CLIENT EXPERIENCE

TCS helps Harmony achieve business process streamlining and accurate scal reporting through revamp of their Oracle ERP
Customer Harmony Gold Mining Co. Ltd

Industry Mining

Harmony Gold Mining Company Limited (Harmony) is one of the worlds largest gold mining companies with its operations largely located on the Witwatersrand basin in South Africa, with an open cast operation and four exploration sites in Papua New Guinea (PNG). The company upgraded its legacy systems to the Oracle E-Business Suite ERP system but did not achieve the desired results. With essential functions such as material quantities and account valuations not reconciling, business users lost condence in the new system. Harmony realized that a re-implementation of Oracle E-business suite was necessary to restore user condence and to reap the full benets of the system and become more competitive and agile as a company. Needing a partner who could assure them of success, the company turned to TCS for assistance.

Oering Enterprise Solutions

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In FY11, Harmony is expected to produce 1.59 million ounces of gold from the South African operations, and 0.119 million ounces of gold and 0.971 million ounces of silver from Papua New Guinea (PNG), making it one of the worlds largest gold mining companies (FY10: 1.38 million ounces). The groups operations are largely located on the Witwatersrand basin in South Africa, with an open cast operation and four exploration sites in PNG.
Business Situation
As a mature industry, mining companies can aim for enhanced protability mainly by optimizing their operations and disciplined cost control. With raw material price being volatile and demand also being cyclical, operating an ecient and streamlined business, as well as shaving costs, is imperative. As a capital intensive industry that is increasingly facing the challenges of dealing with new and ever-changing market conditions, the mining industry is turning to information technology solutions such as ERP systems to help improve their return on capital investments. In tune with the industry, Harmony had implemented Oracle Apps E-Business Suite Version 11.5.10.2 to streamline its business processes, ensure control and integrate disparate functions. However, the company derived little benet from the ERP solution. Essential functions like materials hands-on quantity and account valuations did not reconcile, resulting in business users

losing condence in the system, and reverting to the Masterpiece legacy system previously installed. Harmony therefore approached TCS to re-implement its Oracle ERP and meet end-user expectations of data reports, performance and usability. The company also wanted TCS to ensure that the ERP system resulted in the following business and operational objectives:

Lowering operational costs Streamlining business processes Ensuring better stock management Improving stock valuation Ensuring SOX compliance for legal reporting Improving accounting, reporting, regulatory compliance and management reporting Enabling sound Gold production decisions based on the daily operational cost reports from the Oracle ERP system

Harmony decided to partner with TCS for this engagement, given the latters global capabilities and deep expertise in Oracle ERP implementations.

TCS Solution
The TCS team made a careful study of the ERP system at Harmony and drew on its deep expertise in Oracle E-Business Suite to complete the ERP revamp at the company. TCS was able to pinpoint the deciencies in the earlier implementation and correct these to create a useful and ecient ERP system. The TCS team addressed the following:

CLIENT EXPERIENCE

Dening shipping and warehousing rules and order types to ensure a material ow link between shafts and stores

scripts and templates as well as various design documents from TCS Centers of Excellence were used as the baseline to develop the nal deliverables, as per the project requirement. This ensured a awless execution of the project with no rework done on any deliverable.

Dening the proper purchase order sequence to earmark purchase orders to mines/ locations Dening valuation accounts for materials valuations Creating restrictive shipping networks to avoid inadvertent material ow across the organization Dening item sub-inventory restrictions Introducing item and sub-inventory transaction status controls and provide access to specic users for modication for stock/cycle counts

Benets
The Oracle ERP revamp executed by TCS provided Harmony Gold with a fully functional ERP system, and consequently, with the following benets:

Improved business processes, Better integration between applications, and Increased eciency and operational savings.

Minimum/maximum planning for planned items in the inventory organization level Introducing item purchase orders to reduce purchase order creation errors Attaching PO category to items to dierentiate inventory and PO category functionality Dening staging sub-inventory for each store/shipping unit Dening material sourcing rules and assignment sets for material movement Ensuring open purchase orders are migrated into the new operating units with their partial receipts

The team followed Oracles AIM methodology to carry out the implementation, with improvements incorporated from the TCS delivery excellence capabilities. Reusable components like data migration

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TCS has been very supportive of Harmony's business initiatives and has become a global preferred partner because of their strong delivery capability. TCS has been instrumental in turning around Harmony's ERP system with their strong knowledge and expertise. TCS is Harmonys Preferred Implementation Partner. System

About Tata Consultancy Services Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other rm can match. TCS oers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery ModelTM, recognized as the benchmark of excellence in software development. A part of the Tata Group, Indias largest industrial conglomerate, TCS has over 160,000 of the world's best trained IT consultants in 42 countries. The company generated consolidated revenues of US $6.3 billion for scal year ended 31 March 2010 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.

- V.M. (Marlon) Moodley,

Group CIO, Harmony Gold Mining Co. Ltd

Contact eru.marketing@tcs.com

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