jr11(595).ppt october 15, 2004 1 update finance/facilities committee meeting november 3, 2004

Jr11(595).pptOctober 15, 2004

1

UPDATE

Finance/Facilities Committee Meeting November 3, 2004


2

PROJECT ENTERPRISE ACQUISTION AND LAUNCH

• Board of Trustees approval in September 2001

• Conducted software needs assessment in winter 2001/2002

• Selected and acquired PeopleSoft in March 2002

• Spring 2002- Hired experienced project director and technical lead- Set up temporary office facilities on third floor of MPBC building

• Currently budgeted for $13 million- Financed by UMS revenue bond and interest rate swap

savings


3

PROJECT ENTERPRISE ACQUISTION AND LAUNCH (Continued)

• To be implemented over a 7 to 8 year period

- Human Resources/Payroll July 2003- General Ledger/Purchasing/ Accounts Payable April 2005- Position Management November

2004- Projects, Contracts & Grants Summer 2006- Recruiting and Admissions Spring 2006- Student Records- Student Financials- Financial Aid- Advisement- Contributor Relations

2007 thru 2009


4

GOALS OF IMPLEMENTATION

• As communicated to Board of Trustees in Sept. 2001

– Modernize aging legacy systems – we have no choice!

– Enhance integration among systems

– Improve student processes

– Provide modern reporting tools

– Provide web-enabled self service

– Redefine business processes – only through business process redesign will we have savings!

– Provide strategic advantage in recruiting and fund raising

– Position Universities of the UMS as first class institutions


5

PROJECT ENTERPRISE

GOVERNANCE AND ORGANIZATION CHART November 2004

CHANCELLOR/PRESIDENTS AND CAO’S

SPONSORS Joanne Yestramski, Chair Jim Breece, Tracy Big ney,

Elsa Nunez, Gerry Dube, Doug Gelinas, Rosa Redonnett ADVISORY GROUPS

Student Services Transformation Project Advisory Committee Student Services Campus Committees:

Admissions Financial Aid Registrars

Training Task Force Contributor Relations Task Force Campus Chief Financial Officers Student Labor Task Force IT Directors IT Planning and Policy Committee

PROJECT ENTERPRISE STEERING COMMITTEE

Doug Gelinas, Associate VP for Acad. Affairs, CHAIR Don Raymond, Registrar, UMFK Beth Shorr, VP Univ. Adva ncement & Planning, USM Frank Roberts, Dir. of Lib/Media Center, UMF Sharon Nadeau, Dir. of Business Systems, UMF John Gregory, Exec. Dir. IT, UM Tom Potter, CFO, UMM Laurie Pruett, Exec. Dir. of Admin., University College Dick Kimball, VP Acad. Affairs, U MPI Lida Pinkham, Dir. Instruct., Tech. & Sup Services, UMPI Dick Campbell, CFO, UMA Tracy Elliott, Dir. Internal Audit, System Rosa Redonnett, VP Div. of Enrollment Mgmt., USM Bill Wells, Associate Provost for Technology, USM Virginia Gibson - Business Sc hool, UM

De cision ma ke rs

• S ynthe size the informa tion • Ma na ge the proce ss • Ma ke re comme nda tions

INTERIM PROJECT DIRECTOR Cindy Mitc he ll

Quality Advisors

S TUDENT ADMIN TEAM

Aliso n Co x

FINANCIAL TEAM

Bill Elsem o re

POS ITION MANAGEMENT TEAM

Mir iam White Ann Gravelle

TECHNICAL TEAM Mark Bo yd

•Represent interes ts of overall Sys tem; maintain

ins titution -wide perspective •Champion the Project Enterprise implementation

and the accompanying cultural and process changes

•Liaison between project director and campus committees

- Serve as conduit for communication to campus

- Provide overs ight for campus Project Enterprise activities

- Represent campus cons tituencies on implementation issues

•Monitor the progress of the project agains t major miles tones

•Consider Project Enterprise related technology

decis ions

SSTP Core Committee Admissions Student Registration Student Financials Financial Aid Advisement

General Ledger Procurement/Accounts Payable Expense Projects and Contracts Grants

Manage positi ons (including vacancies) Budgeting by position Organization charts

