Oracle Projects to Control Costs and Schedules

2. Oracle Projects to Control Costs and Schedules Lakshmana RavulaDirector, Product Management, EBS Projects Development Nikhil Mishra Director, EBS Projects Development

3. Safe Harbor Statement • The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. Agenda • Project Control: Overview • Challenges • Solution: Oracle Project Management • What’s Next

5. Business Process Overview • Plan • Resources • Time • Money • Execute / Operations • Resource deployment • Consumption • Progress • ‘ • Control • Correction • Re-plan • Manage • Monitor • Collect data • Compare • Analysis

6. Project Life Cycle: Planning Build Work Breakdown structure Define Project Scope Performance Standards Budgeting Resource Assignment Define Key Milestones Stake holder Analysis Acceptance Criteria

7. Project Life Cycle: Execution / Operations

8. Project Life Cycle: Monitoring Progress & reporting Billing & Costing Field Engineers Billing Engineer Project Manager Planning Engineer Analysis Comparisons & Reconciliations

9. Project Life Cycle: Control Charles Robert Darwin English Naturalist “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.”

10. Project Life Cycle: Control

11. Agenda • Project Control: Overview • Challenges • Solution: Oracle Project Management • What’s Next

12. Challenges around Scope • Deprived Planning • In time Progress Management • Insufficient data to Forecast & Re-Plan • Inappropriate Reporting • Material handling • Unskilled resources • Ineffective reviews • Resource Under / Over utilization SCOPE • Inability to manage change • Insufficient Information • Incapability to make decisions • Ineffective Resource Planning • Inaccurate Estimates • Inadequate Risk Management

13. Challenges - Cost of Failure A study of 10,640 projects from 200 companies in 30 countries and across various industries, found that only 2.5% of the companies successfully completed 100% of their projects. Another study that analyzed 1,471 IT projects, found that the average overrun was 27%, but one in six projects had a cost overrun of 200% on average and a schedule overrun of almost 70%. A research estimate of IT failure rates represents a loss of $50 billion to $150 billion per year in the United States. Another study estimated that IT project failures cost the European Union €142 billion in 2004. Data from the US Bureau of Economic Analysis Data

14. Challenges - Cost of Failure Data from the US Bureau of Economic Analysis Data 84% of companies either do not conduct business cases for their projects or perform them on select key projects $1T in underperforming projects in the US & $4T worldwide 70% of project managers say resourcing is increasingly difficult and less predictable 89% of companies are flying blind with no metrics in place except for financial data 84% of companies are unable to adjust and realign their budgets with their business needs 72% of major federal IT projects on the Management Watch list

15. Agenda • Project Control: Overview • Challenges • Solution: Oracle Project Management • What’s Next

16. Controlling Projects with Oracle Project Management

17. Cost Control Project Management Tools Cost Engineering & Estimating Planning & Scheduling • Compliance • Rev Rec • Management Report • Customer Contracts • Risk Management • Cost Control • Benchmarking • Operational Excellence: • Resource Utilization • Cash Flow Mgmt • Supplier Management Single Source of Truth Change Management & Controls Earned Value Analysis & Mgmt. Risk & Delay Claims

18. Role-Based Access The Oracle Project Management Solution Business Analytics IntegratedIntelligence • Establish plans • Assign resources • Automatically create budget s& forecasts • Re-plan • Manage progress • Manage changes • Forecast at completion Plan ProjectManager Execute TeamMembers • Manage performance & exceptions • Communicate status • Share documents • Raise issues • Review progress • Earned Value • Comparisons • Complete deliverables Control Executives Scheduling / Estimating Tools Supply Chain HR System Asset Management Financial Systems

19. Oracle E-Business Suite Projects Project Analytics Enterprise Project Performance Management Project Portfolio Management Project Resource Management Project Financial Management Budgeting & Forecasting Project Management and Operations Change Management Planning and Scheduling Costing and Billing Project Procurement Capacity Planning Contract Management Earned Value Management Financials Business Operations Human Resources Time and Labor Supply Chain Application Foundation End-to-End Industry Processes Master Data Management Comprehensive Security Enterprise Analytics

