CMSLPG – Central Management System for LPG

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Registration Name : eINDIA2011/AN/158
Project Category : eGov::Best ICT Enabled eGov Initiative of the year
Project Name : CMSLPG – Central Management System for LPG

Details of Applicant :
Name : S Ramasamy
Address : Corporate Business Technology Centre IIPM Complex Plot No 83, Sector 18,
City : Gurgaon
State : Haryana
Country : INDIA
Zip Code : 122001

Details of Project/Implementing Agency :
Name of Organisation : Indian Oil Corporation Limited ( IOCL )
Address : Corporate Business Technology Centre,IIPM Complex,Plot No 83, Sector 18,
City : Gurgaon
State : Haryana
Country : INDIA
Zip Code : 122001
Name of the head of Organisation : Mr R.S.Butola, Chairman

Brief description of the programme/project/Initiative : IOCL markets LPG products under the brand name INDANE through more than 5000 Retail Distributor Network. These Distributors act as a bridge between IOCL and Indane customers. Central Management System is the data reserve at which all the distributor data is uploaded on a daily basis. Based on the residing data, system provides vital information to the management. CMS LPG is a web-based application accessible over the Intranet and Internet. It consolidates all the data received from the distributors and displays various reports as required by the controlling department. Role based access has been provided to various users.

Why was the project started :
LPG marketing is a loss making business for IOC as more than 93% of the business is distributing domestic subsidized packed LPG (14.2 Kg/ 5 Kg). The corresponding under-recoveries in this business amounts to several thousands of crores of rupees every year. LPG is also available in a different package for non domestic purposes (19 Kg). As the physical and chemical characteristics of these products are same, in the market, in spite of legislation and action by law enforcement authorities, domestic product is being misused for non domestic purposes. Technology to adapt LPG for various applications is on the rise and the per capita consumption of LPG increases world over. This is also true because world is experimenting on LPG as a transition fuel between liquid fuels and futuristic non conventional fuels. The technology of use of LPG in various applications thrives in India by the arbitrage of LPG availability at domestic rates to replace the current fuel in use, as any new technology requires huge infrastructure and correspondingly high initial investment. A major challenge, being faced by oil companies in LPG business is the diversion of Domestic LPG for non-domestic use. The reason for such diversion can solely be attributable to dual pricing. However the magnitude of this menace becomes much more grave considering the difficulties in detecting such diversion, identifying the source of diversion and initiating action if diversion is detected and sources identified.

Objective :
The answer to curbing diversion of subsidised LPG, as it appears to be, is in adapting the right technology to identify the source and then putting in place right laws and prompt enforcement. In order to deploy the right technology, on further analysis it has been identified that considering the uniqueness of LPG business in domestic sector , the check points in this business shall be no backlog, no diversion and no complaints.
Target group : Over 5200 LPG Distributors spread across the length & breadth of India. The stake holders includes all the customers who use LPG as a cooking medium, the management of IOC and the Govt of India, which provides subsidy for domestic LPG.
Geographical reach : All over India. Distributors – 5200 + , Indane LPG Customers – 6.31 Crores
Date from which the project became operational : 31 March 2009
Is the Project still operational : YES

10 points that make the programme/project innovative?

  1. Wide geographical coverage across India
  2. Highly Available and Clustered Infrastructure
  3. Secured Communication Network
  4. Redundant internet gateway
  5. Use of Low Cost Open Source x86_64 hardware & LINUX software in Mission Critical environment
  6. Project done totally by in-house expertise
  7. Huge savings : manpower efforts and costs
  8. Covers over 5200 LPG Distributors spread over all States & Union Territories of India
  9. Critical Data Repository of Indian population and consumption pattern that can be used by other Govt. agencies.

List the 5 achievements of the programme/project?

  1. Data Mining – Data Analysis of CMS;; The analysis of data helps in Multiple Connection detection, Deactivated Customer analysis, Customer Segmentation, Customer Buying Behavior, Inventory Optimization.
  2. Business Advantage achieved;; • Achieving Operational Excellence, •Low Total Cost of Ownership (TCO), •Deployed more economical option of open source of software, •Completed entire project on time and budget, •Elimination of data-entry errors during the manual keying-in of data resulting in data-accuracy by 99%, •Streamlined supply chain performance thereby benefitting all stake holders.
  3. The organization is ready for implementing the Core Subsidy Management System recommended by Interim Task Force Report on Direct Transfer of Subsidy – June 2011
  4. The organization is also technologically ready for implementation of Conditional Subsidy for LPG – only 4 / 6 subsided cylinders in a year.
  5. The available data can readily be used for Comparing Government Censes data, Data for UID programme, “AADHAAR” wherever possible

List the 5 key challenges faced while implementing the programme/project/initiative :

