PeopleSoft/Oracle Cloud Day –27th Feb 2015British American Tobacco 9.2 Upgrade Project

British American Tobacco at a glance

We are one of the world’s most international businesses

- 200+ brands

- Sold in around 180 markets

- Global market share 13%

- Market leader in 60+ countries

- More than 55,000 employees

- 44 cigarette factories in 39 countries

- Our companies buy more than 400,000 tonnes of leaf per year

- More than 100,000 farmers and suppliers are directly contracted

Balanced brand portfolio

Powerful brands are key to satisfying consumer needs

Global Drive Brands- Dunhill

- Kent

- Lucky Strike

- Pall Mall

Other important international brands- Rothmans

- Benson & Hedges

- State Express 555

- Viceroy

- Vogue

- Peter Stuyvesant

- Kool

Provided PeopleSoft Consulting expertise for over 19 years

Oracle Gold Partner in multiple countries, including UK

Offices in UK, Switzerland, India and Australia

45+ Clients in our last Financial Year (2013-14)

15+ long-term Managed Service Clients

60 Employees plus 15 Associates

Oracle accredited PeopleSoft Specialisations

Extensive latest version and technology experience

UKOUG PeopleSoft Partner of Year for 2014 (Gold) winner

Background – Cedar Consulting

Cedar Consulting - Services

Cedar provides a full range of PeopleSoft services. Within the last 2 years

Cedar has completed the areas below for both PeopleSoft HCM and Financials:

Full life-cycle new implementations

Application Upgrades

Tools Upgrades

Technical Development Work

Formal Support Services (with 13 current support clients)

Training Services, including UPK consulting

Our Clients....

Cedar’s current and/or recent client list includes:

9 United Nations organisations, including UNHCR and WIPO, across

Switzerland, Germany, Italy and USA

Audit Commission, NHS NSS, Oxfam and British Red Cross in the UK

Not for Profit sector

Allen & Overy, DLA Piper, Baker & McKenzie, Clifford Chance, BDO,

Cameron McKenna, ING, Prudential and Willis in the UK Legal and

Financial Services sectors

Reckitt Benckiser, Saint-Gobain, BAT, Spire Healthcare and Scottish

Water in other UK Commercial sectors

Kerzner International, Rotary International, DFAT outside of Europe

Introduction and Background

• UK Payroll and Projects Manager – BAT Southampton. Worked at BAT for 18

years

• PeopleSoft was selected back in 2000 for BAT’s HR system solution, Payroll

during this transition was outsourced

• In 2003 BAT decided to bring Payroll back in-house and that is when the

journey began with Cedar Consulting

• Cedar implemented PeopleSoft Global Payroll with a go live in Nov 2004

• In 2007 BAT moved over to SAP for the business HR solution. PeopleSoft

was retained for UK Payroll which involved the build of interfaces from SAP

to PeopleSoft – this was a challenging time for BAT and Cedar!

• BAT’s PeopleSoft solution became hosted, maintained and supported by

Cedar as part of a managed service agreement – contract renewed in 2014

8

Rationale for Upgrade

9

• Why – Current version was out of normal support and into extended

support, additional costs could have been incurred and risk to the

business of non-compliance

• Payroll review – Prior to agreement to upgrade, the business wanted

to complete a review of Payroll and consider viability of outsourcing

payroll. Decision made to retain Payroll on PeopleSoft – major

decision factor around IA population complexity

• Upgrade Objectives – Ensure Payroll system is fully supported.

Review of new functionality available that the business may want to adopt. Review of customisations/elements – are they still required?

• Interface Review – HR to Payroll interface was analysed and

streamlined to make it more industry standard architecture as a pre-

requisite to the upgrade

Payroll at BAT

Approximately 2500 employees over 4 PAYE references

7 paygroups all processed monthly

Modified and Supp runs for subset of paygroups (run on demand)

Payment Day is 11th of the month

Significant percentage of populations are Expats (In and Outbound)

Inbound interface from SAP HR

Outbound interface to SAP GL and third-party providers

Project Timelines

June 2013 – Building of customisation catalog and Initial Pass environment

July 2013 – Functional Workshops

August 2013 – Reapplying customisations and MTP 1

September 2013 – Unit Testing

October 2013 – System Testing / MTP2

November 2013 – UAT / MTP3 + Parallels

12th December 2013 – Production taken offline / final MTP begins

16th December 2013 – Go Live!!

