INDRAPRASTHA POWER GENERATION

COMPANY LIMITED (IPGCL)

JOURNEYING TO OPERATIONAL
EXCELLENCE WITH SAP SOLUTIONS
QUICK FACTS
Industry
Utilities power generation
Revenue
Rs15.3 billion (US$328 million)
(FY 20072008)
Employees
1,400+
Headquarters
New Delhi, India
Web Site
www.ipgcl-ppcl.gov.in
SAP Solutions and Services
SAP ERP application, SAP NetWeaver
Process Integration offering, SAP Productivity Pak application, SAP Solution
Manager application management solution, SAP BusinessObjects business
intelligence solutions, services for SAP
BusinessObjects solutions
Implementation Partner
SAP Consulting

Indraprastha Power Generation

Company Limited (IPGCL) is a
government-owned utility that
generates and sells electricity to
distribution companies in the state
of Delhi, India. IPGCL implemented
the SAP ERP application to provide
much-needed integration for procurement and maintenance operations along with business tools for
effective decision making.

Key Challenges
Integrate people, processes, and power
plants across the entire business
Improve operational and management
decision making with better access to
accurate data
Automate manual and paper-based
processes
Adopt best practices for generation
company
Optimize the performance of aging
assets

Why SAP Was Selected

Demonstrated understanding and expertise in the power generation industry
Integrated solution that supports best
practices for power generation companies
One-stop solution for transactions and
reporting through the use of interactive
dashboards
Integration of business processes

Implementation Best Practices

Strong and resolute support from management throughout the implementation
Formation of core team of key people
representing functional areas to support
the project from conceptualization to
implementation
Extensive training for core-team members
and end users
Involvement of all key stakeholders during
documentation business processes

Total Cost of Ownership

Completed the implementation across
the entire organization in 7 months by
knowledge transfer and training from
SAP Consulting to build an internal team
that supports postimplementation
requirements
Eliminated manual processes, spreadsheets, and duplicate efforts with automated and integrated applications

Financial and Strategic Benets

Automated creation of request for quotes
from purchase requisitions, eliminating
manual data entry by personnel in contracts and materials (C&M) department
Gained complete visibility into asset
maintenance history and spare-parts
movement
Reduced effort required to manage preventive maintenance schedules
Streamlined performance appraisal process with online performance management function
Decreased manual effort required to
carry out transfers and promotions of
executives

Operational Benets
Key Performance Indicator

Procurement lead time

Single tender
-58% (from 128 to 54 days)
Limited tender -46% (from 147 to 79 days)
Open tender -51% (from 283 to 140 days)
Adherence to preventive
maintenance schedule

+5% to 10%

Accuracy of cost distribution

between preventive and
breakdown maintenance
Time for vetting indents
Effort to maintain fault
register, docket filing,
and work permit filing

SAP Business Transformation Study

Utilities Power Generation

Impact

Improved
from 80%
to 99%
-80% (from
5 to 1 day)

-100%
(from manual to
automated process)

SAP ERP has helped us integrate and streamline operations across our power
plants, leading to increased visibility into data and better informed decision
making. It has also optimized resources and reduced paperwork.

www.sap.com /contactsap

A.K. Handa, Deputy General Manager (ERP & IT), Indraprastha Power Generation Company Limited

Indraprastha Power Generation

Company Limited (IPGCL), a government-owned utility in the state of Delhi,
India, took over the generation business
from erstwhile DVB w.e.f. on July 1,
2002. Its associate company, Pragati
Power Corporation Limited (PPCL), was
incorporated on January 9, 2001. The
main function of IPGCL-PPCL is the
generation and sale of electricity to
power distribution companies operating
in Delhi.

(requests for equipment and supplies)

in SAP ERP, often using historical data
from previous purchase orders or
approved indents for cost estimation.
This not only decreases the time needed
to create indents but also speeds up the
vetting process. This entire process can
be completed within one day, down from
five days.

On the plant maintenance side, where

each plant has approximately 600 pieces
of equipment, IPGCL has standardized
Establishing an Agile and
maintenance procedures across all plants.
Integrated Organization
Online maintenance schedules have
reduced the effort for monitoring adherBusiness drivers, such as paper-based
ence to schedules. Furthermore, 100%
processes and a lack of integrated data, cost allotment of labor and spare parts
prompted the company to look for soft- during maintenance has improved the
ware that could help drive excellence
accuracy of cost allocation, maintenance
across the organization. IPGCL-PPCL
history, and spare-parts movement.
implemented the SAP ERP application
to support operations, and other SAP
The HR function has seen improvement
software, such as SAP BusinessObjects through the use of the payroll engine in
business intelligence (BI) solutions, to
the SAP ERP Human Capital Managedeliver decision-making tools to
ment solution, which reduced manual
management.
efforts and unified payroll processing.
Online performance management funcA team of 12 employees from functional tionality replaced traditional manual perareas across IPGCL was assisted by
formance management, resulting in
consultants from SAP Consulting who
improved satisfaction for managers and
provided expertise, knowledge transfer, all other staff. Transfers, promotions, and
and training for the core team and end
the employee skills database are now
users. With strong support from manmaintained online. Using self-services
agement, the team completed the
offered in a portal, employees can update
implementation in seven months.
personal data, such as address and
dependent status, thus freeing the time
Creating the Road to Excellence
that HR employees used to spend maintaining this data.
The road to excellence was built on
improvements in the areas of procureWith the SAP ERP Financials solution,
ment, maintenance, HR, and finance.
the finance function has up-to-date cost
Using an automated procurement
records. The software supports adherprocess, employees create indents
ence to company policies and procedures,

while role-based access to an integrated

financial application helps improve data
consistency and security. Thanks to
better and faster means of communication, no time is lost in the delivery of
paperwork such as requests and notes.

Ready to Generate More Benefits

Through BI
IPGCL-PPCL is now looking to extract
intelligence from its integrated SAP
solutions. The company has already
implemented SAP BusinessObjects BI
solutions. IPGCL-PPCL is also exploring
the option of implementing the SAP
Supplier Relationship Management
application for supplier collaboration,
specifically reverse auctions, which can
help the organization achieve savings in
procurement. In addition, IPGCL-PPCL
is looking at software that can help the
company become a paperless business.
Clearly IPGCL-PPCL is on the road to
becoming an integrated, intelligent, and
agile enterprise.

50 101 656 (10/09)

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