SAP IMPLEMENTATION AND ROLL OUT SERVICES FOR

MAHARASHTRA STATE POWER GENERATION CO. LTD.

RESPONSE TO REQUEST FOR PROPOSAL

This Document is Confidential.

Version 1.3
Published on November 10, 2008

Notice to the Recipient of this Proposal

The information contained herein is considered proprietary and confidential information of Capgemini Consulting
India Pvt. Ltd. (Capgemini), and its release would offer substantial benefit to competitors offering similar
services. This material includes descriptions of methodologies and concepts derived through substantial research
and development efforts undertaken by Capgemini. Therefore, the use or release of the information contained in
this proposal for purposes other than an evaluation of its contents as a basis for contract award is prohibited, and it
is the position of Capgemini that the materials herein are not considered subject to release under the Right to
Information Act, 2005 if applicable.
Copyright 2008 Capgemini India Pvt. Ltd.
All rights reserved. No part of this proposal may be reproduced by any means or transmitted without the prior
written permission of Capgemini except with respect to copies made or transmitted internally by you for the purpose
of evaluating this proposal. All copies of this proposal (or any portion hereof) and any accompanying electronic
copies should be returned to Capgemini or, at Capgeminis option, destroyed at the end of the proposal evaluation
period if Capgemini is not selected.
Neither submission by Capgemini nor your acceptance of this proposal, in whole or in part, constitutes acceptance
by Capgemini of any contractual terms contained in your Request for Proposal, if any, and shall not form a binding
agreement between the parties. Such an agreement shall only exist upon the execution of a mutually acceptable
contract by both parties. Except as otherwise set forth in such a contract, Capgemini makes no representations or
warranties to you.
The term "Capgemini" appearing elsewhere in this proposal may refer to Capgemini India Pvt. Ltd., or to one or
more of its global affiliates (which expression shall unless it be repugnant to the content or meaning thereof mean
and include its successors and assigns). However, this proposal is being submitted only by Capgemini India Pvt.
Ltd., which is solely responsible for its contents, and Capgemini India Pvt. Ltd. shall be the contracting entity if its
proposal is selected.

Capgemini India Pvt. Ltd.

MSPGCL SAP Implementation & Roll out Services Response to RFP

Date: 10th November, 2008

Office of the General Manager (I.T.),

Maharashtra State Power Generation Co. Ltd.,
Prakashgad, 3rd Floor, Plot No. G-9,
Anand Kanekar Marg, Bandra (E),
Mumbai 400 051.

Dear Sir,

It is a pleasure to introduce Capgemini as one of the largest IT consulting and technology service provider
companies in the world. We are one of the largest service partners of SAP and the leading provider of IT
related services to the Energy and Utilities vertical globally. In India, we are a team of 20,000+ technology
professionals based across multiple locations in India, making us an MNC with a global face and a local
base. With over 5000 professionals based out of Mumbai, we believe that we are best qualified,
technically and realistically, to help MSPGCL in their envisaged SAP project.
We are presenting to the Maharashtra State Power Generation Company Ltd. our bid for your
organization for SAP Implementation and Rollout Services. We have highlighted our strengths,
capabilities and experience across various technologies, specifically in the verticals utilities & public
sector and also SAP implementation and application development across the globe. Having working with
leading organizations in both the government and private sector, Capgemini combines a plethora of
utilities and SAP implementation services experience and global best practices to offer value added
services in consulting, audits and implementations of large scale ERP implementation and support
projects.
In addition to this document which is the covering letter of the bid document set, please also find enclosed
Annexures 1-10 with ready references. We have enclosed the required number of references and some
additional references which will add value to our solution for your specific project. We have strived hard to
provide the reference details (purchase orders, client references) and have provided most of the publicly
available details which fulfill the bid requirement. In some cases this information was highly sensitive and
hence masked. However, our qualification is taken care of by the information provided in selected cases.
We look forward to your response on our bid. Please contact the undersigned for any further clarifications
on this document.
Yours truly,
For Capgemini India Pvt. Ltd.,

Neeraj Balani.
Capgemini India Pvt. Limited.
SEP2-B3, Godrej Industries Complex,
Eastern Express Highway, Vikhroli (W)
Mumbai 400079.
neeraj.balani@capgemini.com
Cell: +91-9930493828

MSPGCL SAP Implementation & Roll out Services Response to RFP

ii

TABLE OF CONTENTS
1

Executive Summary.............................................................................................................1

Project Background.............................................................................................................3

Capgemini Proposal ............................................................................................................5

