Assignment On Organisational Change
Assignment On Organisational Change
ORGANISATIONAL CHANGE
ROLL NO.: 33
YEAR: 2009-10
1
INDEX
2
SR. PAGE
TITLE
NO. NOS.
3 TYPE OF CHANGE 5
9 COMMENTS 19
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Company Profile
Blue Star is India's largest Central Air-Conditioning company with an annual turnover
of Rs 2574 crores, a network of 29 offices, 5 modern manufacturing facilities, 700
dealers and around 2600 employees.
It fulfills the air-conditioning needs of a large number of corporate and commercial
customers and has also established leadership in the field of commercial refrigeration
equipment ranging from water coolers to cold storages. The Company has also started
offering Electrical Contracting and Plumbing & Fire Fighting Services. Blue Star's
other businesses include marketing and maintenance of hi-tech professional electronic
and industrial products.
Blue Star has business alliances with world renowned technology leaders such as
Rheem Mfg Co, USA; Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd.,
UK; Jeol, Japan and many others, to offer superior products and solutions to
customers.
The Company has manufacturing facilities at Thane, Dadra, Bharuch, Himachal and
Wada which use state-of-the-art manufacturing equipment to ensure that the products
have consistent quality and reliability.
Blue Star primarily focuses on the corporate and commercial markets. These include
institutional, industrial and government organizations as well as commercial
establishments such as showrooms, restaurants, banks, hospitals, theatres, shopping
malls and boutiques. In accordance with the nature of products and markets, business
drivers, and competitive positioning, the lines of business of Blue Star can be
segmented as follows:
This comprises central and packaged airconditioning as well as electrical projects and
plumbing & fire fighting projects. The central and packaged airconditioning business
involves design, engineering, manufacturing, installation, commissioning and support
of large central airconditioning plants, packaged air conditioners and ducted split air
conditioners. In addition to this, Blue Star promotes after-sales service as a business,
by offering several value added services in the areas of upgrades and enhancements,
air management, water management, energy management and LEED certification
consultancy for Green Buildings.
The Company also executes building electrification contracting projects and offers
expertise in the areas of electrical design and engineering, supply and installation of
entire power systems as well as liasioning, approvals, commissioning and asset
management.
Blue Star has extended its mechanical contracting offering to include plumbing and
fire fighting projects. With this, Blue Star has developed capabilities for executing
integrated MEP (Mechanical, Electrical and Plumbing) projects.
2. Cooling Products
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Blue Star offers a wide range of contemporary window and split air conditioners. The
Company also manufactures and markets a comprehensive range of commercial
refrigeration products and services that cater to the industrial, commercial and
hospitality sectors. These include water coolers, bottled water dispensers, deep
freezers, cold storages, bottle coolers, ice cube machines and supermarket
refrigeration products.
For over five decades, the Electronics Division has been the exclusive distributor in
India for many internationally renowned manufacturers of hi-tech professional
electronic equipment and services, as well as industrial products and systems. The
Company has carved out profitable niches for itself in most of the specialized markets
it operates in, such as analytical instruments, medical electronics, data communication
products, material testing, and test and measuring instruments.
Blue Star Ltd. has very good and dynamic Human Resources Department, which can
be reflected by the review which was given in annual report of year 2008-2009 as
below:
During the review period, the Company increased its total head count marginally from
2566 as on March 31, 2008 to 2620 on March 31, 2009. With a focus on people
development, about 80% of the Management staff attended at least one Development
Program, while the average was over 4 man days of training per person. In order to
sustain the positive culture of the Company, the corporate programme called ‘The
Blue Star Way’ which creates awareness about and strengthens the Blue Star way of
working was imparted to over 90% of the Management staff.
Change Process, its implementation, major interventions used during the change
process, type of resistances during the change process are being explained from next
pages…
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Company had decided and implemented successfully new ERP system (SAP) instead
of old ERP system (BAAN). Company also highlighted the same in its annual report
2008-09 for the same. The importance of this change is self explanatory as per
following highlights given in the annual report are as follows…
The SAP system will help the Company in automating and streamlining operational
processes; increasing productivity in operations with a role-based solution and
centralized information; extending collaboration to all value chain partners; and
improving operations performance with strategic business insight.
