plan to pay (p2p) - codelco · plan to pay (p2p) optimize your process to manage your contractors...
TRANSCRIPT
Agenda
• Oracle View of Plan to Pay (P2P)
• Composite Process – Component Review
• Project Planning & Portfolio Mgt
• Procure to Pay
• Supporting Processes & Capabilities
• Summarise / Questions
Materials & Resources
Resource Management
Sourcing to Agreement
July 24, 2012
PLAN
Procure to Pay
Project Planning & Portfolio Mgt
Portfolio Planning & Budgeting
Cost Management & Re-forecasting
Project Planning & Estimation
Project Management
Advanced Supply Chain
Planning Material
Requirements (cont. Order Mgt)
Purchase Orders
RequisitionsReceiving
(contains Quality Assurance)
PAY
Release 12.1
Composite Process
Identify attributes, supply & service reqs, costs & pricing
NegotiationsRequirements
Cashflow forecasting
Agreement
Product & Service
Catalogue
Original Budget costs & claims based upon methodology (e.g. WBS, Activity, Cost Codes etc)
Profit, Revenue, WIP based upon forecast @ completion, costs & claims to date & % of completion
Project Financial Results, FX, JV’s, Management & Stat Reporting
Publish specifications and RFQ to suppliers and address supplier questions
Make award decisionsCreate and approve purchasing document
Review automatically or manually created requisitions for completeness, approvals, etc.
Create purchase order for the selected supplier(s) .
Receive materials from suppliers, either into inventory or into an inspection area.
Create Project
Define work break down structure
Assign deliverables
Supplier ManagementLifecycle
Supplier Profile, Classification,
Bank Detail, Relationship
Maintenance
Ongoing
Assessments
(eRFx/Survey)
Contract
Supplier
SearchSupplier Profile,
Qualification, Credit/Risk
Assessments ( D&B,
eRFx/Survey )
Supplier
Inactivation
Invitation
Supplier Self-Service
Registration
Supplier Performance
Analysis and Management
SupplierMaster
&
Supplier ManagementNew Supplier Qualification and Onboarding
Suppliers
Commodity Manager
Finance / Legal Expert
Contract Manager
Compliance Officer
Prospective/New Supplier
Registration Request
Submit
Receive Packet Review QuestionsAdd Profile Information
Request Information
Submit
ApprovalProcess
Review QuestionsAdd CreditEvaluation
Credit Evaluation
(Resubmit)
Return/Reject
Review QuestionsAdd Risk
EvaluationRisk
Evaluation
Return/Reject
ReviewProspect Party Site Evaluation Questions
Return/Reject
Add Prospect Party Site Evaluation
Notification
Qualified and Approved
Relationship Contract
Sync Supplier Profile
Supplier ManagementSupplier Performance Evaluation
Overall Supplier Satisfaction
Buyer Joe
Buyer Ed
Is Supplier flexible during negotiations?
Overall Supplier Satisfaction
Is Supplier flexible during negotiations?
4 2
5 2
Is Supplier responsive?
Is Supplier responsive?
Computer Supplies, Inc. Electronic Supply
Evaluated
Suppliers
Invited
Evaluators
Any Quality complaints? No Yes
Any Quality complaints? No Yes
Define Purchase Plan Schedule Collaborate
Contract
Definition and
Negotiation
Build / Rollout
Model
Prioritise &
Launch
Manage Mark Up
Sample Contract Flow
E-Business Primavera Content Mgt
EBS
Contracts
EBS
Purchasing
Primavera
Portfolio
Mgt
Primavera
P6 /
Contract
Mgt
Autovue
Collaborate
UCM Adaptor
P6 – EBS P6 Remit/ Transmit
Enterprise Project Portfolio Management
Oracle Primavera
P6
Oracle Portfolio
Management
Oracle EBusiness
Suite
Sub-Contractor
Management
Oracle Universal Content
Management
Oracle Risk Analysis
Oracle Business
Intelligence
Project Accounting
Procurement
Submittals
Transmittals
Safety/Insurance
Investment Decisions
Project Initiation
Project Artefacts
Executive Reporting
Project Initiation
Risk Mitigation
Schedule Validation
Plan Initiate Execute Monitor
• Overall project savings of over $100 million • Decreased design schedules by 50 percent, from 6 to 3 weeks. • Optimised processes, maintained project consistency, and repeated past
project successes
Oracle Project Portfolio Management
• Bridging the scope, schedule, budget, and project documents.• Multiple parties can collaborate through one database and one schedule.• Primavera’s flexibility enables partners and subcontractors to have their own code
fields.
“It is blatantly obvious that Primavera’s enterprise solutions are the best.”
Patti Drewitt, Regional Manager
• Enabled visibility of a project’s status and for project managers to identify risks
that may slow down its delivery
• Enabled projects to be completed up to 25% faster
• Saved many hours each day through elimination of redundant data entry
• Improved technical support and project methodologies by encouraging staff to
work together “Allows Downer EDI to meet key deliverables at each phase of an infrastructure project.
The tools help us deliver projects on time and on budget.”
