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Bridging the cost schedule divide - integrating primavera and cost systems ppt
This document discusses integrating project cost systems with scheduling systems like Oracle Primavera. It outlines challenges with the traditional divide between cost and schedule data. It presents case studies of companies that implemented EcoSys software to bridge this gap. Benefits included increased visibility, efficiency, accuracy, and standardized processes to improve financial performance and resource optimization.
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Bridging the cost schedule divide - integrating primavera and cost systems ppt
- 1. Bridging the Cost/ScheduleDivide: Integrating Primavera and Cost Systems Javier Sloninsky EcoSys
- 2. Agenda Speaker intro Corporate Introduction TheChallenges of the Cost / Schedule Divide Best Practices and Case Studies in Cost Integration with Oracle Primavera: • Elements of a “Best Practices” Cost Controls Solution • Case Study: B&W • Case Study: Technip Benefits Q&A
- 3. Founded in 2000 EnterpriseProject 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 250 Customers in Global 1000 and Public Sector EcoSys Company Background
- 4. • Project ControlsSystem Designers • Project Controls Implementers: – Owners and Operators – Contractors – Public sector • Enterprise architecture mindset • Partnership approach with industry • Constant evolution Our Perspective Our Perspective
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- 6. 6 EcoSys EPC Certifiedto run seamlessly with Oracle and SAP: Professional Partnerships with Global Tech Leaders: Global Technology Partners
- 7. The Cost/Schedule Divide CostSchedule • Control • Structure • Auditable • Dynamic • Flexible ?
- 8. In most organizations,Cost Controls is not a simple affair Departmental Budgets Project ForecastsProject Budgets Actual TransactionsCommitments Contract Database Project Planning General LedgerGeneral Ledger Time Cards JVFunding Funds Management Impact • Teams of people consolidating data in spreadsheets • Double entry • Spreadsheet errors • Performance reports available too late to address issues Challenges for Cost Controls
- 9. Strike a balancebetween 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
- 10. Full Lifecycle ProjectControls
- 11. Bridging Planning &Execution
- 12. • Import Projects/WBSfrom 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 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 Flexible Primavera Integration Options
- 13. Create Projects and BuildWBS in EcoSys, or import from Primavera, or other systems. Budget in EcoSys, or Import from Primavera, 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 Planning & Controls Platform
- 14. Departments/Programs > Program> Project > Transactions Full Drilldown Visibility
- 15. Project Budgeting Project Forecasting ContractCommitments Planning Customizable Web Spreadsheets for data entry
- 16. From Summary to VarianceAnalysis
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- 18. Can set upcompany specific custom criteria: • Group By Capital and O&M • Filter by Outage/Online • Distribute cost manually or by curve Configurable Cost Processes
- 19.
- 20. Capital Projects BudgetReport
- 21. • Babcock &Wilcox, Nuclear Power Generation company, establishes EVM standards and reporting mechanisms • Technip Project Cost Management System integrating systems for global standard project controls Project Controls Best Practices
- 22. • Nuclear PowerGeneration & Operations company with major R&D, Construction, and Services projects in US & Canada • Also in Alliance with Bechtel for Modular Nuclear Reactor technology • Standardized on SAP and Primavera P6 • Selected EcoSys for integrated earned value performance management, project reporting, and controls • Expanded EcoSys for Outage Reporting in 2012 Case Study
- 23. WBS & WBSStatus Budgets, Forecasts Integrated Earned Value Mgmt Budgets & Forecasts Commitments Actual Costs, Revenue Change Orders Project Cost Reporting Historical Snapshots Transaction/Audit Repository Projects, WBS Dates Labor plans Percent Complete Actual Costs Timesheets Commitments Revenue Case Study Timesheets Case Study Integration Approach
- 24. • EV TechniqueVaries 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 Case StudyCase Study
- 25. Cumulative & PeriodicPerformance Standardized Performance Reporting
- 26. Cumulative & PeriodicPerformance Standardized Performance Reporting
- 27. By Project, CategoryCode and EV Method Flexible Earned Value Analysis
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- 29.
- 30. WBS and ABSWBS& CBS
- 31. – World leaderin Project Management and Engineering & Construction in the Energy Industry – Revenues of €6 Billion Annually – 48 countries – 27,000 people 32 Case Study
- 32. – Uses P6and Oracle E-Business – Sought Common Work Process for • Budgeting • Forecasting • Change Management (client vs. internal changes) • Commitment Management • Standardized reporting • JV / Client reporting • Multi-currency forecast analysis: spot & fixed • Multi-project reporting – Selected EcoSys EPC for Global Project Cost Controls System 33 Case Study
- 33. 20% 16% 13%12% 30% 6% 2% 1% Fixing OracleIssues Correcting Labor Coding Collating Internal & External ReportsManual Downloading Monitoring & Controlling Costs Change Management Forecasting & Trending Analyzing Budgets & Actuals Cost Analysts Spent 61% of Time on “Wasteful” Activities
- 34. 65% 25% 5% 5% Analyzing Data Forecasting & Trending RunningReports Troubleshooting Cost Analyst Target Utilization Provides Much Greater Value Added
- 35. • Can beunique per Project • Frees project teams to report based on needs of project or contract Work Breakdown Structure (WBS) Total Project M1000 Compressors M0900 Pumps 3.2.2 PressureVessels 3.2.1 RotatingEq 3.2 Main Eq 3.1 CompanyAssigned 4 YardFab 3 Procurement M0930 RotaryPumps M0920 RecipPumps M0910 Cent Pumps Case Study
- 36. • Standardized GloballyVia EPC • Top Four Levels for Corporate Reporting and Consolidation • Levels 5+ Allow Regions Flexibility – Typically broken out by Cost Types and Disciplines – Material Codes – Construction Codes – Financial/Accounting Codes Corporate Reporting Dept. & Financial Codes Common Material Codes Common Constr. Codes Work hours Labor $ Material Quantities Unit $ Total $ Work hours Labor $ Total $ Cost Breakdown Structure (CBS) Case Study
- 37. EPC aligns allwork by both CBS and WBS • Provides Flexibility at Project Level • AND Standardization at Regional and Corporate Levels • High Level Budgets, forecasts, actuals can exist at any level, but still roll up Case Study
- 38. Forecasts in sameview Reference & Initial Budgets
- 39.
- 40. Budgeting of MaterialQuantities
- 41. Visibility • Executives andStrategic Planning gain Visibility into Execution • Ability to Drill Down and Respond Quickly • Data Reportable by Any Attribute o Project, Project Type, Division, Location, Plant, Asset o Vendor, Unit, Phase, Sub-Asset, Resource, Activity Increase Efficiency and Accuracy • Less Effort Consolidating Data, Supporting Data Calls, Troubleshooting Errors Benefits
- 42. Achieve Process Standardization •Increased Predictability • Instill Best Practices and Institutional Learning Improve Financial Performance • Ability to Prioritize Work more effectively • Resource Optimization • Cost and Schedule Performance Improvements • More effective management of global project financials, such as hedging Benefits
- 43.