SAP ERP HCM in NTPC Limited

ABSTRACT The Project titled “SAP ERP HUMAN CAPITAL MANAGEMENT” focuses on aligning Employees, Strategies and Processes for Business Success. In the first part of the study, the overall power related activities that have been undertaken by NTPC over the past years have been discussed to give the reader a basic understanding of the work that is performed by the company. In the second part, the need of SAP ERP in different areas of NTPC to effectively deal with business challenges have been discussed. The comprehensive survey was done on the need of SAP ERP in HR department. The secondary research was done on the pre-existing data of employees. Enormous help and support from NTPC Ltd. and all the HR’s that I met during my survey have helped me a lot to give my 100 % to this project. All the data to measure the effectiveness of services through SAP ERP that are offered by the NTPC ;their HR practices for retaining the knowledge workers ,and to identify the changes in management after the implementation of SAP ERP process have all been collected through the help of questionnaire and direct conversation with the HR heads and employees of NTPC. In this project work, the basic aim is to establish a report which can state the importance of SAP ERP in today’s business development. By adopting some of the recommendations identified in the questionnaire, the NTPC Limited could improve their service effectiveness through SAP ERP process, and as a consequence, their customer satisfaction and loyalty.

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Table of Contents CHAPTER 1.

DESCRIPTION

PAGE NO.

Introduction…………………………………………………………...1-7 1.1

Scenario of Power in India………………………………………………2

1.2

Objective & Scope…. …………………………………………………...5

1.3

Methodology…………………………………………………………….5

1.4

Limitations………………………………………………………………6

1.5

Scheme of Chapters……………………………………………………6

2.

Company Profile…………………………………………………….8-24

2.1

Director’s Profile…………………………………………………….….9

2.2

Vision & Mission Statement…………………………………………...10

2.3

Background of NTPC………………………………………………......10 2.3.1Market Share…………………….....…………………...…………11 2.3.2Achievements…………………….........…………………………..12 2.3.3Organization structure of NTPC…………………………………..14

2.4

Joint Ventures…………………………………………………………..14 2.4.1Subsidiaries………………………………………………………..16 2.4.2Competitors………………………………………………………..16 2.4.3Acquisition………………………………………………………...16

2.5

Location of NTPC Plants……………………………………………….17

2.5

NTPC’s HR Vision……………………………………………………..18

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2.7.1Elements of HR Strategy………………………………………….19 2.7.2HR as a strategic business Partner in NTPC……………………....23 3.

SAP AG Profile…………………………………..…………………..25-36

CHAPTER 3.1

DESCRIPTION

PAGE NO.

SAP ERP Human Capital Management………………………………...27 3.1.1Benefits of SAP ERP………………………………………….…...29 3.1.2SAP ERP HCM Solution functionality……………………….…....30

3.2

Enterprise Resource Planning ……………………………………….…..31 3.2.1Advantages of ERP………………………………………..……….32 3.2.2Issues in ERP…………………………………………..…………...33 3.2.3Depending Factors for Success of ERP implementation…………...33 3.2.4Challenges in ERP implementation…………………………..….....34

3.3

Roles & Responsibilities of Change Management……………………....34

3.3.1Forces for Successful Change Management………………....……..35 3.3.2Change Management in ERP implementation……………....……...36 4. Project Lakshya in NTPC…………………………………..……...…………37-44 4.1

Lakshya Mission…………………………………………………...…….38

4.2

Project

4.3

Implementation

Objectives………………………….………………...…………...38 of

SAP

ERP………………….……………...…………..38

4.3.1Importance of Lakshya in NTPC………..……………………...……39

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4.3.2ERP Service Providers at NTPC…………………………………....40 4.4

Project Disha………………………………………………………...…...41

4.5

Screen shots for SAP HR modules implemented at NRHQ…..………...42

5. Survey, Feedback & Data analysis…………………………….………..……45 6. Conclusion……………………………………………………………….………58 7. Recommendations & Suggestions……………………………………………...60 Bibliography……………………………………………………………………...62 Annexure…………………………………………………….…………………....64

List of Figures Figure 2.1: Growth of NTPC Installed capacity & Generation…………………….…... 11 Figure 2.2: NTPC’s Power Contribution towards India………...……….………….…..12 Figure 2.3: Organization structure of NTPC …………………………………………... 14 Figure 2.4: Joint Ventures of NTPC ………………...…………………………………..15 Figure 2.5: Subsidiaries of NTPC……………………………………………………......16 Figure 2.6: Location of NTPC Plants………………..……………………………….…..17 Figure 2.7: Employee development and growth ………………………………….……..18 Figure 2.7: Role of Human Resource in NTPC ………………………………….……....23 Figure 3.1: ERP Integration with Business ………………………………………...…….31 Figure 3.2: ERP Solution ……………….………………………………………….……..32 Figure 3.3: Factors for success of ERP Implementation…………………………..………33 Figure 3.4: Challenges in ERP Implementation……………………………………..…….34 Figure 5.1: Paper-work…………………….………………………………………...…….53 Figure 5.2: Training sessions………………………………………………………...…….54 Figure 5.3: Customer Satisfaction …………………………………………………..…….55 Figure 5.4: Financial Risk …………………………………………………………..…….56 Figure 5.5: Complaints………………………………………………………………..……57 4|Page

List of Tables Table 5.1: Anova test for SAP ERP understanding and decision-making……………….…46 Table 5.2(a), (b), (c): Chi-Square test for SAP ERP understanding and decision-making ........................................................................................................................................... 47-48 Table 5.3: Anova test for SAP ERP Training & Business Environment…………………….49 Table 5.4 (a), (b),

(c): Chi-Square test for SAP ERP Training & Business

Environment....................................................................................................................... 49-50 Table 5.5 (a), (b), (c), (d), (e): Paired Samples T-test all the paired expectations and perceptions…......................................................................................................................51-52

CHAPTER 1: INTRODUCTION

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1.1 Scenario of Power in India Growth of economy calls for watching the rate of growth in infrastructure facilities. Power sector is one of the major aspects of this infrastructure building. Some prominent people like the Ex Chairman of GE Jack Welch have gone to the extent of saying, “you don’t have a chance to stand in the 21st century without lots of power………Without this you miss the next revolution.” Moreover, the growth rate of demand for power in developing countries is generally higher than that of GDP. In India, the elasticity ratio was 3.06 in 1st plan, & peaked at 5.11 during 3rd plan and came down to 1.65 in 80’s. For 90’s a ratio of around 1.5 was projected. Hence, in order to support a growth of GDP of around 7%, the rate of growth of power supply of 10% is required. If we look at current scenario, electricity consumption in India has more than doubled in the last decade, outpacing the economic growth. If we analyze the various statistics of Indian power

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sector, we will find that the generating capacity has gone up tremendously from a meager 1712MW in 1950 to a whooping 147000MW today. The critical role played by the power industry in the economic progress of a country has to be emphasized. A self sufficient power industry is vital for a nation to achieve economic stability.