Doug Marr, Project Controls Manager, Downer EDI Engineering
•Plan -- Create a
long range plan
and rank projects
•Execute –
Update, track
and react to
project changes
& risks
•Measure –
Easily assess
project financials
and KPIs
Create a competitive advantage by prioritising enterprise investments based upon
financial considerations, risk tolerance and resource constraints
Project Portfolio Optimisation:
Assessing, Prioritising & Selecting the Right Capital Projects
•Plan – Quickly
develop &
communicate
projects more
effectively
•Execute –
Manage tasks &
activities
•Measure –
Assess costs
and risks easily
Reduce operating costs by managing schedules, resources, and costs across all
complex – construction, shutdown, and routine maintenance projects
Optimising Existing Assets:
Completing Projects On-time and On-budget
Doing More with Less: Manage Resources and Capture
Knowledge
•Plan – Get the
right resources
for the job
•Execute –
Manage
resource
bottlenecks and
over allocation
•Measure –
Capture best
practices
Level resources across all projects – capital, routine, etc. – and proactively track
resource demand so workforce is not over allocated
• Schedule: Risk Ready State
• Best Practices check
• Pre-Analysis check
• Risk Identification
• Estimate uncertainty
• Risk events
• Develop Risk Model
• Apply uncertainty estimates
• Map risk events to activities
• Preliminary Analysis & Review
• Analyze project plan
• Review, adjust, and remodel
• Final Model & Report
• Model mitigation scenarios
• Finalise risk response plans
Project Delivery – Mitigating RiskIdentify, manage, mitigate, and prevent risk impacts
WHAT
– Highest quality results without rework or waste
– Management of best practices and core project knowledge
HOW– Easy-to-define and use project
template capability, with coding for better organization, administration and retrieval
(new)
– Shared dictionaries for projects and templates (new)
– “Fragnets” easily added to existing projects
RESULTS– Repeatable project success
– Consistency across projects and programs
19
Governance: Templates establish standards
critical to project success
20
Driving Accountability through Actions
and AlertsAccountability
and Visibility
Actions
Action List
Workflow Driven
Enterprise Wide
Printable/Exportable
Oracle PGBU Confidential
21
Contract Summary
•Summary
•Changes
•Insurance
•Payments
•Submittals
Real time contract information Cost Control
Oracle PGBU Confidential
22
PaymentsNegotiate and track actuals Cost Control
• Link contract line items to P6 activities for easy
update based on activity’s percent complete
• Collect approved changes and materials so nothing
slips
Oracle PGBU Confidential
Benefit
Investment Decision Making
Project Schedule Validation
Single Source of Truth
Methodology Management
Role Based Solution
Oracle Project Portfolio Management
Plan Initiate Execute Monitor
Risk
reduced MRO item costs by 20%
sourced 50,000 items and reduced costs by 20%
increased purchasing volume discounts by 5%
reduced purchase order cycle time by 75%
reduced purchase order processing time by 86%
reduced purchasing processing costs 89%
saved over $11M from Procurement & other EBS apps
saved over $1.1M annually via integrated procurement
saved over 25% on indirect goods purchases
implemented internet procurement in only 60 days
ThompsonTravelGroup
What Customers are Achieving…
2. Author &
Negotiate
4. Monitor
and Track
6. Renew& Closeout
• Collaborative revision process
• Amendment approval flow
• Auditable revision history
• Expiration alerts
• One-click renegotiation
• Standardized closeout process
• Central terms library
• Workflow configuration
• Clause selection rules
• Templates & role-based authoring
• Substitute & non-std clauses
• Supplier paper
• Online collaboration
• Flexible approval workflow
• Electronic & digital signature
1. EstablishStandards
• Contract Workbench
• Terms implementation
• Real-time deliverable tracking
Procurement Contracts Process FlowStandardise Terms, Accelerate Negotiation, Drive Compliance
5. Amend
3. Approve
and Sign
No
IndustrySegment?
Yes
Add Clauses• High Value• Insurance
Over $50k?
CommercialGovernment
Responses Drive Clause Selection
.
.
.
Template
Contract
Contract
Draft
Expert-Based AuthoringProduce Compliant Contracts
• Configurable rulesdrive terms selectionfor complex contracts
• Clauses default based on product, supplier, contract value, etc.
• Author high quality contracts with minimal legal supervision
Benefit
- Integrated to Finance / PPM
- Advanced traceability
- Contract Management
- Pre-integration
between PPM / FMS / HR
- Image Automation & Procurement
- Oracle Accelerator templates
-Dashboards & KPIs
Oracle Procurement
Risk
Source Procure Receive Pay Monitor
Summary
• Complete composite capability including SCM, VCP,
and collaboration – underpinned by scalable
technology
OperateOptimize MaintenanceLeverage leading project management capabilities to optimize the allocation of
limited resources, capture best practices and reduce OpEx costs.
PlanImprove Capital Investment PortfoliosDeliver proven capital project planning, management and control solutions that
increase CapEx value, mitigate risk and reduces costs
BuildEnhance the Construction ProcessImplement innovative construction management capabilities with EPCs to ensure
optimal cash flow and timely project completion
Oracle Primavera’s Focus3 Management Areas
Project Success Drives Financial PerformanceEnterprise Project & Portfolio Management
Plan Build Operate
Improve ROI Improve Cash Flow
Improve Operating Margins