Members

Akshay Kirad-2013G04 Omkar Kulkarni-2013G20 Pankaj Khaladkar-2103G22 Prasad Panajkar- 2013G24 Rahul Patil-2013G29 Vishal Khatokar-2013G52

BPCL-How it was started?

1951- GOI entered into an agreement with Burmah-Shell for establishing a Oil refinery at Bombay

1952- Incorporation of Burmah Shell Oil Refineries Ltd

1955- Refinery starts

1962- Started processing crude oil from Ankleshwar

1975- GOI acquired the operation SOR company and named it as Bharat Refineries. Became the first Indian company to introduce LPG for domestic cooking purposes.

1976 & 1977- GOI acquired 100% shares in August, 1977 and renamed company as Bharat Petroleum Corporation Ltd.

1991- After Economic reforms entered into mktg. contract with IBP , MRL & CRL.

BPCL-How it was started?....... continued

1992- GOI disinvested 30 % stake in favor of FI’s & MF’s. Emerged as 2nd largest oil company in terms of mrkt share. (32% petrol, 27% in diesel)1993- Partnered with Shell, Launched Shell in 19941994- 3.8% equity disinvested and allotted to its employees1996- Began IT initiatives & organization restructuring1998- 99, GOI further disinvested 26% from BPCL a NAVRATNA Company. 1999-2000, Acquired 32% stake in IBP.2001- Companies nationwide retail network rose to 4500 outlets (60 % of which are company owned)

Installed Refining capacity

BPCL

Bina 9 MTPA

Numaligarh 3 MTPA

Cochin 7.5 MTPA

Mumbai 6.9

MTPA

Manali 6.5 MTPA

*MTPA -million metric tones per annum

MRPMRP IIERP IERP II

Evolution of ERP

• 1960 Inventory Management• 1970 Raw material

requirement planning• 1980 Optimizing

Production process• 1990 Management of

Sales, Production, Accounts, Finance• 2000 Improvising

Business process & gain competitive edge

Evolution of ERP

1980

1988-2000

20002001

Substantial growth in ERP Mkt.

Slowdown

ERP market $ 23 billion

Pre ERP ERA

Year1996-

971997-

981998-

991999-

002000-

012001-

02Mkt. Size

270 620 1340 2500 4600 6500

Indian ERP Market

In Rs. millions

Global ERP Market

Why BPCL went for ERP ?

• 1991 felt need of ERP o Improve on customer focuso Speedy deliveryo Cost competitivenesso Improved quality at lower price

• Pre ERP era companies confined to local markets and all decision were managed by single set of people.

• Organizational restructuringo Speedy system for effective communication o Integration of all business functions

• Planned to increase its emphasis on retail business and increase its non-fuel revenues

• Retain its market position by Initiating IT infrastructure. •

ERP Implementation

BPCL Strategy

Communication N/W within the

organization

Basic information N/W for the

entire corporation

N/W to process transactions with

customers all over the country

Divided organization in six SBU’sRetail Aviations Lubricant LPG Industrial &Commercial Refinery

ERP Implementation

• The ERP implementation was a part of project CUSEC (Customer Service & Satisfaction) to reduce the imbalance between refining and marketing.

• Selected SAP R/3 as it was successfully used by major oil companies in the world.

Internet

VSAT HUB @Bangalore

Remote Locations

WEB Servers

Mumbai

BinaKochi

IT Infrastructure

Satellite

ERP- Why it was successful at BPCL?

• Awareness in senior management for process streamlining for faster decision making.• Divided the IT strategy in different categories• Testing of the solution with the help of pilot implementation.• Implementation of proven package across world- SAP R/3• Appointed external consultants Coopers & Lybrand(Merged with PC in 2000)• Emphasis on security determined the success for online business. Used best available Sun Ultra firewall system.• SAP testing, modification and customization of modules was carried out on separate Quality Assurance Server(QAS).

•

Benefits to BPCL

• Intranet connectivity to all users• Established corporate database of the company• Introduced Query by mail system for users to extract business transactions • Achieved 30% saving on long distance communication • Biggest benefit of Well managed inventory.• SAP R/3 helped BPCL to successfully launch its e-biz initiatives• Allow I&C customers track orders status online.• Successfully introduced Petrocard in 1999-00 with around 2.5 Lac customers and more than 20,000 daily transactions. • Introduced Fleetcard for transport companies• Integrated manufacturing execution system of its refinery with the system.• Introduce online payment system to for credit card payments.

Conclusion

ERP Implementation @ BPCL was Successful !

THANK YOU