TYPE OF CHANGE
Initiated Change:
As this change was being implemented to achieve an organizational goal like growth
with profit, an internal need this change is initiated type of change.
Planned Change:
As this change is made by the organization for the purpose of achieving something
that might not easily accomplishable and also it helps organisation to reach new
fronteriers and progress more rapidly towards the pre-determined objectives
.
PROCESS OF CHANGE
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Company had implemented the change process in a very planned way. For this
purpose company had given responsibility to one of his very dedicated, senior,
experienced, skilled director Mr. B Thyagrajan.
He was completely authorized and responsible for the SAP ERP implementation
instead of BAAN ERP from 1st April 2009.
For this company had started the basic process for fulfilling essential requirements
before at least one year prior to implementation. The major steps taken by company
are as under.
1). Company had appointed new SAP team for migration, training, implementation,
solution for the problems which were going to arise, etc.
2). Company had diverged one of its big factory shed to SAP team.
3). in a new SAP team company had done following recruitment, transfers to make
the best team.
Company had recruited experienced and skilled persons which have had experience to
work in SAP.
Company had also transferred their best of employees who are very much skilled in
ERP, company’s policy, to SAP team.
4). Company had defined specific process, responsibility and liability of individuals
of all departments like project, service, sales, accounts, finance, logistics, HR,
Administration. These processes had been defined and established with the help of
professionals of each department, SAP, Old processes in BAAN (So that everyone
can catch the new system easily), Company policy, etc.
5). First company had arranged to train SAP team according to their assignment (like
procurement team, finance team, project team, commercial team, etc.) from
outsourcing directly from SAP as a part of Blue Star’s Contract with SAP.
6). Trained and skilled SAP coordinators then given training to all the Blue Star
Employees then after.
7). Company had planned a schedule for these trainings in a very systematic way.
Like from these dates to these dates project people from western region would have
training. Then after People from commercial would attend the training from Eastern
region, etc. etc.
8). Company had hired two luxurious flats in posh area Vasant Vihar, in Thane for
one and half year. So that Employees could feel comfortablility during their training
period and at the same time company’s extensive cost on hotel bills could be saved.
9). Company had outsourced people from other agencies for coordination of the
problems which are going to arise during the implementation.
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10). During training period company had arranged to provide very good facilities like
two times tea, two times snacks, one time lunch and dinner also if required.
11). Company had also provided one training session module to all employees who
had been trained for the practice work so that they can practice in this module before
actual implementation of SAP.
12). Company had started to collecting all the necessary data required to be fill in
SAP before six to eight months from implementation. The data are for Vendors,
Customers, Material codes, etc. Also it started to fill the same in SAP.
13). Company had declared black out period in first ten days of April 2009 in which
no system transaction could take place which was already communicated earlier to all
Debtors, Creditors, etc.
14). Company also change their stationeries like internal cash vouchers, T.A.Bill, etc.
according to SAP coding.
So, after one month time finally all the transaction being started in SAP after very
hard work by all Blue Star Employees.
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1. Firstly, since last six to eight months before implementation of SAP company had
arranged to enter all the required, essential, necessary data to SAP system.
2. This was done with the help of all Blue Star Employees as below:
2.1 Purchase department had collected all the data related to vendors which are
essential for generating the vendor code like VAT registration nos, CST registration
nos., Excise Registration nos, PAN card nos., ECS nos, Bank Account nos, RTGS
nos, etc. These all data had been asked from vendors along with their proof of zerox.
2.2 Also, SAP team had generated material codes as per SAP standards which are
already there in BAAN. They also made one new format for generating new codes
which user department have to fill in and mail to SAP team for generation of new
material codes.
2.3 Project team and Service team had been collected all data related to sub
contractors, associates like service tax registration nos, PAN nos, ECS nos, Bank
Accounts nos, RTGS nos, etc. These were required for generating their sub contractor
code.
2.4 Sales department had collected all necessary data from regular and existing
customers for generating their customer codes as purchase department had done for
vendor generation code.
2.5 Accounts and Finance department also had finalized and gave all the accounts
related codes, procedures as per company policy and accordingly SAP system had
been designed.
3. For all employees new employee code had been generated for their salary account
and their other cost accounts in the system.
4. All employees who had been given sufficient training had been given individual
password for their use.