Indian Power Industry Before Independence The British controlled the Indian power industry firmly before Independence. Then legal and policy framework was contributing to private ownership, with not much regulation with regard to operational safety. Post Independence Immediately after Independence, the country was faced with capacity restraint. India adopted a socialist structure for economic growth and all the major industries were controlled by public sector enterprises. By 1970's, India had nationalized most of its energy assets, due to its commitment to social goals. By the late 1980's, the Indian economy felt the strain of the socialist agenda followed since independence. Faced with a serious deterioration in public finance and balance of payment crisis, the Union government as part of its policy of economic liberalization allowed greater investment by private sector in the power industry. The electricity sector in India is predominantly controlled by Government of India's public sector undertakings (PSUs). Major PSUs involved in the generation of electricity include National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra State Electricity Board (MSEB), are also involved in the generation and intra-state distribution of electricity. The Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual

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power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006. The Indian government has set an ambitious target to add approximately 78,000 MW of installed generation capacity by 2012. The total demand for electricity in India is expected to cross 950,000 MW by 2030. Electricity losses in India during transmission and distribution are extremely high and vary between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11%. Due to shortage of electricity, power cuts are common throughout India and this has adversely effected the country's economic growth. Generation Grand Total Installed Capacity is 147,402.81 MW Thermal Power Current installed capacity of Thermal Power (as of 12/2008) is 93,392.64 MW which is 63.3% of total installed capacity. •

Current installed base of Coal Based Thermal Power is 77,458.88 MW which comes to 53.3% of total installed base.

•

Current installed base of Gas Based Thermal Power is 14,734.01 MW which is 10.5% of total installed base.

•

Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9% of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country. Hydro Power India was one of the pioneering states in establishing hydro-electric power plants, The power plant at Darjeeling and Shimsa (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The installed capacity as of 2008 was approximately 36647.76. The public sector has a predominant share of 97% in this sector. Nuclear Power Currently, 17 nuclear power reactors produce 4,120.00 MW (2.9% of total installed base).

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Renewable Power Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total installed base with the southern state of Tamil Nadu contributing nearly a third of it (4379.64 MW) largely through wind power. Power for ALL by 2012 The Government of India has an ambitious mission of POWER FOR ALL BY 2012. This mission would require that our installed generation capacity should be at least 200,000 MW by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to 400,000MW. Today’s environment is a tough environment to survive, with the new industries and the new sectors coming up so strongly and financially sound. But to gain an extra edge over others they ought to have an extra or special added advantage. “Our people are our most important asset.” Nearly every organization report contains a phrase like this & for good reason. Today, the last great source of competitive advantage is human capital. The pressure for Human Resource (HR) departments to deliver increased business value is growing. Executives are seeking to reduce costs, streamline processes, & free up resources to focus more on core competencies. Business stakeholders need support from HR departments to meet human capital demands to drive innovation and growth. Managers want up-to-date employee information at their fingertips. Employees want the ability to check benefits, track administrative paperwork, and plan their own retirement accounts.

1.2 Objective of the Survey The main objective is 1) To check the validity of data of employees and to maintain their backup in SAP ERP 2) To measure the effectiveness of services through SAP ERP that is offered by the NTPC in different departments. 3) To identify the changes in management after the implementation of SAP ERP process

Scope of the Survey The project findings will help in

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1) Validating the record of all the employees thus reducing the errors 2) Maintaining a good and competitive environment among the employees and also help in measuring the effectiveness of services through SAP ERP in NTPC. 3) Making better HR practices and proper management of work force in the organization. 4) Improve the company at each level & give a competitive advantage over the other companies that are into the power sector & ultimately to achieve the organizational goal.

1.3 Methodology The methodology that is followed to prepare this project is based on the concepts of preliminary

investigations that are gathered directly from the company’s employees and

the data that is easily available on the internet. Primary Data Collection •

Face-to-face interview with the employees of the organization

•

The survey was done through the help of questionnaire

 We have gathered the facts from the primary data as far as possible so as to prevent the outcome being guided by the company biases.  Limited numbers of areas are covered, so as to get the large number of opinions which proved to be quite helpful in understanding the real underlying scenario. Secondary Data Collection through o company websites, o magazines & o employee handbook  Analyzing and interpreting the data by applying various analytical tools like Graphical methods such as bar charts have also been used.  Various statistical tools have been used to measure the effectiveness of services through SAP ERP process in the company. The statistical tools used for data analysis are Anova test, Chi-square test & Paired Samples T-test.

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 Sampling method used is Simple Random sampling & the sample size taken for a survey is 50.

1.4 Limitations This project has been undertaken during the Summer Internship Period as management trainee in the company which was conducted for 8 weeks. The report has been prepared on the basis of data which is collected through employee’s face to face interview, with the help of questionnaire and through secondary sources. Some of the constraints which evolved during the course of study are as follows: •

The most significant limitation has been that the actual effectiveness of the services through SAP ERP cannot be just presented by doing the survey in some departments.

•

Area of study is limited to very few departments

•

Only human resource aspect of the organization was covered.

•

There could be some errors, data collection, data interpretation, and even the environment plays an important role in the outcome of the results.

1.5 Scheme Of Chapters The report has been presented in seven chapters with the bibliography at the end. The Scheme of chapters is as follows: Chapter 1: Introduction

In this chapter which is the present one, a brief description of the power sector and its influence on the Indian economy is given. The objective & scope of the report, the methodology adopted, the limitations and the schemes of the various chapters are presented. Chapter 2: Company Profile

This chapter contains information regarding company profile, vision and mission statement, their background and its achievements, joint ventures, subsidiaries, HR vision etc. Chapter 3: SAP AG Profile

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This chapter contains information regarding SAP AG Company, their products, advantages and challenges of ERP, change management in ERP implementation etc. Chapter 4: Project Lakshya in NTPC This chapter deals with ERP implementation project in the company, their mission and objectives & its different applications in the HR module. Chapter 5: Survey, Feedback & Data analysis

The data obtained from the questionnaire and the study of the business environment has been segregated as per the objective of the report and this chapter provides insights to the findings of the study. This chapter also provides the analysis to measure the effectiveness of services through SAP ERP Process in the company. Chapter 6: Conclusion

In this chapter, the entire study and findings have been summarized. Chapter 7: Recommendations & Suggestions

In this chapter, recommendations & suggestions have given to improve the business processes. Bibliography

The bibliography comprising of books, articles, reports & other sources used in the preparation of the report has been listed.

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CHAPTER 2: COMPANY PROFILE

2.1 Director’s Profile

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Shri R.S. Sharma Chairman and Managing Director, NTPC Limited, since May 01, 2008, has rich & varied experience spanning over thirty seven years in the Indian power industry out of which he has spent 30 years in power projects and stations. A graduate in Mechanical Engineering, Shri Sharma began his career in 1971 as Engineer in Madhya Pradesh Electricity Board where he laid the foundations of his exceptional expertise in the area of Operation and Maintenance of power stations. He joined NTPC in 1980 and worked in equipment erection & plant maintenance areas prior to becoming head of various projects. He also headed the Southern Region of the Company. Later he served as Executive Director (Corporate Planning) & Executive Director (Commercial) and looked after key areas of Strategic Planning and Commercial Functions respectively. Shri Sharma became Director (Commercial) in October, 2004 & took numerous initiatives to ensure robust commercial success of NTPC. He led NTPC-Vidhyut Vyapar Nigam (NVVN) Limited, the trading arm of NTPC, to achieve a substantial share in the power trading market. As Director (Commercial), he also led the team of New Business Development in setting up various joint ventures, carrying out the due process for a power exchange & the Company's diversification into equipment manufacturing. He guided the efforts for acquisition of coal mines abroad & led the team in preparing the road-map for nuclear power. Besides his wide-ranging contribution to the power industry & the Company, Shri Sharma has demonstrated high commitment to corporate governance, corporate social responsibility and value based leadership.

2.2 Vision & Mission Statement

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Vision “A world class integrated power major, powering India’s growth, with increasing global presence."

Mission “Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.”