3.1
Project Scope ................................................................................................................................ 5
3.1.1
Organizational, Process & Functional Scope........................................................................ 5
3.1.2
RICEF Development Scope ................................................................................................ 11
3.1.3
Technical Scope.................................................................................................................. 14
3.2
Solution Approach....................................................................................................................... 16

MSPGCL SAP Implementation & Roll out Services Response to RFP

iii

EXECUTIVE SUMMARY

Capgemini India is pleased to submit its proposal for implementation and roll out of SAP ECC
6.0 for MSPGCL. The objective of this proposal is to showcase our understanding of your
requirements and how Capgemini India is well placed to offer the solution efficiently and cost
effectively.
We understand the importance placed by MSPGCL on the selection of the ERP service
provider, who can demonstrate a capacity for managing a high quality, cost effective project
delivery with adequate experience in the utilities vertical and SAP technology at the global level.
We believe our approach and credentials will clearly demonstrate key points of differentiation for
Capgemini to deliver high quality IT projects. We propose to deliver this project over 18 months
duration with first 12 months being the pilot implementation followed by rollouts spread over a
period of 6 months.
Our deep industry knowledge and vast SAP implementation and roll out experience positions
Capgemini to confidently deliver the desired results to MSPGCL. Having implemented some of
the largest SAP projects in the world, a few of our projects in Utilities have been studied and
awarded as benchmarks (Canada based power generation, transmission & distribution
company) for project management and quality standards by leading IT industry experts. A team
of over 22,000 professionals based in India means Capgemini will be truly be able to leverage
its global experience and channel it effectively for your envisaged project. Our empanelment as
a consultant for the prestigious APDRP initiative is a testimony of our qualification and
experience as a service provider of business oriented technology services to global IT giants
across the world.
We plan to depute a team which brings a blend of Power generation experience with SAP roll
out expertise to ensure complete coverage of business needs in business blueprint to be
followed by a disciplined approach during roll out. Our proposed solution will help MSPGCL to
attain;

Financial and operational procedure streamlining & effectiveness.

Real time access to information and analytics to ensure efficient, transparent decision
making at the highest levels.
Improved operational efficiencies due to process re-engineering, improvements and
automation.
Supply chain and value chain optimization resulting in reduction of inventory, consumable
and logistics costs.
Efficient data management to avoid duplication of effort, accuracy, timeliness and
comprehensiveness of management information.
We look forward to work with MSPGCL on this exciting project. In responding to your RFP, we
feel there are three keys factors that differentiate Capgemini:

Our Collaborative Business Style

Our People and Approach
Our Energy & Utilities Experience

MSPGCL SAP Implementation & Roll out Services Response to RFP

Capgemini will team closely with you to work towards jointly defined the results and the means
to achieve them. How we work together is as important as what we achieve is together.
Capgemini is eager to address your project goals and our collaborative style is one way we
achieve this.

MSPGCL SAP Implementation & Roll out Services Response to RFP

PROJECT BACKGROUND

MSPGCL plans to Implement SAP ECC 6.0, Business Warehouse, PI, SAP Payroll and SAP
ESS for its 2 Head offices, 1 coal office, 10 Power Stations, 2 Hydro divisions and 7 hydro
divisions over a period of 18 months in two phases.
The breakup of phase 1 and phase 2 is given below:
1)

2)

Phase 1 Pilot 12 months

Mumbai, Chandrapur, Pophali, Koyana Uran Gas Power Station
Coal office, Nagpur
Phase 2 Rollouts 6 months
6 Power Stations Bhusaval, Koradi, Khaperkheda, Nashik, Paras and Parli
2 Hydro Monitoring cell at Pune & Nashik, 6 Hydro divisions located at Bhira, Panshet,
Tillari, Vaitarana, Veer & Bhatghar and 1 Yeldari Hydro Power Stations
MSPGCL, from its initiative expects to:
Improve operational efficiencies in all the plants by increasing information availability and
adopting process improvements.
Reduce working capital requirement by optimising the inventory of spares, fuels and other
consumables across the plants.
Increase the availability of plants and improve equipment utilisation by adopting scientific
maintenance management practices and techniques.
Set in place a system to capture information to build accountability for performance across
organisational levels at the corporate office and plants. Integrate systems to address issues
relating to data management to avoid duplication of effort, accuracy, timeliness and
comprehensiveness of management information.
Streamline the accounts functionalities for efficient cash flow management & enable profitcentre accounting.
Ensure that the right incumbent is selected, allotted the right job at the right time and
address career grooming / job enrichment of MSPGCL employees. Ensure that the IT
systems are ready for the future competitive environment
During our various interactions and through the tender document, we have understood the
above objectives for this project from a process perspective. In defining the project plan and
solution, we have identified all the core business processes, limitations & expectations across
all the Locations. We have also carried out detailed evaluation and a plan for leveraging the
functionality of PPMS (Power Plant Monitoring System)
Currently MSPGCL Group companies have very less automation or no automation in most of
the core business processes. With SAP implementations it is expected that most of the
business processes will be mapped to SAP and as a result some of the legacy applications
would be retired. At the same time the Generation Control Room, E-Tendering system,
Exchange server and the CPF system will continue to function and a roadmap for their
upgrade/retirement (by mapping them into higher dimension SAP modules be mutually
discussed between MSPGCL and Capgemini at the end of this project).