5. All vouchers related to Finance and accounts like T.A. Bill, Petrol Allowance,
Cash Vouchers, LTC allowance, Medical Allowance had been changed according
to SAP requirements.
6. From 1st April 2009 to 10th April 2009 new data related to any of department had
not been allowed to enter in the system. This period had been defined as black out
Period and all concern persons
7. During this period, data related to accounts and finance in BAAN was being
processed for Balance sheet work of previous years.
8. New processes in SAP had been started slowly one by one so that at the same time
SAP team will not face extensive problems (in the system) which were difficult to
resolve.
9. For every department, one key person had been appointed who was responsible
and dedicated for resolving issues arise in that particular department.
10. Company had established and defined processes for each department with help of
professional, according to old process, Company Policy and then trained all
employees accordingly.
11. After Black out period trained employees had been shifted to different locations /
branches for few days so that problems would be shorted out at the earliest.
12. Key person Mr. B Thyagrajan regularly update to all Blue Star Employees about
the status of implementation of the system through mails.
So, all above are major interventions used during SAP implementation. So, it had
taken about one month time for regularizing all transaction in SAP.
TYPE OF RESISTANCE TO CHANGE
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As in every change process there many resistances arise in this change process. Few
of them are as follows:
1). Employee who had been transferred from other department to SAP department
they might disturbed in their personal, social and economical life. So, naturally they
resist this change.
2). Employee who had to travel due to training requirement also might be disturbed.
So naturally they also resist change.
3). During blackout period, it is very important to migrate all data from old system to
new system and of course it was very difficult also. During this period many people
had to work hard (i.e. 16-20 hours in a day). This would also disturb their personal
life. So, these people also resist change.
4). Many people are not comfortable with travelling. So during travelling time they
also resist change.
Fear of unknown feelings of ambiguity:
Whenever people do not know what exactly happens, they try to resist it as they fear that
any untoward and uncomfortable change may have great consequences. It is also added
with Loss of power or control and fear of failure.
Social Reasons:
Employee who had transferred from their department and locations had felt Social
displacement and acceptance peer group. So they resist change.
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1). Threat to power and influence: Employee who were experts in Old ERP system
they believe that change is a potential threat to their position and influence in the
organization.
3). Resource Constraints: As company had to manage all these change process within
its internal resources so it might felt resource constraints. These constraints act as
resistance to change.
4). Sunk Cost: There was heavy capital block in fixed assets or on the people. So this
always acts as Resistance to change.
Also, some of difficulties that had been faced during month of April 2009 are as
under.
1). Company had already budgeted cost, assets, employment which were going to be
arise from these change process i.e. implementation of SAP Process. Thereby,
resistance come from sunk cost can be overcome.
2). As mentioned earlier, company had hired two nos. luxurious flats in Posh area of
Thane, so that employee came for training could relax over there. Company also hired
care taker (who were also good cook) so that employee can enjoy excellent food in
guest house.
3). Company had adopted shift duties for most of the employees (i.e. SAP team)
during last one and half year so that no overburden would be on employees.
4). During training session excellent services like two times tea, two times snacks, one
time lunch, one time dinner will be provided to trainees as well as to trainers.
5). Company had not given any type of notice, warning to any of employees that after
implementation of SAP they will be fired. So, that resistance against threat to job lost
could be overcome.
6). Company had also developed most of the experts (champions) in old ERP system
as new ERP experts. So that their threat against power and influence could be
overcome.
7). Company had started new cell called SAP Helpdesk, responsible for shorting out
the problems arise in the system.
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8). Company had recruited SAP experts from other organizations who had played
substantial role in implementation of SAP.
9). Company had allocated a new office with fully air conditioning building. Also,
sufficient nos. of computers, networks, telephones, modems, hardware, etc. for SAP
team.
10). Company had provided extensive training to all employees (two or three times to
each employee if required).
11). Company also had provided one practice module so that employees could
practice in the same before implementation of SAP.
So, all these type of mechanism used for overcoming the resistances to change which
could arise in SAP implementation process.
Here, some of emails have been attached which had been updated by Mr. B
Thyagrajan marked to all Blue Star Employees during time to time process of SAP
implementation. The emails will give the complete change process which was being
adopted by company during SAP implementation process.
MAIL NO. 1.
