Benefits Of ERP Implementation At Tata Power Information Technology Essay

September 20, 2017 Information Technology

ERP means, the techniques and construct for incorporate direction of concern as a whole from the point of view of the effectual usage of directions resource to better the efficiency of endeavor direction. ERP is a package architecture that facilitates the flow of information among the different maps within an endeavor. Similarly, ERP facilitates information sharing across organisational units and geographical locations. It enables decision-makers to hold an enterprise-wide position of the information they need in a timely, dependable and consistent manner. ERP provides the anchor for an enterprise-wide information system. At the nucleus of this endeavor package is a cardinal database which draws informations from and feeds informations into modular applications that operate on a common computer science platform, therefore standardising concern procedures and informations definitions into a incorporate environment. With an ERP system, informations demands to be entered merely one time. The system provides consistence and visibleness or transparence across the full endeavor. A primary benefit of ERP is easier entree to reliable, integrated information. A related benefit is the riddance of excess informations and the rationalisation of procedures, which result in significant cost nest eggs.

The integrating among concern maps facilitates communicating and information sharing, taking to dramatic additions in productiveness and velocity.

Overview of the Company

Before ERP

Prior to execution of the ERP Solution, there were many home-grown applications that manage all the IT demands of the company. There were multiple platforms that were built over a long period of clip and were therefore hard to unify. The biggest disadvantage of the bequest application was that they were functional and location particular and were built on local and single perceptual experiences. Therefore pull offing maps like Finance, Gross saless, HR, and logistics across the fabricating units across the state and their corporate office was boring and time-consuming. Other incorporate map like Material Management, and payment processing, were separate entities cause holds in single minutess. This leads to increase in unneeded addition in overhead cost and double attempts at each unit.

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After ERP

Tata power was the first Utility Company in India to implement industry specific ERP solution. They decided to travel in for the SAP ERP Solution, which provided them all the replies and much more. The SAP R/3 Solution the Industry Specific Components Utilities-Customer Care & amp ; Service ( IS-U/CCS ) faculty would enable them to better concern continuity by uniting the database and maps across the state into one individual entity. Tata power shortly understood that they need incorporate existent clip database that can give up-to-date information to all their stakeholders, both internal and external. They had to travel from their bequest decentralized platforms into a amalgamate endeavor platform and apologize the concern processes across the assorted units. This would give them an endeavor position both across procedure and IT substructure. The company could so function their clients much better and faster, even while cut downing operational costs cutting rhythm clip, manpower decrease, doing people available for redisposition, and most of import it will assist company to supply better quality real-time information.

Execution of the SAP ERP Solution.

Tata Power outsources their Information technology to Tata Technologies, which is their 100 % subordinate company. So Tata Technologies became their execution spouse. SAP India besides organized some confer withing for them, which had advisers from both India and abroad. Hence a distributed waiter execution was done in phases over a period of two old ages between 2001 and 2003. The version used was the Industry Specific Components Utilities-Customer Care & amp ; Service ( IS-U/CCS ) faculty powered by SAP R/3 which covered all coevals, distribution across all location near about 28 in figure, includes complete hard currency rhythm, centralised accounting, undertaking direction, budgeting and monitoring, work order direction client direction, HR organisational and forces disposal an measure processing. There are 3500 users across the state. Once SAP was implemented, rationalisation of several procedures was done extensively. Assorted concern procedures like HR, finance, logistics, etc. were stripped down to their basic constituents. Tata Power besides opted for the criterion cost functionality, which was a important concern procedure alteration for them.

Benefits of ERP execution at Tata Power

Tata power has experience important benefits in cost control. The figure of different applications and figure of waiters run on them has been reduced to a great extent. Disaster Recovery Management is being done merely for one entity instead than for every entity.

Apart from this benefits like,

Decrease in Material Procurement Cycle times ( PR release to PO release ) from 41 yearss to 17 yearss.

Capital procurance reduced from 90 yearss to 14 yearss.

Account shuting rhythm clip reduced from 38 yearss to 8 yearss.

Billing unity index improved from 3.00 % to 1.83 % .

Charging ailments response index has improved from 90 % to 99 % .

Decrease in lead clip

Automatic Creation of Preventive Maintenance orders based on predefined scheduling parametric quantities – eliminated the manual agenda creative activity occupation

Automatic reception of Material Reservation at shops ( online ) which was

earlier manual taking around 24 hours

Stock overview at different storage locations while making the care order

The functionality of Retroactive consequence in Payroll procedure has reduced the processing clip.

Down payment petition proviso is made available to guarantee fast response and proper monitoring of Vendor progress payment

Automated the Project capitalisation procedure

Other Non-tangible Benefits:

Automatic Reservation reception at Shop

Extinguishing fraudulence of stuff issue work

Real-time Cost Calculation at the clip of Order Creation & A ; Reduction in blessing clip

Extinguishing manual cost computation, papers flow & A ; blessing

Cost Control

Structured attack to the organisation from a cost accounting position.

Ability to accomplish a flexible and elaborate analysis of Cost Centre & A ; the group as a whole.

Budget Controlling

Regular monitoring and coverage of existent disbursals vis-a-vis budgets supported by online control.

Vendor Accounting

Immediate accounting of minutess

On line handiness of inside informations of cleared and outstanding liabilities of providers ‘ histories

Undertaking Automation

Automation of the full procedure of Project System embracing Project Preparation, Cost appraisal, Scheduling, Tracking, Completion and Capitalization

Disadvantages: Along with the advantages there are some disadvantages of ERP system

Time devouring and can be organisation 1000000s of dollars.

More investing on hardware needed to back up the new ERP platform or needed to consolidate the bing hardware.

Consultant is needed to assistance with the execution of the ERP SAP solutions.

ERP System executions require some signifier of Business Process Re-engineering ( BPR ) to redesign the current procedures.

Labour preparation is required as the procedure is difficult plenty.

Decision

With IS-U/CCSA module’sA execution, the companyA has now achievesA seamless integrationA ofA front-endA customer-centricA concern processesA withA back-end administrative procedures.A In add-on to it, the moduleA can achieveA wide-scalability extensivelyA to back up theA company’sA client baseA which is turning quickly.

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