1 Copyright © 2012, Oracle and/or its affiliates. All ...amcpeoplesoft.com/site/CON8956.pdf · Primavera P6 Create Project Create High Level WBS & Budget Add Detailed Activities

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 1


Managing Capital Projects and Assets with PeopleSoft Projects and Primavera Applications Session ID: CON8956

Mark Rosenberg, Oracle

Paul Martin, Western University Canada

Mike Castronovo, AMC

Janardhanan Sankar, ITC Infotech


The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a

commitment to deliver any material, code, or functionality, and should not be relied upon in

making purchasing decisions. The development, release, and timing of any

features or functionality described for Oracle’s products remains at the sole discretion of

Oracle.

Safe Harbor Statement


Agenda

Oracle’s Blueprint for Capital

Infrastructure Management

Focus: Capital Project Management Use

Cases & a Look Inside PeopleSoft

Projects, Assets, & Primavera

Applications

Managing Capital Asset Infrastructure at

Western

Why the Attention on Capital Projects &

Assets?


It’s such a time sink for our project

managers & finance staff every week

gathering and updating project

progress so that we can forecast cash

flow and drive our financial processes!

It would save our program finance

staff a lot of work and improve our

project managers’ ability to head

off problems if the project

managers always had current

budget, commitment, and actuals

readily available when working on

project plans!

When we change business

process, it’s so difficult and

costly to re-design the data

flows and the IT infrastructure

supporting our project lifecycle!

The facilities construction and billable

services teams continually overrun the

budget, and we find out they are

behind schedule too late to do

anything!

The All-Too-Common Reality of Managing Infrastructure Manual Business Processes, Information Latency, & Lack of Visibility


Oracle Blueprint for Capital Infrastructure Management

Portfolio Finance Mgmt

Portfolio Governance

Portfolio Planning & Budgeting

Primavera P6

Primavera Portfolio

Management (ProSight)

Primavera Contract

Management

Time Mgmt

Project Scope Mgt

Content Management

Project Risk Mgmt

Project Schedule Mgmt

Project Allocations/Burdening, Costing, Capitalization, Funds Dist.

Project Cost Reporting

Ap

plica

tio

ns

P

rocesses

Project Monitoring

Portfolio Analysis

Benefit & ROI Mgmt

Asset Maintenance & Tracking, Lease Administration

Project Planning, Budgeting, & Resource Management

Financial Accounting, Chargeback

Contractor/Supplier Negotiation & Financial Management

PeopleSoft

Project Costing

Program Mgmt

---

Asset Management

Maintenance Mgmt

Real Estate

---

Supplier Relationship Apps

---

Supply Chain Apps

Project Contractor Management

Project Analytics

Oracle BI Suite

P6 Analytics

Financial Analytics

Supplier

Analytics

Infrastructure Planning

Hyperion

Financial Analysis

Supplier Analysis

Infrastructure Visualization & Modeling

AutoVue & WebCenter


Capital Infrastructure Management Use Case Schematic

PeopleSoft

Primavera P6

Create Project

Create High Level WBS &

Budget

Add Detailed Activities & Resource

Assignments

Schedule & Budget

Record % Complete, Progress Updates

Analyze

Incur Actuals &

Commitments Analyze

Invoice

& Capitalize


Capital Infrastructure Project Process Flow Schematic

Create & Plan Project

P

rim

ave

ra P

eop

leS

oft

Create Project Create Standard

Budget

Add to Long

Range Capital

Plan

Record Project

Approval

Create Asset

Update Project

Budget per Exec

Approval

Update Schedule

and Assign

Resources

Define Project

Scope in Detail

Create Project

Schedule and

Work Plan

Initiate Project

Startup

Develop RFP

and Select

Vendors

Negotiate and

Award Work

Create PO

Contract


P

rim

avera

P

eople

Soft

Synchronize

Master Data with

Primavera

Setup Detailed

Budgets

Create Purchase

Orders

Create Detailed

Contracts

Approve Project

Budget Changes

Manage Change

Requests

Receive Request

for Progress

Payments

Create Voucher Create Payment

Update Cost

Worksheet with

Actuals

Tracking can occur at a summary level

Tracking typically occurs at a detailed level

Create

eProcurement

Requisitions Capitalize Project

Costs Distribute Funds

Capital Infrastructure Project Process Flow Schematic Manage Commitments, Spending, and Financial Accounting


P

rim

ave

ra P

eop

leS

oft

Receive Request

for Progress

Payments from

Vendor

Approve Voucher

and Pay

Track Detailed

Progress and

Performance

(schedules, daily

reports, meetings,

etc .)

