P D E C. Information Technology ReNEWal Program Review. Administration Committee by Information Technology ReNEWal Program (ITRP) October 6, 2005
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1 Washington Metropolitan Area Transit Authority Information Technology ReNEWal Program Review P D E C Presented to the Board of Directors: Administration Committee by Information Technology ReNEWal Program (ITRP) October 6, 2005
2 I. Background IT Diagnostic Review performed by Logistics Management Institute (LMI) Completed analysis and documented the fragile status of WMATA technology systems and presented IT strategic plan which outlined Many systems were outdated, obsolete and no longer supported by vendors Systems were not integrated and lacked cross-departmental integration and communication Board approved $41M for the Information Technology Renewal Program (ITRP) to modernize the following technology and business systems Human Resources and Payroll Bus and Rail Scheduling and Dispatch Accounting Budget and Capital + Procurement Maintenance and Materiel Management System Board authorized system integrator Booz Allen Hamilton and contract was awarded Established an ITRP Project organization to manage the ITRP implementation 2
3 II. Project Overview ITRP Core Principles All new systems will be fully integrated Commercial-Off-The-Shelf (COTS) software purchased minimal customizations done only for unique business requirements Curriculum development, train-the-trainer program, workforce planning and robust internal communications effort We did not just buy IT - the new technology is the lever to drive business changes and the tool to deliver process improvements, productivity and cost savings Basic business needs dictate the replacement of these obsolete systems and WMATA has taken this opportunity to focus on maximizing the Return On Investment (ROI) 3
4 II. Project Overview Major Software Implementation Authority-Wide Enterprise Resource Planning (ERP) Systems Trapeze Software Bus and Rail Scheduling and Dispatch (BRSD) PeopleSoft Software Accounting, Budgeting, Capital and Procurement (ABC+) Human Resources and Payroll (HRPR) Customer Relationship Management (CRM) Learning and Training Management (LM) MRO Maximo and ORIM OPTRAM Maintenance and Material Management System (MMMS) KRONOS Software Integrated time and attendance system 4
5 II. Project Overview Replacing almost 40 legacy systems G-Sched & G-Rail Bus Stop (OPAS) Station Manager Schedules (RWA) DTG - OPS (FAB) Pick System (OPS) Rail Scheduling System (IBB) Bus Scheduling System (IEE) Operations Tracking System (OTRACS) Bus Traffic Analysis System (BTAS) Rail Traffic Analysis System (RTAS) GEAC Procurement Information Management System (PIMS) Cost Management Information System (CMIS) Investment Portfolio Management System (APS) Purchase Card (PVS Net) Cost Allocation Job Number Database Monthly Reconciliation Process Genesys Warehouse Control Fireplug Labor Distribution Personal Action Request Tracking GreenTree Requisition Tracking System Health Insurance Management System FMLA Pro CSGM Child Support & Garnishments GRITS Grievance Tracking System Maintenance & Reliability System (MARS) Bus Service Maintenance System (BSMS) General Orders & Track Rights (GOTRS) Multiple Non-Stock Inventory Systems Replace Shadow Data/Reporting Systems Material Management System (MMS) Service Inventory Maintenance System (SIMS) Incident Reporting System Automatic Car Identification some functions DTG Several Stovepipe User systems Training Server 5
6 With Only 5 Systems! 6
7 Start JAN 2003 II. Project Overview Overall Schedule (September 2005) Today Start-up BRSD BUS Initial Current Complete BRSD RAIL BUS ABC+ HRPR MMMS AN 03 Customer Relations (CRM) KRONOS APR 03 JUL 03 OCT 03 JAN 04 APR 04 JUL 04 OCT 04 JAN 05 APR 05 JUL 05 OCT 05 JAN 06 APR 06 7
8 II. Project Overview - BRSD Fixed Route Scheduling State-of-the-art tool for scheduling bus and rail routes, scheduling employees and run-cutting Operations Management Comprehensive bidding, dispatch, timekeeping and workforce and yard management Transportation Planning Ability to create accurate forecasts, service plans using demographic, location and ridership data Pick System: On-line schedule and vacation bidding Creates time savings for managers and employees while increasing accuracy of bid 8
9 II. Project Overview - ABC+ Accounting Streamlined accounting systems which will increase efficiencies in the area of General Ledger, Accounts Payable, Accounts Receivable, Payroll Budgeting Provides a universal, integrated Budget Planning System and gives the Authority the ability to incorporate Expense Based Budgeting, Asset, Cash and Order Management Procurement E-procurement will integrate with inventory and non-inventory items which will reduce stock automatically and order parts from vendor electronically Reports Reporting function allows much faster and deeper analysis within each functional area and cross-departmental 9
10 II. Project Overview - HRPR PeopleSoft Human Resources Management System, Base Benefits, Time and Labor, Payroll Comprehensive Health and Safety Management System On-line job availability and job applications with automatic notification to those with profile who qualify Total Compensation Management Package which allows managers to review applicants and approve electronically Reporting and analysis tools for management to gather hiring data Employees will have the ability to track application all the way through the hiring process Learning and Training Management Program Fully integrated with all training planning, scheduling tracking and reporting Ability to project for future job skills needed at the Authority Secure record keeping and tracking of management succession programs WFDA installation funds ($750,000) and will seek Board approval for expenditure 10
