Plan to Pay (P2P) Optimize your process to Manage your Contractors with Oracle Primavera July, 2012
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1 Plan to Pay (P2P) Optimize your process to Manage your Contractors with Oracle Primavera July, 2012
2 Agenda Oracle View of Plan to Pay (P2P) Composite Process Component Review Project Planning & Portfolio Mgt Procure to Pay Supporting Processes & Capabilities Summarise / Questions
3 Plan to Pay (P2P) Oracle Perspective
4 Composite Process Project Planning & Portfolio Mgt PLAN Portfolio Planning & Budgeting Project Planning & Estimation Project Management Cost Management & Re-forecasting Cashflow forecasting Original Budget costs & claims based upon methodology (e.g. WBS, Activity, Cost Codes etc) Create Project Define work break down structure Assign deliverables Profit, Revenue, WIP based upon completion, costs & claims to date & % of completion Project Financial Results, FX, JV s, Management & Stat Reporting Materials & Resources Product & Service Catalogue Resource Management Material Requirements (cont. Order Mgt) Advanced Supply Chain Planning Sourcing to Agreement Procure to Pay Requirements Negotiations Agreement Requisitions Purchase Orders Receiving (contains Quality Assurance) PAY Identify attributes, supply & service reqs, costs & pricing Publish specifications and RFQ to suppliers and address supplier questions Make award decisions Create 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. July 24, 2012 Release 12.1
5 Supplier Management Lifecycle Supplier Search Invitation Supplier Self-Service Registration Supplier Profile, Qualification, Credit/Risk Assessments ( D&B, erfx/survey ) Supplier Inactivation Supplier Performance Analysis and Management Supplier Master & Contract Supplier Profile, Classification, Bank Detail, Relationship Maintenance Ongoing Assessments (erfx/survey)
6 Supplier Management New Supplier Qualification and Onboarding Submit Suppliers Prospective/New Supplier Registration Request Request Information Submit Notification Relationship Contract Commodity Manager Receive Packet Review Questions Add Profile Information (Resubmit) Approval Process Qualified and Approved Sync Supplier Profile Return/Reject Finance / Legal Expert Review Credit Evaluation Questions Add Credit Evaluation Return/Reject Contract Manager Review Risk Evaluation Questions Add Risk Evaluation Return/Reject Compliance Officer Review Prospect Party Site Evaluation Questions Add Prospect Party Site Evaluation
7 Supplier Management Supplier Performance Evaluation Evaluated Suppliers Invited Evaluators Computer Supplies, Inc. Electronic Supply Buyer Joe Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? No Yes Overall Supplier Satisfaction 4 2 Buyer Ed Is Supplier flexible during negotiations? Is Supplier responsive? Any Quality complaints? No Yes Overall Supplier Satisfaction 5 2
8 Sample Contract Flow Define Purchase Plan Schedule Collaborate Contract Definition and Negotiation Build / Rollout Model Prioritise & Launch Manage Mark Up EBS Contracts EBS Purchasing Primavera Portfolio Mgt Primavera P6 / Contract Mgt Autovue Collaborate P6 EBS P6 Remit/ E-Business Primavera Transmit Content Mgt UCM Adaptor
9 Composite Process THE SOLUTION TO SUPPORT YOUR P2P
10 Project Portfolio Management Core Foundation and Leverage
11 Enterprise Project Portfolio Management Executive Reporting Investment Decisions Project Initiation Oracle Portfolio Management Project Initiation Oracle Business Intelligence Oracle EBusiness Suite Risk Mitigation Schedule Validation Oracle Primavera P6 Project Accounting Procurement Oracle Risk Analysis Sub- Contractor Management Project Artefacts Oracle Universal Content Management Submittals Transmittals Safety/Insurance
12 Oracle Project Portfolio Management Plan Initiate Execute Monitor 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 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 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
13 Project Portfolio Management Core Capabilities and Demonstration
14 Project Portfolio Optimisation: Assessing, Prioritising & Selecting the Right Capital Projects 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
15 Optimising Existing Assets: Completing Projects On-time and On-budget 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
16 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
17 Project Delivery Mitigating Risk Identify, manage, mitigate, and prevent risk impacts 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
18 Risk Analysis Quantitative Definitions
19 Governance: Templates establish standards critical to project success 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
20 Driving Accountability through Actions and Alerts Accountability and Visibility Actions Action List Workflow Driven Enterprise Wide Printable/Exportable Oracle PGBU Confidential 20
21 Contract Summary Real time contract information Cost Control Summary Changes Insurance Payments Submittals Oracle PGBU Confidential 21
22 Payments Negotiate 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 22
23 Project Portfolio Management Core Wrap Up
24 Oracle Project Portfolio Management Plan Initiate Execute Monitor Investment Decision Making Project Schedule Validation Risk Benefit Methodology Management Role Based Solution Single Source of Truth
25 What Customers are Achieving 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 Thompson Travel Group saved over 25% on indirect goods purchases implemented internet procurement in only 60 days
26 Procurement Contracts Process Flow Standardise Terms, Accelerate Negotiation, Drive Compliance 1. Establish Standards Central terms library Workflow configuration Clause selection rules 2. Author & Negotiate Templates & rolebased authoring Substitute & non-std clauses Supplier paper 3. Approve and Sign Online collaboration Flexible approval workflow Electronic & digital signature 4. Monitor and Track Contract Workbench Terms implementation Real-time deliverable tracking 5. Amend Collaborative revision process Amendment approval flow Auditable revision history 6. Renew & Closeout Expiration alerts One-click renegotiation Standardized closeout process
27 Expert-Based Authoring Produce Compliant Contracts Contract Industry Segment? Configurable rules drive terms selection for complex contracts Template Government... Commercial Over $50k? Clauses default based on product, supplier, contract value, etc. Author high quality contracts with minimal legal supervision No Yes Responses Drive Clause Selection Add Clauses High Value Insurance Draft Contract
28 Procurement Core Wrap Up <Insert Picture Here>
29 Oracle Procurement Source Procure Receive Pay Monitor - Integrated to Finance / PPM - Advanced traceability - Contract Management Risk Benefit - Oracle Accelerator templates -Dashboards & KPIs - Preintegration between PPM / FMS / HR - Image Automation & Procurement
30 Summary Complete composite capability including SCM, VCP, and collaboration underpinned by scalable technology
31 Oracle Primavera s Focus 3 Management Areas Plan Improve Capital Investment Portfolios Deliver proven capital project planning, management and control solutions that increase CapEx value, mitigate risk and reduces costs Build Enhance the Construction Process Implement innovative construction management capabilities with EPCs to ensure optimal cash flow and timely project completion Operate Optimize Maintenance Leverage leading project management capabilities to optimize the allocation of limited resources, capture best practices and reduce OpEx costs.
32 Project Success Drives Financial Performance Enterprise Project & Portfolio Management Plan Build Operate Improve ROI Improve Cash Flow Improve Operating Margins
33
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