Core Values – BCOMIT B – Business Ethics C – Customer Focus (External & Internal)

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O – Organizational & Professional Pride M – Mutual Respect & Trust I – Innovation & Speed T – Total Quality for Excellence

2.3 Background of NTPC NTPC – a global giant in power sector NTPC Limited is the largest power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company & the balance 10.5% is held by FIIs, Domestic Banks, Public and others. Today, it has emerged as an ‘Integrated Power Major’, with a significant presence in the entire value chain of power generation business. Based on 1998 data, carried out by Data monitor UK, an ISO 9001:2000 certified company, NTPC is the 6th largest in terms of thermal power generation & the second most efficient in terms of capacity utilization amongst the thermal utilities in the world. Within a span of 33 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Driven by its vision to lead, it has charted out an ambitious growth plan of becoming a 75000 MW plus company by 2017.

2.3.1 Market Share

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Source: www.ntpc.co.in

Figure 2.1:Growth of NTPC Installed Capacity & Generation

NTPC's core business is engineering, construction & operation of power generating plants. It also provides consultancy in the area of power plant constructions & power generation to companies in India and abroad. As on date the installed capacity of NTPC is 30,144 MW through its 15 coal based (23,395 MW), 7 gas based (3,955 MW) & 4 Joint Venture Projects (2,794 MW). By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries & takeover of stations. NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the total national capacity, it contributes 28.60% of total power generation due to its focus on high efficiency.

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Source: www.ntpc.co.in

Figure 2.2:NTPC’s Power Contribution towards India

2.3.2 Achievements Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector 'Navratnas'- a potential global giant. A) NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies. B) NTPC has been rated as one of the top most “Best Employer” of the country for the year 2003, 2004 & 2005 in a row. C) It has also been rated as one of the “Best Companies to Work for in India” by Mercer HR Consulting- Business Today Survey 2004, it has developed into a multi-location and multi-fuel company over the past three decades. D) NTPC has been awarded No.1, Best Workplace in India among large organizations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times. E) Leadership Award for CMD, NTPC in the 4th Global Leadership Summit by Amity University for Sectoral Excellence in Power industry for his outstanding contribution to the growth of Indian business & bringing glory to the country through his pioneering leadership.

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F) Ranked #1 independent power producer in Asia in the THIRD ANNUAL PLATTS TOP 250 GLOBAL ENERGY COMPANY AWARDS 2008 for outstanding Global financial & Industrial performance at the award ceremony in Singapore. The corporation has been simultaneously ranked #15, overall in Asia amongst the energy companies. G) NTPC’s excellence in executing power projects & its initiative in Decentralized Distributed Power Generation has been recognized and awarded at IEEMA Power Awards 2008. NTPC Vindhyachal Stage-III (2x 500MW) has been conferred the IPMA SILVER MEDAL for Project Excellence by International Project Management Association, at the IPMA Congress, held in Rome, Italy, for implementation of project in record time & achieving excellent environmental, economic performance and giving outstanding support to the local community. Some major awards given to the Company in the areas of environment management & Corporate Social Responsibility include: •

US Environment Protection Agency’s ‘Climate Protection Award’ for the year 2003 won by NTPC’s Centre for Power Efficiency & Environmental Protection (CenPEEP).

•

The ‘Climate Technology Initiative (CTI) Award’ by CTI, an initiative of the International Energy Agency (IEA) & OECD countries also won by CenPEEP.

•

‘ICC – UNEP World Summit Business Award for sustainable Development Partnership’ for promoting Sustainable Energy Development.

•

The ‘Platts Global Energy Award for Community Development’ as the best organization in ‘Community Development’.

•

‘Shell Helen Keller Award 2002’ given by the National Centre for Promotion of Employment for Disabled People.

•

TERI’s ‘Corporate Social Responsibility Award’ for year 2003.

2.3.3 Organization Structure of NTPC

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Source: www.ntpc.co.in

Figure 2.3: Organization structure of NTPC

2.4 Joint Ventures

NTPC

has

identified

Joint Ventures, strategic

alliances as well as acquisitions & diversifications as viable and desired options for its business development.

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NTPC looks for opportunity to create such joint ventures & strategic alliances, in the entire value chain of the power business. NTPC as a partner endows the Joint Venture Alliances with a winning edge. Acquisitions & Diversifications in the areas related to the core business not only ensure growth but also add to the robustness of the company. Diversification is carried out either directly or through subsidiaries/JVs. NTPC SAIL Power Co. Pvt. Ltd. 50 %

NTPC Tamil nadu Energy Co. Ltd. 50 %

NTPC Alstom Power Services Pvt. Ltd. 50 %

NTPC SSCL Global Ventures Pvt. Ltd. 50 %

Utility Power Tech Ltd. 50 %

Ratnagiri Gas & Power Pvt. Ltd. 28.33 %

NTPC BHEL Power Projects Pvt. Ltd. 50 %

Joint Ventures

PTC India Ltd. 5.28 %

Aravali Power Co. Pvt. Ltd. 50 % BF-NTPC Energy Systems Ltd. 49 % Source: Self-made

Nabinagar Power Generating Co. Pvt. Ltd. 50 %

Meja Urja Nigam Pvt. Ltd. 50 %

Figure 2.4: Joint Ventures of NTPC

2.4.1 Subsidiaries

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Figure 2.5: Subsidiaries of NTPC

2.4.2 Competitors RELIANCE ENERGY LTD.

TATA POWER LTD.

NATIONAL HYDROELECTRIC POWER

POWER GRID CORPORATION

CORPORATION LTD. (NHPCL)

OF INDIA LTD. (PGCIL)

2.4.3 Acquisition Business development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economy. Taking over being a part of the acquisition process, is also an opportunity for NTPC to add to its power generation capacity through minimal investment & very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities.

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POWER STATIONS TAKEN OVER

YEAR

2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER STATION 4x60 MW + 2x110 MW TALCHER THERMAL POWER STATION 4x110 MW TANDA THERMAL POWER STATION 705MW BADARPUR THERMAL POWER STATION

1991

ORIGINAL OWNER UP RajyaVidyut Utpadan Nigam of Uttar Pradesh

1995 Orissa State Electricity Board 2000

UP State Electricity Board

2006

Central Electricity Authority

2.6 Location of NTPC Plants

Figure 2.6: Location of NTPC Plants

2.7 NTPC’s HR Vision To enable our people to be a family of committed world class professionals making NTPC a learning organization. 23 | P a g e

Goals Enhance organizational performance and commitment of employees by recognizing and rewarding high performance •

Build a competency based organization

•

Institutionalize core values and create a culture of team-building, empowerment, equity, innovation and openness which would motivate employees and enable achievement of strategic objectives

•

To be a preferred employer in order to attract and retain world class talent.

Human Resources NTPC believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 24,500 employees to fulfill its business plans. 'People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. NTPC are strongly committed to the development and growth of all our employees as individuals and not just as employees.

Source: www.ntpc.co.in

Figure 2.7: Employee development and growth

2.7.1 Elements of HR Strategy Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.

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(A).Competency Building Measures •

Talent Hiring and Management  Key Focus of HR: Attracting, Developing & Retaining Talents to be done on sound manpower planning system based on benchmarking of international practices of manpower norms.  The cost and quality of manpower hired to be competitive.  Development of Business orientation, commercial, marketing and legal skills

•

Competency based Performance Management System  Shift the focus from performance appraisal to performance management at all levels  Define, document and circulate competencies of all employees  Measures like KPA, Review & feedback system, identifying developmental needs and linkage with T&D and Rewards & Recognitions  Online Module of PMS  Equipping Executives with Performance counseling , coaching & giving positive feedback to improve performance, transparency and objectivity  Performance Evaluation to bring out developmental needs and linking it to Training and Development Initiatives 25 | P a g e

 Identifying Performers and Non-performer  Coaching and counseling the Non-Performers to enhance performance  System for suitably dealing the persistent Non-Performance. •

Leadership Development Program  Leadership Development at all levels with special focus on developing strategic leaders, functional leaders, business leaders, entrepreneurial leaders and transformational leaders  Review & reinforcement of current leadership development program with emphasis on people orientation and culture building.  Development of Global Competencies

