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Innovations in Program Controls

Integrating Oracle Primavera and Cost Systems

Presented by:Javier Sloninsky

Managing DirectorApril 13, 2011

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Agenda

Speaker intro

Corporate Introduction

Overview of EcoSys Enterprise Planning & Controls (EPC)

Best Practices and Case Studies in Cost Integration with Oracle Primavera: • Earned Value Management, ERPs, & Alternate Breakdown Structures• Funds Management and Integrated Performance

Q&A

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Founded in 2000

Enterprise Project Controls Software Experts

Designers & Developers of original Primavera P6 and EcoSys EPC

Professional Services

Enterprise Consulting Expertise: Project Portfolio & Cost Management Best Practices Global Primavera Implementation and Systems Integration Leader

Partnerships with Oracle, SAP, Accenture, Microsoft, IBM

200 Customers in Global 1000 and Public Sector

EcoSys Company Background

• Project Controls System Designers• Project Controls Implementers:

– Owners and Operators – Contractors

– Public sector• Enterprise architecture mindset

• Partnership approach with industry

• Constant evolution

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Our PerspectiveOur Perspective

Representative Customers

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Fundamental Cost Controls Questions

• What is the current budget and forecast? • How much has been spent? • How much funding is available and how is it being used? • How and why has my budget and forecast changed? • How is the work package/project/portfolio trending? • Where can we make improvements? • How are project schedules impacting cost? • Are we performing efficiently? • What are our commitments? • What are the contractual, funding or payment rules?

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In most organizations, Cost Controls is not a simple affair

Departmental Budgets Project ForecastsProject Budgets

Actual TransactionsCommitments

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ContractDatabase

Project Planning

General LedgerGeneral

LedgerTime Cards

JVFunding

Funds Management

Challenges for Cost Controls

Impact

• Teams of people consolidating data in spreadsheets

• Double entry

• Spreadsheet errors

• Performance reports available too late to address issues

Cost Analysts Spent 61% of Time On

“Wasteful” Activities

20%

16%

13%12%

30%

6%2% 1%

Fixing ERP Feeds

Correcting Labor Coding

Collating Internal &External ReportsManual Downloading

Monitoring & Controlling Costs

Change Management

Forecasting & Trending Analyzing Budgets & Actuals

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Source: Internal Study by EcoSys Customer

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Cost Analyst Target Utilization Provides

Much Greater Value Added

65%25%

5%5%

Analyzing Data

Forecasting &Trending

Running ReportsTroubleshooting

Source: Internal Study by EcoSys Customer

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Strike a balance between flexibility and business rule enforcement

Tailorability /Configurability Terminology Processes Reporting Metrics

Project/Cost Structures WBS CBS OBS Alternate Breakdown Structures Phases/Lifecycle

Financial data structures Actual Expenditures Accruals Revenue Commitments Pricing & Rates Multi-currency

Project schedule data WBS Cash Flows / Time Phasing Time Periods Resource loading

Successful Cost Controls Systems

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EcoSys – Full Lifecycle Project Controls

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Bridging Planning & Execution

• Import Projects/WBS from P6• Import Resources• Import Dates • Import % Complete• Import time-phased Resource

Assignments– Units (BL, actuals, planned, remaining)– Costs (BL, actuals, planned, remaining)

• Import/Map P6 Codes/Attributes– Project Codes– Resource Codes– Activity Codes– Cost Accounts– Expense Categories

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Flexible Primavera Integration Options

Different integration rules can be established for different business areas, departments, project types, etc

• Export Projects, Activities to P6• Export Actuals

– Units– Costs– Resources– Dates– Map to WBS/Activity Codes/Roles

• Export Forecasts– Units– Costs– Resources– Dates– % Complete– Map to WBS/Activity Codes/Roles

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Planning & Controls Platform

Create Projects and Build WBS in EcoSys, or import from Primavera, MS Project, SAP, etc.

Budget in EcoSys, or Import from Primavera, MS Project, Oracle Projects, etc.

