Ntpc

Brief overview about SAP AG 4

Aligning Employees, Processes, and Strategies for Business Success 5

SAP ERP HCM provides integrated, enterprise wide functionality that: 6

Companies Implemented SAP ERP HCM packages in India 7

NTPC 7

HR as a Strategic Business Partner in NTPC 8

LAKSHYA Mission 10

LAKSHYA Objectives 11

Implementation of SAP ERP (Project Lakshya) 11

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 customer’s 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.

Brief overview about SAP AG SAP AG is the largest European software enterprise & the third largest in

the world, with headquarters in Walldorf, Germany. It is best known for its

SAP ERP Enterprise Resource Planning (ERP) software.

SAP was founded in 1972 as Systemanalyse und Programmentwicklung

("System Analysis and Program Development").The acronym was later

changed to stand for System, Anwendungen und Produkte in der

Datenverarbeitung ("Systems, Applications and Products in Data

Processing").SAP AG became the company's official name after the 2005

annual general meeting (AG is short for Aktiengesellschaft). SAP is the only

enterprise applications software vendor that is both building service-

orientation directly into its solutions and providing a technology platform

(SAP Net Weaver) and guidance to support companies in the development

of their own service-oriented architectures spanning both SAP & non-SAP

solutions.SAP is a world market leader in E-Business applications,

modernizing business and government operations worldwide, making them

more efficient. Over 21,000 businesses and government worldwide

customers. The US government is SAP’s largest customer including; NASA,

GSA, DOJ, DOT, DHS (customs), army, DLA, NAVY and treasury. More than

20% of SAP revenue is reinvested into research & development activities.

Products

SAP's products focus on Enterprise Resource Planning (ERP). The

company's main product is SAP ERP. The current version is SAP ERP 6.0 &

is part of the SAP Business Suite. Its previous name was called R/3. The "R"

of SAP R/3 stood for real time even though it is not a real-time solution. The

number 3 related to the 3-tier architecture: database, application server &

client (SAPgui).

Other products are:

Relationship Management (SAP SRM)

SAP Product Lifecycle Management (SAP PLM)

SAP Net Weaver

SAP Business One

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.

SAP ERP Human Capital

Management

Aligning Employees, Processes, and Strategies for

Business Success

The SAP ERP Human Capital Management solution offers a complete &

integrated set of tools to help organization – regardless of industry or

geographic location – more effectively manage company’s most important

asset. Automation of core human resource processes, such as employee

administration, legal reporting, payroll increases efficiency and supports

compliance with changing global & local regulations. For e.g., organization

can create project teams based on skills & availability, monitor their

progress on specific projects, track the time they spend, and analyze the

results. Equally important, integrated talent management functions in SAP

ERP give HR managers 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.

SAP ERP HCM provides integrated, enterprise wide

functionality that:

Streamlines HCM processes & seamlessly integrates them across

global operations

Provides real-time access to information that accelerates workforce

decision-making

Allows you to assign the right people to the right projects at the right

time

Supports both employees & managers throughout the employee life

cycle

Empowers employees to manage processes in a collaborative

environment

Companies Implemented SAP ERP HCM packages in India are

01) SAP Labs India 02) Hewlett Packard 03) IBM 04) Accenture 05) HCL 06) NTPC 07) BSNL 08) Hero Honda 09) Tata Motors. India 10) Mahindra & Mahindra - TDMS, India 11) Reliance Infocomm Limited

NTPCNTPC 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.

Location of NTPC Plants

HR as a Strategic Business Partner in NTPCTo 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 of-

1. 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.

PROJECT LAKSHYA IN NTPC

LAKSHYA Mission

To make every employee in NTPC information enabled by providing holistic

and integrated business approach through speedy implementation of

enterprise wide, state-of-the art, comprehensive, centralized and integrated

solution, thereby supporting NTPC’s 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 SLA’s are appropriately adhered to & delivered to the

satisfaction of the customer.

Ascertain the business requirements at an early stage

Implementation of SAP ERP (Project Lakshya)

NTPC Ltd has mandated German business software major SAP AG for the

implementation of an enterprise resource planning (ERP) package. While

the move is broadly aimed at overall operational efficiency improvement, it

comes in the wake of critical fuel shortages that some of NTPC's stations

had to face in year 2006, which was finally mitigated through coal imports

and resulted in some loss in generation. NTPC, a thermal power generating

company, has gone live on SAP ERP implementation. Titled project

'Lakshya', the pilot implementation of the project at Ramagundam,

Faridabad, Koldam, NCR HQ and Corporate were completed on schedule, in

a span of 10 months.

The contract for “Procurement of ERP and its Implementation” has

been awarded to SAP India on 2nd May’2006 with Siemens Information

Systems Limited (SISL) as their Implementation Partner. According to

R.S. Sharma, chairman and managing director, NTPC, "Given the large

scale of NTPC’s operations and the complexity of our structure, we wanted

to implement a business software solution that would establish uniform

business processes, better decision support and better control over

ERPChanging Business Needs

Existing IT scenario

Project DIsha

Adoption of Best Practices

operations." The SAP solution is expected to help NTPC achieve improved

exchange of information, productivity & reduction of costs, better data

consistency, knowledge sharing and unification of planning & budgeting

process. NTPC will use applications from the SAP for utilities solution

portfolio including wall-to-wall implementation of the core SAP ERP, IS-U,

Business Analytics, SEM, SRM, Enterprise Portal and C-Folders for project-

based collaborations across all locations of NTPC.

Importance of Lakshya in NTPC

To power business needs and facilitate collaboration

Implementing of ERP system has become one of the best practices of

modern management techniques. Also with the company undergoing a

makeover from a purely thermal generation utility to an integrated energy

firm, organizational efficiency & 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.

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. NTPC has

implemented SAP to bring all functions of the organization under one roof

with uniformity in all processes throughout the organization.

Benefits

Activity Benefit

Increased

productivity

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

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 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 expansion by Faster, higher ROI Use rapid implementation techniques that cost

less than half of what traditional approaches cost

Gain rapid access to needed functionality through

preset defaults & prepackaged, industry-specific

versions Enhance the value of existing software

Innovation without

disruption

Take advantage of new functionality through SAP

ERP enhancement packages rather than upgrades

Implement functionality to support business

processes incrementally as your business requires

– an evolutionary approach that protects your

Functionality

Talent

Management

Support and integrate all talent management

processes to 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

HCM Service

delivery

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

Workforce

analytics

Gain reporting and analysis options that offer real-

time insight into workforce-related data Manage

the workforce more effectively Predict human-

capital investment demands Accurately track

workforce costs

Workforce

process

management

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

ConclusionThis 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 prudentAfter 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

WEBSITES

1. www.ntpc.co.in

2. www.sap.com

3. http://en.wikipedia.org/wiki/SAP_AG

4. http://www.sap.com/india/solutions/index.epx