•

Transition of Development Center to Assessment Center at different transitional levels involving role change

•

Multi-source Feedback through 360° appraisals

•

Integrated Career planning, development and succession planning  Focus on employee Development & Job enrichment  Identifying various career paths leading to business leaders/functional leaders  Short-term and long -term career rotation plans  Strengthening

succession planning for senior level positions- Leadership

succession criteria upto two levels below the Board  Identifying the functions and Jobs which are specialist in nature and development of growth opportunities. •

Training and Development, E-Learning & Global Exposure  Build functional Competency in all areas. Strengthen Core competencies of the people in the company through state of the art practices.  Adopting Training Evaluation Model  Measuring effectiveness of training and transfer of the skill to the workplace  E-Learning modules for distant learning  Global exposure of executives for global competencies and mindset

•

Strengthening R&D  Revitalized R&D and Technology Centre  Significant role through applied & basic research

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 Global competencies (B).Commitment Building Measures •

Enabling Organizational Climate  Motivation and commitment through tangible & intangible motivators  The employee welfare systems will be designed and maintained by way of providing best of quality of life to employees, their children and family members so as to make NTPC a preferred employer.  Enhancing employee satisfaction through regular surveys and addressing the areas of concern to transform NTPC a great place to work.

•

Compensation  Compensation on the principle of differentiated compensation based on performance and merit

•

Involvement and Attitude  Use of participative fora  Positive attitude through training, role models, value based behavior and rewards

(C).Culture Building Measures •

Core-Values Actualization  Value Handbook, Values workshop, Value Actualization Teams, Value Audit & Rewards  Development of value based leadership.

•

Culture of Respect, Trust and Openness  Value based behavior campaign  New PMS system built around competency, feedback etc

•

Culture of Team Work  Shift from hierarchical to flexible team based work teams

•

Customer Focus  Culture of working as per the needs and expectations of customers  Measurement for customer orientation of executives

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 System for interaction, feedback and evaluation of HR services by the internal customers.  Communication (Top Down, Bottom Up, Forums, E-Communication/ outside world for a socially responsive Orgn.)  Communication to be used as tool for removing misconceptions, managing perception and promoting openness, trust and transparency. •

Managing Globalization  Competency for multi-cultural nuances, diversity, law of the land, language & etiquettes  Addressing compensation, Organization Cultures, competency and commitment development issues by developing suitable systems and processes.

•

Managing Mergers and Acquisitions

(D).System Building Measures •

Focus on core-competency  Identifying core-competencies of HR & out-source, automate/simplify the noncore activities so that time spent for routine and repetitive activities are released for core-activities  Competitive and comparable cost for providing HR services  Hassle free and quality service for achieving high customer satisfaction  Continuous feedback from the customers on the service provided.

•

IT enabled Systems  Implementation of SAP ERP process  Making NTPC a paperless office through state of art technology

•

Knowledge Management System

•

Process Improvement Tools  ISO standards in HR, Six Sigma

•

Strategy Measurement and Alignment Tool  Implementation of Balance Score Card in HR

•

Customer Relationship Management

•

Managing Change

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•

Productivity Enhancement measures

•

Discipline Management

•

Measuring impact of HR Initiatives through research and Feedback

2.7.2 HR as a Strategic Business Partner in NTPC To actualize our HR Vision & the Corporate Vision, an integrated HR model has been developed. As per the model, at the periphery lies the role of HR to facilitate the organization in fulfilling its Corporate Social Responsibility & facilitate good governance practices. Within this framework, lies the role of HR to establish good customer relationship. At the heart of the Model, lies the role of HR to create a Learning Organization based on four building blocks i.e. building Competence, Commitment, Culture and Systems. All these HR roles are performed by a dynamic mechanism namely as Systems Designer, Internal Consultant, Systems Monitor and Impact Assessors.

Source: www.ntpc.co.in

Figure 2.7: Role of Human Resource in NTPC 29 | P a g e

Facilitating CSR- NTPC has formulated a comprehensive Corporate Social ResponsibilityCommunity Development (CSR-CD) policy to take up social programs in a systematic manner. Facilitating Good Governance- It involves two aspects of the organization- Hard and Soft. “Hard” aspect includes designing the organizational architecture, delegation of power etc. so as to allow for maximum speed in working, empowerment, innovation etc. “Soft” aspect includes Vision, Mission, Values and their actualization, culture building, strengthening internal communication system etc. so as to create an enabling environment for full actualization of individual potential as well as team potential. Sound Customer Relationship- The foundation for development lies on establishing peace and harmony in the organization through establishing good customer relationship i.e. relationship with internal as well as external customers. A number of participative forum have been created at unit, region and corporate levels for information sharing, consultation and finally joint decision making with the representatives of employees. Based on the four building blocks of HR i.e. building Competence, Commitment, Culture and Systems, HR function will achieve creating Learning organization by performing roles of1. Systems Designer-Designing HR systems & HR strategies for achieving its business goals and realizing its business strategy. HR professionals have to assess and articulate the needs explicit or implicit of the employees as well as the organization and develop appropriate systems to fulfill those needs. 2. Internal Consultant-Act as Internal consultant to Line Managers and equip them with people skills for effective implementation of HR systems in their departments/units. A number of such enabling systems have been created such as HR ambassador, Training coordinators, QC facilitators, Mentors, Assessors, HR for Line Managers workshops etc. 3. Systems Monitor- HR department constantly monitors whether HR processes are delivering in terms of fulfilling the intended objectives. It is being done through constant reviews, HRIS, EDIS etc. 4. Impact Assessor-HR measures the effectiveness of HR systems/processes, the value they have created and show how HR adds value and helps organization to achieve its goals through undertaking various introspection studies such as Organization Climate survey, Best Employer Survey, Vidya(Educational audit), e-darpan etc. This is a dynamic process to continuously update the people systems and enhance the HR delivery for improved business results and ultimately achieving the corporate goals.

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CHAPTER 3: SAP AG PROFILE

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THE BEST-RUN BUSINESSES RUN SAP

SAP AG is the largest European software enterprise & the third largest in the world, with headquarters in Walldorf, Germany. It is best known for its SAP ERP Enterprise Resource Planning (ERP) software. SAP was founded in 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development").The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing").SAP AG became the company's official name after the 2005 annual general meeting (AG is short for Aktiengesellschaft). SAP is the only enterprise applications software vendor that is both building service-orientation directly into its solutions and providing a technology platform (SAP Net Weaver) and guidance to support companies in the development of their own service-oriented architectures spanning both SAP & non-SAP solutions. SAP is a world market leader in E-Business applications, modernizing business and government operations worldwide, making them more efficient.  Over 21,000 businesses and government worldwide customers.  The US government is SAP’s largest customer including; NASA, GSA, DOJ, DOT, DHS (customs), army, DLA, NAVY and treasury.  More than 20% of SAP revenue is reinvested into research & development activities. Products SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current version is SAP ERP 6.0 & is part of the SAP Business Suite. Its previous name was called R/3. The "R" of SAP R/3 stood for real time even though it is not a real-time solution. The number 3 related to the 3-tier architecture: database, application server & client (SAPgui). Other products are: o o o o

Relationship Management (SAP SRM) SAP Product Lifecycle Management (SAP PLM) SAP NetWeaver SAP Business One 32 | P a g e

o SAP Business ByDesign o SAP Business All-in-One SAP IN INDIA –

Established in 1996

–

Market Leader - 750+ Customers

–

Country wide Offices , 1600+ Employees & Growing

–

SAP Labs – R&D Centre at Bangalore & Delhi

–

Mature India Localization & India Payroll

–

Customer Care Centre at Bangalore

–

Large & Leveragable Skill Base

–

Knowledge Services

–

India SAP user Forum – Indus

SAP focuses on six industry sectors: •

process industries

•

discrete industries

•

consumer industries

•

service industries

•

financial services, and

•

Public services.

