ERP CASE STUDY ON

TATA STEEL

BY :
KAJAL SINGH (B-41)
KOMAL SINGH(B-79)
JAY PATEL(B-16)
ERP RECAP
• ERP integrates business activities across an enterprise—from product
planning, parts purchasing , inventory control, and product
distribution, to order tracking.
• ERP may also include application modules for the finance , accounting
and human resources aspects of a business.
• From a business perspective, ERP today has expanded from simply
coordinating manufacturing processes to being the integrator of
enterprise-wide backend processes
TISCO PROFILE
• This company founded and establish in the year 1907 is known to be
one of the leading steel giants in the country offering multiple
products and successfully running many subsidiary corporations.
• Tata Steel Group is among the top-ten global steel companies with an
annual crude steel capacity of over 20 million tones per annum.
• The company is dedicated to providing laudable services to the
stakeholders improve on the quality and as thrive for innovations and
improvements constanly.
WHY ERP IN TISCO?
• TISCO faced two major problems from the systems that existed:
a) Firstly, they were not customer friendly .
b) And the whole system was tunes to the process and very little
attention was paid to the customer demands
• In order to rectify these issues which would otherwise prove to be
major setbacks to the company the organization resolved to take up
ERP. This was instigated by the concerned departments.
• To overcome these problems ERP was implemented in TISCO. Thus
the IT system of the company must be well integrated.
BUSINESS BENEFITS OF ERP
• Integrated supply chain: from network planning through scheduling
and Manufacturing Execution Systems (MES).
• Easier integration of business process with business partners Shared
services and outsourcing of support functions.
• Increased information transparency to enable better decisions Agililty
in acquisitions and “carve-outs” or divestments Increased regulatory
compliance.
• Robust and future- proofed backbone systems
IT SIDE BENEFITS
• Reduced ERP implementation costs due to a common template
• Reduced application maintenance costs
• Lower integration cost due to standard interfaces
• Lower infrastructure costs
INTEGRATED IT MODEL FOR
STEEL
ACHIEVING BUSINESS AGILITY
THROUGH SAP
• Web enabling of SAP R/3 is on the cards. On the surface, it means it
would allow anyone to access our SPA R/3 over the Internet.
• Phase I – To Extend SAP in Works with FI, CO, MM, PP & QM
• Phase II – To implement SAP modules such as Asset Management &
Budget management sub-modules of FICO, Plant maintenance,
Human Resources, Production Optimizer (such as SAP APO)
• Phase III – SEM (Strategic Enterprise Management)
MAJOR IT INITIATIVES AND
IMPLEMENTATIONS AT TATA
STEEL
• Major IT initiatives and implementations at Tata Steel
• SAP R/3 in Sales, Procurement, Finance and Accounting, Production
Planning Systems for Steel plants using the APO module of SAP
• Data Warehousing and Data Mining for manufacturing processes.
• E-procurement, e-auction, and other e-enablement initiatives
• Knowledge Management and Intranet
• Videoconferencing, live video streaming for improved communication
across geographies. VoIP, Wi-Fi, integration with cell phones and PDAs
to support mobile computing
THE OUTCOME
• SAP ERP solution produced a remarkable result to the company in terms
of financial technical and managerial parameters.
• Tisco has spent close to Rs 40 crore on its implementation and has saved
Rs 33 crore within a few months with the help of ERP implementation.
• The manpower cost has reduced from over $200 per ton two years ago,
to about $140 per ton in 2000.
• The inventory carrying cost has drastically deflated from Rs 190 per ton
to Rs 155 per ton.
• With SAP’s solution Tata Steel can now update their customers on a daily
basis and also used for efficient decision-making.
FUTURE MOVES
• TISCO is not determined to stop ERP or attain a saturation point now.
• They are working on to improve and increase the scopes of enterprise
resource planning software in the organization so that it benefits the
stakeholders in all possible manners.
CONCLUSION
• ERP is a key backbone application for companies in a fast changing
industry like steel.
• ERP implementation are usually outweighed by the benefits.
• It is fundamental to enhancing the competitive position of a company
in the dynamic environment of the steel industry today.
THANK YOU!