Kalpesh Thaker
From: B Thiagarajan
Sent: Tuesday, March 24, 2009 2:20 PM
To: BLUESTAR
Subject: SAP ERP Implementation
SAP ERP: As you are aware, Blue Star is implementing a comprehensive and
integrated SAP ERP system which is expected to do live from April 8, 2009 across
the country and throughout all divisions, Departments and Manufacturing Units.
Training: The Divisions have identified end-users who will operate SAP ERP.
around 600 employees have already been trained on the new system and in the course
of the next 12 weeks, we will also impart follow-up training is needed.
Migration: There are specific data migration plans and cut-off strategies for each
Division/Department/ Manufacturing Unit, and different teams are working on the
same.
Black-out Period: In the last week of March and first week of April, there will be
intense activities connected with the above implementation. Between April 1, 2009
and April 8, 2009, there will be a black-out period for transactions. We will need to
verify the uploaded data and ensure that the new system is operating accurately.
Hence, during this period, do transaction will be possible.
Transactions only through SAP: Except for the quotations and routine
correspondence, it is mandatory that all transactions within the company are handled
through SAP ERP. The Accounts department and Logistics department will not
entertain any transaction outside the system.
Cash and Bank Transactions: The Accounts department till handle need based cash
and bank transactions without any interruption.
Invoicing: Please note that carrying out invoicing manually or delivering material
through manual document outside system is banned. Carrying out such transactions
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manually with a pretext that it can be entered in the system at a later date is not
acceptable.
Stationeries: With effect from April, 2009, we will have to use new stationeries for
Cash Vouchers, Invoices, Purchase Orders, Work Orders etc. The stationeries are
being dispatched to the locations and the Administration department will distribute
the same.
Support Structure: In order to handle the transition smoothly, there will a 4-tier set-
up supported by IBM, as follows:
9.1 Central Core Team: This team comprises the Function-wise/ experts =ho will lead
the change-over and implementation.
Overall in-charge: Deepak Saxena
Finance & Accounts: H S Amaria
Projects: J Radha/ M R Nemade
Service: Sujan Chaterjee/ Promod Patil
Manufacturing: Sandeep Kulkarni
Sales & Distribution/Channel Business: P Madhusudhana Rao
9.2 SAP ERP Functional Experts to be deputed to Locations: This team comprises 25
functional experts drawn from SAP ERP team, and will be present at major locations
between April 5th to April 20th. they will report to the Regional/ Branch Accountants
and will extend support to all Divisions/ Departments.
9.3 Locational Champions: We have identified and trained around 200 employees
from various Divisions across the Locations to function as locational Champions for
handholding the end-users. The names will be communicated by the All India
Commercial Managers to respective Divisions. The names of the Locational
Champions for Accounts, Manufacturing, Material and Logistics till be
communicated by HS Amaria, Sandeep Kulkarni, Anil Shipley and Ajit Nandalai.
9.4 SAP helpdesk: A central helpdesk, managed by a team of experts will be
operational with effect from April 1, 2009. The email ID of the helpdesk
[email protected] . Any queries connected with SAP ERP can be
addressed to the above helpdesk by the employees.
10. Common Codes and Codification: We have assigned new common codes for all
customers, materials, vendors and sub-contractors. the current customers, materials,
vendors and sub-contractors are being migrated to SAP ERP under the new codes. In
future, all codifications will be handled centrally by the SAP ERP team. For any new
codes, you will have to torward details in a prescribed format to SAP Helpdesk. The
format will be circulated separately.
You will appreciate that SAP ERP implementation is a very large and complex
project being carried out across the Company, and while we have taken adequate
precautions, we may face some teething problems. the next 3 months will be critical
for the success of this project.
I seek your co-operation and support.
Best regards,
Thyag
MAIL NO. 2
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Kalpesh Thaker
From: B Thiagarajan
Sent: Wednesday, April 01, 2009 10:19 AM
To: BLUESTAR
Subject: Urgent and Most Important: Final Preparation-SAP ERP
1. As I had communicated earlier, we are ready to go live on SAP and the final
preparations are on. Our ERP, IT, Divisional Commercial and IBM teams have been
working round the
clock and close to a million masters and records have been uploaded.
2. Accountants and Commercial personnel are advised to close the Billing for FY09
immediately, and handover the documents to Accounts.
