managing cash flow in primavera p6 - oracle primavera p6 collaborate 14

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REMINDER Check in on the COLLABORATE mobile app Managing Cash Flow in Primavera P6 Prepared by: Luka Novosel, PMP Primavera Implementation Consultant Primakon Ltd. How to Track Project Revenues and Expenditures in One P6 Project Session ID#: 15465

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  1. 1. REMINDER Check in on the COLLABORATE mobile app Managing Cash Flow in Primavera P6 Prepared by: Luka Novosel, PMP Primavera Implementation Consultant Primakon Ltd. How to Track Project Revenues and Expenditures in One P6 Project Session ID#: 15465
  2. 2. About me Masters degree in Electrical Engineering Primavera functional & technical consultant since 2006 PMI PMP certified since 2010 Oracle Primavera P6 & P6 R8 Implementation Specialist Oracle Primavera EPPM trainer PMP preparation trainer Primavera EPPM API application designer & developer Primavera EPPM SDK application designer & developer
  3. 3. About us Primakon is privately owned consulting company 15+ years of experience in Primavera implementations Offers customer tailored education in the area of PM methodologies and Primavera products References in wide area of industries (from finance sector to construction) Present on markets in EU & SE Europe
  4. 4. Presentation overview The business need (NUMIP case) Solution analysis Model description Model overview Data entry Background jobs Primavera reports BI publisher data model BI reports Conclusion and whats next
  5. 5. The business need (NUMIP case) This is a subtitle or bulleted list
  6. 6. The business needs About company NUMIP, privately owned engineering company, Working in different process industries such as: Nuclear Industry Pharmaceutical Industry Paper Industry Present in USA & Europe Project oriented company Business needs: Long-running recession Huge pressure on profit margin Optimization of internal processes
  7. 7. Requirements Primavera P6 as management tool Detailed project plans in Primavera All activities with roles in planning phase for cost projections Resource and material assignments with planned and actual values for cost tracking All project expenditures in one place Cash flow projections in Primavera P6 Executive reports on future cash flow projections Email alerts for invoices
  8. 8. Key problems Primary role of P6 is to help project managers in managing projects Additional requirements mustnt interfere with primary role Invoice due dates depend on contract definitions The moment when the job is done (and money earned) is different from the moment when the invoice is paid Management request is to have both informations in P6 and in correlation to project schedule
  9. 9. Solution analysis: Why cost User Defined Fields (UDF)?
  10. 10. Cost UDF Model and whats behind it WBS node called Cash Flow Milestones with predecessor links to project plan Lag on relationship defines invoice due date period (i.e 30 days) Activity Cost UDFs : Revenue Expenditure Milestone calendar: 7-day workweek Milestone date gives UDF time dimension Project Cost UDFs summarizes activity level UDFs (background job) one field for every month / type
  11. 11. Automatic Project Cost UDF creation Background job creates project UDFs Two prefixes (data type and value type) Data Type PLI planned value BLI baseline value Value type EXP expenditure INC revenue CF cash flow
  12. 12. Key benefits of this Model Why Cost UDFs? Financial fields do not interfere with managing project costs No specific filtering is needed Data is dynamically related to project schedule Background job is updating project fields on predefined intervals Simple project reports in P6 Web Simple Project Portfolio analysis Default Primavera Project Cost analysis (i.e total costs) is not affected Designed as an add-on to regular project plans Easy copy / paste export to Excel
  13. 13. Model description
  14. 14. Data input process In project planning phase : Project Manager and Commercial department official define planned project cash flow. Revenue and expenditure milestones are linked to project management schedule In P6, financial department officers have special Project and Global Security setup Read / Write access to WBS nodes with cash flow and invoice milestones Read + add relationships on project level This way they have authority to define new milestones if necessary during projects execution
  15. 15. Data input process cont. In P6 web special user interface view + layout are defined for financial department
  16. 16. Data input process cont. 2 Assigning relationships and monetary value to milestones
  17. 17. Project Cost UDF creation Background job description Every UDF expenditure / revenue activity is paired with the assigned milestone date With that, every expenditure / revenue is getting time distribution variable Background job based on Java and P6 API summarizes all UDFs from activity level to project level In that process time variable is used to make time distribution of cost UDFs on project level
  18. 18. Project Cost UDF creation Accessing Baseline UDF values Using P6 API, it is possible to read baseline activity UDF values. That data are not visible in P6 application. With this, background job creates baseline time distributed values as project code UDF-s Activity rescheduled Baseline Project value
