204520 eskom sa case study

From The Cradle To Evolution Of A

Primavera Enterprise Implementation(Eskom SA Case Study)

Presenters:

Raymond Poole - PMIS Ltd.

Geoff Roberts – Oracle Primavera

• Provide a holistic view of how a Primavera Enterprise

Solution evolves from being a Vision (concept) to a Reality

• Provide Lessons Learned for such implementations

• Transfer of knowledge to audience

OBJECTIVES…

The Challenge For This Presentation…

Raymond Poole – Managing Director PMIS Ltd.

Project Manager on Eskom (South Africa) Oracle Primavera

Implementation Project JAN-2011 till DEC-2012

Geoff Roberts – Oracle Primavera Strategy Manager

Solutions

Responsible for Selling the Vision to Eskom

Oracle Primavera QA/QC Manager on Eskom Project

PRESENTERS…

Eskom…

Eskom generates 95% of electricity used in South

Africa and approximately 45% on the continent of

Africa

Eskom’s capacity expansion budget is R385 billion

up to 2013 and is expected to grow more than a

trillion Rand by 2026

Eskom’s strategic direction is to:

"To drive investment, efficiencies and transformation in its portfolio of

State Owned Companies, their customers and their suppliers to unlock

growth, create jobs and develop skills."

Timelines…

• Selling the Vision SEPT – DEC 2010

• Proof of Concept (PoC) JAN – JUN 2011

• Gx Upgrade (3 Sites) JUL – OCT 2011

• Go Live (Pilot Site) NOV 2011 – MAR 2012

• Gx Readiness Assessment MAR – MAY 2012

• Embedment & Post Go Live Support JUN – NOV 2012

The Vision…

• To support Eskom GCD in its creation of a World

Class centre of excellence for Project

Management

Primavera supports the creation of a

world-class centre of excellence on

capital projects

Group Capital mandate

To create a centre of excellence in the allocation of capital at the group level and in the

planning, development and execution of projects

▪ Optimise the Group-wide capital portfolio and allocate funds

– Allocate and optimise the full capital portfolio including Research and Pilots, capacity

expansion projects and refurbishments

– This does not include Routine Maintenance or Outages

▪ Conduct central planning and execution of projects within GCD that fulfil the following criteria:

– High interdependency in the execution of the project between divisions or between

business units requiring central coordination

– Projects covering multiple sites or regions where central planning and execution

optimises resource allocation

– Strategic or high risk in nature

Note: Projects will not be determined by value

▪ Act as the custodian to standardise and monitor capital projects across Eskom

Group Capital mandate

To create a centre of excellence in the allocation of capital at the group level and in the





– This does not include Routine Maintenance

▪ Conduct central planning and execution of projects within GCD that fulfil the following criteria:






Note: Projects will not be determined by value


PCM/Unifier enables organisation to effectively manage there portfolio of

capital Projects

Group Capital mandate To create a centre of excellence in the allocation of capital at the group level and in the





– This does not include Routine Maintenance

▪ Conduct central planning and execution of projects within GCD that fulfil the following

criteria:






Note: Projects will not be determined by Rand value


Primavera is a highly collaborative Project and Program management

solution that will enable Eskom GC to effectively manage there projects in

execution, including the management of schedule, resources, forecast

cost and risks

We are creating Group Capital to build a world-

class centre of excellence on capital projects

Current challenges

Build a world-class

centre of excellence on capital projects

▪ Create the oversight, transparency and control

required to manage Eskom’s significant capital spend

over the next seven years – Integrated Oracle

Primavera stack

▪ Approach the planning and execution of capital

projects in a more integrated way - Integrated Oracle

Primavera stack

▪ Reflect the changing context of Eskom - PCM/Unifier

▪ Increase public confidence in Eskom and enable us

to better defend rate increases – Web services feed to

GIS/BI

Objectives

World-class capital organisations

▪ Data administration – compliance of data entry into a centralized

database, system improvements

▪ Ensure visibility and transparency on project status

▪ Prioritise and accelerate the launch of high-value projects

▪ Draw up business plans:

