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Plan to Pay (P2P) Optimize your process to Manage your Contractors with Oracle Primavera July, 2012

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Plan to Pay (P2P)Optimize your process to Manage your Contractors

with Oracle PrimaveraJuly, 2012

Agenda

• Oracle View of Plan to Pay (P2P)

• Composite Process – Component Review

• Project Planning & Portfolio Mgt

• Procure to Pay

• Supporting Processes & Capabilities

• Summarise / Questions

Plan to Pay (P2P)

Oracle Perspective

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

THE SOLUTION TO SUPPORT

YOUR P2P

Composite Process

Project Portfolio

Management Core

Foundation and

Leverage

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

Project Portfolio

Management Core

Capabilities and

Demonstration

•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

Risk Analysis – Quantitative Definitions

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

Project Portfolio

Management Core

Wrap Up

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

<Insert Picture Here>

Procurement Core Wrap Up

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