Deepak Verma

PGP/18/075

Case:Making IT Happen at BCPL Kochi Refinery: Defining New

Paradigms of Operational Excellence through IT Transformation
Questions:
1.

Do you think the IT implementation at BPCL KR as a successful implementation? If so Why?

Answer- IT implementation at BPCL Kochi refinery was very successful. It boosted visibility and
Optimization within the plant and across downstream supply chain. For an end to end integrated
solution LIMS, AIMS and SAP were integrated with MES. BPCL were able to successfully automate and
efficiently optimize business processes both core and non-core such as planning, scheduling, payroll,
performance management and appraisal.
2. Do you see any challenges in managing the change due to IT implementation in large public
sector organizations like BPCL KR, located in India? How did BPCL KR manage the challenges?
Answer- Challenges faced by the IT team were:
a)

What systems and packages to be used for solving the current problems.

b)

Developing a roadmap and approach plan for the implementation.

C) The solution architecture and infrastructure for each system.

d) Assessment of the business value generated by the systems
To manage the change they introduced a logo to successfully integrate and promote the new IT
system
1. For the assessment of benefits Business process analysis study was conducted for MES.
2. Special booklets describing various modules, cross connections and FAQs about SAP R/3 were
published.
3. Intensive training programs and workshops in various small and big groups
4. Business process analysis was done in order to understand the benefits.

Question3-What were the Critical success Factors for the IT implementation? How these factors are
illustrated in this case?
Critical Success factors for IT implementation are:

1. Innovative change management with support and guidance of top management.

2. Risk Mitigation strategies.
3. Unique framework adopted for guaranteed business benefits
4. Special project organization and execution methodology for major projects with the help of
project office.
Question 4-Do we have any risks in product implementations like ERP? If so what were the major risks
during the implementation of SAP and how it was mitigated?
A)

Risks that are involved in an ERP implementation are

Improper project management

Inadequate training

Over reliance on consultants

Unwanted customization

Insufficient testing

Offshoring SAP design and build

Mitigating the risks
Improper Project Management:
PMO should have clearly defined goals and track progress by talking to his team at various
stages like design, development, testing and integration to mitigate the project management
risks
Improper Training:

Working on SAP applications need exhaustive training in handling various steps

Improper usage leads to inefficiencies and customer dissatisfaction

Over dependance on Consultants:

Consultants who have subject matter expertise are hired.

Consultants sometimes fail to understand the clear picture of the situation.

Make the consultants accountable

Impose compulsory KT sessions to internal employees post go live

Unwanted customization:

Companies fail to identify their needs and go for unwanted customization

Hiring techno-functional consultants who understand both the business and technology

mitigates these risks

Off shoring SAP design and Build:

Off shoring needs continuous visits to the client site to understand the business

problems.

Offshore activities like development and maintenance while keeping core activities like

design with in the client locality

Inadequate Testing:

Applications with insufficient testing fail to meet the requirements

This results in redeveloping the applications, which is extremely costly

Question 5-What are the advantages and disadvantages of Big bang implementation? How do you
evaluate the Big bang implementation done at BPCL KR? \
Answer- Advantages:
a) The transition becomes easy and value is added across all business divisions simultaneously.
b) It enables the company to get Quick return on Investment.
c) Faster integration and reporting.
d) No temporary interfaces required
e) The cost of running the new system is low as one system supports all activities replacing the
need of legacy systems.
f)

Shorter Timeline and faster implementation

Disadvantages

1) High capital and human resource investment.

2) Technical performance issues could affects all users at the same time.
3) Training activity for large number of users is difficult.
4) Complex deployment and testing.
Question 6-In your opinion what was the approach adopted by BPCL KR for Information Technology
planning? Can we adopt the same approach to other manufacturing industries?
Answer- A)

BPCL used the industry best practices to employ the IT solutions to its problem, many

PSUs have done the same in order to reap the benefits of modern IT systems which in turn have
increased the productivity. PMC established by NTPC has something of this sorts in the manufacturing
sector where it makes use of IT systems to increase transparency among processes at different levels. It
empowered the end users to track status of the undergoing projects. PMC is also made available across
organization by developing a website. It also developed a platform for the power ministry and citizens to

check the status of upcoming projects. It helped in increasing the individual responsibility. IP cameras
were also installed and linked with the PMC for the effective supervision from remote location.

Question 7-What are the key future technological challenges BPCL KR should address?
A) Key Future challenges BPCL KR should address:
1) Sustainability of the existing IT application.
2) Building IT competency center for refineries.
3) Optimize the existing IT system for more business value.
4) Identifying and implementing new IT system aligning with the business strategies as
envisaged for next 5 years (Project Dream plan).
Adoption of refinery specific IT application based on three emerging technologies : 1) Mobility 2)
Analytics 3) Cloud computing

Question 8-What is your learning on Project Management from this case?

A) Project Management is an important tool that is required for successful implementation of such
major changes in the system, it provides a step by step and fail safe approach towards the
various obstacles. Project management has the functionality of review which allows one to keep
track of the changes and status of the project at different points of time, this also allows to track
the progress. Milestone planning, work distribution are key facets of project management that
give ensure proper and timely deployment.