It offers more than 25 industry solution portfolios for large enterprises and more than 550 microvertical solutions for midsize companies and small businesses.

3.1 SAP ERP Human Capital Management Aligning Employees, Processes, and Strategies for Business Success The SAP ERP Human Capital Management solution offers a complete & integrated set of tools to help organization – regardless of industry or geographic location – more effectively manage company’s most important asset. Automation of core human resource processes, such as employee administration, legal reporting, payroll increases efficiency and supports compliance with changing global & local regulations. For e.g., organization can create project teams based 33 | P a g e

on skills & availability, monitor their progress on specific projects, track the time they spend, and analyze the results. Equally important, integrated talent management functions in SAP ERP give HR managers insight into organizational talent to more effectively plan, acquire, educate, align, & retain the talent need to maximize the effectiveness of the organization. Identifying top performers and potential successors helps organization minimizes disruption when executives and senior managers leave or retire. To compete effectively, one need to align all corporate resources – including employees – with business objectives. To do so, one need to transform traditional HR functions into a comprehensive program for human capital management (HCM). It maximizes the value of employees and integrates employees, processes, & strategies to support business goals. That's why you need SAP ERP Human Capital Management (SAP ERP HCM). The solution optimizes each employee's contribution by aligning employee skills, activities, & incentives with business objectives and the strategies to reach them. It also provides tools to manage, measure, & reward individual and team contributions.SAP ERP HCM enables employees to maintain personal information & control administrative processes. So HR department can focus on valuegenerating projects instead of administration.SAP ERP HCM supports payroll functions, regulatory requirements, integrates with existing business systems and can be customized to meet your requirements. SAP ERP HCM provides integrated, enterprise wide functionality that: •

Streamlines HCM processes & seamlessly integrates them across global operations

•

Provides real-time access to information that accelerates workforce decision-making

•

Allows you to assign the right people to the right projects at the right time

•

Supports both employees & managers throughout the employee life cycle

•

Empowers employees to manage processes in a collaborative environment

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3.1.1 Benefits of SAP ERP Activity Increased productivity

Reduced costs through increased flexibility

Benefit  Improve cost control through integrated management of key business processes across your organization  Improve operational efficiency by extending the reach of business processes throughout and beyond the enterprise  Accelerate response to market changes & competitive challenges  Improve process standardization, efficiency, & adaptability by utilizing enterprise service-oriented architecture  Gain access to transactions, information, & collaborative activities across a broad business community  Add specific functionality as needed to support evolving business requirements  Protect and leverage existing investments in SAP® solutions

Optimized IT spending

 Cut IT costs by tightly integrating and optimizing core business processes  Reduce capital outlay by eliminating the need to purchase thirdparty software  Lower costs by standardizing enterprise software on a single integration platform  Enable faster, more cost-effective business expansion by eliminating the complexity of managing homegrown or heterogeneous software applications

Faster, higher ROI

 Use rapid implementation techniques that cost less than half of what traditional approaches cost  Gain rapid access to needed functionality through preset defaults & prepackaged, industry-specific versions  Enhance the value of existing software investments by increasing their use throughout the enterprise

Innovation without disruption

 Take advantage of new functionality through SAP ERP enhancement packages rather than upgrades  Implement functionality to support business processes incrementally as your business requires – an evolutionary approach that protects your existing IT investments & reduces costs

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3.1.2 SAP ERP HCM Solution Functionality Functionality Talent Management

Supported capabilities • • • •

HCM Service delivery

•

• •

Workforce analytics

• • • •

Workforce process management

•

•

Support and integrate all talent management processes to attract, hire and quickly secure qualified candidates Educate & develop employees Identify & nurture future leaders Motivate & align the workforce with corporate objectives to improve organizational performance Automate & standardize the provision of HR processes and services through a centralized delivery channel or sharedservices organization Achieve high-quality HR services at low cost Perform analytics to measure the performance and effectiveness of HR teams Gain reporting and analysis options that offer real-time insight into workforce-related data Manage the workforce more effectively Predict human-capital investment demands Accurately track workforce costs Automate and integrate all core workforce processes for employee administration, organizational management, global employee management, time management, benefits management, payroll, and legal reporting Ensure adherence to local regulations and laws

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Global integration

• • • •

Consolidate all workforce-related processes & data onto a single global platform Leverage country-specific legal compliance guidelines & best practices Reduce operational costs Ensure better insight into workforce deployment

3.2 ERP (Enterprise Resource Planning) A set of applications that help manage and automate a business involving best practices, thereby improving the performance.ERP incorporates all elements of a business – finance, materials, maintenance, production, projects and marketing activities etc into a unified system that operates more effectively and efficiently.

Figure 3.1: ERP Integration with Business

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ERP involves change 1) Change in processes 2) Change in roles & responsibilities 3) Change in organization’s working culture- Department to Process perspective 4) Change in attitude & mindset of people Change Management Strategy would focus on bringing about above changes in NTPC smoothly JUST LIKE THE ICEBERG WHAT IS VISIBLE IS THE PRODUCT

Figure 3.2: ERP Solution

3.2.1 Advantages of ERP 

Uniform Application Across the enterprise



Availability of Integrated Information System



Adoption of Best Practices & Procedures

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

Access to real time information for effective decision making



More productive time for managerial & strategic decision making



Well tested & proven system



Up gradation of Package is taken care



Reduction of paper reports



Effective Cost Budgetary control



Improved planning and support for future business needs



Reduction in inventory



Reduction in Procurement cycle time



Better Maintenance practices, leading to improved equipment availability



Linkage with extranet applications



Extensive information warehousing



Reduction in time and effort for reconciliation , closing of accounts & monthly reporting

3.2.2 Issues in ERP  Head of Project(HOP) ,Head of Department( HOD) & Section heads must act as Change Agents in their areas and mobilize the people for this big change.  Functional people have a major role to play in the success of ERP.  ERP is business initiative – NOT IT initiative – and everybody's responsibility , IT is only the support backbone.  Implementation of ERP is project and requires considerable time management and effort.  NON Compliance / Deviation from ERP’s Best Practices should be avoided.  To successfully take an ERP system, Orgn. needs to change its “Working Culture”

3.2.3 Depending Factors for Success of ERP Implementation

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Figure 3.3: Factors for success of ERP Implementation

3.2.4 Challenges in ERP Implementation

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Figure 3.4: Challenges in ERP Implementation

3.3 Roles & Responsibilities of Change Management 1). Change Agents •

Bring clarity on the purpose of ERP implementation

•

Create ownership in the locations for the SAP implementation

•

Bring awareness about positive aspects of change

•

Facilitate acceptance of the SAP system

•

Facilitate the benefit realization workshops

•

Ensure maintenance of the desired change

•

Key link between end users and project team

•

Help to address the concerns, apprehensions, issues of people at the locations

•

Update self on ERP Implementation

2). Process Owner •

Take ownership of the improved processes and give approval. 41 | P a g e

3). Head of Projects •

Act as driver to ensure effective implementation of ERP at their location.

•

Motivate all location people to adopt to the new way of working.

•

To ensure availability of infrastructure facilities in time.

•

To ensure completion of codification exercise well in time at their location.

•

To expedite data migration activities at their location.

