1. ERP POPOSAL
FOR HPCL-SAP
Group
Vivek Srivastava
Meethu Mohan
Kalyan Prasad
Prabhu P
Reema G

2. HISTORY OF SAP
 Systems Applications and Products in Data Processing
 Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and
Tschira
 Re named in 1977
 Before 1977 : Systems Analysis and Program Development
(German : Systemanalyse und Programmentwicklung)
 SAP is both the name of the Company as well as their ERP Product
 SAP system comprises of a number of fully integrated modules,
which covers virtually every aspect of the business
 Three systems developed : R/1, R/2, R/3

3. ABOUT HPCL
 Hindustan Petroleum Corporation Limited
(HPCL), whose roots go back to 1952, is today
operational in the oil refinery and LPG
distribution space.
 A Fortune 500 company, HPCL recorded an
annual turnover of over Rs 91,448 crores for the
financial year ended March 2007.
 Currently, the company enjoys a 16 percent
refining and marketing share in India and a
strong market infrastructure.
 2 Refinaries : 3 Million Metric Tonnes per annum
 80 regional Offices, 20 terminals, 120 Depots,
8900 retail outlets

4. OPERATIONAL AREA OF HPCL
1) Financial accounting (FI)
2) Asset management (AM)
3) Materials management (MM)
4) Sales and Distribution (SD)
5) Production Planning (PP)
6) Quality management (QM)
7) Plant maintenance (PM) & Customer Service (CS)
8) Human resources (HR)

5. CURRENT SITUATION
1.Issue in Employee management
2.Human right issues, rehabilitation issues
3.High Competition from other players
Bharat Petroleum
IOCL
Reliance Industries
ONGC
4.Improper pricing mechanism
5.Reducing income constraining further investments
6.Increasing competition from private as well as other
PSUs
7.Inefficiencies in retailing outlets leading to loss of
customer satisfaction

6. SO WHAT NEXT....
SOLUTION
To Problems
ELSE

7. WHY SAP(HOW DIFFER FROM OTHER ERP)
 1. Vast array of modules, with huge spectrum of functionalities which
ARE NOT PROVIDED by other ERP applications.
 2. Specific functionalities which are core competencies of SAP while
they are not available in other ERP applications, makes it an obvious
choice for some specific industries. Eg. Variant configuration and
Automobile industry.
 3.SAP knowing the demand for special processes for each industry
has come up with industry specific solutions which are unheard of
from other applications.
 4. Not only on the functionality side, but also on the system
architecture and landscape SAP is innovating day by day from R2 to
R3 to ECC to SOA, to adopt to the business needs, thus adding
immense value to the customers.
 5. SAP also gets complimented by most ubiquitous office applications
of MS namely MSWord.
 6. Also SAP's market share gives some certainty of business and
hence it is much better than any other smaller ERP applications in
terms of career prospects.

8. BENEFITS OF SAP ERP
SAP ERP delivers a comprehensive set of integrated,
cross-functional business processes. With SAP ERP, you
can gain the following benefits:
 Improve alignment of strategies and operations
 Improve productivity and insight
 Reduce costs through increased flexibility
 Support changing industry requirements
 Reduce risk
 Improve financial management and corporate governance
 Optimize IT spending
 Gain higher ROI faster
 Retain top performers
 Provide immediate access to enterprise information

9. PROPOSED SAP MODULES
SD – Sales and FI – Financial
Distribution Accounting
MM – Materials SD FI CO – Controlling
Management
PP – Production MM CO AM – Asset Management
Planning
PP AM
SAP R/3
QM HR
QM – Quality HR – Human Resources
Management
PM WF
PM – Plant Maintenance WF – Workflow
WM – Warehouse WM PS
PS – Project System
Management

10. Module Functionalities for HPCL
MM PP
SD
Material Procurement BOM/Work Center/Routing
Inquiry processing
Inventory Management MRP
Sales Order Processing
Batch Management Capacity Evaluations
Delivery Processing
Goods inspection Production Orders
Billing
Invoice Verification QM in production
FI
CO
General Ledger
Cost Center Accounting
Accounts Payable
Product Costing
Accounts receivable
Order Contribution Analysis
Cash management

11. SALES AND DISTRIBUTION PROCESSING
MATERIALS MANAGEMENT

12. Sales Order Process
(Order-to-Cash)
Sales Order Check
Entry Availability
Pick
Materials
Receipt of Pack
Customer Payment Materials
Invoice
Customer Post Goods
Issue

13. Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt

14. MATERIALS MANAGEMENT
BASIC DATA PURCHASING Third-party
SD
 Material  Purchase requisition order
Special stock  MRP
Batch  Direct requisition
 Release procedures
PP Requirements
Purchasing information system
 Vendor/one-time
customer  RFQ/Quotation
 Material/service PM Service/
 Purchasing
Vendor evaluation
 Price comparisons Spare Parts
info record  Price comparison list Service /
 Service  Purchasing QM spare parts lot
Inspection
specifications  Purchase orders
 Outline agreements G/L accounts
 Workflow  Scheduling agreements FI Cash management
and forecast
 Optical archive INVENTORY MANAGEMENT
 Texts  Goods receipt/issue AM Fixed assets
 Transfer posting
Mail  Quantities and values
Communication  Physical inventory Cost center /
 Storage bins CO
 Classification Budget
 Documents INVOICE VERIFICATION
 Check and post PS Project
 Conditions  Price update

15. PRODUCTION PLANNING
SD
PP
PS
SD
Sales and Operations Project
Planning Networks
Customers Demand management /
SD MPS PM
SD
Sales Material requirements Maintenance
Shipping planning Repairs
Billing Plant
maintenance
Detailed Schedeling and
Planning
Vendors MM
SD Capacity planning QM
SD
Purchasing Shop floor control Inbound Raw
Warehouse Costing Material
Invoice Information system
verification Finished Goods
FI CO HR
Financial Cost Human
accounting accounting resources

16. Module PS – Project System & HR – Human Resource
• PS – Project Systems
• Support planning, control, & monitoring of long term highly complex projects
with defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
• Network Management
• Activity monitoring, Material Planning, Milestones, Capacities Scheduling
• Project Management Information System
• HR – Human Resource
• Key elements
• Recruitment
• Payroll & Time management
• Travel Expense accounting & Benefits
• Workforce planning & Training administration
• Organization management