primavera eppm in asset-intensive organizations
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Primavera EPPM in
asset-intensive Organizations
Presented by:
Parminder Singh
Sr. Business Analyst & Implementation Lead
Gaea Global Technologies
Session ID#:
Agenda
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. . Case
Studies
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. . Topic
Introduction
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. . Solution Approach
& Benefits
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. . Problem
Statement
Problem Statement
In most asset intensive industries, it is very critical to keep the projects, demand supply &
procurement in check. Over the years we have seen the number of projects / organizations
impacted due to in-accurate demand supply, in-efficient project tracking & loiter procurement.
Common problems faced if there is no Project Management in “Asset Intensive” Organization
Project Management Team
• Lack of end to end project lifecycle tracking & visibility among repetitive projects.
• Difficulty in identification of reasons for Cost & Schedule over-run due to cross project dependencies
• Fore-sighting the delays & failing to make required adjustments
• Failing to meet critical project milestone dates
Supply Chain Team
• Consolidated & Time based Project demand
• Demand accuracy
• Real Time demand change’s/updates as per changes in execution plan
• Inability to communicate real time progress to Project Team.
Procurement Team
• Accurate procurement plan
• Failing to keep procurement plan in sync with project schedule
• Insufficient data to leverage economies of scale
Problem Statement Cont.. D
em
and
P
lan
nin
g P
rocu
rem
en
t
Consolidated Demand
100 % accurate Organization wide consolidated demand
Demand fulfillment status &
recommendations to project team
100 % information to equip procurement team to leverage
economies of scale
Demand revisions from Project Team
Demand Source information
Basic problems faced when Project Management, Demand Planning & Procurement teams don’t share single source of truth & work in more isolated environment.
Projects Project Demand Real time revised project demand
Demand fulfillment status & Recommendations
Pro
ject
M
anag
em
en
t
Negotiated price information to project team
No
n s
ou
rced
d
eman
d
Inac
cura
te
Dem
and
No
re
al t
ime
up
dat
es
Inac
cura
te
con
solid
ate
d
de
man
d
Lack
of
R
eal t
ime
in
form
atio
n
No
info
rmat
ion
to
pro
ject
tea
m
Topic Introduction
This topic defines how Primavera EPPM could help demand supply and
procurement intensive industries alias ‘Asset Intensive’ to use single source of truth
for the organization wide consolidated demand and leveraging the same to increase
accuracy of demand supply and enhance economies of scale, which directly
increases revenue for the organization.
“Does Project Management, Demand Supply & Procurement Management department in your organization work in sync ? “
Solution Approach
Real time status update to project team across the procurement life cycle.
Procurement cycle execution & tracking & Execution of effective Procure to Pay cycle.
Procurement plan communicated to purchasing team.
Organization wide procurement plan generated by supply chain engine.
Feeding real-time consolidated project demand to supply chain engine
Validation & Extract Approved / Baselined consolidated demand from Primavera EPPM
Project level/Business Unit level/Country/ Organization level demand plan preparation in Primavera EPPM
Organization level plan
BU / Country level plan
Project level plan
Primavera EPPM
Deriving Organization
level consolidated demand plan
Supply Chain Management
Processing demands
Benefits
Co
nso
lidat
ed
De
man
d
Detailed Demand
Demand Supply
recommended for Demand
Process
Supply recommendations review/approval
by planner
Approval Execution by procurement
team Procure
Rec
om
men
dat
ion
s
Pro
cure
men
t St
atu
s u
pd
ates
to
Pro
ject
s
Revised Demand as per recommendations
Project Management
•Assess status of on-going project in terms of schedule, cost and profitability
•Better visibility & control of complete project lifecycle.
•Nullify project delays & maximise savings.
Demand Supply
•Organization wide consolidated demand from single source.
•Reduce Planning Cycle Time
•Comprehensive Distribution Planning
•Increase planner productivity and reduce decision making latency & reduces manual errors
Procurement
•Aggregating demand & leverage on economies of scale
•More realistic & accurate information for better negotiations.
•Increase savings for the organization & increases revenue.
•Reduction in bottom line cost to maximise profitability
Procurement status
Project Structuring in Primavera EPPM
Parent Org
Continent 1
Country 1
Region 1
BU 1
Project 1 Project 2 Project …
BU ..
Region 2
BU .. BU ..
Region …
BU .. BU ..
Region …
BU ..
Country 2
Continent 2
Country …
Continent 3
Resource Management in in Primavera EPPM
1. Resource Management by country. 2. Resource rates maintained by country,
for better control on Exchange rates & revisions.
3. Resource categorization. 4. Master Attribute management makes
life of PMs much easier to identify / search respective resources for a Country & Type.
