BPR IMPLEMENTATION @ ONGC

Presented By-

Prashant Khedekar

Sagar Waghotkar

Rohan Mathkar

18/04/2023

INTRODUCTION ONGC is a multinational oil & gas company headquartered in Dehradun, 

Uttarakhand, India

It is a Public Sector Undertaking (PSU) of the Government of India, under the administrative control of the Ministry of Petroleum and Natural Gas

It is India's largest oil and gas exploration and production

company

It produces around 69% of India's crude oil (equivalent to

around 30% of the country's total demand) and around 62%

of its natural gas2

Operations include :

7 basins, 33,000 employees with more than 500 offshore

and onshore locations.

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PRE-ERP DAYS OF ONGC ONGC used PC-based legacy system for material management, project

monitoring and maintenance planning.

Felt the need for a solution using IT as ONGC spans across 10 countries outside India- from Russia to Venezuela

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EXISTING ENVIRONMENT:

DATABASE: ORACLEHARDWARE: HP, COMPAQ, IBM AND SUN OPERATING SYSTEM : MICROSOFT WIN NT, SUN SOLARIS, AND UNIX

Challenges: Transform Business Operations Collation, consolidation, and analysis of operational data were difficult and

time consuming.

Standardize more than 200 business processes for 13,000 users across a total of more than 500 offshore and onshore locations- all in under 30 months

Cleanup and migration of huge amount of data from legacy systems and creation of data from hard copies

Create one of the largest data centers in Asia Pacific for SAP

Replication of data and configuration in real-time via satellite as well as linking to existing systems was also required.

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BUSINESS PROCESS RE-ENGINEERING IMPLEMENTATION

AT ONGC

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PROJECT OBJECTIVE:Objective of SAP Implementation:

Optimization and standardization of Business processes

Higher visibility of operations to improve productivity

All local and offshore business operations of ONGC had to be integrated into a single ERP

Availability of information on real time basis

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SOLUTIONS:SAP Solutions and Services:

The mySAP.com e-business solutions proposed to be implemented over the next 30 months across 5 regions of ONGC for over 8500 users

It Included solutions covering financials, business intelligence, supplier relationship management, product life cycle, etc

The ONGC was already using a Human resource package (Sharmik) & Financial package (Kuber) from SAP

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SOLUTIONS:Why SAP was chosen?

SAP for Oil & GAS Solution Portfolio: SAP has experience with global oil & gas production companies.

Solutions & services complemented existing SAP Finance and Human resource applications.

mySAP Business Suite family of Business Solutions.

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IMPLEMENTATION: SAP India signed the largest ever deal in ONGC. The deal worth Rs

950 million.

It was also the largest consulting deal fro SAP Asia Pacific. With 8500 licensed users across ONGC. It would be Asia's largest ERP project.

mySAP Business Suite and the SAP for Oil & Gas solution portfolio, including the SAP Strategic Enterprise Management application, SAP Business Information Warehouse component part and SAP portal were Implemented.

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IMPLEMENTATION: The implementation also includes other SAP solutions, such as the

Collaboration Projects suite, as well as supplier relationship management and upstream oil and gas exploration and production solutions.

This project integrated their existing SAP financials and human resource solutions used in more than 500 ONGC locations.

The system was implemented in corporate center in New Delhi with a back up in Mumbai

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POST IMPLEMENTATION @ ONGC

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BUSINESS PROCESS RE-ENGINEERING

A business process is a collection of activities which together produce something of value to a customer”

– e.g. Customer Order Entry

Re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed

What to Re-engineer:

BPR changes processes, and not functions, departments, geographies or tasks

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IT IN BPR Shared data base, making information available at many places

Decision support tools, allowing org to be centralized and de-centralized at the same time

Automatic identification and tracking, allowing objects to tell where they are, instead of requiring to be found

Process-oriented redefinition of work roles and duties were assigned and this resulted in greater transparency and accountability

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BPR ACHIEVED THROUGH I.T. IN ONGC

Improved and disciplined approach to accounting and financial system

Availability of critical data online for all levels of management

Launch of Reverse auction process, first PSU to do so. Termed as “live action cockpit” the system enables ONGC to collect and compare price and bid information of various suppliers in real time

The reverse auction will ensure transparency in the process

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CONT… ONGC also implemented employee self-service (ESS) functionality

of the mySAP ERP solution, expanding its reach to 36,000 users. The ESS code named Samparc which facilitates employees to apply for leave, submit their claims and view their payment details online

Improved visibility across the enterprise across the globe

Improved ability to compete through the strategic use of new IT platform

Increased productivity of the employees.

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QUOTES

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“At end of the day, SAP Consulting excelled, I must say. They gave us a good support and tried to understand our business to deliver the product we were looking for”

By- KS Jamestin, GM and Head of Project, ICE,ONGC

“ONGC strongly believes in adopting world-class processes and technologies to generate better value for its stakeholders. On the basis of the pilot project it is estimated that reverse auction will be able to accrue a cost saving of nearly 10%.”

By- Mr. U.N. Bose, Director (T&FS), ONGC

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