Ntpc

2. Brief overview about SAP AG 4
Aligning Employees, Processes, and Strategies for Business Success
5
SAP ERP HCM provides integrated, enterprise wide functionality that: 6
Companies Implemented SAP ERP HCM packages in India 7
NTPC 7
HR as a Strategic Business Partner in NTPC 8
LAKSHYA Mission 11
LAKSHYA Objectives 11
Implementation of SAP ERP (Project Lakshya) 12
Importance of Lakshya in NTPC 12
Project Disha : 13
Benefits 14
Functionality 16
Talent Management 16
HCM Service delivery 16
Workforce analytics 16
Workforce process management 16
Conclusion 17

3. INTRODUCTION

The countless challenges faced today by global businesses are expected to grow in
intensity and difficulty as we move further into this century. Prolonged global
competition has become the norm rather than the exception, with an unprecedented
number and variety of products available to satisfy consumer needs and desires. The
dynamics of faster product development, more customized manufacturing, and quicker
distribution have benefited the consumer. At the same time, these changes have led to
new and very high consumer expectations and standards for companies to meet in the
marketplace. Satisfying the customer’s desire for high quality and quick service in the
current business environment has added pressures not historically present. To meet
these new challenges, companies around the world have invested in IT.
“In this age the companies plan more about IT (information technology)
than about IT (Income Tax)”
The former IT plays a much larger role as a differentiator in the market as the former
and hence is looked upon as weapon to spearhead competition in the market. Our
Project titled “ERP in NTPC” focuses on aligning Employees, Strategies and
Processes or Business Success through an ERP. 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
next part, the need of SAP ERP in different areas of NTPC to effectively deal with
business challenges have been discussed along with their HR practices for retaining
the knowledge workers.
The work has been limited due to non availability of facts and data on the internet and
on their websites. But we have tried our best to interpret what ever data we have got
to the best of our understanding.

4. Brief overview about SAP AG
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
System, 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:
Relationship Management (SAP SRM)
SAP Product Lifecycle Management (SAP PLM)

5. SAP Net Weaver
SAP Business One

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 micro vertical solutions for midsize companies and small businesses.
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 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

6. 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 value generating 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 acros s 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

7. Companies Implemented SAP ERP HCM packages in India are

01) SAP Labs India
02) Hewlett Packard
03) IBM
04) Accenture
05) HCL
06) NTPC
07) BSNL
08) Hero Honda
09) Tata Motors. India
10) Mahindra & Mahindra - TDMS, India
11) Reliance Infocomm Limited


NTPC
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. 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. 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

8. 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.

Location of NTPC Plants




HR as a Strategic Business Partner in
NTPC

9. To actualize our HR Vision & the Corporate Vision, an integrated HR model has been
developed in NTPC . 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.
Facilitating CSR- NTPC has formulated a comprehensive Corporate Social
Responsibility-Community 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 of-
1. 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.

10. 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.

11. PROJECT LAKSHYA IN NTPC


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
LAKSHYA Objectives
Liasen 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.

12. Ascertain the business requirements at an early stage
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.
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.
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 &

13. 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.











Project Disha :
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
ERP
Changing Business Needs
Existing IT scenario
Project DIsha
Adoption of Best Practices
User’s expectations

14. 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.
Benefits
Activity Benefit
Increased
productivity
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
Reduced costs
through increased
flexibility
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

15. Optimized IT
spending
Cut IT costs by tightly integrating and optimizing core
business processes Reduce capital outlay by eliminating the
need to purchase third- party 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

16. Functionality
Talent
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
HCM Service
delivery
Automate & standardize the provision of HR processes
and services through a centralized delivery channel or
shared-services organization Achieve high-quality HR
services at low cost Perform analytics to measure the
performance and effectiveness of HR teams
Workforce
analytics
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
Workforce
process
management
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

17. Conclusion
This project report attempted to analyze the impact of the services through SAP
ERP process in HR departments of NTPC Through an overview of the
implementation , it was determined that
Understanding of SAP ERP process helps in decision making and makes a
process prudent
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 up to some extent only because still in some departments like
Cen PEEP (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 real-time. 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. 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.

18. References


WEBSITES
1. www.ntpc.co.in
2. www.sap.com
3. http://en.wikipedia.org/wiki/SAP_AG
4. http://www.sap.com/india/solutions/index.epx