3. We are awaiting confirmation on closing of Billings and the provisional closing
balances of inventory as on March 31, 2009. As soon as these figures are loaded, we
shall be switching on SAP ERP. In all probability, the new system will be available to
you for carrying out transactions on April 8, 2009.
4. In the meanwhile, the Accountants and Commercial personnel are advised not to
carry out any transaction pertaining to the new Financial Year in Baan or any other
existing software or manually. The only exception to the above rule will be cash
reimbursements to employees.
5. Till SAP ERP is made available, no material should be delivered or Taken into
stock. No Purchase Order shall be released.
6. Please also note that with effect from today, all Location, Division and Department
codes have undergone change. Please await a separate communication in this regard.
(Your Employee Code will remain unaltered. However, prefix ‘E’ will be added.)
MAIL NO. 3
Kalpesh Thaker
From: B Thiagarajan
Sent: Wednesday, April 01, 2009 5:38 PM
To: BLUESTAR
Subject: Codification in SAP ERP
Attachments: SAP Nomenclature.xls; Cash Voucher - General.pdf; Cash Voucher -
Perks.pdf; Travel Expense Voucher.pdf; Journal Voucher.pdf; Bank Payment
Voucher.pdf
1.0 Background: In SAP ERP, we will follow a new codification structure. Also, the
nomenclatures will be different. We will get used to these codes and nomenclatures
over a period of time.
2.0 New Common Codes: The codes shall be common across the Company and will
be managed by SAP ERP Cell. You cannot carry out any transaction unless and until
the relevant material/ customer/ vendor code with all the required details are uploaded
in the system. Whenever you need a new code, you will have to contact the SAP
Helpdesk ([email protected]). Since we want to capture many
important details such as PF/ ESI number etc., you will be required to fill in a
template. A separate communication detailing the procedure for obtaining new codes
will be issued later.
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3.0 New Nomenclatures:
3.1 Profit Centres or Locations (4 digits): In SAP, Profit Centre is where financial
transactions are tagged and Books of Accounts are maintained. In our case, all
Accounting Locations and Factories are Profit Centres. (Projects of value above Rs 25
crores, such as Delhi Metro job, will be treated as Profit Centres.)
3.2 Cost Centres (7 digits): In SAP, Cost Centre refers to a function or department
such as Finance and Accounts, HR, Administration, Procurement, Warehousing,
Assembly Shop, Coil Shop etc.
3.3 Divisions (2 digits): In SAP, Division is the nomenclature used for Business
Group (e.g.EMPG, CBG), Division (e.g. ACPD, PAD), Division Centre (e.g. PAD
HQ), Sub-Divisions (e.g. ACPD Service, PAD Service, Medical, Analytical
Instruments) and Sales
Departments (e.g. Telepac, OEM).
3.4 Warehouses (4 digits): All warehouses are codified, and the specific warehouse
will have to be selected for each transaction.
3.5 Customer and Vendor Codes (9/ 10 digits): All existing customers and vendors
have been codified and uploaded. You can search and locate them by name or code or
location. Since we have customers with multiple addresses, while carrying out a
particular transaction, you will have to select the right code by checking the city and
address. You will find addresses for ‘Sold To’, ‘Ship To’, ‘Bill To’ and ‘Payee’ types
of transactions.
3.6 Employee Codes (7 digits): Your code remains the same in SAP, except that you
will have to prefix the same with ‘E’. Please also note that all Employees are also
codified as Vendors in order to facilitate payments.
4.0 Sample Listing: Attached is the sample list. In any case, the end-users will be
able to obtain these codes from the system through search facility.
5.0 New Voucher Formats: The formats of various types of vouchers will undergo
change and space for various codes as above will be incorporated. Attached are the
samples, and new stationery will be printed and despatched to the locations in due
course.
Best regards- Thyag
MAIL NO. 4
Kalpesh Thaker
From: B Thiagarajan
Sent: Friday, April 10, 2009 1:17 PM
To: BLUESTAR
Subject: SAP ERP Opened for Transactions
1. You will be pleased to know that with effect from 11 am today, SAP ERP has been
opened for transactions.
