Copyright © Project Partners, LLC R12.2: It’s Not Just a Technical Upgrade The Value for Project-Centric Organizations David McNeil, Vice President Project Partners, LLC
Copyright © Project Partners, LLC
R12.2: It’s Not Just a Technical Upgrade
The Value for Project-Centric Organizations
David McNeil, Vice President
Project Partners, LLC
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Agenda
Introduction
Measuring Cost Versus Value in Approach
R12.2 Value to Project Centric Organizations
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Project Partners…A Leader in Project-Centric Industries
Founded in 1997 by former chief architect of Oracle Projects; over 350 clients
World leader in delivering business and technology solutions to project-driven firms leveraging Oracle
EBS, Primavera, Analytics, and Fusion Applications
Industry and Solution Architects with expertise in Engineering & Construction, Oil & Gas, Professional
Services, Aerospace & Defense, and High Tech Manufacturing
Collaborative, team approach delivers many options for the best fit to a client’s specific business
process.
Experienced team of almost 100 senior, former Oracle personnel from consulting, development, support,
marketing and sales, and veteran end users of the E-Business Suite and Primavera applications.
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Measuring Cost Versus Value In Approach
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Approach is Primary Cost Driver
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Technical Quick Hits NewModules
BusinessProcess
Reengineer
R12 Upgrade Cost Factor
R12 Upgrade CostFactor
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EBS Upgrade Approaches
Technical Upgrade: “Give me what I have today but in
R12.”
Least expensive
Low risk
Minimal value
Technical Upgrade Plus “Quick Hits”
Take advantage of underutilized existing functionality
Take advantage of new functionality
Analyze and remove customizations where new functionality
exists
Good cost / value trade-off
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- Continued -
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EBS Upgrade Approaches, continued
Upgrade + New Modules: “While we’re at it …”
Strategically add new modules
Restructure process and implement while you have the team
participating on the upgrade
Process Re-engineering: “We need to start over.”
Redesign business processes and reconfigure applications
Restructure chart of accounts
Re-architect using Service-Oriented Architecture (SOA)
Most time consuming and expensive, but most value
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Other Cost Variables
Analyze impact on the organization (workload, who the
users are, conflicts with other projects, etc.)
Define internal upgrade team, including the Executive Team
Develop an upgrade timeline that “works” for the organization
Develop a complete list of customizations and define why
they exist (includes reports)
Resolve known issues prior to project start (reduce scope
and complexity)
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Approach is Also Primary Value Driver
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Technical Quick Hits New Modules BusinessProcess
Reengineer
R12 Upgrade Value Factor
R12 Upgrade ValueFactor
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Additional Upgrade Benefits
Maintains Oracle support level
Provides platform for future growth
Provides consistency across all
accounting applications with
standard sub-ledgers
Streamlines reporting and analysis
Faster, simpler period-end processing
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R12.2 Value to Project Centric Organizations
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R12: Key Features for Project Based
Organizations
Release 12 Standard Features SLA,
AP Invoice Lines,
EBTax,
MOAC (single responsibility, multiple OU’s)
Features Through Release 12.1.3 Enhanced Services Procurement
US Federal Support: Reimbursable Agreement Processing
Sub-Contractor Payment Management
Enhanced Reporting
Miscellaneous and Usability Enhancements
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- Continued -
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Key Features for Project Based Organizations
Release 12.2 Key Features
Labor Costing Enhancements
Billing Enhancements
Standard Invoicing for Adjusted Transactions
Billing Groups
Cost Code Support
Sub-Contractor Management
Enhanced Global Projects Support
Post Release 12.2
Project Supply Chain
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Sub-Contractor Management & Services
Procurement
Enforce Contract Compliance Deliverables Management
Payment holds for Violations
Complete Payment Management Pay/Bill When Paid
Deductions
Retentions
Supplier Dashboard for Complete Visibility
Enable contingent workers to work on a multiple projects from one PO
Subcontract Compliance
Enhanced Visibility & Control
Automated Payment Processing
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Sub-Contractor Management & Services
Procurement
Initiate Payment hold for
deliverables Select subcontractor invoices to
manually link to customer invoice
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Labor Costing Enhancements
Standard Costing for Labor has been supplemented with
Total Time Costing
Enable costing for Exempt employees (DCAA Compliance)
Ensures labor cost is not over counted when total hours exceed
standard hours on which standard rate is based
Actual Costing
Payroll Actuals used to cost Project Labor
Accruals for Labor Costs till Payroll Run
Costing Using HR Rates
HR Rates derived from Rate Matrix setup using Rate by Criteria
Enables Compliance with Davis Bacon Act
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Support for US Federal Requirements
Reimbursable Agreement Processing Automated Advance Processing
Budget Integration with Federal Budget Execution
Support for Budgetary and Proprietary Accounting “Actual” Accounting Entries for Budget Transactions
