Beruflich Dokumente
Kultur Dokumente
TISCO BACKGROUND
Indias largest integrated private sector steel company Established in the year 1907 Tata Steel runs state-of-the-art Cold Rolling Mill complex at Jamshedpur, Eastern India Products include hot and cold rolled coils and sheets, galvanized sheets, tubes, wire rods, construction rebars, rings and bearings Introduced brands like Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee ,Tata Tiscon, Tata Pipes, Tata Bearings, Tata Agrico and Tata Wiron.
What is ERP?
IT software that integrates business activities across an enterprise From product planning, parts purchasing, inventory control, and product distribution, to order tracking Application modules for the finance, accounting and human resources aspects of a business SAP and Oracle are the two ERP leading vendors Evolved technologically from a monolithic legacy implementation into flexible, tiered, client-server architecture
faced a cumbersome task exchanging faced and a cumbersome retrieving information task exchanging from theand system. retrieving information from the system.
Design
Arthur D. Little (Strategy Consultants) and IBM Global Services (BPR Consultants) redesigned the two core business processes: Order Generation & Fulfillment and the Marketing Development processes. To improve customer focus, facilitating better credit control, and reduction of stocks. Adopted the latest production and business practices to offer innovative processes
Tata Steel planned a big-bang approach of going live Pulled off a big bang implementation of all SAP modules at one go across 46 countrywide locations
Plans to adopt the my SAP Customer Relationship Management solution to enhance its customer relationships in the near term
THE OUTCOME
Remarkable result in terms of financial technical and managerial parameters The effective handling and speed delivery resulted in greater sales . Drastic fall in the amount owned to creditors. The systems were made more user friendly. This improved the quality of work thereby increased the productivity. Massive change in terms of accountability administration and control
Spent close to Rs 40 crore on its implementation and Has saved Rs 33 crore within a few months," said Ramesh C. Nadrajog, Vice President, Finance. "The manpower cost has reduced from over $200 per ton two years ago, to about $140 per ton in 2000. The overdue outstanding has been brought down from Rs 5,170 million in 1999 to Rs 4,033 million by June 2000. The inventory carrying cost has drastically deflated from Rs 190 per ton to Rs 155 per ton. Significant costs savings through management of resources with the implementation of SAP. With SAP's solution improving customer management. The availability of online information has facilitated quicker and reliable trend analysis
Future Moves
Motivating factor for both companies and ERP vendors. TISCO is not determined to stop ERP or attain a saturation point now. Improve and increase the scopes of ERP software A model guide Critical success factors for ERP implementation in order to enjoy ERP success
Conclusion
ERP is a key backbone application for companies in a fast changing industry like steel. The risks in an ERP implementation are usually outweighed by the benefits. The ERP discussion is often one of mindset more than one of standalone business cases. Implementing ERP can be challenging and demands sustained commitment from top executive levels, It is fundamental to enhancing the competitive position of a company in the dynamic environment of the steel industry today.