Production Portal Database administration Interfaces Conversions Reporting

OTHER RELATED APPLICATIONS

Contributor Relations (Safari) Housing (RMS) Credit Card Processing Facility Manag ement Software

TRAINING AND COMMUNICATIONS

TEAM Cindy Mitchell

Campus Training & Communication Coordinators Training Development Training Delivery Newsletter Website


6

HUMAN RESOURCES/PAYROLL IMPLEMENTATION – July 2003

Modules Implemented for 5,000 employees and student labor

– Human Resources– Payroll– Benefits Administration– Time and Attendance– Employee Self-Service

Challenges

– They were first; inexperienced functional and technical team– Complex (multi-campus)– Self service requires significant cultural changes– Benefits of intra-system integration not yet available– Did not perform business process redesign first


7

POST GO-LIVE ASSESSMENT HUMAN RESOURCES/PAYROLL

• Completed in April 2004 by outside consultants- Presented to the Audit Committee on April 30, 2004

• Recommendations and Action Steps- Clarify roles and responsibilities between functional and technical areas- Consider centralizing data entry activities, particularly benefits- Enhance communications and training- Hire experienced professional staff where openings exist - Establish “hot back-up” environment for disaster/recovery facility- Write operations manuals - Enhance Project governance- Expand design phase to include business process redesign for all future applications- Enhance role of Project Enterprise Steering Committee members

to be campus project leaders


8

POSITION MANAGEMENT IMPLEMENTATION - October 2004

Objectives

- Ability to look at total FTE’s

- Information about vacant positions

- Total position budgeting

- Reduced data entry requirements for new hires

- Ability to track a position or a department over time

- Ability to create organizational charts


9

GENERAL LEDGER/PURCHASING IMPLEMENTATION - April 2005

Modules to be Implemented

- General Ledger- Purchasing and some e-procurement- Accounts Payable- Expenses (i.e., travel expense reports)

Challenges

- New chart of accounts - 10 to 36 characters (includes business unit)- Limited resources at System office- Application training for approximately 1,950 employees- 21 month conversion period- Numerous reports and interfaces to write- Old vendor data base clean up enormous- Some business process redesign


10

Business Process Redesign Initiative:CREATION OF STRATEGIC PROCUREMENT DEPARTMENT

Current Services:

• Administers all purchases greater than $25,000 for all campuses and System

• Creates System-wide contracts for commodity products (e.g., office supplies, scientific materials, furniture, motor vehicles). Use of contracts optional for campuses.

• Computer Connection – UM based computer sales and service organization

- assists in planning, acquisition and licensing of technology products and services for all campuses except USM


11

• With PeopleSoft as an enabler, create and enhance strategic procurement function within System-wide services resulting in significant savings ($1 million targeted in Strategic Plan):

Maximize purchasing economies of scale, mandate common commodity purchases, require all computer purchases to be centralized and procured according to standards established by IT Policy and Planning Committee

Provide synergy with other System-wide services (information technology, facilities, energy and environment, electronic banking, travel management and reimbursement, collaborative ancillary procurement)

Continually investigate and implement state-of-the-art purchasing practices and technology

Strategic Procurement Future Services:


12

Provide oversight of the procurement card system including training compliance, self-audit, rebate management

Implement, maintain and provide training for new PeopleSoft Purchasing & Accounts Payable system, including e-procurement applications

Collaborate with other higher ed institutions and with the State

Establish and monitor purchasing policies and procedures; overall increased empowerment for purchasing as a centralized function

Enhance risk management and governmental compliance

Strategic Procurement Future Services: (Continued):


13

Business Process Redesign Initiative:STUDENT SERVICES TRANSFORMATION PROJECT (SSTP)

Timing: February 2003 to December 2003

Process– Team comprised of student administration representatives from

all campuses– External consultant for facilitation– Review and document “as is” process– Identify and recommend process improvement opportunities– Presidential review– Implement as appropriate

Challenges– Campus autonomy– Team was not able to address organizational issues– Perceived conflict with campus mission– Improvement opportunities to be implemented with student

modules as appropriate


14

SSTP PROJECT FOLLOW-UP:CREATE DESIGN FOR CONSOLIDATED BACK-OFFICE OPERATIONS

Rationale

- Considerable savings expected

- Business process redesign must be implemented in order for campuses to reap savings from technology investment; must be done before software implementation

