Professional Documents
Culture Documents
N. Balasubramanian
Chief Information Officer BEML Limited
Agenda
About BEML Limited E-Governance
E-Governance initiatives
Conclusion
E-Governance
E-Governance
E-Governance the process of carrying out the Business, Operations and Activities more efficiently and effectively through the application of ICT so as to ensure highest quality and standard of services and making the life easy for all the stakeholders involved like the Customers, Vendors, Employees, Auditors, Government Agencies, Investors, Management and the Citizens of the society.
E-Governance initiatives
Year Major ICT initiative
2007 2008 2009 Integration, Harmonization and Standardization of all business processes through SAP ERP implementation Integrating the Supply Chain through Supplier Network Collaboration (Inventory Collaboration Hub) Automation of procurement process e-Procurement through SAP Supplier Relationship Management Analytics, Optimization and Forecasting of Spare Parts Inventory Management of Product Life Cycle Management (PLM) Implementation in progress
2010 2011
Key Challenges
Different units following different processes and functioning as silos. Non-standard business practices across the various divisions / units. Significant paperwork and manual administrative work. Duplication/Redundancy of operations/data. Time and effort spent on the non value added activity. Higher level of Inventory. Delay in compilation / submission of MIS information.
Strategies Adopted
Implementation of an integrated ERP system across the entire organization. Big Bang approach covering all the locations, units and offices in one go. Study of the all the business processes and modification of the same as per needs. Adoption of global best practices for optimization. Harmonisation of the all business processes across various manufacturing locations. Standardisation of procedures and reports.
Strategies Adopted
Strong support from senior management. Formation of core-team from in-house domain expertise. Best Implementation partner SISL ASAP Methodology Creation of a detailed blueprint based on discussions with all relevant stakeholders and analysis of the processes. Use of Standardized processes based on industry best practices. Extensive training. Change Management.
Operational Benefits
9 Manufacturing units and all marketing divisions are connected through SAP. Enhanced management decision making due to Realtime information from single data source. Redundant data is eliminated by unifying master records from all divisions. Manual intervention in processing data is eliminated. Tight control on authorization to ensure data integrity at all levels. Control on closing procedure in FI and MM to meet report deadline.
Operational Benefits
Improvement in quality of work life of employees. Enhanced productivity of work force. Improved Efficiency of work force and processes redundancy eliminated. Considerable reduction in paperwork due to automation. Instant availability of complex reports. Instant processing of transactions without any time lag. Better Inventory Management. Meeting of the customers demands on time. Settlement of vendors payments on time. Meeting employees requirements on time.
Benefits of Collaboration
For the Manufacturer / Customer: Complete transparency on the stock situation. Alerts on Stock out situation, Triggering replenishment Process. Simplifying internal processes. Reducing safety stock. Reducing delivery times. Increased sales turnover. Lower administrative costs.
Benefits of Collaboration
For the Supplier: Reduced stock. Reduced delivery times. Reduced supply risks. Reduced down time and overtime. Reduced transportation costs through possible transport consolidation. Improved order fulfillment rate. Lower administrative costs. Improved service.
Operational Benefits
Purchase orders seen online immediately after approval. Acceptance of purchase orders done online. Online challan creation and no hardcopy to be attached. Report of dispatches seen by suppliers/ customers. Report of late dispatches can be enabled. In bound processes made easy. Overall cycle time reduced significantly. Totally SCM enables a paperless office.
E-Procurement
E-procurement (electronic procurement, known as supplier exchange) is the B2B or B2C or B2G purchase and sale of supplies, Work and services through the Internet as well as other information and networking systems, such as EDI and ERP.
Key Challenges
Time taken for procurement processes across manufacturing divisions. Manual and paper-based systems. Considerable paper work. Transparency of procurement processes Dependence on intermediaries for carrying out reverse auctions. Access to real-time information. Reports on procurement. Collaboration and information sharing with suppliers.
E-Procurement at BEML
Pre P.O. Process Post P.O. Process
VENDOR
Strategies Adopted
Customizations were carried out in the e-Procurement module by BEML to suit organizational needs. Tight Integration was ensured with the ERP system. e-Bidding to get bids online from the bidders before the specified due-date. Supports multi-stage bidding coupled with government laid procedures. Reverse Auctions are conducted for certain items where competitive prices can be obtained.