  1. Convincing dealers to use software to capture data – malpractices had to stop. Success of implementation depended on converting every distributor from the prevailing system of multiple software or manual operations to IndSoft followed by capturing the data centrally . In a setup marred by resistance to change from the distributors, achieving this required constant follow up, guidance and counselling. Trouble shooting and rectification had to be made with a prompt support from IOCL. A dedicated team was created in IOCL for the purpose. Dos and Don’ts were identified and trouble shooting manual was developed and circulated. As the legacy data has not been systematically entered in the earlier software, too many exceptions were getting generated while converting the data. The roll out team in consultation with field offices addressed all such exceptions, and corrected them
  2. Paying for sw licenses (Interbase database ) by dealers – subsidy paid by company. The licenses for Interbase database had to be taken by the distributors. There was an existing subsidy scheme for Computer Hardware and Software for the LPG Distributors, hence, no separate subsidy was provided for IndSoft. However, the licence cost of Interbase for one server and client (Rs 3600/-+ Taxes for a server and Rs 2700/-+ Taxes for additional client) per distributor was included as an item within the existing subsidy amount.
  3. Data connectivity charges – Tieup with BSNL for dealers – Rs 200/- pm internet charges. For improving the quality of connectivity a scheme was worked out with BSNL to provide broadband for all the distributors in the BSNL serviced areas for Rs 200 per month.
  4. Monitoring for data uploads from dealer pc to CMS – now automated
  5. Training dealer’s manpower – not much technically competent – knowledge transfer

List the 5 points how can the programme serve as a model that can be replicated or adapted by others?

  1. Facilitate timely supply of loads to distributor by monitoring inventory at Distributor end and placement of Indents by Area Offices.
  2. The IndSoft CMS also facilitates remote monitoring of the inventory and Planning of supplies to the distributor at the Area Offices.
  3. It facilitate monitoring of stationery stocks and release of new connections
  4. The CMS also facilitate quicker customer complaint redressal
  5. Possibility of having centralized SV against TV confirmation

List 5 points to elaborate on the scalability of the programme/project/initiative :

  1. The project was built on Bottoms UP model as data was generated at the grass root level. •New Versions Releases Based on Suggestions from Users
  2. Exception Reporting for Monitoring Upload
  3. Integrating with ERP – SAP. Interfacing the distributorship operation with the ERP software – SAP® helped the interlinking of data of the business carried out by the distributors with the supply sources
  4. AC 99 and ERV integration. AC 99 or delivery challan is a SAP® generated document for supplying filled cylinders and ERV is a manually generated document to return the empty cylinders. IndSoft has provision to generate ERV with a serial control.
  5. Integrating the INDSOFT CMS with Customer Portal for LPG and thereby, providing comprehensive information to the customer and offering related facilities like flexi time delivery, etc.

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13 Responses to CMSLPG – Central Management System for LPG

  1. JP LILWAN says:

    e-governance now a days is the symbol of prompt and immediate quality services to its customers. Indianoil Corporation Ltd(MD) is one of the best one in e-governance. I strongly vote in favour of IOCL.

  2. Rajendran S says:

    A powerful tool which will simplify supervision /monitoring of the Market-data collection is enabled for sound decision making

  3. ashok says:

    Excellent initiative by IOCL

  4. M K sinha says:

    Excellent Information for public on Govt subsidised product.

  5. a. mani says:

    It is a great tool to monitor diversions of subsidies LPG cylinders.
    It is also helps to de-activate the multiple connections in the Market
    Also provides Area Offices to monitor the Backlog and do their Planning for the supply of cylinders to the required Market

  6. Indira Nair says:

    An excellent tool which facilitates quicker customer complaint redressal

  7. Sanjay Chacko says:

    Been a consumer of IOCL, I get my refill booking number right in 20 secs and the status of my booking anytime during the day. Moreover I can book any day or time of the day and need not wait distributor to open his shop.

    One of the best examples of e-governance.

  8. reetesh rokade says:

    It is a great tool to monitor diversions of subsidies LPG cylinders.
    It is also helps to de-activate the multiple connections in the Market
    Also provides Area Offices to monitor the Backlog and do their Planning for the supply of cylinders to the required Market

  9. V Kishore Babu says:

    Excellent initiative by IOCL

  10. NV RAMANA says:

    Excellent concept and well Organised and very Transperant method
    Contracts to all .

  11. SENTHILKUMAR says:

    It is a wonderful & transperant system which is very useful to the distributors as well as customers.

  12. Ajit Pathak says:

    Excellent initiative by of IOCL .

  13. GANDHINATHAN A says:

    Various reports generated thro` this site, enable officials to do indepth analysis of LPG Distributors data so as to take corrective action, wherever required.