4). Process Anchors •

To finalize the “To Be” processes to be implemented across the organization

•

To get involved with the integration testing of processes configured for implementation

•

To get trained in the processes in their respective functions and train others

3.3.1 Forces for Successful Change Management Successful management of change needs four forces to drive the change. These are:

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3.3.2 Change Management in ERP Implementation

Today, people are the most important assets in by any business, and managing employees with SAP HR properly is important for growing the top and bottom line, becoming more productive, and achieving competitive advantage in the marketplace. Information technology alone can't achieve those goals, but it can set you on the path to proper asset management in the human resources arena.

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CHAPTER 4: PROJECT LAKSHYA IN NTPC

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4.1 LAKSHYA Mission To make every employee in NTPC information enabled by providing holistic and integrated business approach through speedy implementation of enterprise wide, state-of-the art, comprehensive, centralized and integrated solution, thereby supporting NTPC’s Vision of being A World Class Power Major

4.2 Project Objectives

Liase

with the Operations Core Team to promote best practice and processes for ensuring

effective operation of the business applications.

Actively

work together as a unit, to ensure all aspects of the project management, fit for

purpose.

Keep project to time and quality. Suitably ensure that the desired outcome of the specified programme meets the expectations and business requirements of NTPC.

Help the Core Team to build upon their knowledge & their specific area of expertise of the RWE products and subsequent support capabilities.

Year-on-year SLA’s are appropriately adhered to & delivered to the satisfaction of the customer. Ascertain the business requirements at an early stage 4.3 Implementation of SAP ERP (Project Lakshya) NTPC Ltd has mandated German business software major SAP AG for the implementation of an enterprise resource planning (ERP) package. While the move is broadly aimed at overall operational efficiency improvement, it comes in the wake of critical fuel shortages that some of NTPC's stations had to face in year 2006, which was finally mitigated through coal imports and resulted in some loss in generation. NTPC, a thermal power generating company, has gone live on SAP ERP implementation. Titled project 'Lakshya', the pilot implementation of the project at Ramagundam, Faridabad, Koldam, NCR HQ and Corporate were completed on schedule, in a span of 10 months.

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The contract for “Procurement of ERP and its Implementation” has been awarded to SAP India on 2nd May’2006 with Siemens Information Systems Limited (SISL) as their Implementation Partner. According to R.S. Sharma, chairman and managing director, NTPC, "Given the large scale of NTPC’s operations and the complexity of our structure, we wanted to implement a business software solution that would establish uniform business processes, better decision support and better control over operations." The SAP solution is expected to help NTPC achieve improved exchange of information, productivity & reduction of costs, better data consistency, knowledge sharing and unification of planning & budgeting process. NTPC will use applications from the SAP for utilities solution portfolio including wall-to-wall implementation of the core SAP ERP, IS-U, Business Analytics, SEM, SRM, Enterprise Portal and C-Folders for project-based collaborations across all locations of NTPC.

4.3.1 Importance of Lakshya in NTPC To power business needs and facilitate collaboration Implementing of ERP system has become one of the best practices of modern management techniques. Also with the company undergoing a makeover from a purely thermal generation utility to an integrated energy firm, organizational efficiency & better coordination across newly diversified businesses is expected to be honed through the implementation of the ERP. The ERP project called `LAKSHYA’ is likely to impart a cutting edge to the Company in terms of efficiency, flexibility of functioning, transparency, and quicker response to internal and external stakeholders.

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4.3.2 ERP SERVICE PROVIDERS AT NTPC (PROJECT LAKSHYA)

4.4 Project DISHA 47 | P a g e

NTPC is a well-known power corporation serving people since 1975. The company has entered into Hydro sector and plans to enter nuclear power soon. To match its growth plans, the company needed to have uniform processes throughout the organization, irrespective of the location and area it belongs to, providing seamless integration among all its processes with one view of the company as a whole. To achieve this, NTPC started ‘Project Disha!! Organizational Transformation’ which aimed at implementing SAP at its all locations. All major functions of NTPC such as Planning, Project Mgmt, vendor mgmt; financial accounting; invoicing etc, are done through this. The project aims at shortening cycle time, procurement lead time, realization cycle, account closure time, etc. It is also expected to provide better mgmt & mobilization of diversified workforce and online visibility of status on sales, inventory, receivables with improved search facility. To ensure that implementation works smoothly at all locations NTPC deployed MPLS-VPN through BSNL. During implementation, change mgmt and user training were the two major challenges faced. Disha led to use of standardized processes throughout NTPC with seamless integration. It has also resulted in effective use of manpower. Project Disha is a comprehensive organization transformation project with a view to positioning the NTPC as a globally comparable utility, aligned with global best practices in various areas of its processes and functions. The project is focused on important areas, such as core business strategy, portfolio diversification, globalization, services business model, IT strategy, structural initiatives, planning process, unit level processes (maintenance, procurement and inventory), engineering initiatives, project planning and execution, performance management system, rewards and incentives, career development system and knowledge management system. NTPC has implemented SAP to bring all functions of the organization under one roof with uniformity in all processes throughout the organization.

Objective of Project Disha

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4.5 Screens Shots for SAP HR Modules Implemented at NRHQ There are different modules in SAP-ERP such as: FI – Finance  CO – Controlling  MM – Material Management  PS – Project System  PM – Plant Maintenance  QM – Quality Management  SRM – Supplier Relationship Management  PP – Production Planning  SD – Sales & Distribution  LDM – Lifecycle Data Management  IS-U – Industry Solution - Utilities  HCM – Human Capital Management  BW – Business Warehouse  BPS – Business Planning & Simulation  KM – Knowledge Management Some of the screenshots of HR module - ESS (Employee Self Service) are:-

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CHAPTER 5: SURVEY, FEEDBACK & DATA ANALYSIS

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The survey was done in 3 departments namely Human Resource (HR), Finance & Accounts (F&A), and Contracts & Materials (C&M) of total of 50 employees in Northern Region Headquarters (NRHQ). On the basis of various responses; following tests were done on different variables. (A)Independent Variable1-SAP ERP understanding (undrstng) Dependent Variable2- Decision-making (decision) Following tests were done so as to analyze the data. These are: 1. One-way Anova test 2. Non-Parametric Tests-Chi-Square Test

1. ONE-WAY ANOVA TEST

H0: There is no significant difference between understanding of SAP ERP process and its help in decision-making ANOVA Sum of Squares Decision making

Between Groups Within Groups Total

Mean Square

df

2.033

3

.678

29.187

46

.634

31.220

49

Table 5.1 Inference:

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F 1.068

Sig. .372

F from the above table significant value is 0.372 which is more than the hypothetical value 0.05; hence the null hypothesis is accepted. It infers that there is a no significant difference between understanding of SAP ERP process and its help in decision-making.

2. NON-PARAMETRIC TESTS- CHI-SQUARE TEST The value of X2-test statistic: X2 = ∑ (O-E)2 /E Where O= an observed frequency in a particular category And E= an expected frequency for a particular category Degree of freedom, df = (No. of rows-1)*(No. of columns-1) = (r-1) (c-1)

H1: There is a significant difference between understanding of SAP ERP process and its effect on decision making. Frequencies De cision making

Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree Total

Observed N

Expected N

Residual

1

10.0

-9.0

1

10.0

-9.0

18

10.0

8.0

24

10.0

14.0

6

10.0

-4.0

50

Table 5.2(a)

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SAP ERP unde rstanding

Disagree Neither Agree nor Disagree Agree Strongly Agree Total

Observed N 11

Expected N 12.5

Residual -1.5

8

12.5

-4.5

26

12.5

13.5

5

12.5

-7.5

50

Source: Self-made

Table 5.2(b) Te st Statistics

Chi-Squarea,b df Asymp. Sig.

Decision making 43.800 4

SAP ERP understanding 20.880 3

.000

.000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.0. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.5.

