The company already had SAP 4.7/3.1 H since 1999. However, the organization
structure in the old system was not as per standard practices. Each plant or
business was defined as a company code, though legally they belonged to same
company. Moreover, modules such as Inventory Valuation, Controlling Module, MRP,
Quality Management, Asset Management and PP Module were not mapped or not being
used in the old system. For the purpose of trial balance or P&L the company
could get only expenses/sales from SAP.
Since the valuation of RM, WIP and FG was not correct, they had to maintain
other balance sheet items in a parallel system such as Excel. Keeping all this
in mind, they decided to create a solid base for the implementation of further
IT initiatives such as BIW, CRM and SAP HR. They decided to upgrade to SAP ECC
5.0 using Oracle 9i as the database. To facilitate faster connectivity, easier
access and adequate bandwidth, all plants were connected through MPLS-VPN from
VSNL, and server hosting was outsourced to Tata IDC, Mumbai (VSNL). The project
was started in February 2006 and the company went live on SAP on 1st September
2006. They implemented the solution across all four of their manufacturing
locations in one go.
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