  19. 19. Project Cost UDF Naming Conventions Automatically created UDFs follow predefined naming conventions VALUE TYPE + space + DATA TYPE + space + month.year In this implementation VALUE TYPES are: EXP -> for expenditures INC -> for revenues CF -> for cash flow (revenue expenditure) DATA TYPES are: BLI -> baseline values PLI -> planned values ACI -> actual values (to be implemented) These properties can be altered to suite specific implementation needs
  20. 20. Primavera out-of-the-box reports
  21. 21. Primavera Web reports Porftolio with active projects Portfolio views based od project cost UDFs P6 Web summarizes project UDFs Different scorecards can be created Quite limited report options directly from the web Limit of 28 fields per scorecard Export to Excel option
  22. 22. Primavera Client reports Generally P6 Client is not used for reporting Export to Excel option is used from the P6 Client No limitation in number of fields per layout Easy copy / paste of fields to MS Excel for further analysis Special layout is designed for that purpose
  23. 23. BI Publisher Cash Flow Report
  24. 24. BI Publisher reports New reporting in P6 BI Publisher is selected as main reporting source for reports in this model Data model is developed to support requested reports P6 desired look and feel is implemented Reports are accessible via P6 web
  25. 25. BI Publisher Data Model List of Values(LOV) is created for Projects Parameter p_project_id is defined to use this LOV Data sets are defined
  26. 26. BI Publisher - Data Model - Data Set Data set is defined to support reporting needs In this example SQL query will create number of fields from our Project Cost UDF names Main fields are: DATA_TYPE sql: trim(SUBSTR(P6UDFTYPE.TITLE,4,4)) VALUE_TYPE sql: trim(SUBSTR(P6UDFTYPE.TITLE,1,3)) VALUE_DATE sql: trim(SUBSTR(P6UDFTYPE.TITLE,-7)) SORT_DATE sql: trim(SUBSTR(P6UDFTYPE.TITLE,-4)) ||'.'|| trim(SUBSTR(P6UDFTYPE.TITLE,-7,2))
  27. 27. BI Publisher - Data Model - Data Set cont. The query result will hold one record for every sort_date- data_type-value_type pair with appropriate value and sum value to date Value Date Sort Date Value Value Type Data Type Cum Value 12.0142014.01 90000CF Baseline 90000 42.0142014.04 -21312CF Baseline 68688 72.0142014.07 0CF Baseline 68688 12.0152015.01 0CF Baseline 68688 12.0142014.01 -31200EXP Baseline -31200 42.0142014.04 -21312EXP Baseline -52512 72.0142014.07 0EXP Baseline -52512 12.0152015.01 0EXP Baseline -52512 12.0142014.01 121200INC Baseline 121200 42.0142014.04 0INC Baseline 121200
  28. 28. BI Publisher - Data Model - Data Set Running totals Data sort for running totals Data sort for running totals Grouped by value type Running total per group
  29. 29. BI Publisher - Data Model - Data Set SQL query String month.year and year.month fields for grouping Case when for data_type this is done to make chart legend more readable
  30. 30. BI Publisher - Data Model - Data Set SQL query cont. Running totals are created to enable cashflow S-curve. Partition is done by: 1. data_type 2. value_type All sorted by sort_date Three tables are used in SQL join: P6UDFTYPE P6PROJECT P6PROJECT_UDFVALUE
  31. 31. BI Publisher - Data Model - Data Set SQL query cont. 2 In WHERE statement, project UDF fields are filtered by value_type values (EXP, INC, CF) UDF field with TOTAL instead of sort_date is excluded from this data set Parameter value is used in WHERE part of the statement That can be one or list of project IDs
  32. 32. BI Publisher - Data Model - Data Set SQL query cont. 3 Grouping in SQL statementGrouping in SQL statement is done according to SQL standard requirements
  33. 33. BI Publisher - Data Model - Data Set Sample XML data and Report editor After data set definition, XML sample data set is created Report is designed in Web Report editor Word .rtf templates are not used in this case The goal was to create report in Web Editor only and to test its limitations 4 layouts are defined Cumulative Graphical CashFlow Report Revenue Report Expenditure report
  34. 34. P6 Web Report Access Template selection 4 report layouts defined in BI Publisher are available as templates in P6 Same names as Layouts in BI
  35. 35. P6 Web Report Access Project selection In this data model project data is summarized Possible uses of reports: One project Cumulative reports on portfolios
  36. 36. Report examples Cumulative graphical report
  37. 37. Report example CashFlow report Table and chart filter Value_type=CF Project List
  38. 38. Report example Revenue report Table and chart filter Value_type=INC Project List
  39. 39. Report example Expenditure report Table and chart filter Value_type=EXP Project List
  40. 40. Future model development
  41. 41. Plans for future Data integration with financial system on several key points i.e. invoice number assigned to milestones New Actual fields When milestone has actual date, value in UDF (expenditure / revenue) is declared as actual value New reports for key stakeholders Additional forecast analysis i.e. Preset and Net Present Values
  42. 42. Questions ? Contact Information: Luka Novosel, M.Eng , PMP Primakon ltd [email protected]
  43. 43. Please complete the session evaluation We appreciate your feedback and insight You may complete the session evaluation either on paper or online via the mobile app