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PresentationOver ERP

toET BATCH-2008

Dated : 10 September 2008

MANU KHARE

ABHISHEK SRIVASTAV

NTPC,Limited

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What is ERP?

Major Players

Customers

Process Improvement By ERP : Example

ERP- A Change Process

Coverage Of ERP

ERP Functional and Technical Viewpoint

Fundamental Design Principle and Key Objectives

Modules Under ERP and their functionalities

A typical Network Infrastructure-NTPC Network for ERP

Project Methodology and Deliverables

Project Organization & Role of Team Members

Critical Success Factors for ERP

Training

Working With SAP

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Enterprise Resource Planning?

Enterprise Resource Planning (ERP)is a multi-module integrated applicationpackage that help manage and automatea business. A single database provides

access to all applications, programs andservices within an enterprise. ERPincorporates all elements of a business,from financial processes to maintenance

and marketing activities, into a unifiedwhole that operates more effectively andefficiently.

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Purchasing

Payroll

Stores &Inventory

Finance

Services

H R

Maintenance

Costing

MIS

Budgeting

Project Systems

A Typical IT Application Story

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From Functional Silos

Planning Finance Consultancy

Engineering and R & D Production Sales & Distribution

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To an Integrated Enterprise.

Planning

Finance

Consultancy

Production

Sales & DistributionEngineering and R & D

CentralDatabase

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The Players

SAP R/3 - still must maintain mainframe architecture of large R/2user population. Strong finance and accounting. By far the largest

vendor (approx. 30% market share).

Baan - known for manufacturing, distribution, process modelingmodules - web and Internet.

PeopleSoft - known for human resource package.

Oracle - simplest product to install and support. Recentlyadvertising flow manufacturing enhancement.

J.D. Edwards - SCM module

Manugistics - Distribution - truck loading and routing focus.

i2 Technologies - Rhythm product - coordination of flow orientedmanufacturing. Comprehensive forecasting module.

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SAP

Systems, Applications and Products in Data Processing,

(SAP)

The name of a company - SAP AG**

The name of a software - SAP R/3

**AG stands for Aktiengesellschaft (After 2005 general meeting)
http://en.wikipedia.org/wiki/Aktiengesellschafthttp://en.wikipedia.org/wiki/Aktiengesellschaft

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SAP Customers in India

Mid-market partnerships

Discrete Manufacturing flagship partnerships

Process Manufacturing flagship partnerships

Consumer & Retail flagship partnership

Services industries flagship partnerships

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SAP CustomersPublic Sector in India

NTPC,Ltd

Delhi Metro Rail Corporation Ltd.

Oil & Natural Gas Corporation of India Limited.

Indian Oil Corporation of India Limited.

Bharat Petroleum Corporation Limited.

Bharat Heavy Electricals Limited

Videsh Sanchar Nigam Limited.

Garden Reach Ship Building

Ship Building Corporation - Vizag

Gujarat Industry Power Co. Limited Baroda

Bharat Electronics Ltd

General Insurance Corporation of India

Chattisgarh State Electricity Board

Gujarat State Petroleum Corporation

Central Power Distribution Company of Andhra Pradesh

PTC India Ltd (formerly known as Power Trading Corporation of India.)

National Housing Bank

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Customers in Engineering & Construction

Plant Contracting & Construction Homebuilding

Shipbuilding &

TransportationEquipment
http://www.mw-zander.com/en/index/index.jsphttp://www.akerkvaerner.no/Internet/http://www.techint.com/default.asp?LANG=ENhttp://www.fincantieri.it/http://www.eurovia.com/index.htmhttp://www.usa.siemens.com/http://www.kiewit.com/http://www.wausauhomes.com/http://www.meridianrail.com/mrc/home.asphttp://www.yohindustrial.com/index.cfmhttp://www.jimwalterhomes.com/index.php?aid=00&lg=enhttp://www.daewooshipbuilding.com/en/

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SAP CustomersEngineering and Construction

Hindustan Construction

ABB Ltd

ALSTOM Power Sweden

Austrian Energy & Environment AG

Balkan Ro Trade and Construction

Bechtel Corporation

Bharat Heavy Electricals Limited

Bombardier Transport Inc.