2. All end-users can carry out the following transactions with immediate effect:
2.1 Despatch of materials from Factories and Warehouses.
2.2 Invoicing.
2.3 Release of Purchase Orders.
2.4 Release of Sale Order Acknowledgements.
3. The following types of transactions are not allowed till 11 am tomorrow:
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3.1 Inter Field Warehouse Stock Transfers. (Factories alone are allowed to stock
transfer today.)
3.2 NPC to RPC Stock Transfers.
3.3 Purchase Receipts at Field Warehouses.
4. Before commencing new transactions in the system, the locations are advised to
enter the transactions carried out between April 1 and April
9. This is very important.
5. We now have a fully integrated ERP with common codification across the country.
6. Some of the Divisions and Locations had not furnished the correct serial numbers
for uploading. Since system does not accept inventories without serial numbers, we
had to upload the inventory with near correct or dummy serial numbers. Whenever the
end-users come across such cases, they will have to correct the serial number through
a facility available in the system. SAP Help Desk can provide guidance in this regard.
I would like to compliment our SAP ERP team members, IBM Consultants, SAP
Consultants, Regional and Branch Accountants, All India Commercial Managers and
our IT team for the extraordinary commitment demonstrated by them.
MAIL NO. 5
Kalpesh Thaker
From: B Thiagarajan
Sent: Thursday, April 16, 2009 9:10 AM
To: BLUESTAR
Subject: Production, Despatches, Billings and Collections
1. As of now, except for Projects Billings, we have activated all processes. Finance &
Accounts migration is in progress and it will not affect day- today operations. Under
the circumstances, our goal is to maximize production, Despatches and Collections
and make up for any shortfall.
2. Please be informed that between us and IBM, we have resources and back-up plan
to help you overcome all the difficulties.
3. As I had intimated earlier, there is a 4-tier set-up Support Structure supported by
IBM, as follows:
3.1 Central Core Team: This team comprises the Function-wise/ experts who will lead
the change-over and implementation.
Overall In-charge: Deepak Saxena
Finance & Accounts: H S Amaria
Projects: J Radha/ M R Nemade
Service: Sujan Chaterjee/ Promod Patil
Manufacturing: Sandeep Kulkarni
Sales & Distribution/Channel Business: P Madhusudhana Rao
3.2 SAP ERP Functional Experts to be deputed to Locations: This team comprises 25
functional experts drawn from SAP ERP team, and is available at major locations
between April 5th and April 20th. They report to the Regional/ Branch Accountants
and extend support to all Divisions/ Departments.
3.3 Locational Champions: We have identified and trained around 200 employees
from various Divisions across the Locations to function as Locational Champions for
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handholding the end-users. The names will be communicated by the All India
Commercial Managers to respective Divisions. The names of the Locational
Champions for Accounts, Manufacturing, Material and Logistics will be
communicated by HS Amaria, Sandeep Kulkarni, Anil Shipley and Ajit Pandalai.
3.4 SAP Helpdesk: A central helpdesk, managed by a team of experts is operational
with effect from April 1, 2009. The email ID of the helpdesk is
[email protected]. Any queries connected with SAP ERP can be
addressed to the above helpdesk by the employees.
4. If the problem is related to Customer Service or Production or Despatches, please
call up the respective Central Core team member and simultaneously keep Deepak
and me informed.
MAIL NO. 6
Kalpesh Thaker
From: B Thiagarajan
Sent: Wednesday, April 22, 2009 11:35 AM
To: BLUESTAR
Subject: Month-end Despatches and Billings
1. In the past 10 days, the despatches and billings have gained momentum. We have
deployed additional resources to speed up the process. You are advised create the
Sale Orders without waiting for availability of material so that as and when material
is received in the warehouses, the despatches can take place. Otherwise, it will be
difficult to meet the month-end billing requirements.
2. The requests for creation of Customer Masters and Material Masters are pouring in
thousands, and we are trying to cope with the requirements.
3. As you are aware, creation of Masters is a time consuming process and for a set of
50 new codes, it takes around 4 hours. Moreover the prescribed template will have to
be complete in all respects.
4. The priority is being given to Warranty customers followed by CBG customers.
Those approaching the Helpdesk for Masters are requested to inform specifically
whenever the requirement is against Warranty or Commissioning replacement. RAD
and RPD requirements will also get priority.
5. The requests for Masters will have to be only through email to SAP Helpdesk.
6. You are advised not to call up or personally visit the Help Desk executive in-charge
of creating the Masters. However, you are welcome to contact Deepak Saxena or your
divisional Coordinator.