Compare Detailed

Line items to

Actual Work

Performed

Create Voucher

Financial Analyst &

Project Manager

review and approve

Actual Project

Costs & Payment

Status Updated

Update and

Generate Cash

Flow Forecasts

Voucher Checked

against Budget

Capital Infrastructure Project Process Flow Schematic Manage Progress, Applications for Payment, & Payments


Create Project

PS-MC

Create projects from templates,

Primavera P6, copies of other

projects

http://rtdc78301qaemt.us.oracle.com:4000/psp/ep910mgtnt/EMPLOYEE/ERP/c/CREATE_PROJECTS.PC_BUD_GENERAL.GBL?FolderPath=PORTAL_ROOT_OBJECT.EPCO_PROJECTS.EPPC_REQUEST_BUDGET.EP_PC_BUD_GENERAL_GBL&IsFolder=false&IgnoreParamTempl=FolderPath,IsFolder


Create Project Create High-Level Activities for Project

PS-MC

Establish key activities for

tracking and accounting for

projects


Create Asset

PS-MC

Establish asset against which

costs will capitalize


Create Asset Define Asset Including Operations & Maintenance Information

PS-MC

Establish operations &

maintenance information

regarding asset


Synchronize Master Data with Primavera

Link PeopleSoft & Primavera

P6 instances & share

master/control data


Synchronize PeopleSoft & Primavera P6

Master Data

Project Header

WBS/Activities

Budget

Resource Assignments

Actual Financial Costs

Commitments

Hours Worked

PeopleSoft Primavera P6

Project Team

Time Entry

9.0

New for 9.1 +

*9.1+ adds support for

multiple P6 instances


Create Project Plan: Schedule & Assign Resources

Use Primavera P6 to

establish detailed project

plans, including the project

and resource schedules


Compare Project Budget & Planned Costs in Primavera P6

Help project teams

manage to budget


Manage Contracts, Documents, Changes, & Requests for Payment

Tightly control contractor issues,

submittals, requests for payment,

deliverables, emails, etc.


Create PO Contract

Create PO contracts for

authorized project work and

spending


Create Purchase Orders

Release POs against the

project


Approve Project Budget Changes

Track and approve

budget changes

officially


Create, Approve & Pay Vouchers

Create, route,

approve, and pay

contractor & supplier

invoices


Capitalize Project Costs

Efficiently capitalize

construction project costs

by a variety of rules


Manage Funds Distribution Establish & apply rules for

tracking funds from multiple

sources


Perform Maintenance & Analyze Asset Performance

Analyze failure & maintenance

cost trends to make better

decisions


COMPANY OVERVIEW

• One of India’s fastest growing global IT and IT-enabled services companies

• Industry: Professional Services based out of India with footprint s across the globe

• Employees: 5,500 • Revenue: US$170 million

CHALLENGES/OPPORTUNITIES

• Deploy a integrated project management system that delivers a consolidated view of projects across the organization

• Reduce time and effort for aggregated reporting • Increase the visibility of project milestones and

reduce overall project management time • Provide necessary inputs for effective Human Resource

management

SOLUTIONS

• Primavera P6 Enterprise Project Portfolio Management Release 8.1

• PeopleSoft Financials 9.0 with integration to Primavera

CUSTOMER PERSPECTIVE

“The Primavera P6 Enterprise Project Portfolio Management

system delivers a consolidated view of projects and

resources through configurable dashboards and views, and

allows two-way integration with PeopleSoft Financials 9.0,

using out-of-the box templates. This seamless integration

enabled us to closely monitor our projects’ progress, and we

expect to reduce overall project management time by 10%

to 15%”

G. Lakshminarayanan, VP―Project Management

Center of Excellence

RESULTS

• Generated aggregated reports up to 50% faster

• Allowed project managers to make better decisions about

future reviews and actions

• Expected to reduce project management time by 10% to 15%

• Improved communication with customers and partners by

providing detailed reports about a project’s progress

• View of resource usage across projects and their availability

helps in future resource planning

“Oracle Primavera has improved customer service by enabling closer monitoring of a project’s

progress and reducing overall project management time by an estimated 10% to 15%”.