Capstone Turbine Corporation

Hyundai Engineering & Construction

SCHNEIDER ELECTRIC INDUSTRIES SA

Halliburton Energy Services.

Walter Industries Inc

Mitsui Engineering & Shipbuilding

Larsen & Toubro Limited

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Elapsed Time:

20 days

Existing Process

Check

Common

spares status

Raise Indent

requisitionGet HOD

Approval

Get FQA/FES

Clearance

Get MPIC

Clearance

Req. validation

by screening.

comm

Get Budget

Certification

High Value

Yes

No

Send PR to

C&MUser

FQA/FES

MPIC

S.C.

F&A

Common Spares D/B

Process : Indent Requisition of Spares

Can be

Eliminated in

case, yearly

Spares

Budget is

approved

once.

Elapsed Time:

40 daysCan be eliminated, once

a central database is available

User checks against item/value

Budget

Approved Yearly Maint. Budget

Check stockacross NTPC

Check Item

Budget

Check Value

Budget

Assess Technical

Spec.

AssessRegistered

Vendors

Assess LPP

across NTPC

Raise Indent

requisitionGet HOD

Approval

CENTRAL

DATABASE

Yearly

MaintenancePlan Approval

Yearly

ProcurementPlan Approval

Send PR to

C&M

Elapsed Time:

few hours

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ERP involves Change

Change in Processes

Change in Roles and Responsibilities

Change in organizations working culture Department

to Process Perspective

Change in attitude and mindset of people

Change Management Strategy would focus on bringing about above

changes in Organisation smoothly

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An extensive change mangement concept ensures theacceptance and motivation of the end users

= rejectionvision skills tools action planincentives+++ ++

= fearvision communi-cationtools action planincentives+++ ++

= frustrationvision communi-cationskills action planincentives+++ ++

= slow changecommuni-cation

skills tools action planvision +++ ++

= confusioncommuni-cationskills tools action planincentives+++ ++

= chaosvision communi-cationskills tools incentives+++ ++

communi-cation tools action planincentivesvision + ++ ++ skills = real change

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Senior Management Commitment &

Participation Readiness to Change

Best People Full Time

Good Project Management Skills

Using Standard Functionality

End User Empowerment

Project Management

Project Review & Quality Audit

Teamwork

Sound Methodology

Able Implementation Partner

Infrastructure Availability

Communication

Critical Success Factors for ERP Project

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Action Points to facilitate Change

Workshop

Training of Change Agents to facilitate change in the organization

Facilitate awareness of ERP in employees by Change Team conducting seminars

CMD/Directors/EDs addressing employees during their visits

Newsletters, Intranet, Cable TV

Competitions

Team Vision Workshops

Process Engagement Workshops

Benefit Realization Workshops

Change Impact Analysis

Role Mapping

Post Go Live Reviews

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Who initiates Change?

ChangeManagement

Team

ProcessOwnersProcessOwnersProcessOwners

ERPProjectTeam

Change

Enablers

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Coverage of ERP

CorporatePlanning Projects Engineeringand

QA Contracts Operations Maintenance Commercial

Consultancy

AshUtilisationEnvironment

R & D, TQM , IT

Safety, Security, VigilanceCorporate Communications

SiteProcurement& Materials

FuelManagement

Employee Health

Legal & SecretarialRehabilitation and Resettlement

Finance, Human Resources

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Coverage of ERP

In addition SAP will also include the following Business Intelligence

Knowledge Management

Workflow

Document Management System

Xchange Infrastructure (XI) for integration with other packages / legacy

applications Capability to support future business areas of NTPC including Coal

Mining, Power Distribution, Power Trading etc. (Not included in the currentpackage cost)

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What is an ERP - Functional View

Covers Processes across multiple functions through a singlesystem

Operations & Logistics

Materials and Contracts Management

Maintenance Management

Project Management

Human Resources & Payroll

Personnel Administration

Personnel Development

Administration Financials, Planning, Budgeting, Control & Audit

Cross-Application Components

Workflow

Document Management System

System Management Tools

System Administration

Security

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What is an ERPTechnical View

A database application which supports the running of BusinessProcesses

Configurable Tailoring without writing any code

Extendable by writing additional code without modifying standardcode

Set of master data for various objects materials, resources,suppliers etc. that is used for all processes

