Client background

Client: A large Energy & Utilities company

Industry: Power

Headquarters: Canada

Employee: Over 6,000 employees 

Area of operations: Global

Customers: Over 650,000

Challenge

The client’s asset management processes were manual, decentralized and managed by legacy SAP ERP and other systems, which lacked relevant functionalities. The previous SAP solution had grown organically (with little historic documentation) and business processes were in siloes. This led to poor tracking of asset financial data, revenue loss, and compliance issues. The client initiated a business transformation program through ERP implementation. The intent was to adopt ISO 55000 standard of compliance, enable process documentation, enhance portfolio and project management, segregate roles and responsibilities for the workforce, and implement predictive asset failure analytics.

Solution

Wipro enabled the consolidation of assets and work management data by implementing SAP ECC 6.0 solution and migrating data from legacy SAP ERP, GIS and flat files. The key aspects of the solution approach were:

• Framed well-defined strategy for data migration of linear assets and non-linear assets, and data for ERP modules – EAM, FICO, MM, PS, HR - from legacy SAP ECC 6.0 to the new SAP ECC 6.0. New business processes and assets model change led to the need for data migration/transformation from legacy ERP instance to the new instance.
• Migrated 96 data objects across 8 SAP modules including over 900K premise objects, 1.2 million notifications and 18 months of financial data
• Implemented Wipro’s Asset Data Quality solutions to support data health assessment and to identify possible data issues prior to migrating to the target SAP ECC 6.0 instance
• Developed cleansing, transformation, validation, loading and reconciliation components using ETL tools such as BODS and LSMW/BAPI
• Optimized migration jobs to manage the volume and minimize the impact on business-as-usual during cut-over window
• Implemented Big-Bang migration approach with cut-over window of 3 days
• Implemented an objective and metrical way for decisions on asset investment planning
• Integrated asset management system to manage asset acquisition

Business Impact

Implementation of the fully integrated ERP solution brought in compliance, cost efficiency, improved health of assets and accelerated performance.

The solution automated contractor work allocation and invoicing, aligned business processes to ISO 55000 with redesigned asset hierarchy, and provided quantitative risk assessment tools via predictive asset failure analytics. It also enabled management of assets right from acquisition to disposal from the shop floor to the financial/regulatory asset registers. 

• Increased efficiency of supply chain leading to annual savings of $250K
• Increased efficiency in reporting, leading to annual savings of $200K
• Overall productivity gains across business functions like finance, commercial, operations, corporate services, capital infrastructure contributed towards annual savings of $2.5 Mn
• Automated 50 core business processes and procedures
• Improved 3rd party damage recovery and reduced rework through consistent processes

Migration to asset management platform enables ISO 55000 compliance and annual savings of $2.5 Million

Quote

The full scale asset management transformation enabled redesign of the client’s asset hierarchy, bringing this in line with industry standards of ISO 55000. It automated client’s business processes and procedures, and enabled an objective and metrical way for decisions on asset investment planning.

- Narayanan Ram Ramji, Client Partner, Wipro