ERP CASE STUDY

ON

PREPARED BY:-

KUNDAN PANDEYB.E.(IT 4th YEAR)ENROLL:-100860116022

This company founded and established in the year 1907 is known to be one of the leading steel giants in the country offering multiple products and successfully running many subsidiary corporations.

The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly.

TISCO PROFILE

Jamshedpur plant has a capacity of 4 million tons per year,Tata Steel has set up an ambitious target of 15 million ton capacity per year by 2010.

It made investments in NatSteel Singapore, which will expand its footprint in six countries in the Asia Pacific region and China.

The company has introduced brands like Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanized Corrugated Sheets), Tata Tiscon (re-bars),Pipes, Bearings, Tata Wiron (galvanized wire products)..

BACKGROUND

WHY ERP IN TISCO

TISCO faced two major problems from the systems that existed

Firstly they were not customer friendly.The whole system was tuned to the process and very little attention was paid to the customer demands.

Secondly the systems were outdates and the modalities of operation were too complex and not error free.

In order to rectify these issues which would otherwise prove to be major setbacks to the company the organization resolved to take up ERP. This was instigated by the concerned departments.

To overcome these problems ERP is in TISCO.

WHAT SHOULD THEY DO?

 Let’s say you’re the CEO of a large multi-national steel company, and you’re running a global operation with plants on four continents. You need to make good business decisions, and you rely on your IT systems to provide the data to make those good decisions.

But your IT systems are not well integrated. There are too many different systems, and too many gaps between them, a legacy of the company’s history of mergers, acquisitions, and improvement initiatives. You need a common information backbone. You’ve heard that ERP systems can do that, but you’ve also heard about ERP project failures from years ago.

Can ERP handle the challenges of a steel company today? And will that lead to business benefits for the company? Answer are yes, and yes.

WHAT IS ERP?

 It integrates business activities across an enterprise—from product planning, parts purchasing, inventory control, and product distribution, to order tracking.

ERP may also include application modules for the finance, accounting and human resources aspects of a business. SAP and Oracle are the two ERP leading vendors.

 From a business perspective, ERP today has expanded from simply coordinating manufacturing processes to being the integrator of enterprise-wide backend processes.

Integrated supply chain: from network planning through scheduling and Manufacturing Execution Systems (MES).

Easier integration of business processes with business partnersShared services and outsourcing of support functions.

Increased information transparency to enable better decisionsAgility in acquisitions and “carve-outs” or divestmentsIncreased regulatory compliance.

Robust and future-proofed backbone systems 

BUSINESS BENEFITS

Reduced ERP implementation costs due to a common template

Reduced application maintenance costs

Lower integration cost due to standard interfaces

Lower infrastructure costs

IT SIDE BENEFITS

INTEGRATED IT MODEL FOR STEEL

ACHIEVING BUSINESS AGILITY THROUGH SAP

Web enabling of SAP R/3 is on the cards. On the surface, it means it would allow anyone to access our SAP R/3 over the Internet.

Phase I - To Extend SAP in Works with FI, CO, MM, PP & QM

Phase II - To implement SAP modules such as Asset Management & Budget management sub-modules of FICO, Plant maintenance, Human Resources, Production Optimizer (such as SAP APO)

Phase III - SEM (Strategic Enterprise Management)

 ARCHITECTURE AT TATA STEEL

Major IT initiatives and implementations at Tata Steel

SAP R/3 in Sales, Procurement, Finance and Accounting, Production Planning Systems for Steel plants using the APO module of SAPData Warehousing and Data Mining for manufacturing processes.

E-procurement, e-auction, and other e-enablement initiativesKnowledge Management and Intranet

Videoconferencing, live video streaming for improved communication across geographies .VoIP, Wi-Fi, integration with cell phones and PDAs to support mobile computing

MAJOR IT INITIATIVES AND IMPLEMENTATIONS AT TATA STEEL

THE OUTCOMESAP ERP solutions produced a remarkable result to the company in terms of financial technical and managerial parameters.

Tisco has spent close to Rs 40 crore on its implementation and has saved Rs 33 crore within a few months with the help of ERP implementation.

The manpower cost has reduced from over $200 per ton two years ago, to about $140 per ton in 2000.

The inventory carrying cost has drastically deflated from Rs 190 per ton to Rs 155 per ton.

With SAP's solution Tata Steel can now update their customers on a daily basis and also used for efficient decision-making.

FUTURE MOVES

TISCO is not determined to stop ERP or attain a saturation point now.

They are working on to improve and increase the scopes of enterprise resource planning software in the organization so that it benefits the stakeholders in all possible manners.

CONCLUSION

ERP is a key backbone application for companies in a fast changing industry like steel.

ERP implementation are usually outweighed by the benefits.

It is fundamental to enhancing the competitive position of a company in the dynamic environment of the steel industry today.

THANK YOU…….