The applications sit on a OPEN application server that can be usedfor writing new applications

Consists of standard tools and technologies for developinginterfaces

Contains standard data migration tools

Has built-in comprehensive Security and Access Controls

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Central Themes / Fundamental Design Principles of SAP

Data & Information Centralize storage

Secure Access Adhere to Data & Information Exchange Standards

Processes / Operations Integration of Processes

Run from Anywhere

Secure Access

Standardize as much as feasible

Offer Multiple Options to suit customer requirements

Support Universally accepted practices in different functions (Accounting,Materials Management, Project Management)

Technology Platform (OS & DB) independent

Open based on Standards

Access from any standard device

Secure Access

SAP S l ti A i t t d t d i

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SAP Solution - An integrated system design

Finance

EnterpriseManagement

AssetManagement

BudgetaryControl

HumanResources

MaintenanceManagement

ManagementInformation

System

ProjectManagement

MaterialManagement

Add K Obj ti

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Addresses Key Objectives

Improve Efficiency

Improve efficiency through better processes

and practices

Faster ROI on IT investments

Solutions aimed at customers pain points

Leverage existing application, through integration wherever possible

Better visibility

Business performance management

Real-time (event-driven) integrated extended organization

Actionable Knowledge

Solutions that adapt to changes

Solutions that support and enable transformation

Solutions that are focused on improving efficiency in administrationand logistics

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Web browser access

singlesign-

on

Access from Anywhere Anytime

legacy

Portalindustry-specific

role-based

personalized

drag & relate

Market-

place

R/3FI CO

HR

CRM

SEMSupply

Chain BW

mySAP.com solutions

non mySAP.com

Partner

SAP

Cock-

pits

NTPC.URL

M d l i SAP
http://sapmats-de.sap-ag.de/ZAdhikari/Documents%20and%20Settings/ongc/Documents%20and%20Settings/ongc/adhikariD/GAIL/mySAPcomWorkplace.scmhttp://sapmats-de.sap-ag.de/ZAdhikari/Documents%20and%20Settings/ongc/Documents%20and%20Settings/ongc/adhikariD/GAIL/mySAPcomWorkplace.scmhttp://sapmats-de.sap-ag.de/ZAdhikari/Documents%20and%20Settings/ongc/Documents%20and%20Settings/ongc/adhikariD/GAIL/mySAPcomWorkplace.scm

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Modules in SAP

FI Finance

CO Controlling

MM Material Management

PS Project System

PM Plant Maintenance

QM Quality Management

SRM Supplier Relationship Management

PP Production Planning

SD Sales & Distribution

LDM Lifecycle Data Management

IS-U Industry Solution - Utilities

HCM Human Capital Management

BW Business Warehouse

BPS Business Planning & Simulation

KM Knowledge Management

Fi i l M t

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Financial Management

General Ledger

Legal Consolidation

Accounts Receivables

Accounts Payable

Asset Accounting

Budgeting

Overhead Cost Controlling

Activity Based Costing

Cash Management

Treasury

Funds Management

Payroll

Check Printing

Parallel Accounting

Analytics

Expense Management

Billing

Profitability Analysis

Most comprehensive,functionally-rich solutionon the market

Market-leading solutionsand customers in allindustries

Reliable, proven businesspartner with solution andindustry expertise

P t d M t i l M t

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Procurement and Material Management

Initiation Planning &Approval

ProjectExecution

Closing

ExecuteCheck deliverables of the supplier &sub contractor based on contracts &confirm using service entry sheets

Purchase Requisition

RFQ & Purchase Orders

Tendering

Supplier Evaluation & Blacklisting

Delivery Schedules

Approvals & Workflows

Service Masters

Warehouse Management

Goods Movements

Shelf Live & Status

Physical Inventory Audits

Quality Inspection

Supplier Payments

Knowledge Management

Contract Management

Supplier Collaboration

Define

Define the project requirements.Select Source & complete detailing

MonitorMonitor progress & payments asper schedule.

