Track 3 6 Nitin Rohilla NDPL

Mr. Nitin Kumar RohillaAGM (IT – SAP)NDPL

23rd July 2009

SAP Implementation & Functioning –NDPL Experience

Group Chairman’s Quote…

Company Profile

North Delhi Power Limited (NDPL), the power distribution arm of Tata Power serves a populaceof 50 lakh inhabiting North and North West Delhi.

It is a joint venture between Tata Power Company and the Government of NCT of Delhi with themajority stake being held by the Tata Group.

The company started operations on July 1, 2002 post the unbundling of erstwhile Delhi VidyutBoard. With a registered consumer base of around 9 lakh and a peak load of around 1100 MW,the company's operations span across an area of 510 sq kms.

NDPL has been the frontrunner in implementing power distribution reforms in the capital cityand is acknowledged for its consumer friendly practices. Since privatization, the AT&C losses inNDPL areas have shown a record decline. On the power supply front too, NDPL areas haveshown remarkable improvement.

NDPL has to its credit several firsts in Delhi: SCADA controlled Grid Stations, Automatic MeterReading, GSM based Street Lighting system, SMS based Fault Management System. To ensurecomplete transparency, the company has provided online information on billing and payment toall consumers. This happened in the first year of operations itself.

NDPL believes in providing more value than just electricity and is even rewarding its consumersfor timely payment.

NDPL is the youngest company and the first power utility in India to receive the prestigious CIIEXIM Award for 'Strong Commitment to Excel'.

It is also the only distribution utility to receive the ISO 9001, ISO 14001 and OHSAS 18001certification.

NDPL has been recommended for ISO 27001 certification.

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Generation

Power Sourcing

Transmission

TRANSCO – 220/66 kV GridStation (G/Stn.)

XpresssConsumer

NDPL –66/11 kV G/Stn.

NDPL –11kV/ 220V DT

CGHS(HCB Consumers)

NDPL –66/11 kV G/Stn.66/33 kV G/Stn.

HRB / HCBConsumers

NDPL –11kV/ 220 V11kV/ 440 V

DT

KCGConsumer

NDPL –11kV / 440V DT

HVDS Network11 kV / 440 / 220

V

NDPL –33/11 kV G/Stn.

NDPL – 11kV/ 220 VDistribution Transformer

JJ Clusters -LT ABC Network

Distribution

HRB / HCBConsumers

OUR BUSINESS: Carriage & ContentPower To The People…

24 X 7 Service Delivery

Politically Sensitive

Theft Prone

Privatization acting as a barrier to the “Free Lunch”

Geographic Description

BSESRajdhani MES

NDMC

BSESYamuna

NDPL

Power Distribution

Govt. loan of Rs 552 Crores prepaid 9 years ahead of schedule

Dividends being paid from FY 05-06: 10% (in FY 05-06), 16% (in FY 06-07), 18% in 07-08; Bonus in 07-08In 2002, Power Theft / AT&C Loss was about Rs 4 Crores per day in NDPL area- Now it is about 1 Cr./day

Increase in NDPL paying capacity reduced Transco’s dependence on Govt. to NILDomestic Tariff continues to be same since July 2004

CumulativeSavings intune of Rs.4187 Cr.

Reduction in AT&C Losses

Power Distribution – Key Functional Areas

IT’ s role in Distribution

Why ERP

Complete integration of systems across the departments in a Company aswell as across the Enterprise as a whole

Only solution for better Project Management

Better customer service

Automatic introduction of latest technologies

Expertise database

Problems tackled by ERP Systems

Systematic look into your systems & procedures

Optimizing the processes

Enables you to adapt yourself to new technologies & makes availabletimely information

Discipline across the functions

Why SAP?

Lack of functionalities in existing software & High lead times & Cost forcustomization

Need to adapt best practices

More standardized solution with 3-tier architecture, more robust and withfaster response times with large number of users (users increasedphenomenally)

New initiatives requiring automation & integration e.g., BSC, SCADA, GIS etc.

Need for an application for managing Planned/ un-planned maintenance andbreakdowns

Need for improved application / control for Asset Management

Projects capitalization was a major challenge

Need for an integrated mechanism for reporting purpose

Need for effective and efficient mechanism for traceability & tracking oftransactions

Need for Employee Self Service Facility

Implementation mandate at NDPL

“To adopt the SAP Best Practices with least

developments”

Definition – Phase I

SAP Implementation Project -

The project name signifies,

“INTEGRATION OF END TO END WORK FLOW IN BUSINESS PROCESSES”

The objective of SAP implementation in NDPL was to assimilate keysupport processes such as Human Resources, Finance & Controlling, PlantMaintenance, Project System, Procurement and Inventory Management etc.

