1. ERP Implementation at BPCL

2. Group Members
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Akshay Kirad-2013G04
Omkar Kulkarni-2013G20
Pankaj Khaladkar-2103G22
Prasad Panajkar- 2013G24
Rahul Patil-2013G29
Vishal Khatokar-2013G52

3. BPCL-How it was started?
1951- GOI entered into an agreement with Burmah-Shell for
establishing a Oil refinery at Bombay
1952- Incorporation of Burmah Shell Oil Refineries Ltd
1955- Refinery starts
1962- Started processing crude oil from Ankleshwar
1975- GOI acquired the operation SOR company and named
it as Bharat Refineries. Became the first Indian company to
introduce LPG for domestic cooking purposes.
1976 & 1977- GOI acquired 100% shares in August, 1977
and renamed company as Bharat Petroleum Corporation Ltd.
1991- After Economic reforms entered into mktg. contract
with IBP , MRL & CRL.

4. BPCL-How it was started?....... continued
1992- GOI disinvested 30 % stake in favor of FI’s & MF’s.
Emerged as 2nd largest oil company in terms of mrkt share.
(32% petrol, 27% in diesel)
1993- Partnered with Shell, Launched Shell in 1994
1994- 3.8% equity disinvested and allotted to its employees
1996- Began IT initiatives & organization restructuring
1998- 99, GOI further disinvested 26% from BPCL a
NAVRATNA Company.
1999-2000, Acquired 32% stake in IBP.
2001- Companies nationwide retail network rose to 4500
outlets (60 % of which are company owned)

5. Installed Refining capacity
Bina
9 MTPA
Manali
6.5 MTPA
Numaligarh
3 MTPA
BPCL
Cochin
7.5 MTPA
Mumbai
6.9 MTPA
*MTPA -million metric tones per annum

6. Evolution of ERP
MRP
MRP II
ERP I
ERP II
•1960 Inventory Management
• 1970 Raw material
requirement planning
• 1980 Optimizing Production
process
• 1990 Management of Sales,
Production, Accounts, Finance
• 2000 Improvising Business
process & gain competitive
edge

7. Evolution of ERP
Global ERP Market
2001
2000
ERP market $ 23
Slowdown
billion
Substantial growth in
ERP Mkt.
Pre ERP ERA
1988-2000
1980
Indian ERP Market
Year
Mkt. Size
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02
270
In Rs. millions
620
1340
2500
4600
6500

8. Why BPCL went for ERP ?
• 1991 felt need of ERP
o Improve on customer focus
o Speedy delivery
o Cost competitiveness
o Improved quality at lower price
• Pre ERP era companies confined to local markets and all
decision were managed by single set of people.
• Organizational restructuring
o Speedy system for effective communication
o Integration of all business functions
• Planned to increase its emphasis on retail business and
increase its non-fuel revenues
• Retain its market position by Initiating IT infrastructure.
•

9. ERP Implementation
BPCL Strategy
Communication
N/W within the
organization
Basic information N/W to process
N/W for the
transactions with
entire
customers all
corporation
over the country
Divided organization in six SBU’s
Retail
Aviations
Lubricant
LPG
Industrial &Commercial Refinery

10. ERP Implementation
• The ERP implementation was a part of project CUSEC
(Customer Service & Satisfaction) to reduce the imbalance
between refining and marketing.
• Selected SAP R/3 as it was successfully used by major oil
companies in the world.

11. IT Infrastructure
Satellite
Remote
Locations
VSAT HUB @
Bangalore
Mumbai
WEB Servers
Internet
Bina
Kochi

12. ERP- Why it was successful at BPCL?
• Awareness in senior management for process streamlining
for faster decision making.
• Divided the IT strategy in different categories
• Testing of the solution with the help of pilot implementation.
• Implementation of proven package across world- SAP R/3
• Appointed external consultants Coopers & Lybrand(Merged
with PC in 2000)
• Emphasis on security determined the success for online
business. Used best available Sun Ultra firewall system.
• SAP testing, modification and customization of modules was
carried out on separate Quality Assurance Server(QAS).
•

13. Benefits to BPCL
• Intranet connectivity to all users
• Established corporate database of the company
• Introduced Query by mail system for users to extract
business transactions
• Achieved 30% saving on long distance communication
• Biggest benefit of Well managed inventory.
• SAP R/3 helped BPCL to successfully launch its e-biz
initiatives
• Allow I&C customers track orders status online.
• Successfully introduced Petrocard in 1999-00 with around
2.5 Lac customers and more than 20,000 daily transactions.
• Introduced Fleetcard for transport companies
• Integrated manufacturing execution system of its refinery
with the system.
• Introduce online payment system to for credit card
payments.

14. Conclusion
ERP Implementation @ BPCL was
Successful !
THANK YOU 