Project Challenges

First UK payroll implementation live on 9.2

Several payruns throughout the month

Availability of hardware resources

RTI solution not available in 9.2 until start of System Test

Changes to other BAT systems (e.g. SAP HR and SAP GL)

9.2 – New Features Discussed and Reviewed at BAT

Payroll:

Processing Monitor

Add End Dates to Recurring Assignments

Court Orders

Positive Input Templates

Employee Loans

General Features

WorkCenters, Activity Guides, Pivots, etc.

Secure Enterprise Search

Core Payroll changes

Processing Monitor

Graphical "at a glance" overview of payroll processing status

Configure alert icons to appear at specific thresholds

Comparison of Gross and Net values to previous pay run

Display list of element values for Absence Calendars

Configured on a per country basis

Data is automatically generated during payroll run

Additional process provided to generate data for earlier payrolls

Add End Dates to Element Assignments

Automatically set End Dates on Element Assignments during calc

It is possible to set or unset (blank) an End Date

But it is NOT possible to set or unset an End Date in retro periods

Court Orders

Court Orders Entry page

Court Orders

Complete re-write of Court Order page and calculation rules

Now uses just two deductions (COURT ORDER and COURT FEE)

Similar rationalising of accumulators

Custom reports may need to be re-written

Multiple instances of each deduction as needed

Consistent User Keys across all accumulators

Able to retain full history of Court Order assignments

Possible to pay Court Orders via BACS without customisation

Data conversion process provided as part of upgrade process

Need to run Update Court Order End Dates process after finalising

Court Orders

User fields on results table contain the following data items:

Court Order reference number

Court Order Type

Legislative Region

"New" features that had not been implemented

New features added from 8.9 onwards, but never fully implemented:

Positive Input Templates (9.1)

Employee Loans (8.9)

Positive Input Templates

Positive Input Templates

Pre-populate element names for one-time entry

Enter values for multiple elements on one row

Simplify and speed up data entry

Also used for Supporting Elements and Currency Codes

Entries show up as standard one-time (Positive Input)

Exactly the same as one-time, just simpler entry

Employee Loans

Employee Loans

Options to calculate repayments based on repayment amount or time

Can factor in interest to repayment calculation

Repayment holidays and recovery of outstanding amount for leavers

Option to flag loans as being P11D reportable

Option to pay loan money direct to third-party beneficiary

Useful for any reducing balance calculation (e.g. Season Tickets)

Project Approach

• Project Initiation – Prince 2 Methodology followed within BAT - Creation of

PID – agreement of Project Board/Team – Project Plan – Risk/Issue Log

• Fit/Gap workshops - Review of existing customisations to agree what would

be carried forward and what would be retired. Review of new functionality

available

• Payroll Config Rationalization – Review of existing elements, nothing deleted

but removed from process list. Purge of payroll results for performance

improvement

• UAT – Deferred parallel testing

• Development freeze put in place during project, any critical business activity

to be managed via change control process

• Review of any changes in progress to ensure moved to production26

Upgrade Stages

Overall upgrade process was very smooth, not too many few issues

Main problems were with Court Orders

Plan:

Review customisations – re-apply or drop? Are they still needed?

Changes to COBOL array sizing will normally need to be reapplied

Review new functionality with Cumulative Feature Overview Tool – is it

useful? How can it be adopted? Is there any value in using it?

Rationalise elements – if not used for 2 or more years is it really needed?