Implementation Team

SAP Implementation Project -No. of SAP Users – 500Core Team Members – 40 ( Full Time )SAP Consulting Team – 20 (Peak)Applications replaced by SAP

Energise : Finance , Procurement , Stores , Projects & PayrollSuyojana ( Custom Developed ) : Project MonitoringMTS ( Custom Developed ) : Material Tracking System

Implementation Timelines

Kick Off – 3rd June 2005Business Blueprint Signoff – 27th July 2005Realization Phase signoff – 30th Sept 2005GO LIVE – 1st Dec 2005End of PGLS – 31st Jan 2006

ProjectPreparation

BusinessBlueprint

RealizationFinalPreparation Go Live &

Support

Critical Success Factors

Senior Management Commitment & InvolvementReadiness to ChangeTrainingAble Implementation PartnerBest People Full TimeProject ManagementEnd User EmpowermentSound MethodologyScope ManagementProject review & AuditInfrastructure AvailabilityCommunication

Training of more than 500 end-users by NDPL core team.

Full time off-site and on-site support of SAP Team

Implementation Scope – Functional

Finance &Controlling

Logistic Human CapitalManagement

BW & SEM

General Ledger MM - Purchasing PersonnelAdministration

BW Reports

Accounts Payable MM – InventoryManagement

OrganizationalManagement

SEM – Balance ScoreCard

Accounts Receivables PS – Project Planning Recruitment

Asset Management PS – Project Execution PerformanceAppraisal

Funds Management PS – Project Monitoring Training & EventManagement

InvestmentManagement

PS – ProjectCapitalization

Time Management

Cost Center Accounting PM – ManagingTechnical Objectives

Payroll

Profit CenterAccounting

PM – PreventiveMaintenance

PM – Break DownMaintenance

PM - Refurbishment

SD – Sales (scrap salesonly)

Broad Implementation Benefits

Tangible BenefitsReduction in cycle timeImprovement in qualityDecrease in expenses

Non-tangible BenefitsEmployee satisfactionImproved employee efficiencyAdaptation to new technologyManagement by facts

Reduction in Lead Time

Automatic Creation of Preventive Maintenance orders based onpredefined scheduling parameters – eliminated the manual schedulecreation job

Automatic receipt of Material Reservation at stores (online) which wasearlier manual taking around 24 hours

Stock overview at different storage locations while creating themaintenance order

The functionality of Retroactive effect in Payroll process has reduced thearrear processing time

Down payment request provision is made available to ensure fastresponse and proper monitoring of Vendor advance payment

Automated the Project capitalization process

Average time taken for issuing the material from the stores reduced from12 minutes to 4 minutes

Improvement in Quality

Creation of preventive maintenance schedule for various type of equipment

Creation of scheduled notification for intimating of vehicle insurance/ Fitnessdue date

Prompt and timely internal reporting for dependable decision support system

Capturing of Positive time attendance

Cheque Printing is now made online using continuous stationery

Facility to simulate the various accounting scenario before saving thetransactions

Serialization of Transformers

Speedy Decision Making & Reduction inexpenses

Operational, tactical and strategic reports available catering to all levels ofmanagement

Profit & loss analysis done at Business unit / Zonal level

Exercise availability control at the time of booking actual expenses in orderto control the budgets

Non-Tangible Benefits

Automatic Reservation receipt at StoreEliminating duplicity of material issuing work

Real-Time Cost Calculation at the time of Order Creation & Reduction inapproval time

Eliminating manual cost calculation, document flow & approval

Cost ControlStructured approach to the organization from a cost accounting perspective.Ability to achieve a flexible and detailed analysis of Cost Centre & the groupas a whole.

Non-Tangible Benefits

Budget Controlling

Regular monitoring and reporting of actual expenses vis-à-vis budgetssupported by online control.

Vendor AccountingImmediate accounting of transactionsOn line availability of details of cleared and outstanding liabilities of suppliers’accounts

Project AutomationAutomation of the entire process of Project System encompassing ProjectPreparation, Cost estimation, Scheduling, Tracking, Completion andCapitalization.