Workflows

E P t C t
http://images.google.com/imgres?imgurl=www.meieasitrax.com/img/pictures/warehouse.jpg&imgrefurl=http://www.meieasitrax.com/02.htm&h=156&w=207&prev=/images%3Fq%3Dwarehouse%26start%3D100%26svnum%3D10%26hl%3Den%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN

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E-Procurement Components

2

6

4

3 ConsolidateRequirement

Payment Gateway

EBP

1

Tender Award

Bid opening &

Comparision

Supporting

documents

Upload Bid

Download Tender

Publish

Requirements

5

ERP

Reverse Auction

Tender fee payment

7

8

9

(Secure Network)

Enhanced Supply base

Reduced Spend

Project Management

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Project Management

Initiation Planning &Approval

ProjectExecution

Closing

Life-Cycle Data ManagementFull integration into the DocumentManagement System of mySAP Life-Cycle

Data Management; assignment of allvarious documents supported by all DMSfunctions (i.e. versioning, vaulting)

Project Initiation

Project Team

Project Estimation & Budgeting

Project Planning & Scheduling

Capacity Management

Project Procurement

Project Production

Project Costing

Project Document Distribution

Project Confirmations

Project Claims

Project Progress Tracking

Multi -Project Management

Project Archiving

Project Reuse

Project Base lining & Simulation

Project Status Management

Integrated Viewing /MaintenanceAll originals of assigned document

masters can be viewed/maintaineddirectly from the projects

maintenance environment.

Flexible Search/E-PublishingProject documents can be searched byvarious search engines and can also be

published for external access on theInternet.

Project EH&S


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Work Force Management

Location & Asset Mapping

Maintenance Planning & Scheduling

Budgeting & Sanctions

Tools & Documents

Complaint Management

Warranty & AMC

Contracts & Subcontracting

Spares ManagementWork Clearance

Preventive / Predictive / Breakdown /Shutdown Maintenance

Valuation & Status Management

Mobile Device

GPS Interface

Equipment History

Meter Reading & Counter Based

Early Warning System

Objects

Orders /Notifications

Costs Downtimes

Time- /Materialconfirmation

Technicalcompletion

Ordersettlement

Internal /Externalresource-planning

Release /

Print Control /

Execution

Techn. Object

Conditiondescription

Item data

Activities /Tasks

Priorities

Life Cycle Data Management

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Life-Cycle Data Management

Document management

Versions and structures

Approval and change management

Open interfaces: computer-aided design,

Microsoft Office, and so on

Product master and structure management

Product master management

Product structure management

Routings

Classification and variant configuration

Specification and recipe managementSpecification management (for example, ingredients,products, and packaging)

Multilevel recipe and formula management (forexample, S88 compliance)

Service and maintenance structuremanagement

Change and configuration managementEngineering change request/engineering changeorder

Order change management

Configuration management

Product data replication

DataManagement

mySAP HR A Total Integrated HCM Solution

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mySAP HRA Total, Integrated HCM Solution

Pre-defined Key PerformanceIndicators

SAP Business WarehouseIntegration

Expert Finder

Manager Self-Service

Employee Self-

Service

Employee Interaction

Center

Collaboration Tools

Workforce Cost & HeadcountPlanning & Simulation

Employee Succession Planning

Balanced Scorecard

Career Planning

Recruiting and Talent

Management Shift Planning

PerformanceManagement

CompensationManagement

Learning

Training & EventsManagement

Skills/QualificationManagement

Organizational Management

Personnel Administration

Payroll

Claims , Loans

Time Management

Reporting

Global Employee Management

Knowledge Management : Collaboration

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Knowledge Management : Collaboration

Project rooms and team rooms

Feedback for specific users Feedback (to author)

Rating (to author)

Feedback for everyone

Public feedback

Public rating

Discussion groups

Chats

Collaborative authoring

Rating

Discussion Groups

Security

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Security

User Authentication

Role / Group / Job / Position Access Control

Transaction Access

Process Access

Field Access

Firewall Protection

Encryption

Administration

Portal Security

Master Data Security

Access Effectivity

Time-Out

Multiple Access Locking

Mass Change

Transaction History

Interface to LDAP

Digital Signature

Drag &Drop

Drag &Drop

Troubleshooting

Authorizations

Transport of SecurityRelated Objects

Integration withOrganizational Management

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ApplicationServer

ERP DATACENTRE

CentralDatabase

Server

2 MBPS Leased Line

VSAT LinkPlants

Regional

HQs

Different Seismic Zones

DISASTERMGMT. SITE

CorporateOffice

4 MBPS Leased Line

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Project Methodology and Deliverables

