MAKING IT HAPPEN @ BPCL KOCHI REFINERY: DEFINING NEW

PARADIGMS OF OPERATIONAL EXCELLENCE THROUGH IT

TRANSFORMATION
ABSTRACT
Petroleum products touch the lives of people in many ways. From energizing the two wheelers that ride down the narrow
lanes to fueling airplanes that cut across the skies making distances closer; from lighting homes in remote places of
illuminating modern ones; and from charging industrial furnaces to lubricating a labyrinth of gears, the list is endless and
over billions of lives are energized by petroleum products in one form or the other. Playing a pivotal role in energizing the
life of Indians, Bharat Petroleum Corporation Limited (BPCL) is a leading player in the petrochemical sector in India,
and is a Global Fortune 500 and Forbes 2000 company.
The refineries manufacture different petroleum products. Refining and Marketing are the core activities of BPCL. Kochi
Refinery is one of the four Refineries of BPCL. Kochi Refineries Limited started operations in September 1966 and was
a separate company till 2006. In the year 2006, Kochi Refineries Limited (KRL) was merged with Bharat Petroleum
Corporation Limited.
This case study is about the IT transformational journey at BPCL Kochi Refinery for achieving operational excellence.
The IT journey at KRL started with an IT Master Plan followed by its implementation through various strategic and
transformational IT projects. These include implementation of SAP, core refinery applications like Manufacturing Execution
System (MES), Asset Integrity Management Systems (AIMS), Laboratory Information Management System (LIMS)
and many refinery business process automation and compliance systems. Several innovative and best practices in IT
planning, change management, just-in-time training methodology, special project organization and execution methodology,
KPI formulation and monitoring, benefit evaluation and realization methods were some of the key Critical Success
Factors (CSF) for the successful implementation. The structured methodology for the IT strategy planning and the
unique framework adopted for ensuring guaranteed business benefits for the key projects are also discussed.

Pedagogical Objectives
This case enables students to discuss, deliberate and understand the major aspects IT transformation such as IT Strategic
Planning and implementation. The specific teaching goals include:

The IT Transformation journey in a process manufacturing industry

How is IT an enabler in the transformation of an organization?

The importance of IT Master Plan and Strategy for an enterprise, and also the methodology and processes adopted
for the IT master plan and strategy

The challenges in the SAP ERP implementation and how the key innovations and best practices became the key
critical success factors in making a successful implementation

The competitive environment of an enterprise and what capabilities the enterprise software brings for competitive
advantage

Case Positioning and Setting

The case is meant for classroom discussions of Postgraduate Diploma in Management (PGDM), MBA and Executive
management program for Business Information Systems, Management Information Systems (MIS), Enterprise Resource
Planning (ERP), and IT Strategy Planning and Implementation in Information systems area.
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