Suzlon is major participant in the public-service corporation sector trades in eco friendly beginning of energy i.e. weave energy. It is the fourth largest air current turbine generator in the Asia and 8th in the universe. Suzlon Energy central office is situated in Pune, Maharashtra. Its gross for fiscal twelvemonth 2009 was around $ 5.4 billion. Suzlon has over 1300 employees. It is the largest air current turbine industry in India crossing over 5000MW with bing installing in India. Suzlon is a vertically incorporate house, which deals in piecing, put ining and bring forthing air current energy. Suzlon has assorted fabricating sites in India located in Daman, Pondicherry, Bhuj and Gandidham. Suzlon has got assorted Research and Development installations in India, Germany and The Netherlands. The International gross revenues is being managed by their Aarhus, Denmark Office while its planetary direction office is Pune, Maharashtra.
As a major company in renewable beginning of energy, Suzlon was confronting great force per unit area with the turning market demand globally. Business chances was coming from all over the Earth and Suzlon was besides spread outing by puting its research and operational capablenesss by puting up their offices globally. But Suzlon shortly realized their current system of decision-making was non that much efficient to do a planetary footmark. As the size of the undertakings would be larger and for their ambitious planetary growing program Suzlon shortly realized they need a robust system that would supply dependable information at right topographic point and at right clip. Suzlon direction felt that to turn globally they must be confident about their quality of the decision-making system, which in bend is dependent on information that they had.
2.2 Specific Aim: Land World
But the land world was rather different. There was no proper information integrating system between energy bring forthing sites located at assorted different geographic locations. This resulted into inefficiency across assorted maps and resulted in holds. Shutting of history of books and coevals of fiscal statement took really long. Management did non hold any information on current stock list or hard currency flows. Histories were non acquiring closed on the scheduled day of the months due to inaccuracies of informations. If these issues were left unattended it would ensue in impacting Suzlon & A ; acirc ; ˆ™s ability to serve its client better.
Suzlon was utilizing an out-of-date system developed in Visual Basic, which does non hold the capableness to incorporate information from Suzlon sites. In order to set up their air current turbines and operations in set uping a new site they needed to incorporate information related to project planning and procurance of natural stuffs. For illustration big figure of Cranes were required to transport natural stuff to new site. In instance of failure, if the information of the failure was non generated and reported instantly so it would ensue in slow down of work in that site and detain the undertaking completion rhythm clip.
Furthermore the current system was incapable of supplying sum of electricity generated by each works on a existent clip footing. Due to miss of integrating at some topographic points informations had to direct in signifier of manual sheets and it took really immense sum of clip to roll up them and besides makes the procedure really complicated. This manually collected informations need to incorporate with informations from other sites. The company has more than 228 site s located across around the state, some of them located at really distant topographic point like Satara- where machines are near a tableland.
4.Why SAP for ERP Implementation
To confront these challenges Suzlon decided to follow a standardised ERP bundle. They started an rating exercising to measure assorted ERP bundles. They released and RFP clearly saying their concern demand and procedures and asked assorted sellers to show their solution. Assorted bundles such as SAP, Oracle and IFS were evaluated and the terminal of rating exercising Suzlon decided to travel with SAP.
Suzlon was looking for better undertaking direction capablenesss and future merchandise route map, which SAP offered. One the most of import factor that led Suzlon to travel for SAP was that SAP package is inclined towards the Indian Taxation system which no other system were offering. Additionally SAP lab ever keeps on coming with new inventions. Suzlon saw better bandwidth use with SAP as compared with other SAP bundles. This lead Suzlon to take SAP.
5.Why IBM as execution spouse
Suzlon chose IBM as their execution spouse for the SAP ERP undertaking execution undertaking. IBM has got a good path record in footings of pull offing complex ERP execution undertakings, which includes complexness of implementing at multiple geographic locations. Suzlon ERP undertaking demand was incorporating information across assorted sites, so they chose IBM.
6.Implementation: Complex Job
The range of execution of the undertaking can be estimated by the fact that sum of 172 people including the execution squad of IBM Global Services were involved in the execution procedure. Suzlon purchased complete bundle of SAP ERP 4.7 which faculties such as Finance and Control, Gross saless and Distribution, Materials Management, Plant Management, Quality Management, HRM, Training and Event Management, Customer Relationship Management, Product Life Cycle Management, Customer Services and Business Intelligence.
Suzlon went for a standardised packaged with a really few customization. The ground for this determination was to take benefits from best patterns and by utilizing a standardised bundle its manageableness is ensured in a long tally. The execution exercising started in May 2004 was completed in November 2004. The enforced exercising covered around 228 sites. After it, SAP ERP is being extended to other sites besides.
6.1 AS-IS and To Be Approach
The execution started with AS IS survey. In this survey client concern procedures are analyzed. The adviser understands their concern theoretical account, their concern procedures, how they are working and what they have been making. The SAP adviser goes to the client and collects this papers from clients topographic point. Equally shortly as AS IS papers is prepared, based on the client demands adviser prepares the To Be document depicting how clients concern must be. To Be is a program which is offered to the client which will assist them to better their services, operations and commanding piece at the same clip maintaining the cost to the lower limit.