ITC Infotech

Managing Capital Projects and

Assets with PeopleSoft Projects

and Primavera Paul Martin CGA, P. Mgr.

Director Facilities Management

October, 2012

Facilities Management

October, 2012

Today’s Agenda 1) Current environment

2) Capital project control before and after

Primavera and Project Costing

3) Implementation goals & approach

4) Results & Lessons learned

5) Process Map & P6 Dashboard

Western University Structure • Research Intensive University

• 35,000+ Students

• 3500+ Staff and Faculty

• Operating Budget - $555 M

• Research Budget - $208 M

• Capital Budget - $150 to $200 M

• Located in London, Ontario, Canada

Campus Geography • Main campus - 155

hectares/380 Acres

• Land Holdings – 480 Hectares/1175 Acres

• 15 KM (9.5 Miles) Roadway

• 93 Buildings

– 9 Residences/ almost 5000 beds

– Growing

Annual Projects •200 – 300 capital & Infrastructure projects

•$10,000 to $3 Million

•Infrastructure, Classroom and Lab enhancements

•10 – 15 medium projects

•$5 to $15 Million

•Renovations, Major Infrastructure

•4 – 5 major projects

•$15 to $100 million

•New Building

•Major retrofit old buildings to new standards

•$150 to $300 million budget

Staffing levels

•Internal staff

•20 Project coordinators, Managers and Engineers

•100 Trades persons (includes 6 person project crew)

•5 Design persons • External

•30 to 40 General contractors

•20 to 35 Consultants and Architects

PeopleSoft Environment

• PeopleSoft 9.1

• Modules – GL, AP, PO, Billing, A/R, Grants, Travel

Expense, Project Costing, Program Management

• People Tools 8.50

• Commitment Control and Control Budgets in Track only

setting

• One Business Unit

• Chartfields used – Fund, Department, Project and

Account

Capital Process before Primavera • Excel spreadsheets and PeopleSoft Financials ledger

for budget and cost control

• Email for tracking correspondence

• General Contractors control schedule and project in

their systems

• No ability to do “What if” scenarios

• Reporting sporadic and inconsistent

Capital Process After Primavera

• Increased transparency, accountability and collaboration

• Project risk reduced

• Dashboard showing project health

• Repository for all project correspondence and decision

• One version of the truth – integration with PeopleSoft

Implementation goals • Run projects within Primavera

• Integration is triggered through events

• Move only projects related to capital projects

• Ensure GL $ = Project Costing $ = Primavera P6 $

• Use an implementation Partner with a good track record– SAR Associates

Inc

• Quick implementation (less than 1 year)

• No customization

• Prototype strategic projects

• Map business process – Industry best practices

Results • Primavera running in eight (8) months with 10 strategic

projects • Integration Partner selected - SAR Associates Inc • No customizations • Core team trained & external consultants using the product • Integration to PeopleSoft - manual process • Dashboard in P6 running for all major projects four (4)

months after go live • Integration to PeopleSoft scheduled to go live March 2013

Lessons Learned • Implementation partner must have knowledge of

construction rules in your operational area

• Mapping business process start early

• Leave more time to deal with Finance and integration

• Dedicated team required and direct input from user(s) of the process

• Clearly define your definition of project measurement

• Change management a must

Business Process Map

Primavera P6 Dashboard

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 13 44

Why the Attention on Capital Projects & Assets?