– Review and support proposed plans

– Originate and execute proprietary business cases

Economic

analyses

Technical

support

System

integrity

Best practice

▪ Allocate capital - set budget size, timing and distribution

▪ Optimise the portfolio - balance risk and return, ensure smooth cash flows

▪ Review projected vs. post-completion results

Portfolio

allocation

2

3

4

1

▪ Maintain, foster and share best practices via guidelines/training

▪ Improve negotiation power in strategic sourcing, as suppliers are usually

the same for multiple projects

▪ Optimise project support by providing assistance to project teams

World-class capital organisations

▪ Data administration – compliance of data entry into a centralized

database, system improvements

▪ Ensure visibility and transparency on project status

▪ Prioritise and accelerate the launch of high-value projects

▪ Draw up business plans:

– Review and support proposed plans

– Originate and execute proprietary business cases

Economic

analyses

Technical

support

System

integrity

Best practice

▪ Allocate capital - set budget size, timing and distribution

▪ Optimise the portfolio - balance risk and return, ensure smooth cash flows

▪ Review projected vs. post-completion results

Portfolio

allocation

2

3

4

1

▪ Maintain, foster and share best practices via guidelines/training

▪ Improve negotiation power in strategic sourcing, as suppliers are usually

the same for multiple projects

▪ Optimise project support by providing assistance to project teams

PCM/Unifier

PCM/SAP IM

UPK

Oracle Support

Unifier/PCM

P6

Analytics

▪ A clear system that enables us to improve our capital portfolio in line with Eskom’s

overall strategic direction and resource availability – P6/PCM (Unifier)

▪ A coordinated, improved investment approval that helps us make the right decisions

at the right time and prioritises our capital spend

▪ New, standardised processes, procedures and systems that boost our efficiency

even further - UPK

▪ Synchronisation between businesses that helps us execute faster and more

smoothly – P6/PCM (Unifier)

▪ More efficient use of our scarce and valuable resources - P6

▪ New opportunities to develop our talent

▪ Learning from sharing information and experience across projects and businesses

Benefits

Role of the GCIC

▪ Create transparency on existing capital portfolio: all capital budget must

go through the GCIC initially

▪ Allocate capital to portfolio and set overall financial boundaries and

constraints

▪ Approve appropriate/important business cases1 and release discretionary

divisional capex budget

▪ Monitor progress of overall capex project execution

▪ Perform detailed review on selected projects (e.g., high risk, high value)

▪ Approve standards in systems, tools and methodology

Role of the GCIC

▪ Create transparency on existing capital portfolio: all capital budget must

go through the GCIC initially

▪ Allocate capital to portfolio and set overall financial boundaries and

constraints

▪ Approve appropriate/important business cases1 and release discretionary

divisional capex budget

▪ Monitor progress of overall capex project execution

▪ Perform detailed review on selected projects (e.g., high risk, high value)

▪ Approve standards in systems, tools and methodology

Summary

The Oracle Primavera Program management

solution when integrated with SAP will provide

Eskom with an Enterprise business solution

utilising Best in Class Project Portfolio

management tools

Contract ManagementChange ManagementContract Management

Claim ManagementIssue Management

P6Project Management

Risk ManagementProject Scheduling

Resource Management

P6 ERD + P6 Analytics

Business Process Management (Sample Workflows to be tested in Wave 1)

Integration with SAP Applications (Inspire)

Risk AnalysisQuantitative Risk Analysis

Quantitative Risk Management

Oracle Primavera’s Integrated Program Management for Mega Projects

Portfolio Management(Pilot done on GCD Program delivery in Wave 1)

Proposed

Oracle Universal Content Management(Deployed in Wave 1 ,Until Sharepoint is available in 2012)

Current Ownership (not Enterprise)

