ERP CASE STUDY

SUBMITTED BY: E 04: VIKRAM GUPTA E 05: M KRANTHI KUMAR RAJU E 35: KAUSHAL BISHT

HERO HONDA MOTORS LIMITED (HHML)

Joint Venture between Hero Group and the Honda Motor Company of Japan
Came into existence on January 19, 1984

Made famous by the Fill it Shut it Forget it campaign

PRE SAP SCENARIO

Till 1998 Hero Honda were using home grown reporting system and excel based reporting formats
The set up was not in a position to cater to the expansion that Hero Honda went through HHML had legacy systems working on different platforms Legacy systems took care of data processing and only some operational reports got generated by the system

PRE SAP SCENARIO

Real MIS resided on Excel sheets along with different kinds of analysis
There was duplication and information inconsistency

It was therefore important to migrate from this platform to something more stable and futuristic.

MOTIVATION FOR CHANGE

Management perception about IT was changing and they it was decided IT would be part and parcel of Hero Honda
Competition in business and deployment of bandwidth hungry applications forced the company to migrate from a slower legacy network to the new faster and more reliable network IT was to be used as a strategic business tool rather than for a limited purpose of data processing

MOTIVATION FOR CHANGE

Achieve integration between all systems; emphasis would be on improving business processes, to adopt best practices and to cover the entire supply chain
Tired of inhouse developed systems, HHML wanted a standard solution and in particular, an ERP Their idea was to partner with a technology vendor capable of taking them forward as the business expectations increase

BENEFITS
ERP helped in improving quality, access and usage of transactional data and suitably eliminated multiple entries
No need for manual reconciliation any more and operational processes were improved at various stages Order processing was Standardized across all functions Real time information on product cost, profitability analysis, and dispatch and production status was made available too Deployment of Relational databases like Oracle and Ingres helped in consolidating data at one place and made it accessible to all authorised users

IMPLEMENTATION PARTNERS

Siemens Information Systems Ltd (SISL) were the implementation partners

Initial training to the users and core team members

Redefined various processes based on their experienceImprovement at various stages

RECORD-BREAKING IMPLEMENTATION TIME

The project was completed in a record three months
Implemented capabilities mySAP SRM and mySAP CRM Reasons:

Close collaboration between SAP and Hero Honda

SAP consultants in Singapore and software developers in Walldorf, Germany

international approach ensured that any issues were dealt with rapidly and effectively

ERP IMPLEMENTATION
It imparted oneday awareness training sessions to around 135 managers and key users explaining the project and roles of core team members and users.
End users were involved at various stages and hence they adapted to the new systems well. The yearly closing ended on the 31st March 2001, (2 months from Go Live) and was completed in 24 days. Year closing for the following year was achieved in 11 days and HHML was the second company in India to declare results.

ERP IMPLEMENTATION
Termed a SMS PUSH-PULL service, the solution uses three main core application elements:
a SAP handler

a SMS handler
a DB handler There is a remote function service, which goes to SAP, picks up the data from SAP, pushes it onto the SMS server and using the SMS gateway, we push it to the individual on his or her mobile phone.

ERP IMPLEMENTATION
The solution has helped dealers by assisting them to cull out any information from the database.
Another application of the service is intimation across the board to all the employees in case of any difference in planned and actual production. One of the main reasons for the success of our SAP project was that the project was perceived as a business project, and not as an IT project.

SAPS ROLE
It imparted oneday awareness training sessions to around 135 managers and key users explaining the project and roles of core team members and users.
End users were involved at various stages and hence they adapted to the new systems well. The yearly closing ended on the 31st March 2001, (2 months from Go Live) and was completed in 24 days. Year closing for the following year was achieved in 11 days and HHML was the second company in India to declare results.

GREATER RESPONSIVENESS & FEWER ERRORS

Online interaction enhanced order execution efficiency
Streamlined its transactions with suppliers, making for better inventory planning and reduced inventory carrying costs Significantly reduced error prone manual data entry

SUPPLIER AND CUSTOMER RELATIONSHIP MANAGEMENT

Motorcycles Processing Orders Manually
Large supply chainneeded accuracy and speed in the deliveries of raw material an d components

Actual Process
Plan for the month but changes are often necessitated by marke t conditions like changes in the mix of models and colours

Increase or decrease in demand

Ability to respond to these changes by aligning the production plan Until January of 2004, the company continued to enter its custo mer orders manually

SUPPLIER AND CUSTOMER RELATIONSHIP MANAGEMENT

Receive orders from dealers in the form of spreadsheets, e mail, and phone calls
It took a few days to bring in the customer orders and cons olidate them Material requirements plan from the ERP periodic updates twice a day and hence did not consistently give the latest information to their partners lot of time was wasted on followups-no visibility of materials in transit

Incorrect deliveries:

SUPPLIER AND CUSTOMER RELATIONSHIP MANAGEMENT

Carried more inventory than needed or caused production holdups if the quantity supplied was less than ordered
Feb 2004- Pilot test mySAP Supplier Relationship Management (mySAP SRM ) mySAP Customer Relationship Management (mySAP CR M)

125 suppliers-95% supplier portal

See the status of their orders, shipments, and invoices

PLANS FOR FUTURE

Hero Moto Corp Ltd. is now planning a range of new SAP initiatives.
These include adding additional mySAP SRM and mySAP CRM functionality to the whole company SAP Strategic Enterprise Management application of mySAP ERP Financials and integrating it with SAP Business Information Warehouse (SAP BW) and rolling out SAP Enterprise Portal (SAP EP) to all users