R12.2: It’s Not Just a Technical Upgrade The Value for …ncoaug.communities.oaug.org/multisites/ncoaug/media/Events/NCOAU… · R12.2: It’s Not Just a Technical Upgrade The Value

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


Agenda

Introduction

Measuring Cost Versus Value in Approach

R12.2 Value to Project Centric Organizations

2


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.

3

http://www.pb.com.au/

http://www.alcoa.com/global/en/home.asp

http://www.fairisaac.com/fairisaac/


Measuring Cost Versus Value In Approach


Approach is Primary Cost Driver

5

0

1

2

3

4

5

6

Technical Quick Hits NewModules

BusinessProcess

Reengineer

R12 Upgrade Cost Factor

R12 Upgrade CostFactor


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

6

- Continued -


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

7


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)

8


Approach is Also Primary Value Driver

0

1

2

3

4

5

6

Technical Quick Hits New Modules BusinessProcess

Reengineer

R12 Upgrade Value Factor

R12 Upgrade ValueFactor

9


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

10


R12.2 Value to Project Centric Organizations


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

12

- Continued -


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

13


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

14

Copyright © Project Partners, LLC 15

Sub-Contractor Management & Services

Procurement

Initiate Payment hold for

deliverables Select subcontractor invoices to

manually link to customer invoice

15



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

16


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

17


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

18


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


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



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


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


Professional Services Labor Costing Enhancements: Total Time Costing

Services Procurement

Global Projects Support Enhancement

Adjusted Transactions in Standard Invoicing

- Continued -


New Features by Industry, continued

Public Sector

Support for Federal Accounting and Federal Budget Execution

Integration

Funding Consumption Improvement

Government Contracting

Funding Consumption Improvements


Sub-Contract Management and Services Procurement

Projects Supply Chain


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

24


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

25


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

26


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

27


Questions?

Answers!

www.ProjectP.com

Project Partners, LLC

Phone: +1.650.712.6200

Email: [email protected]

http://www.projectp.com/

mailto:[email protected]

Documents

R12.2: It’s Not Just a Technical Upgrade The Value for …ncoaug.communities.oaug.org/multisites/ncoaug/media/Events/NCOAU… · R12.2: It’s Not Just a Technical Upgrade The Value