Posted: February 16th, 2019
Enterprise resource planning
Today, success is determined by what you now about your projects and when you know it Your crews in the field may have all the high-tech tools and state-of-the-art equipment they need – but when information determines success, your management team needs to be similarly equipped. Unfortunately, many construction companies struggle with ion integrated, multiple-vendor legacy systems that provide untimely, inaccurate information and make it difficult to adapt to changing business requirements. In the age of information technology companies can take advantages of IT in terms of Hardware and Software. Companies use various standalone systems o maintain the business process and operation by scatter and loosely coupled application.
These scattered and legacy applications are not integrated with each other and there is no easy way to integrate them in a better way to easily maintain and get a high level output. To maintain this application required high amount of man power and cost. To integrate branches, department, process and business vertical in a wide area network required an integrated application. ERP – Enterprise Resource Planning is enterprise wide information system which consolidates information from various functions/departments of an organization. Multi state company like HOC it is required to implement an application which can integrate their all business process to improve their operation, procurement, resource management, cost control, timely report, accounting.
Previously HOC uses various small applications to manage their business and operation like payroll system, accounting system, procurement system, tender system, attendance system, MIS system. This application is not integrated and all different branches, worksheet offices use their own application and to get output and error free reports in a central location is required very large time. HOC decided to implement ERP system to overcome above problem and reduce operation time to control their business in better way and get competitive age over their competitor. HOC studies different ERP vendor and decided to Implement SAP ERR system for their construction business.
HOC compare various ERP vendor however select SAP for their excellent track record for most successful ERP implementation and their times tested solution for Engineering, Construction & Operations. HOC decided to implement SAP for Engineering, Construction & Operations (SAP for SEC&O) solution portfolio to help ensure their business success in J&K site. Founded in 1926, HOC is Indian’s premier company, specializing in large- scale civil Engineering projects and developing construction technologies. The company is reputed for its technical prowess, evident in the several marquee projects it has executed over the past eight decades. It was the first construction company in the country to receive ISO 9001, ISO 14001 , and SHOOS 1 8001 certifications for its quality, environmental and occupational health and safety management systems.
With a strong order book of INNER 188 ban at FYI end (and INNER 44 ban of Al projects) it is likely to chart a strong growth trajectory going ahead. The company undertakes projects in the power (hydro and nuclear), water supply & irrigation, and transportation (roads, bridges, metro rails etc. ) segments. In addition, the company has recently entered the metals space. Hindustan Construction Co. Ltd. (HOC) is an 80-year-old organization with a track record in executing complex infrastructure projects across various sectors. HOC has undertaken challenging projects across India in widely divergent areas such as power, roads and bridges, dams, buildings, and environmental projects HOC Group of companies HOC Real Estate (HERE) Real estate development arm HOC Ltd
Engineering and construction arm HOC Infrastructure Asset ownership subsidiary HOC is a leading civil engineering and construction company, engaged primarily in the Construction of Hyde and power projects, irrigation, water supply, urban infrastructure and Transportation projects. It is developing Lavas, an ambitious project aimed at creating a hill city near Iambi and Puny. Apart from this, it is also involved in some other real estate development projects. HOC is also making inroads in the asset ownership space with entry into the roads space and has plans to build its BOOT portfolio significantly going ahead. Most of its customers are central government bodies/public sector units like NOAH, NP, UNPIN and State governments like Andorra Pradesh, Gujarat, K and Maharajah’s. It has also worked on Hyde power projects in other counties like Bhutan.
A snapshot of the work done by the company in various segments is given below: Hyde power: HOC has built over 25% of Indian’s installed Hyde power capacity. It has been involved in two out of Indian’s five largest underground power houses and five out of Indian’s top 10 highest concrete dams. It is currently executing Indian’s largest EPIC Hyde power project, the Shanghaiing yodel power plant. Hack’s major achievements in this segment are: Building Indian’s first major underground power house at Maintain (Briar) in 1954; the first of its kind in South East Asia. Tunneling work of over 90 km in the Himalayas; maximum tunneling work ever done by any construction company in the world.