MAIL NO. 7
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Kalpesh Thaker
From: B Thiagarajan
Sent: Sunday, April 26, 2009 7:53 AM
To: BLUESTAR
Subject: Project Billing in SAP
We have activated billing of Projects in SAP. Please contact your All India
Commercial Manager for details.
MAIL NO. 8
Kalpesh Thaker
From: B Thiagarajan
Sent: Monday, May 04, 2009 6:18 PM
To: BLUESTAR
Subject: Codification: Vendor Master, Material Master and Customer Master
Templates
Attachments: Vendor Master.zip; Material Master Template_Factory.zip; Material
Master Template_Field.zip;
Material Master Template_NPC.ZIP; Customer Master.zip
1. Process Orientation and Codification: You will agree that proper codification
and process orientation are critical to the success of any ERP system.
2. Codification Cell: As I had intimated in my circular dated March 24, 2009, as a
part of SAP Implementation, we have assigned unified code for customers, material,
dealers and vendors and the same will be managed centrally by the SAP ERP Cell.
3. Feedback- April 2009: In the month of April 2009, we encountered four major
difficulties:
3.1 Getting started and catching up after 10 days of black-out period.
3.2 Migration of huge amount of old data missed out earlier and cleaning up of old
data.
3.3 Large number of new codification requests.
3.4 Time taken to create Sale Orders and Billing found to be longer than anticipated. I
think we have overcome some of the above difficulties and the operations will be
smoother in May 2009.
4. Process Discipline: It is important that we stay committed to process orientation,
and disciplined in terms of codification requirements. I keep getting requests to short-
circuit defined processes. There have been also requests to allow incomplete data.
Questions are also being raised on the need to capture information such as Pin Code,
PF/ ESI Registration Number, Sales Tax Registration Number, Category etc.
This information is necessary. SAP ERP indeed calls for high level of discipline, and
initially we will find it difficult. I would request you to persist with the requirements.
In about two or three months, we will find it easier and most importantly, the system
will help us to manage our operations much more efficiently.
5. Request for New Codes: End-users will be able to check the masters and identify
the codes for all existing items. For obtaining new Customer, Material, Vendor and
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Dealer Codes, you will be required to mail the prescribed templates duly filled in to
SAP Helpdesk: ([email protected]). The employees can directly
approach the SAP Helpdesk with the templates duly filled in. In the normal
circumstances, SAP Helpdesk will arrange to open the codes. In certain cases, if
necessary, SAP Helpdesk will contact the All India Commercial Manager or
Procurement Head or Manufacturing Heads and obtain confirmation before opening
the code. We will revisit the above procedure in October 2009.
6. Templates: The prescribed templates are attached and you will have to use the
same:
6.1 Vendor Master template including ISO Formats / requirements for Suppliers and
sub-contractors. This template will be used for suppliers, Business Associates,
employees as vendors for making payments and Blue Star dealers as a vendors or sub-
contractors.
6.2 Material Master template for Manufacturing.
6.3 Material Master template for Sales/ Service/ Branch Locations.
6.4 Material Master template for NPC.
6.5 Customer Master template including template for new customers, Blue Star
dealers as a customer, employees as customers, individual Customers and template
for correction of the name of the customer.
7. Class ‘C’ Items and Cash Purchases: As a general rule, all Class ‘C’ items will
be included under the scope of the Contractor / Business Associate / Dealer so that we
avoid opening codes and handling numerous small value transactions in the system.
Further, all purchases of value up to Rs 5000/- per transaction will be by cash, and it
is not necessary to issue Purchase Orders for the same.
8. Blocking of Codes: While uploading the old data from the Audited Accounts, we
have allowed a few Customer Codes with incomplete names (eg. Reliance instead of
Reliance Communications Ltd.). Such codes with incomplete details will be blocked
for further transactions. Users will be required to send the templates complete with all
details so that the codes can be unblocked.
9. Data Management and Archiving: Once in six months, the All India Commercial
Managers, All India Field Procurement Head, Manufacturing Procurement Head,
NPC In-charge and Channel Management Centre will audit the masters and archive
the same with the help of SAP ERP team. The first such exercise will be undertaken
in the second week of October 2009.
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