BACKGROUND NOTE

• In 1951, GOI entered into an agreement with UK-based Burmah

Oil Company and Shell Petroleum Co for establishing an Oil
refinery in Bombay.
• In January 1955, the refinery at Bombay went on stream, and in
1962,the refinery started processing crude oil from Gujarat.
• In 1975,GOI took operations of the company and changed its
name to Bharat Refineries.
• In 1976, the government acquired 100% shares in the company,
and in August 1977, the company's name was changed to Bharat
Petroleum Corporation Ltd. (BPCL).
• In 1991, The company entered into marketing contracts with Indo-
Burmah Petroleum (IBP), Madras Refineries Ltd(MRL) and Cochin
Refineries Ltd (CRL).
• In 1993, BPCL tied up with its erstwhile partner Shell, to form
Bharat Shell Ltd. (BSL), and launched lubricants under the Shell
brand.
• In 1999, BPCL acquired 32% stake in Indo British Petroleum (IBP).
• By mid-2001, BPCL's nation wide retail network comprised 4500
outlets, 60% of which were company-owned or leased.
• In 1999-00, BPCL's market share was 32%in petrol and 27% in
diesel.
 ERP INITIATIVE

• BPCL began its IT initiatives in 1996.

• BPCL revamped into 6 SBU.
* Retail * Aviation * Lubricants
* LPG * I&C * Refinery
• These SBU’s were integrated with support entities like IS, Finance,
HR strategy and Brand Management.
• This restructuring was designed to help the company focus on
specific customer segments and address their individual needs.
• The company also realized that it needed to streamline its processes
and integrate the organization as a whole.
 KEY CHALLENGES
• Stay ahead of the competition in a deregulated environment.
• Replace multiple stand alone systems.
• Respond to changing business needs with improved and consistent
processes.
• Provide real-time, accurate information and improve reporting
capabilities to establish an integrated platform for growth.

IMPLIMENTATING BEST PRACTICE

• To gain complete business process coverage in an enterprise
resource planning (ERP) application.
• Standardized business processes.
• Focused on effective change management.
• Provided just-in-time training.
• Receive strong executive support and Commitment.
WHY ?
• Extensive existing SAP software−based landscape
• Industry-specific functionality that is critical for the BPCL value chain.
• Total of 9 out of top 10 oil companies leverage SAP software
• Good local presence in India.
• Commitment from SAP to provide support and technology expertise.

Low Total Cost of Ownership

• Completed project on time and within budget.
• Aligned change management with project implementation.
• Improved data quality and integrity.
• Reduced training needs due to ease of use.
• Developed detailed migration strategy for the legacy data.
SAP SOLUTIONS & SERVICES
• SAP ERP application.
• SAP for O&G.
• SAP NetWeaver BW
• SAP NetWeaver Business Intelligence
• SAP Consulting.
 SAP R/3 IMPLEMENTATION
• BPCL appointed consultants Coopers and Lybrand for the planning
process of SAP R/3's implementation.
• The company's existing network was redesigned and restructured
and all its branches were linked to a central connectivity cloud.
This was done through routers and switches.
System Components used by BPCL
• BPCL ensured security through Sun Ultra 5 fIrewalls, 17 Real
Secure, Internet Scanner, Floodgate, Web Trend and Web Sense.
• Web servers were installed at Bangalore and other metros with
Compaq Proliant 1600 servers.
• New developments and customization were made on the
Development Server and then moved to the QAS for quality tests.
• BPCL had also setup a data warehouse with
business objects and query-by-mail.
• The company also implemented a Tivoli ESM
• (Enterprise System Management) solution.
 THE SERVER ARCHITECTURE

The server architecture included a Compaq Proliant NT server, an SCO

box, a Sun Firewall and other servers.
SAP FOR O&G

To upgrade the core ERP and extend the functionality.

It provides Industry specific support.
• SAP for O&G helps BPCL manage the entire downstream
hydrocarbon value chain from the refining of crude oil through
to the transportation, distribution, and sales of petroleum
products.
SAP NETWEAVER BI

• It provides employees with the tools they need to retrieve vital

facts and figures and transform them into valuable business
insight fast.
• SAP NetWeaver BI had been predominantly leveraged by
managers from various regions and at company headquarters.
• They increased the number of user licenses from 200 to 600 and
demonstrated the power of SAP NetWeaver BI in various business
contexts.

SAP NetWeaver BI has nearly increased 30% of growth in card

schemes
SAP NETWEAVER BW ACCELERATOR

• This comprises state-of-art SAP software and high

performance servers from leading vendors.
• It leverages aggregation and compression technology to
deliver more accurate results even faster.
FINANCIAL AND STRATEGIC BENEFITS

• Eliminated the need for 20,000 printed pay

slips a month.
• Reduced overtime at refineries by 42%.
• Enabled employees to receive compensation
for personal leave and travel expenses via payroll
• Reduced monthly payroll processing time from 8 days to 3 days.
• Gained ability to audit reports, process information, and make
retroactive changes.
OPERATIONAL BENEFITS

• Reduced cycle times for key business tasks.

• Increased productivity by implementing centralized payroll.
• Improved HR operations with intuitive employee self-service.
• Reduced time for processing payment arrears from 6 months
to 10 days.
• Replaced printed pay slips with online pay slips.
• Implemented robust online performance management system.
• Achieved 90% adoption of new software within less than a
month of deployment.
Baswaraj sk afp09 IIMA