Actuals from General Ledger and/or from Accruals

Import Commitments or Manage in EcoSys

Progress and Forecast in EcoSys, and compare to cost loaded schedules, contractor forecasts

Maintain Each Version in EcoSys, gaining Trending and Audit Trail

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Departments/Programs > Program > Project > Transactions

Full Drilldown Visibility

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Customizable Web Spreadsheets for data entry

Project Budgeting

Project Forecasting

Planning & Controls

Contract Commitments

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From Summary to Variance Analysis

Reporting

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Dashboards

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Configurable Cost Processes

Can set up company specific custom criteria:• Group By Capital and O&M• Filter by Outage/Online• Distribute cost manually or by curve

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Compare/Reconcile P6,Cost Data

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Capital Project Budgets Report

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Project Controls Best Practices

• Babcock & Wilcox, Nuclear Power Generation company, establishes EVM standards and reporting mechanisms

• FAA implements Capital Program Management System integrating Long Range Planning and Project Controls

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• Nuclear Power Generation & Operations company with major R&D, Construction, and Services projects in Canada & US

• Standardized on SAP and Primavera P6

• Requirement for centralized platform went beyond need for integration

• Deployed EcoSys for integrated performance management, reporting, and controls

• Utilized on B&W/Bechtel Joint Venture mPower Program (Small Modular Reactor)

Case Study

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EcoSys Integration Approach

WBSPercent CompleteLabor plans

Integrated Earned Value ManagementConsolidated Project Cost ReportingBudgets, Forecasts, CommitmentsActual Costs, RevenueChange ManagementHistorical SnapshotsTransaction/Audit Repository

SAP

Actual CostsTimesheetsCommitmentsRevenue

WBS & WBS StatusBudget

Bechtel Timesheets

Approved Change Orders

®

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• EV Technique Varies by Work Package• Full Time-Phased History of Earned Value by Month• EV Measures based on both Hours and Costs• Performance analysis by Month, Year, and Project Life• Change & Trend Management integrated into Current Budget & Current Forecast• EV Reports can be run by toggling Baseline Budget =Cur Budget or Cur FC• Ability to analyze performance & ETC by Alternate Breakdown Structures:

• Discipline• OBS• Cost Type (Labor, Material, ODCs, etc)

Highlights of B&W Approach

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Month End Closeout Schedule

Planning

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DeliverablesMatrix

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SAMPLE DATA

Standardized Performance Reporting

Cumulative & Periodic Performance

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SAMPLE DATA

Cumulative & Periodic Performance

By Project, Category Code, and EV Method

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Flexible Earned Value Analysis

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EVM Dashboards Comparisons By Alliance Partner

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CPI / SPI

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WBS and ABSPlanning Process

FAA TAMR Program

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Overview:• Terminal Automation Modernization and Replacement (TAMR) Program within Air

Traffic Control – Terminal (ATO-T) Organization• Modernize Air Traffic Control Systems at Nation’s Major Airports• High Visibility Capital Program

Capital Program Management Innovations:• Standardize Contractor Submissions with Oracle Primavera P6 Templates

• EVM Reporting performed based upon FAA’s structures• Resource loaded schedules drive budgets, forecasts and EVM in EcoSys

• EcoSys Database Consolidates Funding Allocations, Budgets, Estimates, Forecasts, Obligations, Commitments, Expenditures, Performance/EVM

• ATO-T Maintains Vendors and Own Cost and Schedule Forecasts as Separate Versions

• G/L Actuals Are Reconciled against Vendor Submissions

Case Study

FAA’s P6 and EcoSys Solution

• Project activities reported in Primavera based on standard EVM techniques such as • Physical % complete – based on weighted Steps• Level of Effort - % duration • Milestone % complete

• Integrated with EcoSys to import Units, % complete and dates • Primavera planned, Actual and Remaining units used to calculate forecast,

Actual and Remaining costs by project• Schedule and Performance % complete info that is calculated based on

duration or Steps used for EVM metrics• Dates imported used for reporting purposes

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Most Activities updated using weighted Steps

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Performance Measurement

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Program EVM Reporting

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Program EVM Reporting

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Reports / Charts

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Reports / Charts

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Example Independent EACs

• IEAC1, assumes future cost performance will be same as past performance

• IEAC2, assumes future cost performance will be influenced by 80% past cost and 20% past schedule performance

• IEAC3, assumes future cost performance will be influenced by the last 3 months cost performance

• IEAC4, assumes future cost performance will be influenced by past cost and schedule performance

Thank you!

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