Nagarjuna Fertilizers and Chemicals Ltd [NFCL] is the flagship company of Nagarjuna Group. Nagarjuna Group is an integrated agriculture group of companies with core competencies in the field of plant nutrition, protection, irrigation, farm services and food processing. NFCL supplies a wide array of nutrition products and services that include both macro and micro fertilisers.

Micro irrigation

Nagarjuna's micro irrigation business started in the year 1993 with a vision to address the irrigation problems of farmers living in water and energy scarce regions, and also in regions where water, energy and agricultural input [Labour, nutrition and plant protection] supplies are expensive. Since then, Nagarjuna has accumulated a depth of agronomic knowledge that enables it to respond to the specific needs of a crop and the grower with the exact product and service solution.

The mainstay of the company's product portfolio is a range of 'integral drip lines' branded as Easy drip' and 'Ecodrip' and their variants, MI's drip installations are functioning successfully in over 40.000 hectares, spanning a variety of crops such as, sugarcane, cotton, banana and various horticulture and floriculture sites, in five states of India namely AP, Karnataka, Tamil Nadu. Maharashtra and Gujarat where MI's regional offices are located.

The requirement

The main project objectives and business drivers behind NFCL's decision have been:
• Bringing the existing SAP R/3 system from the current 4.G B version to the 4.7 Enterprise version to
make use of the advanced features of the version;
• Setting up proper information and control systems for its micro irrigation business by implementing
ERP;
• Setting up a remedy to the present system in Ml, as it is not an integrated package and is not helping the management in taking timely decisions and also to assess the accuracy of the information;
• Avoiding redundancy of data, as there is lot of duplication of data processing across departments
leading to piling up of silos of redundant data;
• Standardising business processes and achieving real- time integration of all functions across the micro irrigation business, and aligning the same with NFCL processes;
• Bringing the micro irrigation business under NFCL by keeping a separate identity for Ml and without disturbing its existing processes and structure:
• Introducing, wherever applicable, standards such as a common chart of accounts, separate master data group to create master data following the same logic, and others;
• Bringing about transparency in business transactions and being able to provide online
information to business partners:
• Enhancing management control on various business functions and operations, thus enabling decisions to be based on current data and information;
• Prompt decision-making through qualitative information al the right time and the right place;
• Simple and shortened month and year-end closing procedure;
• Leveraging all costs and overheads and increasing inventory turnover;
• Adopting best business practices wherever possible;
• Streamlining processes and reducing waste;
• Reduction in cycle time for business transactions;
• Availability of right information throughout the enterprise with proper authorizations and control;
• Enabling staff to concentrate on analytical issues rather than transactional issues, implying a focus on the present and future as opposed to reconciling and reporting the past:
• Increasing operational efficiency of Ml in particular and NFCL in general.

The solution

Implementation methodology

Intelligroup has used accelerated SAP [ASAP] rapid implementation methodology for upgradation and implementation of micro irrigation Intelligroup has utilised its proprietary tool Uptimizer' for rapid upgrades. ASAP is SAP's comprehensive implementation solution to streamline R/3 projects. ASAP optimises time, quality, and facilitates efficient use of resources by providing a project plan with detailed descriptions about what, when and how certain activities are performed.
ASAP methodology for upgrade and implementation is a standard methodology for implementing and continually optimising the SAP software implementation projects efficiently. It is broken down into five phases:

Business benefits

Change management

Intelligroup has supported NFCL in managing change, from initial planning to successful implementation and beyond. This has ensured a smooth transition to the SAP system and has created greater buy-in from end users It has been made possible to integrate change management process with overall implementation, right from the start of project preparation' to go-live and support,"

Risk management

Intelligroup has worked with NFCL to identify and assess all potential risks including cost of ownership and human resource constraints. It provides a management approach that ensures the best possible communication for the containment and effective handling of the potential risks associated with the implementation. Following the ASAP methodology has been instrumental in reducing such risks.

Knowledge transfer

As part of the implementation process, Inlelligroup has incorporated an approximately paced knowledge transfer process. During the project, dedicated project team members of NFCL/MI have been working with Intelligroup employees to define specific business scenarios and exception conditions. This approach has allowed maximum knowledge transfer by having key individuals repeat the configuration of core business processes, at the same time fine tuning the system to account for common business scenarios.

Activities during Phase-I

Ml: Project preparation and business blueprint
for the following application modules:
• Financial accounting
• Controlling
• Materials management
• Sales and distribution
• Production planning
• Plant maintenance
• Quality management

NFCL: Project preparation and business blueprint for upgrades
• Setting up the necessary hardware and software
• Upgrade the test server to SAP R/3 4.7E
• Rectification of all Z programs and BDC’s

Activities during Phase-ll

NFCL: Realisation, testing & training and go-live
• Training to core users on 4.7 E for all modules
• Testing of all Z programs and BOCs in test server
• Scenario and integration testing across all modules and preparation of test scripts
• Sign-off and upgrade the production system with necessary corrections
• Go-live

Activities in Phase-Ill

NFCL:
• Post go-live support
• VAT configuration and application of OSS notes
• Testing and acceptance
• VAT go-live

Ml: Realisation, testing & training, go-live and support