MSPGCL SAP Implementation & Roll out Services Response to RFP

Based on our experience in similar projects, we believe that the business case for implementing
SAP solution is strong and that the overall cost of ownership of these business processes can
be reduced.
Broadly MSPGCL has 2 Head offices, 1 coal office, 10 Power Stations, 2 Hydro divisions and 7
hydro divisions which are considering for SAP implementation.
The core processes at MSPGCL (indicated as per the tender document) include:
Corporate Planning
Engineering and Quality Assurance
Contracts
Procurement of materials and fuel
HR & Payroll
Maintenance
Commercial
Finance and Accounting
Payroll
Managerial Accounting
Document Management
Projects
Environment Health and Safety
Currently we understand MSPGCL has decided to implement the core SAP ECC 6.0 along with
BI, EP and PI which will cover most of the business processes envisaged.
This proposal is aimed to provide detailed solution and implementation approach for the entire
MSPGCL Group. Based on our study of MSPGCL business processes we plan to form a
dedicated teams as:
SAP Implementation and Roll out team
SAP Solution Support team
These project teams would be governed by common project management principles and
governance approach and based on the timelines there would be an overlap. They would
observe separate timelines and have separate set of resources. The resources would come with
appropriate skills required in respective phases of the project.

MSPGCL SAP Implementation & Roll out Services Response to RFP

CAPGEMINI PROPOSAL

3.1

Project Scope

We have organized the Scope into the following areas:

Organizational, Process & Functional
RICEF Development

Reports and Forms Scope

Interface Scope

Data Conversion Scope

Technical Enhancement Scope

Workflow Scope

Technical

Technical Infrastructure Scope

3.1.1 Organizational, Process & Functional Scope

Organizational Scope

Languages Supported: English

Phase-1

Work Location Mumbai

Power Plant sites in scope for Phase-1
y Mumbai, Chandrapur, Pophali, Koyana Uran Gas Power Station
y

Coal office, Nagpur

All the business blue-print and configuration work will be done at Mumbai
Core user training will be done at Mumbai
End-user training for phase-1 will be done at Mumbai and Nagpur sites

MSPGCL SAP Implementation & Roll out Services Response to RFP

Organizational Scope
Phase-2

Work Locations Phase-2 Mumbai

Power Plant sites in scope for Phase-2 rollouts
y 6 Power Stations Bhusaval, Koradi, Khaperkheda, Nashik, Paras and Parli
y

2 Hydro Monitoring cell at Pune & Nashik, 6 Hydro divisions located at Bhira, Panshet,
Tillari, Vaitarana, Veer & Bhatghar and 1 Yeldari Hydro Power Stations

For Rollout in phase-2, the gap analysis for rollout will be done at Mumbai.

Guidelines for End user Training

y Based on our past experience for carrying out such implementation and indicated
number of users, we propose train the trainer approach. Capgemini recommends the
batch size shall not exceed 20 participants.
y

Capgemini team will prepare detailed how-to guides for future use of the MSPGCL.

Capgemini proposes a cluster based training approach for end-users to cover all the
eleven location via three training sites, viz Mumbai, Nagpur and Nashik (any other
location as per MSPGCL convenience)

Change Management
Capgemini will assist MSPGCL in change management activities while implementing
SAP

Process Scope

Procure to Pay
Inventory Management and contracts
Quality assurance
Finance Accounting and controlling
Project Management
Human Resource management
Power Plant Maintenance
Environment Health and Safety
Document Management
Energy Data Management

MSPGCL SAP Implementation & Roll out Services Response to RFP

SAP ERP Functionality

Material Management
y Purchasing
y

Inventory Management

Services Management

QM interface for inventory

Master Data management

Invoice Verification

Contract Management

Goods receipt processing

Quality Management
y Inbound quality check
y

Calibration of Equipments

Finance & Controlling

y General Ledger
y

Accounts Payable

Accounts Receivables

Bank Accounting

Cost center Planning

Marketing Expenditure

Period End Activities

Asset Accounting

Real Estate Management

Travel Management

MSPGCL SAP Implementation & Roll out Services Response to RFP

SAP ERP Functionality

Project Systems
y Project structuring
y

Resource planning

Material Planning

Scheduling

Cost planning

Budgeting

Execution

Settlement

HR
y Organizational Management
y

Personnel Administration

Time Management

Payroll

Personnel Development & Career and succession Planning.