Design Proposal

- SSTP core team to continue work to design consolidated back-office operations and other efficiencies

- Led by strong internal project leader and organizational development professional

- Initial focus will be on recruiting/admissions due to PeopleSoft implementation schedule


15

Deliverables by March 2005

- Identification of back room processes

- Description of processes at the centralized and campus locations

- Incorporation of document imaging into the process improvements, as appropriate

- Proposed staffing for back room operations

- Proposed location(s) for back room operations

- System wide annual campus cost savings to be achieved ($3 million targeted in Strategic Plan from centralizing/consolidating services, including student administrative services)

SSTP Project Follow-Up (Continued)


16

PROJECT ENTERPRISE FUNDING UPDATE

• Of the $13 million set aside for the project, $7.1 million has been spent through June 30, 2004

- Software - PeopleSoft and Oracle - $3.1 million- Consulting- Paid by System

• Ongoing incremental support costs (such as maintenance, technical and training) - $1.5 million per year charged to campuses

• Hardware costs funded under base UNET budget or campus budgets (i.e., desktop hardware upgrades)


17

OTHER RELATED APPLICATIONS

Various advisory groups/retreats in 2003/2004

- Auxiliary Services (campus cards, parking, scheduling, 3rd party billing, housing, health services)

- Contributor Relations (enhanced reportingusing current software)

- Document management/imaging system

Objectives

- Collaboration resulting in cost savings- Common software applications System wide, funded by State IT

bond- Reduce/eliminate the haves/have nots


18

CONCLUDING COMMENTS

• This is a major undertaking for the University of Maine System, initiated by campus demand

• Senior level leadership absolutely required for successful implementation

• Project Enterprise necessary and crucial to replace legacy systems – WE HAD NO CHOICE!

• We must do BPR to reach our goals (efficiencies will be gained)

• Change management is our greatest challenge

• Efficiencies not fully realized until all modules implemented


19

In making decisions about the ERP Project, UMS will apply the following guiding principle s:

1. Selection of the ERP system will be determined by how well the system meets the needs of the major applications, with the student information system having the gre atest weight.

2. To the extent possible there will be a centralized System approach to implementation, while preserving and enabling the unique mission of each university.

• Multi-university model for enrollment and operations • Consistent definitions and proce dures; uniformity • System-wide maintenance and upgrades • Single person record with separate university -specific affiliations/additions • Integration across applications • Implement universal interfaces from required utility software to PeopleSoft (i.e., timecloc k, work order,

housing, campus cards, etc.) • Build foundation to enable future flexibility, where cost effective

3. Solutions will not be customized. UMS will not make modifications to the software.

4. Business processes will be re -defined to coincide with bes t practices built into the software design. Common procedures will be developed to result in operational efficiencies and wide spread knowledge.

5. Use of web -based self -service applications will be expanded for all constituents.

6. The system will be designe d to provide ease of maintenance of desktops.

7. Analytical reporting tools will be user friendly and will add value.

8. Current staff will be retrained with new software architecture.

9. Functional systems will be implemented in a timeframe and order that minim izes interfaces and bridges to legacy systems.

10. Only emergency changes to legacy systems during ERP implementation.

11. Final decisions regarding overarching policies and permanent changes will be made by Presidents/Chancellor.

12. Commitment to on -going communi cation with presidents and key stakeholder groups

GUIDING PRINCIPLESATTACHMENT


20

1. Each university will pay for any needed desktop equipment. 2. Each university will continue to pay the salary and travel costs of their staff members mutually selected to work on the project, including those dedicated to the project. 3. All universities wil l contribute human resources to the project. 4. There will be no System funding to backfill positions of staff dedicated to the project. 5. Project timelines must be met. 6. All universities will contribute to the maintenance costs for the ERP system.

PROJECT OPERATING PRINCIPLES

jr11(595).ppt october 15, 2004 1 update finance/facilities committee meeting november 3, 2004

Documents

experienced project

associate vp

business systems

business process redesign

sup services

process changesliaison

advancement planning

implementation issuesmonitor