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Project Cost Management: A Simplified Approach

Prepared by:

Mangesh More

Primavera Practice

L&T Infotech

Integrating ERP & Unifier to track & manage budgets, commitments, spends, and forecasts

Session ID#: 15424

Presenter Info

Mangesh More is Primavera Sr. Project Manager and leads the

Primavera Practice in L&T Infotech. He has over 15 years of

experience managing projects. He has worked with Fortune 500

clients in UK, USA and India. Last 2 years he has been

instrumental in establishing the Primavera Practice in L&T

Infotech.

About L&T Infotech

L&T Infotech is a100% subsidiary of Larsen &Toubro, the multi-

billion USD engineering, manufacturing & financial services

organization with global operations.

We offer comprehensive, end-to-end technology services &

solutions to leading companies across the globe. We provide the

winning edge to our clients by leveraging our Business-to-IT

Connect and Deeply Committed People.

Agenda

■ Reasons for Cost Overrun

■ Proposed Approach

■ Demo

■ Conclusion

Reasons for Project Costs Overrun

Reasons for Project Costs Overrun

Cost Overrun

Inaccurate Estimation

Poor Decision Making

Resource status

Procurement Delays

Communication Gap

Project Related Systems

ERP

EAM

Contract Mgmt Invoicing

Resource Mgmt Cost management

Project Scheduling System

Reporting System

Cost management

List Goes on…..

Different Systems which are isolated, one view of project is

very tedius

Different Users have different perspective of project status

Result: Difficult to get holistic Cost view

What Needs To Be Done

■ Balance cost, quality, and time.

■ Enhance transparency & accountability

■ Compréhensive Document management

■ Improve Project based Communication

■ Improve Contract Management

How Can It Be Done : Our Approach

■ Integrate FMS & Cost Management with Primavera

■ Define Best Approach to Manage Cost

■ Analyse Project Progress data using Analytics

■ Integrated Document Management System.

Solution Map: P6, Unifier, ERP

Benefits

■ Keep track of all changes that may affect the budget or contract

■ Monitor Actuals & forecast

■ Easily manage Project cost

■ Easy management of Contractor’s billing and payments

Demo

Resource Masters Integration ERP/HR Systems

Oracle Primavera P6

■ Synchronize Resource Master

▪ Labor, Materials, Equipment

■ Synchronize Calendars

■ Synchronize Cost Structure

Project Approval Process: Unifier to ERP

After approval in unifier, project is created in SAP

Project WBS Creation: ERP to P6

Project created in ERP Project created in Primavera using Gateway

SAP Controls the financial aspect while P6 will be majorly used for planning

Detailed Project Schedule Planning

• Detailed project planning in Primavera • Create activities, defined dates, and relationships • Resource scheduling and resource leveling

Linking CBS and WBS: P6 & Unifier

Project schedule is sent to Unifier for cost breakdown. It can also be done in unifier

Procurement: ERP to Unifier

• Requisition raised in Unifier

• Po created in ERP and same data gets generated in Unifier

Cost Monitoring in Unifier & ERP

Monitor costs, expenses & actuals

PO Amendment Workflow: Unifier-ERP

Bid Process: Vendor Bid Invitation

Unifier Cost Sheet for Cost Control

Cost Sheet Showing Project Budget Data

Against Individual Cost Code

Cost Management Workflow

Unifier Cost Control Dashboard

Cash Flow Curves

Visibility: Analytics Dashboards (Custom)

■ Out of box Report

■ Tailor-made Reports

■ Industry Packs

▪ Oil&Gas, Utilities, E&C

Earned Value Analysis S-Curve Labor Units

Portfolio View in Unifier

Conclusion

Conclusion

■ Use project resources

effectively

■ Track what project teams are

focusing on

■ Prioritize those efforts

■ Collaborate in a fully informed

way

■ Manage project in alignment

with overall business strategy

■ Review and prioritize

organization-wide projects

■ Consolidated reports (Budget,

Actuals, Commitments, ETC)

■ Manage Projects Profitably

Proposed Approach will enable Organizations to

Collaboration: Integration Packs

■ Custom based integration

■ PIP Packs for JDE

■ Primavera Gateway based

provider in process

▪ Design and development

enterprise business flows.

▪ Customized Integration

scenarios

■ Integration using Oracle PIPs

packs

■ Integrate Financial Plans or

Workplans/ Work breakdown

structure

■ Capture actual costs in Oracle

and send to Primavera

■ Automated synchronization

“Integrate JDE” Packs EBS Integration

Collaboration: Integration Packs

■ SAP integrates with

Primavera using Gateway

■ Oracle SAP Provider works

as an adapter for Oracle

Primavera Gateway to

communicate with SAP

■ Real time integration of

enterprise transactions

related to materials, costs,

and resources

■ Integration with PeopleSoft

Enterprise Service

Automation (ESA)

■ Timesheet import from

Primavera P6 and hours

worked export from

PeopleSoft

■ Fusion Middleware (FMW) is

also available for PeopleSoft -

Primavera

SAP Integration HR Integration

Collaboration: Integration Packs

■ Data Migration Utility

■ Migration Methodology

■ Database Upgrade

■ Migrate Data from disparate

systems

■ P6 pre-integrated Excel tools

■ Project Initiation Business

Process to be triggered from

unifier and created in

Primavera

■ User access request,

business process to P6 User

creation.

■ Project Baseline request

business process to P6

Project Baseline Creation

“Easy Migration” Packs Custom Business Processes

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