Table 5.2(c) Inference: The critical (or table) value of X2 = 9.49 at α= 0.05 and df =4 for decision making & X2 = 7.81 at α= 0.05 and df =3 for SAP ERP understanding. Since the calculated values of X2 = 43.80 for decision making & X2 =20.880 for SAP ERP understanding are more than its critical value, the alternative hypothesis is rejected. Hence, we conclude that there is no significant difference between understanding of SAP ERP process and its effect on decision making. From the table, out of 50 employees, it has found that 26 employees agree that they were aware about the understanding of SAP ERP process and 24 employees agree that SAP ERP helps in decision-making. It infers that better the understanding of SAP ERP process, more it help the employees to take correct decisions.

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(B).Independent Variable1-SAP ERP training (training) Dependent Variable2- Business Environment (busenvrn) Following tests were done so as to analyze the data. These are: 1. One-way Anova test 2. Non-Parametric Tests-Chi-Square Test

1. ONE WAY ANOVA TEST H1: There is a significant difference between SAP ERP training and employees adapt quickly to changing business environment. Table 5.3 ANOVA Sum of Squares Business environment

Between Groups Within Groups Total

Mean Square

df

3.938

4

.985

34.642

45

.770

38.580

49

F

Sig.

1.279

.292

Inference: F from the above table significant value is 0.292 which is more than the hypothetical value 0.05; hence the alternative hypothesis is accepted. It infers that there is a significant difference between SAP ERP training and employees adapt quickly to changing business environment.

2. NON-PARAMETRIC TESTS-CHI-SQUARE TEST The value of X2-test statistic: X2 = ∑ (O-E)2 /E Where O= an observed frequency in a particular category And E= an expected frequency for a particular category Degree of freedom, df = (No. of rows-1)*(No. of columns-1) = (r-1) (c-1)

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H0: There is no significant difference between SAP ERP training and its effect on Business environment Frequencies Table 5.4(a) SAP ERP training Observed N

Expected N

Residual

2

10.0

-8.0

8

10.0

-2.0

15

10.0

5.0

24

10.0

14.0

1

10.0

-9.0

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Total

50 Busine ss e nv ironme nt Observed N

Expected N

Residual

3

10.0

-7.0

4

10.0

-6.0

24

10.0

14.0

17

10.0

7.0

2

10.0

-8.0

Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree Total

50

Table 5.4(b) Source: Self-made

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Te st Statistics

Chi-Squarea df Asymp. Sig.

SAP ERP training 37.000 4

Business environment 39.400 4

.000

.000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.0.

Table 5.4(c) Inference: The critical (or table) value of X2 = 9.49 at α= 0.05 and df =4. Since the calculated value of X2 = 37.00 for SAP ERP training & X2 =39.40 for business environment is more than its critical value, the null hypothesis is rejected. Hence, we conclude that there is a significant difference between SAP ERP training and its effect on Business environment. From the table, out of 50 employees, it has found that 24 employees agree that they have been given adequate SAP ERP training and 17 employees agree that SAP ERP helps in adapting quickly to changed business environment but 24 employees are neither agree nor disagree. So it can be inferred from the above test that still more training is required to maintain accuracy and that will help the employees to easily adapt themselves to changed business environment.

PAIRED SAMPLES T-TEST Variable 1- Data Consistency (cnsistnc) Variable 2- Process Owners (proowner) H0: There is no significant difference between process owners’ knowledge of SAP ERP process and it provides better data consistency & knowledge sharing. Paire d Sample s Statistics Mean Pair 1

Data consistency Process Owners

N

Std. Deviation

Std. Error Mean

3.7200

50

.7296

.1032

3.8600

50

.8809

.1246

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Table 5.5(a) Paire d Sample s Corre lations N Pair 1

Data consistency & Process Owners

Correlation 50

Sig.

.192

.182

Table 5.5(b)

Paire d Sample s Te st Paired Differences

Mean Pair 1

Data consistency - Process Owners

Std. Deviation

Std. Error Mean

1.0304

.1457

-.1400

95% Confidence Interval of the Difference Lower Upper -.4328

t

.1528

Sig. (2-tailed)

df

-.961

49

.341

Table 5.5(c)

Data consiste ncy

Disagree Neither agree nor disagree Agree Strongly agree Total

Proce ss Owne rs

Observed N 2

Expected N 12.5

Residual -10.5

16

12.5

3.5

26

12.5

13.5

6

12.5

-6.5

50

Disagree Neither Agree nor Disagree Agree Strongly Agree Total

Table 5.5(d)

Observed N 4

Expected N 12.5

Residual -8.5

11

12.5

-1.5

23

12.5

10.5

12

12.5

-.5

50

Table 5.5(e)

Inference: F from the above table significant value is 0.341 which is more than the hypothetical value 0.05; hence the null hypothesis is accepted. It infers that there is no significant difference between process owners’ knowledge of SAP ERP process and it provides better data consistency & knowledge sharing.

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From the table, out of 50 employees, it has found that 23 employees agree that Process owners has knowledge about SAP ERP Process and 26 employees agree that it provides better data consistency & knowledge sharing. Process owners have full authority to access all the modules of SAP ERP process and they share their knowledge with other employees to work effectively on the process. So they keep on updating their knowledge to maintain data consistency. 1). Based on the responses on whether the paper work is actually reduced or not, following graph is drawn. Variable- Paper work (paperwrk) Out of 50 employees, Strongly disagree- 1 Disagree- 10 Neither agree nor disagree- 16 Agree- 17 Strongly agree- 6 20

Count

10

0 Strongly Disagree

Neither agree nor di Disagree

Strongly agree Agree

Paper work

Source: Self-made

Figure 5.1: Paper-work Inference: From the above graph it can be inferred that out of 50 employees 17 employees agree that paper work has been reduced but 16 employees are not satisfied with this point. They still 60 | P a g e

believe that inspite of the fact that all the work has been made computerized but still in many cases hardcopy proof is needed like that for receipts, approval, etc. so in this case we can infer that paper work is still there. Thus after the implementation of SAP ERP process in NTPC, paper work is reduced but upto some extent only because still in some departments like CenPEEP (Centre for Power Efficiency and Environment Protection), paper work is not reduced.

2). Based on the responses on whether more training sessions are required or not, following graph is drawn. Variable- Training sessions (sessions) Out of 50 employees, Disagree- 1 Neither agree nor disagree- 6 Agree- 14 Strongly agree- 29 40

30

20

Count

10

0 Disagree

Neither Agree nor Di

Agree

Strongly Agree

Training sessions

Source: Self-made

Figure 5.2: Training Sessions Inference:

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From the above graph it can be inferred that out of 50 employees 29 employees strongly agree that more training session are still required on regular basis as ERP software has very vast applications.

3). Based on the responses on whether the SAP ERP process increases the customer satisfaction or not, following graph is drawn. Variable- Customer satisfaction (satsfctn) Out of 50 employees, Strongly disagree- 3 Disagree- 1 Neither agree nor disagree- 14 Agree- 22 Strongly agree- 10

30

20

Count

10

0 Strongly disagree

Neither agree nor di Disagree

Strongly agree Agree

Customer satisfaction

Source: Self-made

Figure 5.3: Customer Satisfaction Inference: From the above graph it can be inferred that out of 50 employees 22 employees agree and 10 employees strongly agree that the implementation of SAP ERP process has increased

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the customer satisfaction because of quicker response and faster delivery of services without any delay.

