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Are you taking full advantage of the financial management capabilities in CA PPM? Learn from two CA PPM customers—TD Bank Group and Olympus—to increase the value of your PPM investment by utilizing Financial Management. From executive financial reporting to defining cost plans, learn the value of adding financials to your projects and how to take advantage of Financial Management in your implementation. For more information on Management Cloud solutions from CA Technologies, please visit: http://bit.ly/1wEnPhz
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Increasing the Value of PPM with Financial Management
Marilou Conklin, Olympus
ICT05P #CAWorld
Ilana Sprongl, TD Bank Group
ca Intellicenter
2
Panel Session
Ilana Sprongl
TD Bank Group
AVP, Tools and Methodology | Enterprise Office of Project Management and Enabling Services (EPMO & EES)
Marilou Conklin
Olympus Corporation of the Americas
Sr. Mgr., Program Management
Medical Systems Group
3
Abstract
Are you taking full advantage of the financial management capabilities in CA PPM?
This session is an opportunity to learn from two CA PPM customers, TD Bank Group and Olympus, to increase the value of your PPM investment by utilizing Financial Management. From executive financial reporting to defining cost plans, you'll learn the value of adding financials to your projects and how to take advantage of Financial Management in your implementation.
Marilou Conklin
Olympus
Ilana Sprongl
TD Bank Group
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Exceeds $7 Billion in annual global revenue
Is publicly traded on the Tokyo Stock Exchange
Employs more than 36,000 people worldwide
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Challenges: You want what?
Manually tracked resource time
project costs
project budget, actuals and estimate to complete
Lack of reporting and global visibility
6
CA PPM: Implementation
Out of the box functionality
Project Management
Resource Management
Time Sheets
Project Financial Management
CA Project & Portfolio Management SaaS
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CA PPM: Project Financial Visibility
Costs by Phase
Costs by Resource
Costs by Task
Financial Reports
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CA PPM: Project Financial Setup
Source: Olympus Pricing and Economic Analysis
GroupResource
class
Blended salary
hourly rate(A)
Hourly benefit factor
(B)
Hourly overhead
factor(C)
Hourly Transfer pricing (TP)
markup(D)
Fully loaded hourly rate
(intercompany)
Fully loaded hourly ratewithout TP
(intracompany)
Directors and Group Managers
MgmtAverage
Salary / Net Hours
Blended Rate* Benefit Factor %
Blended Rate* Overhead
Factor %
(Blended Rate + Hourly Benefit +
Hourly Overhead) * TP %
A + B + C + D A + B + C
Developers, TestEngineers, System Engineers
Non-MgmtAverage
Salary / Net Hours
Blended Rate* Benefit Factor %
Blended Rate* Overhead
Factor %
(Blended Rate + Hourly Benefit +
Hourly Overhead) * TP %
A + B + C + D A + B + C
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CA PPM: Financial Setup
Investment classes
Input type codes of billable, non billable
Rate matrix
INTERNAL LABOR per Finance
EXTERNAL LABOR per legal agreements
Non labor of hardware, software and travel
10
Olympus Key Benefits and Lessons Learned
Reduced administrator assistant time; 12 days to 4 hours per month
Consistent and accurate project costs
Streamlined intercompany invoice creation and quarterly R&D reporting
Standardized project templates
Uncomplicated rate matrixHigh-level project cost estimation with team roles
Detailed project cost est. using project tasks and team resources
11
TD Bank Group – Company Overview
Headquartered in Toronto, Canada, with more than 85,000 employees in offices around the world
TD offers a full range of financial products and services to approximately 22 million customers worldwide
As of July 31, 2014, TD had $922 billion (CAD) in assets
TD also ranks among the world’s leading online financial services firms, with more than 8.8 million online and mobile customers
Federated business environment
12
Business ChallengeGrowth in demand for projects with regulatory requirements, acquisitions and technology initiatives as significant drivers
0
100
200
300
400
500
600
700
800
1 2 3 4
Nu
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roje
cts
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Project Investment Lifecycle in CA PPM
Costs over the entire project investment lifecycle from fiscal plan through ongoing tail
Project Management LifecycleOn-going
CostsTail
Fiscal Planning
Annual planning exercise to identify projects in line with budget
Maintenance costs, license
fees, etc.
Capitalization, amortization, depreciation
Seed funding approval
Business case approval
PIR
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Understanding Project Financials
Project financials are categorized to allow costs to be analyzed in different ways
The cost categories are consistent across project accounting processes and between CA PPM and the other systems and tools
Project Financials Classified into Cost
Categories
Costs vs. Benefits
One-Time vs. Ongoing
Technology vs. Business
Resource vs. Non-Resource
Cost Category Area# of Cost Categories
One-Time Cash Costs 21
Capitalization and Amortization/Depreciation
16
Ongoing Costs 21
Benefits 7
Metrics and Summary Measures
7
15
Monthly EAC Update Cycle
Actual costs updated via automated feeds and manual transaction entry
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2
3
Legacy Timesheet
Systems
Fixed Assets
Accounts Payable
Manual Transactions
Project Managers update cash view forecast
Segment Finance updates P&L forecast
4
In-year spend tracked to fiscal plan
Total project spend tracked to approved funding
CA PPM
16
Change Management
Aligning to common standards and definitions
What is a "project"?
What costs should be included as part of the project?
Roles and responsibilities
EPMO, PMOs, PMs, Segment Finance, Corporate Finance
Standardizing processes across business segments
Aligning segments and PMOs to a common reporting cycle and cutoff dates
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Key Benefits
Consistent definitions, standards and reporting cycles
Single, authoritative source with a comprehensive view of all project costs
across the enterprise
Improved decision making
Elimination of problems arising from inconsistent project financials being
reported from different sources
Elimination of "surprises" from projects exceeding approved funding
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Future Plans
Migrate legacy timesheet systems to CA PPM
Track non-project costs (for technology groups)
Chargeback to sponsoring segments
Data rationalization
Resource demand/capacity planning
Portfolio Management
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Takeaways and Lessons Learned
Strong executive support is critical
Use a progressive approach to implementation
Ability to stand-up the capability in CA PPM does not mean adoption
Must align with the organization's capacity to change
Use out-of-the-box capabilities first
Learn how CA PPM works and adapt processes to fit
Use customized additions where needed but don't alter built-in
functionality
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For More Information
To learn more about Management Cloud,
please visit:
http://bit.ly/1wEnPhz
Insert appropriate screenshot and text overlayfrom following “More Info Graphics” slide here;
ensure it links to correct pageManagement Cloud
21 © 2014 CA. ALL RIGHTS RESERVED.
For Informational Purposes Only
This presentation provided at CA World 2014 is intended for information purposes only and does not form any type of warranty.
Content provided in this presentation has not been reviewed for accuracy and is based on information provided by CA Partners
and Customers.
Terms of this Presentation