Market Trends What’s Happened Impacts and Trends

Financial Drivers

• Market Crash 2007/2008

• Increased pressure to do more with less

• Changes in the ways assets are valued, now includes

operational performance objectives

• Triple Bottom Line Returns - (Economic, Environmental,

and Social)

• Regulations -Public Sector Accounting Board –(PSAB-3150)

Environmental - Resources

• Sustainable Development and Resource

Conservation

• Fukushima

• Climate Change

• Damaged Stakeholder Relations/high cost of remediation

• 2009 Executive Order – 13514 – Responsible

Environmental Stewardship –(Energy, Water, Waste

Reduction).

New Science and Technology

• Asset repurposing to increase value

• Multi-Purpose Assets

• Waste /Recycling/Prevention /Smart Systems

Boundaries are changing of what an asset is. (cell phone-GPS,

tablet-Library, virtual office, etc.)

• Asset Reengineering – Repurposing

• New Types/ Classes of Asset / reporting – all changing

• New ways to reduce /eliminate waste (flow sheet

reengineering) – (Mining, Utilities)

Social

Changing customer expectations (24/7)

Social Licensing

Maximize the value of the asset; include local stakeholders

including in design, approval, build, management…


Best Practices / Standards Asset Management - ISO 55000, 55001, 50002 – (2014)

Involves the coordinated and optimized planning, asset selection, acquisition/development, utilization, care (maintenance) and ultimate recycling, disposal or renewal of the

appropriate assets and asset systems

• 55000 - Overview concepts and terminology

• 55001 – Good Asset Management – “an Asset Management System”

• 55002 – Best Practices for implementing these systems

• Project Management Institute (PMI)

Environmental and Resource Management

• “Comprehensive extraction” – disturb the ground once; extract all resources

• “Energy basin management” – integrated approach e.g. oil and gas, uranium and phosphates managed together

• ISO 14000 – Series – Environmental Standards and Good Practices

Reporting and Governance

• 2009 - United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources - (involves all major stock exchanges and both oil and gas

and mining sectors)

• Responsible Mineral Development – World Economic Forum (2011)

Reserve or Resource – Balance sheet impacts / integration for more wealth

Quality Assurance

Centers for Medicare Services - (CMS) – 5 star rating based on facility performance (health care inspections, Staffing, QM’s) - Omnibus Reconciliation Act of 1987,2013


Customer Blueprints – Stepwise Transition - ALM/PPM(P6) Customer Challenge Competencies Needed Initial PeopleSoft Applications Potential Future

Applications

Public Utility - Nuclear

Extend Asset Life - (2 Billion)

Enterprise Performance Management,

Centralized project requests, Manage

portfolio investments

Primavera P6, Program Mgnt, Project

Costing,

EPM–Balanced Scorecard

EPM-Project Portfolio Mgmt

Asset Management –(now

Done), Maintenance

Management

City – Canada

Meet Regulatory Compliance

Project Management

Asset Management

Lifecycle Cost Analysis

Asset Management, Project Costing,

Maintenance Management

City – US-EPA Consent Decree

Improve Stakeholder Relations

Asset Reengineering- (3 Billion)

Triple Bottom Line Accounting (TBL),

Capacity Building, Strategic Planning,

Business Case Evaluation, Cost

Management, Scheduling, Risk/Issue

Mgnt, EVM,

Program Management, Project Costing,

Primavera P6

Activity Based Management

Planning and Budgeting

DOE/DOD – Asset Reengineering

Transition to new business model

System Consolidations

Cost Management

Strategic Planning, Budgeting /

Forecasting

Performance Management

Cost Management

OBIEE, Project Costing, Primavera 6,

Services Procurement, Hyperion

Asset Management,

Expenses, Maintenance

Management

Retail –Transportation - Global


Better Cost Management

Global Standards

Performance

Cost Management

Global Standardization


Central Asset Repository

Maint Mgnt, Asset Mgnt, Project Costing,

IT Asset Management

Supplier Relationship Apps

University - US

System Modernization

Infrastructure management Grants, Project Costing , Asset

Management, Contracts

Maintenance Management

Key Things to Know Regarding Primavera P6 Integration

PeopleSoft Program Management PeopleSoft Project Costing

Primavera P6 PeopleSoft 9.1 Integration to Primavera P6 R8.1

•PeopleSoft Program Management 9.1 & Project Costing 9.1

•PeopleTools – 8.50.14(or later) or 8.51.07(or later)