4). Based on the responses on whether the financial risk is actually reduced or not, following graph is drawn. Variable- Financial risk (finrisks) Out of 50 employees, Disagree- 3 Neither agree nor disagree- 14 Agree- 25 Strongly agree- 8 30

20

Count

10

0 Disagree

Neither agree nor di

Agree

Strongly agree

Financial risk

Source: Self-made

Figure 5.4: Financial Risk Inference: From the above graph it can be inferred that out of 50 employees 25 employees agree that implementation of SAP ERP process has greatly reduced the financial risks as all transactions have been done in real-time and even for small transactions, entry is done in SAP ERP process. 5). Based on the responses on whether the complaints are addressed by concerned authority without any delay or not, following graph is drawn. Variable- complaints (cmplaint) 63 | P a g e

Out of 50 employees, Disagree- 6 Neither agree nor disagree- 13 Agree- 25 Strongly agree- 6

30

20

Count

10

0 Disagree

Neither agree nor di

Agree

Strongly agree

complaints

Source: Self-made

Figure 5.5: Complaints Inference: From the above graph it can be inferred that out of 50 employees 25 employees agree that the implementation of SAP ERP process has greatly helped in addressing the complaints of employees without any delay as Application Tracker act as an efficient tool in this regard.

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CHAPTER 6: CONCLUSION

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This project report attempted to answer the following question:”How effective are the services through SAP ERP process in HR departments?” Through an analysis, it was determined that:  Understanding of SAP ERP process helps in decision making  After giving adequate training of SAP ERP process, employees does not adapt quickly to business environment. It takes some time to adjust to new environment.  Process owners are knowledgeable about SAP ERP process and it provides better data consistency and knowledge sharing.  After the implementation of SAP ERP process in NTPC, paper work is reduced but upto some extent only because still in some departments like CenPEEP (Centre for Power Efficiency and Environment Protection), paper work is not reduced.  After the implementation of SAP ERP process in NTPC, employees feel that more training sessions are required as ERP software has very vast applications.  SAP ERP process increases the customer satisfaction because of quicker response and faster delivery of services without any delay.  SAP ERP process greatly reduces the financial risks as all transactions have done in realtime.  SAP ERP process has greatly helps in addressing the complaints of employees without any delay as Application Tracker act as an efficient tool in this regard.

A cautious, evolutionary, bureaucratic implementation process backed with careful change management, network relationships and cultural readiness can lead to successful ERP implementations. An ERP implementation is not simply a large IT implementation project- it is a sizable organizational project. Organizational benefits will not be achieved if the enterprise focuses on the technical aspects only.

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Information technologies cannot by itself influence the productivity of a company. The main efficiency factor lies in the way people use these technologies. Many information strategies fail for ignoring this issue.

CHAPTER 7: RECOMMENDATIONS & SUGGESTIONS

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Following suggestions were made to improve the effectiveness of SAP ERP process: 1) Required level of training should be given to employees. Training must stress the need for more disciplined work habits and make it clear that even simple mistakes can create consequences in other areas. Regular training should be a strong feature. 2) More training sessions should be given to employees regarding SAP ERP process as it has very vast applications. Everyone must become familiar with new roles, revised processes, and new control mechanisms. 3) Reports and Returns as well as query system need to be strengthened. 4) Training regarding Application Tracker should be given since it works as a window to get the correct status of processing of forms applied in the SAP ERP process such as Reimbursement, advances & allowances. 5) Feedback of the users of SAP-ERP process should be addressed properly through training sessions. 6) Overall training sessions & workshops should be provided on quarterly basis to the SAP ERP process owners of each department. 7) Process owners should be made aware of the new updating in SAP ERP process at regular basis either through mails or workshops, whichever is required. 8) Top management should formulate some guidelines on how to reduce the paper-work. 9) Along with Entry facility, Approval facility should also be provided in the SAP ERP process so as to reduce the paper-work to some extent. Example- In case of claim of the Medical bill, hard copy is taken of all the receipts and forwarded to the TOP MANAGEMENT for the approval, then again it is returned to the Process owners for its entry in the SAP ERP process. Then again the hard copy of that entry is attached to the previous documents and is forwarded to the Finance Management for further process. So, Instead of forwarding the hard copy of the receipts to the TOP MANAGEMENT if there has been an approval facility in the SAP ERP process, then this extra paper-work

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would have been reduced to a great extent and in addition, the processing of documents will take less time than usual.

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BIBLIOGRAPHY

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BOOKS Sharma J.K., Business Statistics, Delhi, 4th Edition, Pearson Education, 2008, Pages 381-420

JOURNALS AND MAGAZINES – •

NTPC manuals, New Delhi, updated as on 1997, G.IV/S.7 Pages 1-27 & G.V/S1-S7 Pages 1-105

•

Employee Handbook, NTPC( New Delhi),updated as on 31-01-2006, Pages 30-32 & 87-102

WEBSITES •

www.ntpc.co.in

•

www.sap.com

•

‘SAP AG’ Wikipedia Edition 2009, viewed 18 June 2009,

•

SAP ERP Human Capital Management, viewed 19 June 2009,

•

NTPC intranet, Northern Region Headquarters(NRHQ),

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ANNEXURE

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SERVICES THROUGH ‘SAP ERP’ EFFECTIVENESS SURVEY In str ucti on – The following questionnaire has been designed to measure the effectiveness of services through SAP ERP process in the company. Please give your free and candid opinion. Your responses shall be treated with utmost confidentiality. Q.No

Statement

Strongly Disagree

Disagree

Neither Agree Nor Disagree

Agree

Strongly Agree

1.

I have achieved the required level of understanding regarding SAPERP(ESS) process

1

2

3

4

5

2.

I have been given adequate training regarding SAP-ERP(ESS) process More training sessions regarding SAPERP(ESS) process is required

1

3

3

4

5

1

2

3

4

5

Process Owner dealing with SAPERP(ESS) process in various departments are knowledgeable about that process Services provided through SAPERP(ESS) are of high quality

1

2

3

4

5

1

2

3

4

5

Introduction of SAP-ERP(ESS) has increased productivity

1

2

3

4

5

Disagree

Neither 3 Nor Agree Disagree

Agree

2

1 1

2 2

3 3

4 4

5 5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1 1

2 2

3 3

4 4

5 5

11

22

33

44

5

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

1 1

2 2

3 3

4 4

5 5

1

2

3

4

5

1

2

3

4

5

3. 4.

5. 6.

Q.No 7. 14. 8. 15. 9. 16. 10. 17. 18. 11. 19. 12. 20. 13. 21. 22. 23.

Statement

SAP-ERP(ESS) process helps in reducing time and faster delivery of services Reduces the paper-work and more costIeffective am aware about the uses of Application Tracker in SAP-ERP(ESS) Increases efficiency of employees and Process better compliance changing global My complaints are with addressed by the and local regulations concerned authority without delay Increases customer satisfaction Their services are available as and Maximizes transparency and control of when required organization Helps in decision-making Improves speed of transaction/processes SAP-ERP(ESS) helps in improving the business performance SAP-ERP(ESS) provides real-time Provides better management access to critical information of work forceERP(ESS) is more accurate than SAP Provides better data consistency and older systems knowledge sharing Helps in reducing financial and environmental risks Enhanced primary user’s knowledge and skills

Strongly Disagree 1

4

Strongly 5 Agree

24.

Employees adapt quickly to changing business environment

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2

3

4

5

25.

SAP-ERP(ESS) systems and process are user friendly

1

2

3

4

5

REMARKS: (SUGGESTIONS FOR IMPROVEMENT)

Department:

_________________

Grade:

_________________

NOMINATION FORMAT EMPLOYEE CODE

EMPLOYEE NAME

FEEDED IN

PRESENT

NOMINATIONS PRESENT IN

PRESENT IN

SAP-ERP

BOTH IN

PERSONAL

SAP-ERP BUT

PERSONAL

FILE BUT

NOT IN

FILE AND

NOT IN SAP-

PERSONAL

SAP-ERP

ERP

FILE

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