11 II. Project Overview - MMMS On-line, real-time maintenance and inventory information which will allow managers to: Maintain schedules, have access to bills of materiel and make forecasts Locate the status and location of repairable assets Standardize item description by a standard modifier dictionary (SMD) View inspection data and detailed storeroom transaction histories View complete parts descriptions with shipping instructions, parts catalogs, illustrated manuals and rejection and manufacturer information Planners can forecast parts requirements so maintenance needs are met quickly, without keeping a large number of parts in the inventory User-friendly report generator with basic modeling and graphics capabilities for faster and more accurate analyses Installation additional costs ($2.4 million) 11
12 II. Project Overview Customer Relationship Management CRM Provides a centralized database that contains all customer complaints accessible by Bus, Rail, Treasury, Customer Relations, Lost-n-Found and the Administrative Teams Savings of $19,000 on annual maintenance contract Business case will allow 25,000 additional cases to be handled per year at existing staff levels 12
13 II. Project Overview - KRONOS Consolidated, standardized time and attendance system feeds PeopleSoft Will allow WMATA to collect, manage and distribute critical labor data, including overtime, resulting in improved use of labor resources at reduced costs Increases payroll accuracy Permits commitment control of expenses for capital projects Additional bolt-on software required to fully integrate all time and labor information Unanticipated cost ($850K) 13
14 III. Return On Investment (ROI) Industry standard ROI for ERP implementation is typically 2 to 7 times the initial investment, seen over a 5-7 year timeframe Majority of productivity gains and cost savings occur after complete system is installed 14
15 VI. Performance Measurement and Metrics Appointed a cross-departmental Performance Management Team who reports directly to the Auditor General BPI Mapping Team will map and analyze as-is and to-be business processes to simplify current jobs, resulting in productivity improvements and costs savings Management Metrics Team will further analyze and measure business improvements to confirm/measure progress Initial report mid-november 2005 If You Can Measure It, You Can Manage It! If You Can Manage It, You Can Improve It! 15
16 IV. Cumulative Cost Savings Estimates $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY05 FY06 FY07 (Projected) 16
17 IV. Cumulative Cost Savings Estimates cont. Fiscal Year 05 Fiscal Year 06 Fiscal Year 07 Savings Savings Savings BRSD & ITSV $1,000,000 $2,100,000 $3,200,000 ACCT PRMT $ 700,000 $1,500,000 CAPITAL TOTAL $1,000,000 $2,800,000 $4,700,000 17
18 V. Potential Cumulative Business Process Opportunities Increase the threshold of Board MEAD approval for procurements Require employees to use direct deposit or payroll debit cards, eliminate paper time cards and replace with automated systems Use of an automated warranty system Fully integrate training, planning, scheduling and reporting with competency/skill requirements for all 400+ job classifications Optimize bus system through greater use of trapeze scheduling software Change business processes to optimize software tools don t change software to mimic existing processes 18
19 VII. Transition from Development to Operations and Maintenance (O&M) Responsibility for day-to-day operations and maintenance (O&M) will transition to ITSV ITSV will provide: Hardware/Software maintenance Security Policy Additional Infrastructure ($2 million unfunded) Infrastructure availability, reliability, and maintenance Help Desk support Development of complex reports Users will have a more active role Application Support Execution of Security Policy Liaison with ITSV for Troubleshooting, upgrades, enhancements Training of existing/new staff 19
20 VII. Transition to O&M ITSV Readiness ITSV needs to restructure its organization and upgrade staff skills to support the service level requirements of ITRP Proficient enterprise system support requires training and several years of experience End-user needs for assistance are especially high in the first 18 months after implementation 20
21 VII. Transition to O&M ITSV Surge Support Contract Surge contractor staff will work side-by-side with ITRP, ITSV and users Provide the necessary technical software expertise Provide critical customer support following implementation Provide critical functional training to ITSV ITRP/ITSV will augment staffing for user support via a Surge Support contract (estimated cost $2M - unfunded) Contract to terminate within 2 years 21
22 VIII. Conclusions ITRP Represents the most ambitious business process improvement effort in Authority history Is a project of major proportions that is changing the way WMATA does business now and many years into the future Positions WMATA as a transportation industry leader State-of-the-art business management technologies Industry standard business practices Is an investment that will pay for itself Is not just another WMATA project It is WMATA. 22
23 IX. Next Steps Meet existing go-live dates Place greater emphasis on business process changes and metrics Refine cost estimates for unfunded surge support contract, MMMS installation in 2006, KRONOS time and labor system and Learning and Training Management installation Approximately $6M to complete the ITRP and $4M to improve the existing IT infrastructure to successfully assume operation and maintenance of these systems. Present $10 million funding strategy to Budget Committee as part of a comprehensive review of unfunded needs/priorities and available funding sources 23
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