Shell and BP South African Petroleum Refineries (SAPREF), one of the largest refineries in the southern hemisphere, is moving toward a `world office` concept through its implementation of the full SAP R/3 human resources (HR) offering. The long-term vision is to extend the world leading enterprise resource planning system into strategic areas of the organisation after the year 2000.
"We believe SAP will give us controlled, open access to manage our people, and the ability to do once-only information capture," says Jaxon Reddy, SAPREF`s SAP project manager. "It will also give us system-based controls, reliable and comprehensive historical data and a paperless workplace. We`re looking forward to comprehensive time accounting functionality, and flexibility. We believe SAP will lead us towards the `world office` concept."
Durban-based SAPREF is jointly owned by Shell and BP and employs more than 600 permanent staff and, on average, between 200 and 300 contractors.
According to Reddy, the company is looking to enjoy numerous benefits following its SAP R/3 HR implementation.
"Consistent with our vision, custodianship and accountability for the new system will rest with our HR department, but the system will belong to, and be used by, the business," says Andrew McKay, remuneration and benefits manager of SAPREF.
"We are hoping for a decentralisation of administrative effort. We will see ownership of HR data residing not only in the HR department, but throughout the refinery. The system will eventually provide much more functionality, including work-flow and Employee Self Service (ESS). Our people will own the processes that they handle. Those who need the data will manage the processes that go with it, provided they have the proper authorisation.
"We are also looking forward to the benefits that will accrue from the integration of HR areas such as recruitment. We currently have a number of databases containing information about our people, and they are hardly ever consistent. This causes a lot of unnecessary pain. For instance, training information or important correspondence is sometimes sent to the wrong section. With a single database, these problems will go away.
SAPREF chose SAP after investigating a number of HR systems.
Commenting on why SAPREF selected SAP HR, McKay says the company was looking for a corporate solution and not simply an HR package. "We believe that SAP can more easily be configured to suit the way we do business, and will provide us not only with an HR solution, but with a business solution.
"SAP`s consulting base seemed to be more extensive than those of other competitive products," says McKay. "That definitely tipped the scales for us."
SAPREF`s implementation partner is Deloitte & Touche Consulting. The first phase of the project, which has already begun, involves the implementation of payroll accounting, time management, organisational management, personnel administration, training and event management and recruitment management. Phase 1 is expected to go live in March next year (1999).
Phase two will begin in parallel with the tail end of the first phase, and will involve Employee Self Service, workflow, career & succession planning, shift planning and costing. This phase is scheduled to go live in September 1999.
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