Owner

Primavera

Database

Best in Class - Architecture

Original Vision of Implementation Timeline…

Nov 2010 Initial

Proposal

1st Dec 2010 Contract Award

10th Jan 2011 Wave 1

Commence

31st Mar 2011 UAT

Complete

31st May 2011 Optimized Solution

1st Jun 2011 Wave 2

Commence

30th Sep 2011 Wave 2

Completion

31st Dec 2011 Wave 3

Completion

31st Mar 2012 Wave 4

Completion

Constraints & Difficulties Encountered…

• Tight timelines due to Client Resources not fully

assigned to implementation project

• IT Infrastructure not readily available at time of

implementation

• Misinterpretation of requirements vis-á-vis

centralised system for Head Office Vs Site Set-up

• Dependencies on other projects outside of our scope

Interpreting The Vision

Implementation Vision Vs Reality

Vision

Commence With Pilot

4 Environments Required for Pilot• Development

• QA/QC

• Production

• Training

User Acceptance Testing (UAT) Pass Rate 80%

Cookie Cutter Template for Roll-Out

Reality

Commenced With Proof of Concept

Only 1 Environment Available for PoC• As a Result Created Multiple P6 R8

Databases

• Similarly created multiple PCM Databases

Factory Acceptance Testing (FAT) Pass rate 60% before it would be brought

to User Community with

Adjustments/Improvements made

User Acceptance Testing (UAT) Pass rate remained at 80%

Diverse range of needs and

requirements across business

prevented Cookie Cutter Roll-Out

Organization Readiness Vision Vs Reality

Vision

Smooth transition from one Phase of

the Project to next Allow for Continuity of Implementation

Team

Maintain Momentum

Build Close working relationship with

Client counterparts

Reality

Stop-Start Due to Commercial

Restrictions Core Team maintained but numerous

additions of new personnel to team

Lost momentum

Team-building cohesiveness required

Trust between all Consulting parties

Human Change Management

Pitfall

Underestimate at your peril

Outsourced Human Change

Management agent with no visibility to

end user community

Non-Technical Agent unfamiliar with

systems been implemented

Non-assessment of end user

community prior to implementation

Lesson Learned

Human Change Management Agent

must be engaged from the outset

(even before implementation team

assembles onsite)

Preferably Agent should be a member

of the Clients HO team

Agent should have understanding of

concepts and applications

Agent must be able to Walk the Walk

and Talk the Talk with end user

community

Technical Readiness

Vision

IT Infrastructure capable of managing

a Web based centralized solution

Swift and easy access to necessary

Hardware

Installation and IT Configuration within

first 4 – 6 Weeks

Reality

Internet connectivity a challenge

within the continent of Africa

All large organisations move slowly

through paperwork trail

Installation encountered many

problems due to first ever complete

Red Stack Commercial undertaking

Managing Stakeholder Expectations

Pitfall

Assuming who the Stakeholders are

Unclear Scope definition

Poor Project Charter

Unrealistic timelines in the Schedule

Lesson Learned

Draft up a proper Stakeholder Chart Understand who your audience is

Spend the time at the outset

collaborating with the Client on the

drafting of the: Scope

Project Charter

Risk Register

Schedule

Milestone Dates

Communication & Cultural Challenges

Pitfall

We may all speak English but do we

understand one another?

Beware of Acronyms – They don’t

always mean what you think they do SAP WBS = Primavera CBS

Implementation Team was made up

of: South African

American

Spanish

English

German

Irish

Lesson Learned

If people look confused when you are

talking probably because they are!

Better to explain in detail too much

than at a high level too little

Somebody hearing you is not the

same as someone listening to you

Take time out to get to know the

people, culture and background

before assuming as a Consultant you

know it all

Team building extremely important

Earn the trust and respect of the client

Our Enterprise Implementation Journey

• Raymond Poole:

• E: [email protected]

• W: www.pmis.ie

• Follow PMIS Ltd on Facebook, Twitter, and LinkedIn

CONTACT DETAILS…

mailto:[email protected]

http://www.pmis.ie/

Any Questions…