20. Oracle Project Management Project Analytics Enterprise Project Performance Management Project Portfolio Management Project Resource Management Project Financial Management Budgeting & Forecasting Project Management and Operations Change Management Planning and Scheduling Costing and Billing Project Procurement Capacity Planning Contract Management Earned Value Management Financials Business Operations Human Resources Time and Labor Supply Chain Application Foundation End-to-End Industry Processes Master Data Management Comprehensive Security Enterprise Analytics

21. Oracle Project Management Performance Indicators Key Indices Cost Budgets, Est Cost to Complete BAC (Budget at completion) Controlling Projects Planning, Scheduling and Project Reporting Work Plan, Resource assignment, status & Performance reporting Cost Engineering & Estimating Project Controls encompass the people, processes and tools used to plan, manage and mitigate cost and schedule issues and any risk events that may impact a project. Change Order, Issue change Impact Re-planning Earned Value Analysis & Management Change Management & Controls Track of change in Scope, Project Status reporting (Indicator for potential risks and delays) Risk & Delay Claims

22. Challenges • Deprived Planning • In time Progress Management • Insufficient data to Forecast & Re-Plan • Inappropriate Reporting • Material handling • Unskilled resources • Ineffective reviews • Resource Under / Over utilization • Inability to manage change • insufficient Information • incapability to make decisions • Ineffective Resource Planning • Inaccurate Estimates • Inadequate Risk Management

23. Challenges - Solution

24. Time

25. Resources Workplans • WBSTemplate Deliverables WorkEstimates • Leverage project templates to create plans • Assign resources (both labor & non-labor) • Comprehensive deliverables management • Establish dependencies within & across projects • Leverage integration with scheduling tools • Display Critical Path via Gantt chart • Use workflow to streamline approvals and task execution • Support flexible relationships between work plans and Financial plans • Program Management • Activities & Resource Planning Create Workplan Approve Publish and Version Workplans

26. TeamMember Progress Tracking and VisibilityGain Visibility to Project Schedules and Progress • Collaborative Progress Collection • Report on tasks or deliverables (by percent complete or estimate to complete) using multiple progress methods (effort, cost, deliverables) • Rollup individual results to overall project progress • Rollup task progress using various methods, including task weighing • Using Progress for re-planning • Define and manage progress cycles Work Plan ProjectManager v.3 v.2 v.1 Revisions CommunicateProgress Publish Revised Plan

27. Versions & Re-planning • Publishing • Applying progress • Re-base lining • Edit generated versions • Edit by time-phased periods • Create personalized views • Integrated with third party tools • Edit in Excel. • Adjusting & Re-Working

28. Usability Enhancements Performance Management • Work plan Performance • Updating Financial Attributes in work plan without publishing • Billable / Non Billable Work type • Task Highlighting in Task details page

29. Cost

30. Manage the Budget Rationalize Budget Creation and Approval Generate cost budget based on a resource plan, a work plan & commitments Generate revenue budget based on multiple Contract types, Sources & accrual methods Support flexible options for creating budget, including configurable spread methods & period profiles Create and compare “what if” scenarios Automatically route and approve budgets Track baseline and multiple versions of project budgets

31. Project Re- Planning & Forecasting Improve Forecast Accuracy and Efficiency Re-Plan based on Progress Collected Automatically create initial forecasts Compare variances to prior forecasts Create cost ETC based on multiple methods & sources (eg, earned value, percent complete, balance quantities, future amounts, future schedules, etc.) Summarize ETC based on multiple rollup methods Include commitments and change orders in forecast Automatically re-spread planned amounts Adjust forecast in summary or detail Adjust quantities, rates, costs or revenue by % across all areas Create multiple ‘what-if’ scenarios ActualCosts InitialBudget Forecast Workplan Resources Adjustvia Excelor Web Changes Forecast (EAC) = Actuals + Estimate to Complete (ETC)

32. Forecasting: • Generate forecast based on • Work Plan • Budget • Staffing Plan • Collect actual incurred • Automatically calculate ETC • Remaining Plan • Earned Value • Plan to Complete • Time phased Forecasting • Spread by various calendars • Managing Forecast

33. Planning by Cost Breakdown Business Requirements – Pain Points • Standardized, user-definable cost classification structure • Reduce the size and complexity of project task structures • Easier setup and maintenance of project structures • Better, timely and structured cost information