7.ERP undertaking Detailss
Suzlon ERP solution is SAP ERP R/3 4.7. They late shifted to SAP ECC 6.0.
Operationss System used is IBM & A ; acirc ; ˆ™s AIX ( Advanced Interactive executive ) , which is a series of proprietary Unix Operating System.
Prophet 9i was used as the database.
IBM pseries p650 double processors waiters were used as development waiters.
Faculties implemented in the undertaking are: Finance and Control, Gross saless and Distribution, Materials Management, Project Management, Plant Maintenance, Quality Management, HRM, Training and Event Management, Customer Service, Product Lifecycle Management, Customer Relationship Management and Business Intelligence.
Cost of the undertaking turned out to be about 4.5 crores which includes bundle cost, cost of hardware along with the execution and preparation cost.
The company has about 900 license users of SAP.
8.Benefits after implementing ERP
Equally shortly as the ERP bundle got successfully implemented unrecorded information integrating procedure became unrecorded and this integrated information was made readily available in existent clip. One of the major jobs faced by Suzlon was delay in readying of balance sheet integrating informations from all sites. After implementing ERP on all sites official balance sheet integrating informations from all sites is ready at the terminal of fiscal twelvemonth i.e. March 31. Earlier information was manually collected and compiled from assorted sites, which resulted in hold of fixing concluding balance sheet.
ERP execution besides helped Suzlon to better their undertaking direction country. Planning of undertakings was done more expeditiously and mistakes were detected at the be aftering stage of the undertaking and were rectified instantly. In instance of any hold in procurance of natural stuff for peculiar undertaking at a peculiar site, this information was readily passed to the site office and caput office through ERP undertaking. With this system, Suzlon were able to be after many proactive workss to confront these state of affairss with the aid of ERP.
Another country of betterment is strategic direction country of Suzlon. ERP bundle provided them with the capableness of Business Process Simulation Analysis. Through this system they were able to analyse the impact of assorted strategic determination on their concern. For illustration in instance of alteration of site of a peculiar undertaking what impact it would hold on energy coevals capablenesss of that site and besides the impact which it will hold on the energy coevals capablenesss of that peculiar zone. ERP bundle helped Suzlon to bring forth 324 of import parametric quantities related to their concern and which affects their concern the most. ERP bundle brought these 324 of import parametric quantities on a individual screen i.e. individual window interface.
ERP bundle executions besides helped Suzlon to better their stock list direction system. With the aid of ERP bundle Suzlon was able to incorporate the bill coevals procedure with the remainder of procedures. Any alteration in the bill already generated was reflected instantly in the system and confirmation of the bill become more streamlined. This contributed in faster completion of undertaking and better care of undertakings that contributes in the steady growing of the company.
Suzlon is migrating to new ERP bundle that provide them with more and advanced functionalities. Furthermore apart from this, Suzlon besides performs internal exercisings on a regular basis to measure the benefits of ERP execution. Their periodic coverage system improved its mark from hapless 3.2 to really good mark of 9. Invoice voice earlier mark before execution was 4, which became perfect 10 after execution. Order processing came to 7.5, which was earlier 4.4. Customer service procedure graduated table to 8.8 and project direction to 8 as compared earlier to 6 before execution. Suzlon keeps on exerting these internal exercisings to see the impact of ERP on the organisation.
After traveling through requirement stage and execution stage and seeing the consequences of the ERP execution, we can pull decision that organisation do profit a batch with ERP. And the benefit is non restricted to merely one section or procedure it is spread through out the value concatenation of the organisation. Several factors contributed to the successful ERP execution at ERP. Some of them were entire support from the top direction, a motivated internal point involved in the undertaking and the implementer, which should be competent plenty for the size of the undertaking. Suzlon foremost of all identified what they required from the ERP and so went for package seller choice. Their major challenge was implement ERP on multiple sites. Keeping this point in head they went for IBM that had the competence to undertake this challenge of implementing ERP at multiple sites. So most of import while choosing the ERP bundle is to first to happen out what an organisation wants from ERP. After that analyze what the ERP bundle is offering. If both are similar so first measure for successful execution of ERP is done. After choosing the package the thing, which is of import, is support from the whole organisation. It & amp ; acirc ; ˆ™s a really popular myth that ERP is the duty of top direction. ERP besides includes daily operations. Top direction buzzword semen and execute the daily operation. It & amp ; acirc ; ˆ™s the employee who makes the ERP successful. After that organisational must measure the benefits of the ERP in quantifiable footings. Before implementing ERP they should put the mark, for illustration stock list cost should acquire reduced by 20 % and after implementing ERP they should compare the two, i.e. expected and existent. After comparing the two true image of implementing ERP would come out.