Recruitment

ESS/MSS

Personal Cost Planning

Plant Maintenance
y Structuring of Technical Systems
y

Preventive Maintenance

Breakdown Maintenance

Calibration Maintenance

Work Clearance Management.

Environment Health and Safety

y Industrial Hygiene and Safety
y

Waste Management

Occupational Health

Product Safety

MSPGCL SAP Implementation & Roll out Services Response to RFP

SAP ERP Functionality

Document Management System

y Document info record
y

Document distribution

Display and assignment of documents

Energy Data Management

y Recording energy data
y

Energy data reporting

SAP BI/PI/EP Scope

BI reports in following functional areas would be created using Business Content:

Financials
y GL
y

Accounts Payable

Accounts receivable

Supply Chain
y Procurement analysis
y

Quality Management

Inventory analysis

Plant Maintenance
y Analysis of notifications and causes and maintenance orders
y

Planned/actual deviations

Outstanding tasks and orders and MTTR and MTBR

Project Systems
y Actual and Planned cost, actual and planned work for selected projects
y

Project Progress and cost

Project Claims and Payments

MSPGCL SAP Implementation & Roll out Services Response to RFP

SAP BI/PI/EP Scope

Human Capital Management

y Personnel Administration/Personnel Development:

Head Count (Average/change in staffing levels/Average Age/Avg LOS/Headcount

FTE)
Entries and Leavers
Personnel Actions
Annual comparison of Qualifications
Appraisal reports
Recruitment:

Applications and Applicants

Hires/Contracts
Organizational Management:

Vacant Positions per job

Staff positions
Based on the RFP document and subsequent responses we have also identified the exclusions
from the scope. These are based on our experience from the Utility sector.
HR module: Following sub-modules are out of scope for HR implementation for MSPGCL.
Budget Management
Benefits
Training and Event Management
Learning Solutions
Compensation Management
E- Recruitment
Management of Global Employee
Concurrent Employment
FI/CO module: Following sub-modules are out of scope for FI/CO implementation for MSPGCL.
Profitability analysis
Plant Maintenance and EHS: Integration with Mobile devices and 3rd party systems.
BI development:
Drill down capability from SAP BI to non SAP systems
Business Planning and Simulation
Report creation in any other system other than SAP BI
Regional reporting requirements for each power plant
Open Hub reports
Enterprise Portal: Integration with existing E-Tendering system is out of scope
MSPGCL SAP Implementation & Roll out Services Response to RFP

10

Document Management System:

Custom Object linking to DIR.
Scanning of hard copies to Soft copy of documents
Converting Soft copies of document to SAP acceptable format
Project System: Standard project system functionality would be implemented. Since we dont
have a compliance matrix like other modules, the relevant portions of this module as applicable
to MSPGCL would be decided during the blueprint phase

3.1.2 RICEF Development Scope

We aim to implement standard SAP solution as much as possible. In the process we do feel that
certain areas would need customized development efforts to map the business processes. In
our proposal we have accounted for the development work shown in the RICEF calculation
which includes functional specification, coding effort, unit testing & implementation.
We have drilled down the scope and have estimated number of RICEFs required for this
project;
Reports
High

02

Medium

16

Low

04

Total

22

Conversions
High

05

Medium

05

Low

10

Total

20

Primarily conversions would be required for master data migration

Open items, Master data etc. - AP, AR, GL, AA, Cost centers, Profit centers
Enhancements

MSPGCL SAP Implementation & Roll out Services Response to RFP

11

High

10

Medium

20

Low

10

Total

40

Enhancements are required for customer specific changes to standard SAP screen, user-exits
etc.
Forms
High

Medium

Low

Total

20

It would include various documents printing (e.g. Purchase order, Check Printing, Payroll slips
etc)
Interfaces
High

Medium

Low

Total

Interfaces would be required to be built from GRC , e-tendering and CPF systems to SAP ECC
using SAP XI. Apart from these, 3 more interfaces are envisaged for Bio-metric attendance,
exchange server and other applications.

