UPPCL Launches ERP Implementation Project

Introduction
Uttar Pradesh Power Corporation Limited (UPPCL) is the organisation incharge of electricity transmission and distribution in
the state of Uttar Pradesh.

Problem
UPPCL has about 32,000 employees and managing such a vast employee base to ensure transparency, accountability and
efficiency was very challenging. The authorities realised the need to monitor operational transactions in the state in real-time
and also keep better track of all financial transactions in the state bearing in factors of budget management, fund
management, organisational size and vendor management. Tracking inventory, reducing purchases, timely procurements
and effective material issuance was also a pressing concern.

Solution
UPPCL rolled out the SAP S4 Hana ERP System for better Financial Management, Human Resources Management, Material
Management and Project Management. The Employee Self Service option was introduced for numerous employee services
such as income tax, leaves, PF slips, salary slips, etc. Inventory Management is being augmented with a fresh codification
system for materials, offices, units, etc. Business Intelligence is critical to operational efficiency and the Management
Dashboard has been set up for the same. Cutting-edge infrastructure has been installed, complete with performance
analytics that include Security Information and Event Management (SIEM) technology. Legacy business practices have been
adapted, redefined and even discarded in order to facilitate a seamless adoption of the ERP.

Outcomes
Management of human resources improved with digitisation. The entire hire-to-retire process, including CPF and GPF,
benefitted from the upgrade. This resulted in higher employee satisfaction. Real-time monitoring of the inventory facilitated
more efficient, timebound restocking which also meant that there were no shortages in supply and services to the
consumers at any point. Improved asset management also favourably impacts project completion. The new system
overhauled accounting functions like fund management, budgets vs. actuals, procure to pay functions, treasury management
and vendor management.

Challenges
Standardising and optimising business practices throughout 5 Discoms has been challenging. Remote and spread-out
geographical locations added to the challenge. Adopting latest technologies like the S4 Hana project in Power Utilities also
involves extensive training and handholding support. Integrating new practices with legacy systems also takes a while.

Innovation
Numerous customised solutions have been developed in the ERP system pertinent to the Distribution Network and UPPCL
has incorporated these. The ERP System has been integrated with other UPPCL systems and a single window system
approach allows for multiple activities. Digitalisation of processes means work can be carried out from anywhere at anytime
via the Internet. The EODB portal functions like the New Connection Portal have been integrated with the ERP System.

Opportunities
The new system offers great potential for enhanced analytics. UPPCL also intends to look into Asset Maintenance Modules.
Summary
UPPCL and its Discoms serve a population of around 3 Crore consumers in the state of Uttar Pradesh. The Power sector is
one of the cornerstones of both state economy and infrastructure, thereby impacting every aspect of administrative function
and citizens’ lives.