Non-Tangible Benefits

Implemented “Employee Self Services” portal, which enables users forfollowing activities :

To apply their leave online,View the status and take printouts of Salary slipView the status and take printouts of Form -16 etc.Submitting Tax Saving particularsEmployee SearchUpdate Personal InformationBooking against Training Calendar

Beside this, there are following features which will be used :Performance appraisal systemTravel planning, approval & claim settlement.Reimbursement of all type of expenses.

Integration with Operational Systems

NDPL has successfully achieved the SAP-GIS integration for project preparation,creation, movement & retiring of assets

Integration with Operational Systems

SAP-BW as Strategic Reporting Tool

Integration with Sambandh (Billing Software) to capture daily cash inflow infinancial books of account

NDPL is using Enterprise Portal as the default portal for MIS for allapplications. MIS of various IT applications in NDPL, namely, Sambandh,BIRD besides SAP standard reports

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Integration of Applications – ReportingPlatform

Innovation

Mapping of Balance Score Card in SAP-SEM

Use of all functionalities of ESS

Integration of SAP with other applications like GIS, SCADA, Sambandh(Billing/CRM), Bird

Bar Coding

MRP

New SAP functionalities implemented in2009

Travel & Reimbursement module

PPDS - People Potential Development System

New functionalities – Projects Aspire –Phase II

Upgrade to ECC 6.0

IS –U Implementation

GRC

SRM

BO

IS – U Implementation

Standardized “Best of Breed” Business Process in Billing & Customer ServicesSeamless Integration with other SAP Modules and External ApplicationsEnhanced Decision Support- for both Regulatory & Statutory CompliancesBetter technology support of business processUse of Standard SAP Processes for Power IndustryA stronger and more unified view of the EnterpriseAlign IT strategy to dynamic business requirementsStrengthened Data integrityStrengthened Business Continuity Capabilities

Project Update:

IS – U Implementation

Customer CareConnection ManagementMeter ManagementMeter ReadingRevenue BillingRevenue RecoveryRevenue DisciplineRevenue CollectionEnergy Auditing

Process Scope:

IS – U Implementation

SAP IS – U Project TimelinesProject Phases Time Periods

Project Preparation 30th Apr 09 – 24th May 09

Project Kick off 22nd May 09

Business Blue Print 25th May 09 – 31st Aug 09

Realization 01st Sep 09 – 31st Dec 09

Final Preprations (HT) 01st Jan 10 – 31st Jan 10

GO LIVE (HT) 01st Feb 10

Final Preprations (LT) 01st Jan 10 – 31st Mar 10

Post Go Live Support (HT) 01st Feb 10 – 28th Feb 10

GO LIVE (LT) 1st Apr 10

Post Go Live Support (LT) 1st Apr 10 – 08th Jun 10

25th May 09 – 31st Aug 09

GRC, SRM & BO Implementation

Process ScopeGRC - Governance, Risk & Compliance

Configuration of SAP - GRC Access Control comprising of all 4 components:

- Enterprise Role Management (ERM)

- Risk Analysis and Remediation (RAR)

- Super User Privilege Management (SPM)

- Compliant User Provisioning (CUP)

SRM – Live Auction Cockpit

BO – Business Objects

Configuration of SAP - GRC Access Control comprising of all 4 components:

GRC Implementation

SAP GRC Project Timelines

Project Phases Time Periods

Project Preparation 01st Sep 09 – 07th Sep 09

Project Kick off 01st Sep 09

Business Blue Print 08th Sep 09 – 21st Sep 09

Realization 22nd Sep 09 – 14th Oct 09

Final Preprations 15th Oct 09 – 18th Oct 09

GO LIVE 19th Oct 09

Post Go Live Support 19th Oct 09 – 25th Oct 09

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Awards & Recognitions… to name a few

Acknowledgements for persistent efforts……

Awards & Recognitions.. to name a few

Winner of SAP ACE Award 2008

Year Award

2003-2004

2004-2005

Transparencyin Billing

IntelligentEnterprise

Public LokAdalat Award

Award For BestBilling Solutions

Recognitions

Corporate SocialResponsibility

Awards 2008-09

NDPL 40

Asian Power AwardIndia Power AwardsEnertia Award

Edison AwardBalance Scorecard- Hall

of FameAmity Leadership Award

SAP ACE AwardGITA AwardICWAI Award

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