•Primavera P6 Enterprise Project Portfolio Management R8.1

PeopleSoft 9.0 Integration to Primavera P6 R8

•PeopleSoft Program Management 9.0 & Project Costing 9.0

•PeopleTools – 8.50.14(or later) or 8.51.07(or later)

•Primavera P6 Enterprise Project Portfolio Management R8

How:

• The integration between PeopleSoft Projects and Primavera P6

is a component of the PeopleSoft Program Management

application.

• The integration uses PeopleTools Integration Broker & web

services.

• This is a point to point integration. There is no additional

middleware needed.

• Find More Information: • MyOracle Support postings 1301277.1 and 1301265.1


Oracle Open World 2012

PeopleSoft Projects (ESA) & Assets (ALM) Session Schedule

Session ID Title Presenter Date/Time Location

CON8956 Managing Capital Projects & Assets with

PeopleSoft Projects & Primavera

Mark Rosenberg, Oracle

Paul Martin, Western University Canada

Mike Castronovo, AMC

Mon

10/1/2012

10:45 AM

Westin Market Street

Second Floor

Olympic

CON8953 PeopleSoft Projects (ESA) & Staffing

Release 9.2: Overview & Roadmap

Brian Ellis, HDR

Donna Pryor, BDO

Tues

10/2/2012

5:00 PM


Third Floor

Franciscan II

CON9087 PeopleSoft Expenses Release 9.2: Who

Says You Can’t Enjoy Expense

Reporting

Howard Shaw, Oracle

Kim Madden, UPMC

Beth Francis, UPMC

Wed

10/3/2012

11:45 AM


Third Floor

Stanford

CON9094 PeopleSoft Asset Management Release

9.2: Overview & Roadmap

Loida McDearis, Oracle

Claire Suplee, UPMC

Jamie Scott, HealthSouth

Wed

10/3/2012

3:30 PM


Third Floor

Stanford

CON8955 Art of the Possible: Maximizing Your

PeopleSoft Projects (ESA) Solutions

Kelly Mills, Oracle

Dave Schmida, Cardinal Point Solutions

Brett Beaubouef, Cardinal Point Solutions

Thurs 10/4/2012

11:15 AM


Second Floor

Olympic

CON8957 Upgrading a Project-Driven Service

Industry Leader to Release 9.1 of

PeopleSoft Projects

Howard Shaw, Oracle

Sathish Venkataraman, Cognizant

Thurs 10/4/2012

2:15 PM


Second Floor

Olympic

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 50 Click images for more information

Information Portal Hosted & Mobile

PeopleBooks

Doc Home Pages and Enterprise Integration Point

Maps

Video Feature Overviews Cumulative Feature Overview & Upgrade Resource Report Tools

Business Process Maps & Entity Relationship Diagrams

Learn More PeopleSoft Information Development Resources

http://www.oracle.com/us/products/applications/054275.html

http://www.oracle.com/pls/psft/homepage

http://twitter.com/

http://www.oracle.com/technetwork/documentation/psftent-090284.html

https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&doctype=SYSTEMDOC&id=1117033.1



https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&doctype=REFERENCE&id=845867.1

http://download.oracle.com/docs/cd/E18171_01/EIPAPP91/index.html

http://blogs.oracle.com/peoplesoft/

http://www.youtube.com/user/PSFTOracle?feature=mhum

https://support.oracle.com/epmos/faces/ui/km/DocumentDisplay.jspx?id=1362821.1

http://www.facebook.com/pages/Oracle-PeopleSoft/220476464680933

https://support.oracle.com/CSP/main/article?cmd=show&type=NOT&doctype=REFERENCE&id=1061003.1


http://www.linkedin.com/groups/Oracle-PeopleSoft-Development-4530781?trk=myg_ugrp_ovr

https://support.oracle.com/epmos/faces/ui/km/DocumentDisplay.jspx?id=1362821.1


Graphic Section Divider