MSPGCL SAP Implementation & Roll out Services Response to RFP

12

Data Conversion
This shall include the following tasks:

Training and facilitating the MSPGCLs team that will actually carry out the data cleaning
effort
Assistance in Base Data preparation, Checking data quality and Integrity
Identification & development of the data upload/download programs
Guidance for creating data extraction programs in the legacy systems to convert into the
format as required by SAP
Providing data migration tools to Client
Integration testing of the configured system using the populated master and transaction data
Data Migration objects identified
For FI:
Load Asset balances
Open G/L balances
Load Reconciliation account balances.
For MM:
Material master data
Vendor master data
Purchasing info records
Source list
Initial stock uploading
Open purchase order
Open purchase requisition if required
Open contracts and scheduling agreements
Condition records for taxes
For PM:
Load Historical Maintenance work orders of last 5 years.
Load all Equipments
Load Preventive Maintenance task lists
Load Preventive maintenance plans
For PS:

Load all open POs: POs for which no GR is done

Load all Vendors

MSPGCL SAP Implementation & Roll out Services Response to RFP

13

For HR:

Organization Units
Positions
Jobs
Tasks
Employee Master data
Employee Leave balances
Uploading Payroll related information (History)
Capturing attendance in Time Management directly from excel/flat files

3.1.3 Technical Scope

Overall

Single instance

Versions/Modules Included

SAP ECC 6.0

SAP BI 7.0
SAP EP 7.0
SAP PI 7.0

Proposed Landscape

Sandbox
Development
Quality Assurance / Testing
Production

MSPGCL SAP Implementation & Roll out Services Response to RFP

14

Only the development hardware for the initial 8 months would be provided by Capgemini. After
this period, the entire development application would be ported to MSPGCL servers.

MSPGCL SAP Implementation & Roll out Services Response to RFP

15

3.2

Solution Approach

MSPGCL Solution Architecture

Management

Executives

Employees

E-Learning
SAP
E-Learning
SAP Enterprise
Enterprise Portal
Portal (SAP
(SAP EP)
EP)

Collaboration
Collaboration

webservice
webservice
SAP
webservice
webservice
webservice
webservice
SAP XI/PI
XI/PI 7.0
7.0 integration
integration layer
layer
webservice
webservice

Legacy
Legacy Applications
Applications

FI/CO
FI/CO

E-Tendering
E-Tendering System
System

MM/QM
MM/QM

GCR
GCR

HR
HR

PS
PS

CPF
CPF
Biometric
Biometric Attendance
Attendance
System
System
Exchange
Exchange Server
Server

PM
PM

Weigh
Weigh bridges
bridges

EHS
EHS

SAP
SAP ECM
ECM

SAP
SAP BI
BI 7.0
7.0

SAP
SAP
Solution
Solution
Manager
Manager

SAP
SAP ECC
ECC 6.0
6.0

Reporting
Reporting
DMS
DMS
Analyticals
Analyticals

CE v6.3

The above diagram highlights the Solution overview that we propose for MSPGCL.
SAP ECC 6.0 version will be the ERP central component and supported by SAP BI for analytics,
SAP PI for Information integration and SAP Enterprise Portal.
The following systems at MSPGCL will be retained after SAP implementation and hence need
to be interfaced with SAP:

GCR (Generation Control Room) System For Analytics

E-Tendering system
CPF System Provident fund details to centralized system. We expect this to be a batch
upload and appropriate decision of whether to go for interface or a programmed batch job
will be taken during the blueprint phase.
The system will also have a provision to interface with the following systems as and when they
are fully operational

Exchange Server Communication channel

Biometric Attendance System HCM component for Time Entry

MSPGCL SAP Implementation & Roll out Services Response to RFP

16

As part of our study, we identified the important processes which need to be addressed when
we implement SAP. We have devised our strategy to group your SAP implementation into two
phases. Phase-1 will cater to base-line implementation at pilot sites identified by MSPGCL.
Phase-2 would be roll out of the solution developed in phase-1 at different power plant sites.
Following discussion outlines broad level requirements and brief solutions proposed for each
process at MSPGCL. The detailed discussion and solution definition for these processes would
be part of our implementation strategy.

MSPGCL SAP Implementation & Roll out Services Response to RFP

17

MSPGCL SAP Implementation & Roll out Services Response to RFP

18

www.capgemini.com

2009 Capgemini India Pvt. Ltd.

All Rights Reserved

No part of this document may be modified,

deleted or expanded by any process or means
without prior permission from Capgemini US LLC.