Presented By:Mayur Toshniwal (28)Mohit Bhatia (30)Neha Dhanuka (32)Nitin Kulshreshtha (33)Shilpi Keshri (43)

ONGC : Background

Fortune Global 500 company ranked 152nd

Contributes 77% of India's crude oil production and 81% of India's natural gas production.

Highest profit making corporation in India

Have a vast geographical spread covering almost entire India.

Pre Implementation Scenario

De-centralized IT landscape

Systems typically for limited financial management, HR management and material management without any logistical connectivity

Few function based standalone systems and business applications like UFSOand IMMS

ONGC continuously monitors the activities on daily, monthly, quarterly and annual basis.

Need for an ERP package

Monitoring required comprehensive, exhaustive multi process based data integrated manually with each other

Key executives always had to face time lags between the activity period and data availability

Constraints in logical decision making

Integrated information system for good governance was missing

Project ICEAim to provide a comprehensive IT solution encompassing end-to-end business process requirements through a globally reputed ERP package

All the previous e-centralized IT solutions were to be merged

Total cost of Rs. 136 crores, which includes the cost of Data Centre Systems

• Total Business transaction needs of ONGC• Enabling tactical and strategic decision making• Access to information online • Accessibility from a single platform

Planned to address :

: The Solution

Implementation Approaches

• Entire suite of ERP applications is implemented simultaneously at different locations

Big Bang Approach

• Implemented in phases and sequentially• Two ways:

• Single module implemented at all sites• All modules implemented site by site

Phased Approach

Company Management ERP Vendors

Gap Analysis

Implementation Team Training

Configuration

End-User Training

Reengineering

Testing

Pre-Selection Process

Package Evaluation

Project Planning

Going Live

Post-Implementation Phase

ERP Implementation Life Cycle

Pre Evaluation Screening

Large number of ERP vendors

Search for the perfect package

Screening eliminates those packages that are not at all suitable for the business

Limits packages to be evaluated

Package Evaluation

One of the important phases of the ERP implementation , because the package that one selects will decide the success or the failure of the project

A ‘do-it-right-the-first-time’ proposition

Finding a package that is flexible enough to meet the company’s needs, that is it may be not a perfect fit but a ‘GOOD FIT’

A selection criteria that will permit the evaluation of all the available packages on the same scale

Formation of a selection committee for the evaluation of the packages

Project Planning

Implementation process is designed and a blueprint of all business processes is prepared

Time schedules, deadlines etc for the project are decided

Roles are identified and the responsibilities are assigned

The implementation team members are selected and the task allocation is done

This phase is usually carried out by a committee of the team leaders of each implementation group

Implementation Schedule

Team Structure

GAP Analysis

This is the process to identity the gaps by mapping the expectations of the company with the capabilities of the ERP product

• Directly Supported• Workaround suggested• Extension required• Change in business process – suggested• Not fully supported• Manual – not under the scope of ERP

Results of Gap Analysis

Production Phase

Installing the software & hardware

Tuning the software to meet the customization needs : Configuration

Master & Control data arrival as per the Product data structures

Location & people specific roles & rights

Allocation for module access & security

Trainings

• implementation team of nearly 150 executives from all over ONGC were trained at SAP, India for knowledge building and system understanding

• Team was divided into different groups depending on the module in which they were trained.

Implementation Team training

• Change from legacy system of recording and reporting to adopting of a computer based integrated system required attitudinal change

• Top down approach used : Senior Junior• Till date nearly 10000 users all over ONGC have been trained on

the various modules of SAP• training and retraining made a continuous process

End User Training

Implementation Phase

Conference Room Pilot [Parallel run]

Resolving the Parallel run issues

Training the end users

Live run

Done from the first day of the quarter for ONGC

Geographical Expanse and Implementation Schedule

Post-Implementation Phase

Regular monitoringTuning

[hardware/software] for patching

Performance issues Maintenance

Modules Implemented in ONGC

• To track planned and actual COP of Crude Oil, Natural Gas and VAP• Monitors real time production environment with online availability of

information related to Materials & Products• Generation of customised report for faster decision making

Production Planning

• Gives the cost involved in each maintenance activity• Tracks various audit activities and their follow up actions in ONGC• Provides a system for management and maintenance of technical

systems including the cost incurred in the planned and breakdown maintenance

Plant Maintenance:-

• Integrates General Ledger, Accounts Receivable, Accounts Payable with all the sub ledgers synchronized with the G/L in an on-line, real-time manner

• Participates in comprehensive transaction tracking and reporting facilities in all areas of the Financial Management System

Financial Accounting

• Covers the functionalities of CCA, PCA and Product Costing for wide range of management reporting

• Its features are integrated to operational modules such as Sales & Distribution, Material Management, Plant Maintenance etc

Controlling

Modules Implemented in ONGC

• Covers the Joint Venture activities, starting from Joint operating agreements, Work Programs, Equity equations, Expenditure, Cash Calls, Recovery, Billing and Accounting (as operator and non-operator)

Joint Venture Analysis

• comprises of entire Sales & Distribution activities starting from sales agreements to delivery and generation & printing of invoice in integrated sales process for all products of ONGC

• integrated with financial accounting for account receivable management; material management and production planning for real time stock updating and quality management for quality analysis and reporting

•

Sales and Distribution

Modules Implemented in ONGC

Modules Implemented in ONGC

• encompasses all phases of a project from Project Conceptualization, Budgeting, planning of costs and resources and approval of Estimates to Execution, payment and Completion of the project in an integrated scenario

Project System

• Integrates all transactions and functions necessary for material requirement planning, procurement, inventory management, invoice verification, and material valuation

Material Management

• Covers inspection of procured material, inspection of in-house products, and generation of Quality certificate for issuing finished products to the Customers

•

Quality Management

• The ABAP (Advanced Business Application Programming) development team provides support to functional module team pertaining to any new developments, enhancements, feasibility, data migration etc.

ABAP

• Generates analytical and strategic reports for Business Analysis and performance tracking including the Corporate Key Performance Indicators

Business Information Warehouse

Modules Implemented in ONGC

Project ICE went live at Western Offshore on 1st October,2003, Western Onshore on 1st April, 2004, Southern Onshore on 1st July,2004 , Eastern Region on 1st October,2004 and

Enterprise Wide roll out on 31st December, 2004

Acceptance of the system through out the organization has been very successful

Performance and Results