Implementation Methodology

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Training, licensing training material,support, project reviews

Methodology

Services

ImplementationAssistant

Q&A dbImplementation GuideProfile Generator

Transport System

ProjectManagement

ChangeManagement

Risk analysis

Review

Project-related

knowledgeTools

ProjectPreparation

BusinessBlueprint

Realization

FinalPreparation

Go Live &Support

Continuous

Improvement

ASAP Roadmap

Implementation Methodology

Project Deliverables by Milestones

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Milestone Deliverables from SAP Prerequisites

Milestone 1:Project Preparation

Project Infrastructure Plan

Preliminary Project Plan

Detailed Resource Deployment Plan

Enterprise Scope Document

Training Plan for core team members

Project Charter Document

Set-up of Project Infrastructure

Identification of Core Team Members as per

detailed resource deployment plan

Deployment of core team members on full-time basis to the project.

Milestone 2:Business Blueprint

Final detailed enterprise scope

document

To-Be Business BlueprintDocument

SAP Organization Structure definitiondocument

List of Critical Reports and Layouts

List of Enhancements

Data Migration strategy

Testing Strategy document

Final project plan (based on detailedESD)

Training Strategy for power users

Sign-off on all deliverables of Project

Preparation Milestone

Formation / Identification of SteeringCommittee, Process Owners, ExecutiveCommittee and Change management team

Production Server Sizing detailedquestionnaire filled

Core Team Training (Functional and Basis)

Hardware and Infrastructure forDevelopment & QA Environment


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Milestone 3:

Realization

Final Integration Test Plans

Final Integration Test Procedures

Final Integration Test results

Manual data transfer procedure

Established Authorization procedureand management

Draft Cut over plan

End user training strategy and plan

Sign-off on Deliverables of BusinessBlueprint Milestone

Hardware and Infrastructure for TrainingEnvironment

Identification and deployment of Powerusers and Master Data Management team

Identification of Technical team (Legacy andthird party systems)

Core Team Training (ABAP)

Powers Users are trained

Identification of business roles andbusiness authorization profiles


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Milestone 4: Final

Preparation

Go-Live and Cutover plans

SAP System Operating Manual forBasis administration

Production support (internalhelpdesk) plan

Procedure for handling calls andquestion for end user are establishedand distributed

User IDs and authorizations created

Customizing setting & repositoryobject transported from QA toProduction System

Sign-off on deliverables of Realizationmilestone

Identification and deployment of team forend-user training

Training Infrastructure (rooms, PCs,Connectivity, projectors, etc) at locationscommissioned

End-User documentation and manuals

ready

Identification of users mapped to businessroles and business authorization profiles

Production system procured,commissioned and OS Installed

Stress and Volume Test completed (byhardware provider) on production system

Connectivity to all identified go-live sitesestablished and tested

Requisite hardware (PC, Printers, Routers,LAN, etc) and software (MSOffice, Antivirus,SAPGUI, etc) are installed and tested for allend-users


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Milestone 5:

Go-Live & Support

Issue arises during & after go live aredocumented, assigned & resolved

Formal agreement to closure forimplemented sites

Sign-off on deliverables of Final Preparationmilestone

Completion of End User training

Conversion programs executed, master andcutover data transferred to productivesystem, validated

Manual entry data from legacy systementered into production system where

applicable and validated

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Project Organisation &Role of Team Members

Project Organisation Structure

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Project Organisation Structure

Project Team

Full Time

TeamLeadsTeamLeads

TeamLeads

IntegrationManager

ABAPLead

BasisLead

BW &Reports

Lead

LeadInterfaces

TrainingManager

Executive CommitteeProject Sponsor

Steering Committee

Project Manager-NTPCProject Manager SAP

ABAPDevelopers

BusinessConfigurators

BusinessAnalysts

Basis Team

ChangeManagement

Team

ProcessOwners

Power UserTeam

Lead InternetTechnology

WebProgrammers

NTPC Project Team Profile

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Steering Committee Members Chaired by CMD of NTPC

