bpcl case study group 6(1)

8/2/2019 Bpcl Case Study Group 6(1)

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Presented by : Group 6


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Implementation @ BPCL


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AGENDA

About BPCL (Bharat Petroleum).

IT initiative @ BPCL.

Introduction to ERP

ERP implementation @ BPCL.

Benefits of ERP.


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BPCL 1951- Government of India entered into an agreement

with BURMAH OIL COMPANY & SHELLPETROLEUM Co.

1952- Incorporation of Burmah-Shell oil refineries.

1975- Acquisition of Burmah-shell by Govt. of India.

Govt. changes name to BHARAT REFINERIES.

1976- Govt. of India acquired 100% shares. 1977- Name changed to Bharat Petroleum Corporation

ltd.


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Effect of Economic Reform BPCL entered into marketing contracts with Indo-

Burmah Petroleum (IBP), Madras Refineries Ltd(MRL) and Cochin Refineries Ltd (CRL).

Pulling back of 30% share from financial institution &Mutual funds.

1990- Indias 2nd largest oil company in market shares

1993- Tied up with Shell Bharat Shell Ltd To Launched Lubricants.

Marketed by BPCL & BSL.


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1996- IT initiatives takes place to retains its market

in Post APM era. 1998-99- Disinvestment of 26% stakes from one of the

Nvaratnas.

1999- Acquisition of 32% of Indo-British Petroleum

Stake. 2001- BPCL nationwide retail n/w 4500 outlets.

60% outlets company owned or leased.

Highest % among Oil PSUs.

2000- market share- 32%- petrol

27%- diesel


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Post APM era-APM- Administered Pricing Mechanism was

introduced in 1976.

Used for petro products and supplanted the role of themarket through command and control.

APM compensated Producers, Refiners, and Marketersfor operating costs and gave them assured return on

their assets.With abolition of APM , private players were allowed

to enter oil sector.


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IT Initiatives @ BPCL Began in 1996

Divided into 3- pronged strategy-

To create Communication Network

To Create basic Information Network for entire

corporation

To Process Transactions with all customer.


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ReasonsProblem Before IT Procedures were not streamed line Poor communication channel Difficulties in faster decision making Obstruction in companys activity by

communication network. High cost in traditional

communication . Problems in quick access to

executives. Not able to communicate with

recipients over multiple location.

To Overcome these BPCL :

Decided to establish Intranet. Choose Microsoft Exchange server

Platform


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BPCL INTRANET SERVER:Window NT Server &

Exchange Server

BPCL connected three location on VSAT based N/W. Bandwidth- 64 Kb/sec

To share TDM/TDMA access. VSAT n/w rated as-

Ease of Deployment

Speed of mail delivery

Zero message loss & response time

BPCL corporate office is connected with variousregional offices and users via this VSAT hub inbangalore.


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Other IT initiatives : Implemented various application

To facilitate information retrieval from corporatedatabase, including intranet applications that allowedemployees to access and update personnel records.

Introduced QBM (Query By Mail):

By this remote users could extract business transactionsfrom corporate database.

This system based on WAN bandwidth

And scheduled database queries at night

Then BPCL planned to implement ERP solution to facethe challenges of an imbalance between refining andmarketing.


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ERP in IndiaEarly Users:


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The Indian ERP Market:

0

2000

4000

6000

8000

in Rs. Million


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SAP R/3 Modules:

Financial Accounting Controlling

Asset Management

Project System

Workflow

Industry Solution

Human Resources

Plant Maintenance

Quality Management

Production Planning Material Management

Sales Distribution


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ERP Implementation @ BPCL Implemented SAP R/3s Modules.

Consultants are Coopers & Lybrand.

April 2001- Frist phase of ERP implementation satarts

For Online Business Security of BPCL-

Sun Ultra 5 Firewalls

Real Secure

Internet Scanner Floodgate

Web Trend

Web Sense


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Also implemented Tivoli ESM (Enterprise SystemManagement) solution.

2001- First Indian Company in oil Industry to have ERP

BPCL Server Architecture:THE SERVER ARCHITECTURE

SAP Servers ClassServers

MHz Memory

ProductionServer

SAP, Oracle DB ServerDB Failover Server

HP NHP N

440MHz-CPUs6CPUs

4Gb4Gb

Quality Assurance Server HP L 2CPUs 2Gb

Development Server HP L 2 CPUs 2Gb

Storage server HP sure store E disk array XP 256 with- 2TB HD, 6Gb Cache Mem.HR Servers- HR production Server, HR QAS and HR development server, which

had the same configuration as production servers.


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SAP R/3 helped BPCL to launch its e-bizinitiatives.

To track the I & C customers to tack thestatus of their orders online.

To retain existing customers.

Management of inventory become easierand time saving.

Cash Management become easier.

Tracking of Petro cards and Fleet cardsinventory.

Integration of manufacturing ExecutionSystem of its refinery with the system.


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bpcl case study group 6(1)

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