Upgrade Stages

Preparation (can be completed prior to upgrade):

Set completed Court Order's status to "Inactive"

Archive history data

Allow plenty of time for testing Court Orders

Where possible, code freeze should also apply to payroll configuration

Upgrade Stages

Execute:

Key points for payroll:

Ensure all Calendar Groups are finalised or cancelled

Do not delete elements, just remove from sections / process list

Ensure key functional resources know when they will be needed

Build changes and re-apply customisations to delivered elements in 9.2

DEV environment, copy changes using Rule and Non-Rule Packages

Task 6-9 and running Country Extension delete process can be skipped

Quickest and easiest test at end of upgrade is to simply run a payroll

Court Order Issues

Main issues during upgrade were with Court Orders

Data conversion process is improving but still not perfect

Main function of data conversion process is to move balances from the "old"

Court Order accumulators to the "new" Court Order accumulators

Varied results:

Generally if employee only had one Court Order per Court Order Type

(e.g. DEO, CTA, etc.) then process worked correctly

Employees with multiple Court Orders of the same type were problematic

For complex employees, simplest option may be to stop all Court Orders

prior to upgrade and manually re-key them once the upgrade has completed

Court Order Issues

Ensure completed Court Orders have been set to "Inactive" prior to upgrade

Old Court Order processing reads Court Orders where the End Date was

greater than current period End Date (or was blank)

New Court Order processing reads any Court Orders with an "Active" status

Due to validations on page, some Court Order entries may need to be

corrected via SQL due to changes in which fields are now mandatory

Old Court entries cannot be edited so impossible to complete missing fields

Court Order Issues

Court Orders can still be processed with the pre-9.2 logic

Not recommended as a long term solution but could be useful if you have a

lot of Court Orders and want to handle it separately from go-live

Do not run conversion until ready to move to new calculation process

NOTE: Using old Court Order logic not supported by Oracle

Testing Process

Main focus was on parallel testing

Unit testing of re-applied customisations and interfaces

Run basic checks to ensure integrity of payroll

Do all earnings that contribute to Gross Pay add up to total Gross Pay?

Does Net Pay equal Gross Pay less any Deductions?

Spot checks on employees (high earners, low earners, middle earners)

to ensure Tax, NI and other calculations are correct

Standard page functionality validated during keying of parallel test data

Recommend minimum of two parallel runs

Parallel testing using "deferred" methodology

Deferred Parallel Testing

Run parallel testing off main production payroll cycle

Decide which payroll runs will be used for parallel testing

After finalising each payroll run, take two copies of production

Unfinalise (using scripts) and cancel the payroll run on both copies

Upgrade one copy and leave the other on the original version

Identify and Calculate payroll in both copies

Compare and verify results match across both environments

Finalise and check post-payroll processes (RTI / banking / GL)

NOTE: Do NOT unfinalise any Calendar Groups after upgrading as this may

interfere with the Court Order data conversion and lose employee balances

Benefits

35

• Improved Performance - Payroll run time significantly reduced

• Better look and feel on system - menu navigation much easier

• Move to official RTI solution – although this was deferred due to

timing of upgrade

• New functionality around loan processing/court orders

• Retirement of unnecessary customisations/elements – reduces

support requirements and complexity

• Reassurance that Payroll system was future proofed

Future Plans

36

• PeopleTools upgrade is required – currently on 8.53.03 – after PUM

Image 8 requires a minimum of 8.53.10

• Review of approach to applying PUM Images – recently installed up

to image 8 – UAT for this was intense with over 130 bugs to test

• Automation of Shared Parental Leave/ Pay based on company

enhanced policy

• Explore options around implementation of SES (Secure Enterprise

Search) for improved user experience

• Consider use of activity guides which will take the user through a

complex process in an ordered fashion

Lunch

1300 - 1400

LUNCH - will be held in the Pimlico Lounge & the Piccadilly Lounge.

Knightsbridge Room - From 13:30

Absence Management Calendar plug-in

Our pre-configured home page with improved UI

New hire Activity Guide plug-in

Our pre-configured HR Admin WorkCentre

Bring your lunch and feel free to quiz our experts!