NTPC Project Sponsor

NTPC Project Management Team

Heads of Key Business Functions for SBU

Head of Location operations

Program Manager Part of the Senior Management

Direct Empowerment from MD for taking project related decisions Experience of working in cross-functional areas in Senior positions

Preferable Full time involvement

Wide acceptance within the company

Drives Change Management Initiative in the Company

Project Manager

Manager -- Full functional knowledge, IT orientation Exposure to cross-functional processes

Full time involvement

Wide acceptance within the company


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Team Members

Experienced Functional representatives

Ability to Appreciate cross-functional issues

Change leaders in their functions

Full Time availability

Representatives from all Locations/Functions

Process Owners


Empowered to take process related decisions for the Organization


Part Time availability


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j

Power Users



Ability to understand integration issues

Ability to train end users in respective processes

Part Time availability

Representatives from all Locations/Functions

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Training

Training

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g

Training is not an expenditure; it is an investment

Training early gets better returns

Training for project team

Product training in functional areas

Methodology training

Change management

Training for end users

Overview training

Customised system training

Training Strategy for NTPC

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g gy

Professional Training

This training shall be for the core NTPC ERP implementation team.

This NTPC team will comprise of members from all the Business Functionsand IT.

Each member would be trained in the relevant function / module.

The training will enable Core team members to get a high level of conceptual

and functional understanding of the product

Power User Training

The extensive involvement of key users makes SAP Implementation projectsparticularly suited for the "train the trainer" approach. Extensive use of workingprototypes, coupled with a stable group of active users, results in a trained setof potential, high-quality trainers. These trainers are effective because theyhave been involved with the project since its inception.

A detailed training approach will be developed along with the NTPC Teamduring future phases of the Project.

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Working With SAP

The SAP Window

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Status Bar

Title Bar

Standard Tool Bar

Menu Bar

SAP System ID

Server

Screen Body

Application Tool Bar

Using the Navigation Area

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You can expand andcollapse menus in the

navigation area bychoosing the dropdownarrows to the left of themenu items, as in the

example below

To open an application inthe navigation area

Double-click its node

Transaction Codes

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A transaction code can be entered in the Command field.

If you precede the transaction codewith /n then the transaction is the

next screen opened in the current session.

If you precede the transaction codewith /o then a new session is openedfor the transaction. This means you then have multiple sessions.

To start a transaction, there are 4 options:

Position the cursor on the required transaction in the tree structure and pressenter

Double-click on the required transaction in the tree structure

Position the cursor on the required transaction in the tree structure and select

Edit Execute (or press F2)

Expand the command field and enter the transaction code

Standard Toolbar

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The Standard Toolbar contains the Command field and the standardSAP Toolbar buttons.

Command Field: The Command field is used to enter transaction codesthat take you directly to a system task without using menus.

Button KeyboardShortcut Description Button Keyboard Shortcut Description

Enter Key Enter/Continue Ctrl + Page Up First pageCtrl + S Save to database Page Up Previous pageF3 Back Page Down Next pageShift + F3 Exit System Task Ctrl + Page Down Last pageF12 Cancel None Create New sessionCtrl + P Print None Create shortcut on

DesktopCtrl + F Find F1 F1 HelpCtrl + G Find next Alt + F12 Customize Local Layout

SAP Easy Access Settings

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Users can set how SAP displays the Menu by choosing Extras Settings. Here, youcan specify whether:

Your favorites should appear before or after the menu

Only your favorites, and not the menu, should appear

The SAP Easy Access graphic should appear on the right-hand side ofthe screen.

Technical names of menu options should appear in the navigation area

User Settings

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Users can maintain their own settings by choosing System User Profile Own Data

Defaults

Change default printer, language, and date and decimal display formats.

Parameters

Allow user to create default information for frequently used fields.

Messages

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Messages appear either in the status bar or in a pop-up window, dependingon user settings

Messages starting with:

E indicate an Error message

W indicate a Warning message

Messages not beginning with an E or a W are simply Informationmessages

Required fields are denoted by a check mark

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Thank You .

20080910 ERP

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Transcript of 20080910 ERP