Construction of head race tunnel and surge shaft at the Nathan Karri Hyde plant, the largest underground Hyde power project in India. This plant has the largest and longest head race tunnel, the largest desisting chambers, the deepest and largest surge shaft, and the largest underground power complex. Nuclear power: HOC is the leader in nuclear power plant construction in India and has been associated with over 50% of the country’s operational nuclear power capacity. The company has recently worked on Sais’s largest nuclear power plant in Katmandu (ex. 000 MM) which is also Indian’s first light water reactor (LOWER). Shanghaiing Hyde project in Jam and Kashmir.
Hindustan Construction Company Ltd (HOC), Indian’s leading construction and infrastructure company in joint venture with Halcyon Group Ltd. U. K. (Halcyon) has been awarded the prestigious and challenging 330 MM Shanghaiing hydro-electric project by the National Hydroelectric Power Corporation Ltd. (NP). The contract is on turnkey basis and valued at approximately INNER 2726. 49 core. The HOC-Halcyon Consortium will have a share in the ratio of 98:2 respectively. The Shanghaiing Hydroelectric Project is located on river Shanghaiing, a tributary of river Shells, in Brutally district of Jam and Kashmir. The project involves the construction of a mom high concrete faced rock fill dam, 23. Km of head race tunnel and an underground powerhouse. A maximum gross head of 665 m is proposed to be utilized to generate 1350 Million Units of energy, in a 90% dependable year with an installed capacity of ex. 10 MM. This is an EPIC contract where HOC will be responsible for Engineering, Procurement and Construction of all items including civil and associated infrastructure works; supply, installation, testing and commissioning of all electromechanical plant and machinery and hydro-mechanical components including generating units. The project will be completed and commissioned in an estimated 84 months. HOC has contributed significantly in the infrastructure development of Jam and Kashmir.
It has built the state’s largest hydro-electric power project – the Salad Dam and is currently also developing five other infrastructure projects. This includes three Hyde power projects biz. Caught HEAP (in Cargill), Amino Baggy HEAP (in Lee) and URI HEAP in addition to the historic 84 km McHugh Road and the Principal Tunnels of the Dumper-Agrarians-Brutally rail link. HOC has also constructed Bhutan largest hydroelectric power project at Tall. Problems facing construction industry is not new but probably thousands of years old probably ever since they started building the pyramids. What are so different now are the tools and techniques that can be utilized to get the best usage of its resources and materials and equipment’s.
Construction is a employ array of interdependent activities that some would say is at best organized chaos. The very nature of construction introduces challenges typically not encountered in other industries. For example, construction differs widely from other industries more so as ; Each project is unique ; Often involves remote sites with various access problems ; the process is not as predictable ; Difficulty in applying automation ; There is high potential for encountering unforeseen conditions ; Costs can Vary according to conditions ; Difficult to manage and supply utilities and other resources. ; Technical innovations are adopted slower. ; Success is dependent upon the quality of its people. Very custom-oriented ; Product can be of mind-boggling size, cost, and complexity ; the work is not performed in controlled conditions, therefore highly impacted by weather and other environmental conditions All this poses a unique set of challenges as illustrated below. As seen in the figure it is a Herculean task to co-ordinate and integrates all these challenges into one solution. Let’s look into some of the major problems in construction companies who do not have or have partial IT infrastructure. 1. No electronic tracking of tasks. The project manager needs to produce manual daily production report. 2. Budget and controls done using legacy spreadsheets and this is most time consuming task and the employee is overloaded. 3. Each project has its own independent method of encoding. 4. Off-Site locations are not as organized as desired. 5.
Material and Equipment usage are hard to track; there is very little writing on site. 6. The project managers do status reports but lack critical information such as a. Inventory information b. Budgetary information 7. Due to disorientation there is little time for follow up. 8. There is no process for Payment follow ups. Reminders of important issues like raising invoices. ; status report. Petty cash request and reporting Beneficial weekly Evaluating the performance of the project manager. 9. Ineffective system to incorporate fixed assets into the company books. 10. No clear process to accurately track inventory at multiple sites. 11 . Invoices are not raised frequently enough thus contributing to a cash flow problem.
All these issues make the construction projects highly complex and cumbersome to track and control. If we have to successfully manage these complex projects its all the more important the work progress and the sources utilized are measurable. The success of a project will be judged by meeting the criteria of cost, time, safety, resource allocation, and quality as defined during the planning and budgeting of the project. The purpose of the ERP will be to measure the progress continually at every step of the project so as to achieve goals and objectives through the planned usage of resources that meet the project’s quality, cost, time, scope, and safety requirements.