Additional Accounting entries for “Proprietary” Federal accounting
Enhanced Funds Control using new Funding Consumption Rules (Revenue & Invoice Processing) Sequence number used to pick up agreements for invoicing
Mandatory Agreements Number on Billing Events
Date Effective funds consumption
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Cost Code Structure for Financial Control Key Requirements Met
Standardized, user-definable cost classification structure Reduce the size and complexity of project task structures Easier setup and maintenance of project structures Better, timely and structured cost information
A: Substructure
A10:
Foundations
A20: Basement
Construction
M - MaterialL - Labor
A1030: Slab on
Grade
A1010: Standard
Foundations
A1031: Standard
Slab on Grade
C: Interiors
Standard Code
of Accounts
B: Shell D: Services
E - Equipment
A1033: Inclined
Slab on Grade
3210
Reinforcing
Steel
3220
Welded Wire
Fabric
3240
Fibrous
Reinforcing
3200
Reinforce-
ment
3000:
Concrete
3100
Formwork
3300
Pouring
3050
Basic Materials
and Methods
A1020: Special
Foundations
LT – Trade
LaborLS – Supervisor
Labor
LTR – Regular
Trade Labor
LTB – Trade
Labor Burden
Activity
breakdown
Cost
breakdown
Resource
breakdown
Task Structure (WBS)
Cost Breakdown Structure (CBS)
Resource Breakdown Structure (RBS)
Solution Typical Project Control Structure
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Enhanced Global Projects Support Cross-LE Support within One Operating Unit
Problem
One Operating Unit goes across
Legal Entities
Solution
Stripe Project/Expenditure
Organization by LE
IC Billing between LE’s within one
OU
Provider/Receiver Controls by LE
Reconciliation/Settlement by LE
Operating Unit
Legal
Entity 1
Legal
Entity 2
Cost Project
Incurs Owns
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Procurement for Projects – Typical Issues
Supply Chain Project Management Finance
Poor on time delivery
performance
Projects miss customer
deliverables
No visibility to potential late
penalty fees
Material shortages while
experiencing high levels of
Inventory
No ability to manage
resources across projects
Manually effort to analyze
financial impact of project
and supply chain plans
Material quantities and
request dates do not reflect
status of project plan
Project delays due to material
shortages
Difficulty in establishing a
bottoms-up financial plan
Zero knowledge of installation
issues and priorities
Project plans unable to take
into consideration material
availability
Lack of visibility to predict
near term revenue and
margins
Inability to make informed
priority & allocation decisions
across projects
Hedging of material request
dates and quantities because
of poor mfg. performance
Poor cash management
Inability to perform effective
“What-If” scenario planning
which includes availability
Unrealized efficiencies
Higher costs
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Project Supply Chain
Procurement Plan for Projects
Independent of Other Plan Types – Workplan, Financial Plan
Upload from Microsoft Excel
Plan Lines linked to Items, Tasks with Need-By Date
Plan Lines released to Buyer when ready
Buyer can make updates to Item Product Description, Dates, Cost
Dashboards for Project Managers
Visibility into entire plan and status of plan lines
Dashboard for Buyer
Visibility into plans across projects by Item / Product Description
Action items front and center
Drills into Item and Supplier Dashboards
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New Features by Industry
Engineering & Construction Sub-Contractor Management: Deliverables Mgmt, Payment Mgmt
Labor Costing Enhancements:
Actual Costing and Payroll Integration
Labor Rates from HR – Rate by Criteria
Cost Code Structure
Project Supply Chain
Professional Services Labor Costing Enhancements: Total Time Costing
Services Procurement
Global Projects Support Enhancement
Adjusted Transactions in Standard Invoicing
- Continued -
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New Features by Industry, continued
Public Sector
Support for Federal Accounting and Federal Budget Execution
Integration
Funding Consumption Improvement
Government Contracting
Funding Consumption Improvements
Labor Costing Enhancements
Sub-Contract Management and Services Procurement
Projects Supply Chain
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Enhanced Reporting
BI-Publisher Support for Standard Reports
Project Manager Reporting Pack
Automated scheduled distribution of reports
Project Analytics Enhancements
Resource Management: Utilization, Availability
Earned Values Metrics
Global Projects Metrics (Intercompany Metrics)
Endeca Extensions (Oracle’s Built-In Big-Data Analytics)
Manage project financial risk and cost discipline
Ensure schedule compliance
Improve project team productivity
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Support for Mobile Devices
With 12.2
Project Expense submission via Mobile Devices
Project Time Submission
Coming soon:
Capture progress for a task(s)
View and forward project related documents (i.e. inspection
reports, drawings, certificates, logs, etc.)
Project Performance
Status reports
Project related approvals
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Upcoming Features – Beyond R12.2
Project Planning Integration with Primavera P6
Using the Primavera Gateway
Already delivered by Project Partners
Revenue Management for Projects
Reallocate revenue across services, products, VSOE support
Streamlined Billing for Projects
Support for Progress Billing, Federal Contract Types, Funds
Accounting
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Why Project Partners?
Full Business Transformation Partner
Workshops
Assessments
Upgrade project delivery
Depth of upgrade knowledge, we understand industry
drivers, business issues and ERP gaps to provide a
complete R12.2 project centric industry solution
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Questions?
Answers!
www.ProjectP.com
Project Partners, LLC
Phone: +1.650.712.6200
Email: [email protected]