5. Easier to manage & maintain. 6. Easier to restrict & maintain data
accessibility to different users.
Category Region Country Org
Org USA
NYC T-Comm
Infra Others
India
Project Budgeting in Primavera EPPM
1. Standardized project management guidelines & policies. 2. Standard project templates 3. Accurate project schedules & better control over Planned Quantities 4. Better control over revisions & updates at different stages. 5. Better control over baselined historical data for analysis.
Project level demand verification & Baselining in Primavera
1. Once the demand is made & verifier the same can be baselined i. Open the project to be baselined ii. Action menu > Maintain Baselines > Add Baseline iii. Save with specific Name & Type.
Consolidated demand verification & download in Primavera
Demand Verification
- Project demand will be prepared in P6. - The demand will be synced as and when a project is
baselined in P6. - Demand will be synced with following filters
1. Demand only for Active Projects 2. Demand only for not started Activities 3. Demand only for remaining quantity
Demand file Download
- Demand file will be of CSV or Excel format only
- Demand file can be downloaded - Goto Resources Tab - Goto Assignment Tab - Select pre-defined layout - Export the file.
Project level Demand
Consolidated Demand
Procure to Pay cycle tracking
Place order at suppliers
Receipt
Internal Demand from P6 EPPM
Receive Ordered Products +
Pay Supplier
Notify Project Team in
Primavera EPPM
Automatic Real-Time integrated
information / Status to Primavera EPPM.
Real time status update to project team
1. Automatic progress updates. 2. Real time status updates to project team. 3. 100% accurate & synced data between different teams. 4. Better project tracking 5. Helps nullifying project delays & improves decision making
Actual Units & Actual Cost will be cumulated as
updated.
End to End Project Lifecycle post enabling Project Management
De
man
d
Pla
nn
ing
Pro
cure
me
nt
Consolidated Demand
100 % accurate Organization wide consolidated demand
Demand fulfillment status &
recommendations to project team
100 % information to equip procurement team to leverage
economies of scale
Demand revisions from Project Team
Demand Source information
Basic problems faced when Project Management, Demand Planning & Procurement teams don’t share single source of truth & work in more isolated environment.
Projects Project Demand Real time revised project demand
Demand fulfillment status & Recommendations
Pro
ject
M
anag
em
en
t
Negotiated price information to project team
Sou
rce
bas
ed
dem
and
10
0%
acc
ura
te
Co
nso
lidat
ed
d
em
and
Rea
l tim
e
up
dat
es
10
0%
C
on
solid
ated
d
eman
d
Rea
l tim
e
con
solid
ated
in
form
atio
n
Up
dat
es t
o
Pro
ject
Tea
m
Project tracking using Primavera EPPM Dashboards
Cost Time Units
Actual
Budgeted
Dashboard to evaluate Planned
vs Actual Cash Flow projection.
Dashboard to evaluate EVM.
16
Project tracking using Primavera EPPM Dashboards...
Dashboard to evaluate overall project status in
terms of Schedule, Cost & Quantities.
Dashboard to evaluate Planned vs Actual
Schedule, for project & critical Milestones.
17
Case Study The given methodology is not restricted for a specific industry, it is applicable for all the industries where
demand supply, procurement & project management must be considered as integrated units.
The same methodology is implemented in one of the leading telecommunication giant’s in Africa continent.
The client provides services in 21 countries. It was the most critical requirement for the client to improvise on
managing demand supply & procurement in sync with project planning & schedule.
The solution will equip project managers with full visibility of project lifecycle from project planning till closure,
and also will provide more accurate & consolidated information to procurement team to improve procure to pay
cycle & leverage economies of scale. The executive level in the organization will be able to rejoice better revenues
over the years & will be in better position to make critical & timely decisions.
Key Benefits delivered for 1st of 21 Rollout’s :
1. Effective Project Management & standardized policies.
2. Organization wide consolidated demand extracted from Primavera EPPM.
3. Sorting out the problem of unutilized inventory over 1.5 Billion USD (Phase 1 Rollout).
4. Minimize over stocking and reduction in inventory carrying cost.
5. Increased overall project lifecycle transparency to all stake holders.
6. Improved project demand accuracy.
7. On time Project Milestone achievement.
8. Handled numerous reporting & dashboard requirements.
Thank you! For More Information:
http://www.gaeaglobal.com
Personal Details:
Name : Parminder Singh
Designation : Sr. Business Analyst & Implementation Lead
Contact Number : India ( +91-8884900646)
Organization Details :
Mailing Address : Gaea Technologies India PVT Limited
F2- Alsa Mall, 147 – 149 Montieth Road,
Egmore Chennai,Tamil Nadu 600008
Office Landline ( 044-6457-4232)
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