INDRAPRASTHA POWER GENERATION
COMPANY LIMITED (IPGCL)
QUICK FACTS
Industry
Utilities – power generation
Revenue
Rs15.3 billion (US$328 million)
(FY 2007–2008)
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 Pro-
ductivity Pak application, SAP Solution
Manager application management solu-
tion, 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 pro-
curement and maintenance opera-
tions along with business tools for
effective decision making.
SAP Business Transformation Study
Utilities – Power Generation
JOURNEYING TO OPERATIONAL
EXCELLENCE WITH SAP® SOLUTIONS
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
Implementation Best Practices
• Strong and resolute support from man-
agement 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
Financial and Strategic Benefits
• Automated creation of request for quotes
from purchase requisitions, eliminating
manual data entry by personnel in con-
tracts and materials (C&M) department
• Gained complete visibility into asset
maintenance history and spare-parts
movement
• Reduced effort required to manage pre-
ventive maintenance schedules
• Streamlined performance appraisal pro-
cess with online performance manage-
ment function
• Decreased manual effort required to
carry out transfers and promotions of
executives
Why SAP Was Selected
• Demonstrated understanding and exper-
tise 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
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, spread-
sheets, and duplicate efforts with auto-
mated and integrated applications
Operational Benefits
Key Performance Indicator Impact
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 +5% to 10%
maintenance schedule
Accuracy of cost distribution Improved
between preventive and from 80%
breakdown maintenance to 99%
Time for vetting indents -80% (from
5 to 1 day)
Effort to maintain fault -100%
register, docket filing, (from manual to
and work permit filing automated process)
“SAP ERP has helped us integrate and streamline operations across our power www.sap.com /contactsap
plants, leading to increased visibility into data and better informed decision
making. It has also optimized resources and reduced paperwork.”
A.K. Handa, Deputy General Manager (ERP & IT), Indraprastha Power Generation Company Limited

Indraprastha Power Generation (requests for equipment and supplies) while role-based access to an integrated
Company Limited (IPGCL), a govern- in SAP ERP, often using historical data financial application helps improve data
ment-owned utility in the state of Delhi, from previous purchase orders or consistency and security. Thanks to
India, took over the generation business approved indents for cost estimation. better and faster means of communica-
from erstwhile DVB w.e.f. on July 1, This not only decreases the time needed tion, no time is lost in the delivery of
2002. Its associate company, Pragati to create indents but also speeds up the paperwork such as requests and notes.
Power Corporation Limited (PPCL), was vetting process. This entire process can
incorporated on January 9, 2001. The be completed within one day, down from Ready to Generate More Benefits
main function of IPGCL-PPCL is the five days. Through BI
generation and sale of electricity to
power distribution companies operating On the plant maintenance side, where IPGCL-PPCL is now looking to extract
in Delhi. each plant has approximately 600 pieces intelligence from its integrated SAP
of equipment, IPGCL has standardized solutions. The company has already
Establishing an Agile and maintenance procedures across all plants. implemented SAP BusinessObjects BI
Integrated Organization Online maintenance schedules have solutions. IPGCL-PPCL is also exploring
reduced the effort for monitoring adher- the option of implementing the SAP
Business drivers, such as paper-based ence to schedules. Furthermore, 100% Supplier Relationship Management
processes and a lack of integrated data, cost allotment of labor and spare parts application for supplier collaboration,
prompted the company to look for soft- during maintenance has improved the specifically reverse auctions, which can
ware that could help drive excellence accuracy of cost allocation, maintenance help the organization achieve savings in
across the organization. IPGCL-PPCL history, and spare-parts movement. procurement. In addition, IPGCL-PPCL
implemented the SAP® ERP application is looking at software that can help the
to support operations, and other SAP The HR function has seen improvement company become a paperless business.
software, such as SAP BusinessObjects™ through the use of the payroll engine in Clearly IPGCL-PPCL is on the road to
business intelligence (BI) solutions, to the SAP ERP Human Capital Manage- becoming an integrated, intelligent, and
deliver decision-making tools to ment solution, which reduced manual agile enterprise.
management. efforts and unified payroll processing.
Online performance management func-
A team of 12 employees from functional tionality replaced traditional manual per-
areas 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 man- maintained 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 main-
taining this data.
The road to excellence was built on
improvements in the areas of procure- With 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 adher-
process, employees create indents ence to company policies and procedures,

50 101 656 (10/09)

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