34. Planning by Cost Breakdown Business Problem – Large, complex, de-normalized task structures • Customer example: • Project to build a new community • 300 Villas, 50 Chalets, 50 Town Houses • 1 Hotel, 1 Mall • Need to report cost by discipline & building structure • Need to track progress by building & CSI code • Result: • Cost breakdown must be represented by a task or resource to achieve right level of detail • Resource definitions lack ability to track by discipline or cost code • Tasks used to breakdown costs • RESULT: 40,000 – 60,000 tasks in 6 level structure

35. Planning by Cost Breakdown • Business Problem – Undesirable tasks below budgeting/billing level • Customer example: • Marketing project for web design • Need to report cost by deliverable/revenue source for billing • Need to track cost by discipline • Example: If a meeting is required to complete a deliverable, they need to capture the time spent by organization and discipline. • Result: • Cannot track progress or cost for deliverable by assigned resource types • Disciplines represented by tasks below the revenue/deliverable breakdown • Disciplines repeated for each revenue/deliverable stream • RESULT: Undesired tasks below the budgeting/billing level

36. Planning by Cost Breakdown Solution Overview Typical Project Control Structure Solution Task Structure (WBS) Cost Breakdown Structure (CBS) Resource Breakdown Structure (RBS)

37. Planning by Cost Breakdown Solution Description Define CBS Setup a cost breakdown hierarchy by defining cost categories and associating attributes Enter Actuals Capture project, task and cost code on all source transactions (AP, OTL, PO, etc.) Generate Forecast Apply progress and actuals. View and analyze forecasts by cost code, task or resource. 4 Plan by Cost Code Enable cost codes for each task and associate to resource assignments in workplans and budgets. View CBS summarized plan amounts. Cost Actuals with Cost Codes Extract cost codes and display on all costed expenditures from source modules or import interface

38. Planning by Cost Breakdown Business Value • Higher return on investment by improved insight to cost sources and reduced risk of project cost overruns • Reduce costs through rapid and streamlined implementation and maintenance of standardized cost control structures that supports best practices • Improved profitability of future projects through improved estimating and benchmarking based upon standardized cost tracking • Improved cash flow by efficiently producing industry-standard cost coded invoices

39. Quality

40. Change ManagementRapidly Respond to and Plan for Project Changes • Plan financial impacts by task, resource and supplier contract (PO) • View budget impacts prior to accepting / approving • Consolidate multiple change requests into a change order • Provide complete audit trail of historical changes Executives Project Managers Implement Team Members

41. Earned Value Management NOW SV - Schedule Variance CV - Cost Variance BAC- Budget at Completion EAC- Estimate at Completion VAC- Variance at Completion PMB - Performance Measurement Baseline BCWS - Budgeted Cost of Work Scheduled (Planned Value) BCWP - Budgeted Cost of Work Performed (Earned Value) ACWP - Actual Cost of Work Performed (Actual Cost) 41

42. Reporting • Work Plan • Earned Value Metrics • Multi Dimension Summary Views (WBS, RBS & CBS) • ETC • Financial Plan • Forecasting (EAC, ETC, BAC ) • Multi Dimension Summary Views (WBS, RBS & CBS) • KPIs • Status Reports • Custom Measures • Performance Management

43. Endeca Complete Data View Key Metrics Highlights Google Like Search Search Across Organizations Search On Flexfields Advanced Visualization Guided Navigation® Range Filters with histograms Tag Clouds Charts Performance Metrics Metrics Bar Cross Tab

44. Endeca for Project Management • Manage project financial risk and cost discipline • Highlight at-risk tasks before they reduce margins • Identify the root cause and make adjustments across multiple budgets and forecast • Ensure schedule compliance • Warn Project Managers of late tasks before they affect project deadlines • Identify and modify tasks impacted by the schedule or resource correction • Improve project team productivity • Quickly identify and update tasks related to the work plan and/or financial plan • Make the changes consistently across multiple tasks

45. Get to your results faster by searching across the project with Google® like searches Identify and act on tasks being delayed in either start or completion Multi-Select from the results to perform updates in an efficient manner

46. Mass update all selected tasks at once…

47. Capture data specific for each task selected and update…

48. Capture progress for all selected tasks and update…

49. Financial Control Aggregate information across applications for a full view of project performance Asset andEquipmentManagement PerformanceManagement FinancialManagement

50. Drill into expenditures. Recoup costs through change orders/requests View the financial plan details. Make adjustments by updating multiple financial plans at one time. Identify and act on tasks at-risk financially