Strategies Adopted
Integration of Digital Signature with the system to comply with IT Act 2000. Generation of Comparative Statement with Tax Calculations for arriving at Purchase Decisions. Approvals process made available in the e-Procurement system, which reduces the procurement time considerably. To achieve the goal of paperless office, BEML enabled incorporation of notes/text by the users in the e-Procurement system.
Operational Benefits
Increased Buyers reach. Increase in Vendor Satisfaction. Reduction in procurement cycle time by 65% to 80%. Employee Productivity increased by 20%. Direct cost reduction - due to elimination of hidden inefficiencies inherited in generic tendering/negotiation process. Buyer able to undertake more professional, value added activities beyond traditional negotiations. Considerable reduction in material cost due to competitive reverse auctioning process. Ability to meet material requirement for increased business.
Conclusion
Implementation of E-Governance has automated and simplified the whole business processes while achieving improved operational efficiency, increased productivity and total transparency.
- V RS Natarajan, Chairman & Managing Director, BEML Ltd.
Thank you
N. Balasubramanian cio@beml.co.in
Production Planning
CMR consolidated material request for group of orders. CGI consolidated material issue request for group of orders. Job cards order wise, splitting of job cards. Incentives based on job cards. Customized engineering change management. DMR daily movement reports. Special subcontract processes for in-process operation. Detailed reword & rejection procedures. Shortage list for equipments (multi level). Tool movements between plants, tool tracking.
Material Management
Stock Consolidation can be viewed across all division, regions & district offices. Procurement based on MRP. Centralized corporate purchase reducing the procurement cost and material cost. Online inventory valuation. Physical Inventory processing and differences made easy. Posting of differential valuation to stock at the time of invoice verification. Control on material return to vendor through notifications and credit memo. Complete monitoring of sub contracts processes with excise challans.
Material Management
Extensive Subcontracting handling through system. Inbound delivery tracking and tag printing. Development of material gate pass / vehicle /vendor entry pass. Development of dispatch advices. Weighment cards. Vendor freight calculation based on tonnage and destination. Mass conversion of PRs to RFQ. Picking list for GIs. Tender enquiry summary. Customized invoice verification for imports.
Quality Management
Increased Quality improvements due to better visibility of business process. Standardization of quality inspection process across the plants. Increased visibility across logistics supply chain by closely integrating MM, PP, FI & PM. Online status of inspection lots pending. Unification of defect codes has helped for better analysis of defects. Control of payment to the vendors based on the acceptance of inspection lot has been brought in. In process quality for Critical to Quality (CTQ) parameters is being done through SAP.
Plant Maintenance
Preventive / Breakdown / Corrective maintenance. Notifications. Spare Parts (Tools) Planning.
Financial Accounting
Monthly Business Reporting. Division wise account balances. Balance Sheet & Profit and Loss statement at company code and division level. Real time reconciliation of inter division accounts. Automatic vendor payments can be processed centrally or at division level. Online updation of customer payments and real time availability customer balances. Real time integration of general ledger with inventory, pay roll and sub ledgers. Automatic bank accounts reconciliation and availability of bank balance.
Financial Accounting
Planning and budgeting of capital expenditure at division level and company code level. Approval of capital expenditure proposals through workflow. Availability of real time reports for analysis of actual capital expenditure Vs plan and budget. Complete management of assets under construction. Automatic periodic depreciation calculation and posting. Repots for depreciation simulation for the coming years. Fully integrated with investment management module for the capital work orders.
Cost Controlling
Online availability of product cost and contribution for all equipments and aggregates. Production variance can be analyzed against standards facilitating decision making. Work in progress can be obtained online. Controlling and monitoring of expenses based on Planning & Budgeting for Cost / Profile centers. Automatic Allocation of overhead cost periodically. Online Profitability analysis for profit center or business segment or product or customer.
HR and Payroll
Pay roll processing is centralized. Centralized control of master data. Integration of time data for pay roll processing. Access to all statutory reports. Transparency of resource.