Using technology to streamline reporting and communication for capital project in-service dates. Brian Nash

Transcription

1 Using technology to streamline reporting and communication for capital project in-service dates Brian Nash

2 Agenda About me What is Project Initiate to Close (PIC)? Our business problem Financial implications of our business problem Solution alternatives Winshuttle Solution Summary of the project solution and implementation Benefits Realized Future projects using Winshuttle Winshuttle USER GROUP CONFERENCE LAS VEGAS

3 About Me Originally from St. Petersburg, Florida Educational Background o University of Florida o Master degree in Accounting 1997 o Stetson University o Master degree in Business 2011 Professional Background o Ernst & Young LLP (Sep 1997 Jun 1999) o MetLife (Jun 1999 Aug 2001) o St. Petersburg College (Aug 2001 Aug 2004) o Chick-fil-A (Aug 2004 Feb 2006) o Robert Half Consultant (Feb 2006 Jul 2007) Disney Background o Segment Cash Flow Team (Jul Aug 2009) o Disney Cruise Line Financial Reporting (Aug 2009 Aug 2010) o Marketing & Sales Finance (Aug 2010 Aug 2011) o Financial Systems NGE (Aug 2011 May 2013) o Financial Systems PIC (Jun 2013 present) Winshuttle USER GROUP CONFERENCE LAS VEGAS

4 Project Initiate to Close (PIC) Key Facts PIC Basic Functionality Referred to as Project Systems in SAP Functionality in SAP that allows recording of costs to cost objects (i.e. WBS element, Network, CO Production Orders, Internal Orders) Projects are categorized as Expense, Capital, or Statistical Expense or capital projects settle costs based on settlement schedule to cost elements (i.e. Cost Center, GL account) PIC Security & Data Governance Project Controller security role in SAP required to create and maintain PIC master data Project Controller role is monitored and audited quarterly Winshuttle USER GROUP CONFERENCE LAS VEGAS

5 Project Initiate to Close (PIC) Context Time Sheets CATS Human Resources HR Sales and Billing SD Accounting and Controlling FI-CO SAP PS Plant Maintenance Customer Service PM & CS Materials Management and Procurement MM Production Planning PP Capacity and Resource Planning Winshuttle USER GROUP CONFERENCE LAS VEGAS

6 SAP Work Breakdown Structures Project Definition Work Breakdown Structure Work Breakdown Structure WBS Element WBS Element WBS Element Winshuttle USER GROUP CONFERENCE LAS VEGAS

7 The Lifecycle of a Project Define what is to be done from a business perspective Develop a strategy that is represented by a structure Plan costs and revenues, and schedule when events must occur Approve the Budget and distribute it throughout the structure, release the project Execute dayto-day confirmations, frequently Evaluate progress by reporting Settle to intended receiver Close Project Create Project Input or Allocate Budget and Forecast Manage Project Close Project Project Examples: Capital - Rehab a resort, build a new attraction, build a parade float. Expense - Cost to maintain the monorails or buses, cost to maintain an operation. Winshuttle USER GROUP CONFERENCE LAS VEGAS

8 Project lifecycle with relevant SAP T-codes Winshuttle USER GROUP CONFERENCE LAS VEGAS

9 Project Definition Input screen in SAP Winshuttle USER GROUP CONFERENCE LAS VEGAS

10 Project Initiate to Close Team Goals PIC Team Goals o Provide excellent customer service for any TP&R user that interacts with Project systems o Shared mailbox with very quick response time to users o Super user (representatives from each area from WDW only) meetings to address any issues/concerns o Provide strategic support for process improvement projects for many departments using PIC data within the company o Ensure PIC SAP system functionality is working as expected providing users with support as necessary o Test existing PIC functionality for major and minor SAP releases o Initiate and test enhancements to improve functionality that meets user needs o Ensure PIC SAP data quality for projects o Quarterly data quality reviews for PIC data in SAP o Monitor processing of automated jobs weekly o Settlement error resolution o Reconciliation of SAP and Rapid Mart data to ensure data reporting integrity Winshuttle USER GROUP CONFERENCE LAS VEGAS

11 Our business challenge Overview Different interpretations of the capital Inservice date Dates not always current in SAP No accountability for updating dates Dates not updated on a timely basis Time-consuming communication to validate dates are current Current Process Potential Financial Impact Delayed capitalization of a project Inaccurate depreciation forecast Greater risk of inaccurate financial and managerial reporting Resources needed to validate data in SAP is current Project scope is agreed upon by operations and LOB owner Operations completes project construction of asset LOB Project Owner creates project in SAP Uses Basic Finish date field to store In-service date in SAP Operations updates turnover date in SAP Uses Basic Finish date field to update turnover date when necessary Basic Finish date can represent Turnover date or In-service date depending on who provided the last update. Winshuttle USER GROUP CONFERENCE LAS VEGAS

12 Data maintenance effort Considerations for project team when identifying the best solution: Number of capital projects are over 1K Users directly impacted would be Updates required monthly Manual entry into SAP is approx. 10 minutes per project Winshuttle USER GROUP CONFERENCE LAS VEGAS

13 Financial implications of our business challenge Ensuring a current capital in-service date in SAP is necessary so that we can: Improve financial, managerial, and tax reporting of asset balances and depreciation expense for executive decision support Improve reporting accuracy and reduce the risk of material misstatements Improve the financial planning accuracy of asset capitalization and depreciation expense Rely upon it as a key data point to drive other SAP functionality such as depreciation forecasting Ensuring a current estimated final cost in SAP will ensure capital spending is aligned with the approved capital plan and overspending is avoided Winshuttle USER GROUP CONFERENCE LAS VEGAS

14 Winshuttle Our solution Although this challenge had been identified previously, the current business process for solving it was a barrier for change After my team learned about the functionality of the Winshuttle technology, we were able to create a new business process leveraging the following efficiencies: Winshuttle Transaction provided significant time savings for LOB partners to update key fields (Capital in-service date and estimated final cost) Winshuttle workflow functionality streamlined communication between the Capital Reporting team and LOB partners to inform that these key fields had been updated The new business process created was able to be implemented monthly to ensure these key fields were updated prior to each reporting period Winshuttle USER GROUP CONFERENCE LAS VEGAS

15 Project Recommendation Recommendation Utilize newly discovered Winshuttle technology to facilitate a standardized business process for LOB project owners to submit a current capital in-service date and estimated final cost for all capital projects in SAP Designate a field in SAP to store the current capital in-service date Implement a monthly requirement to update the capital in-service date and estimated final cost by project from each LOB project owner Winshuttle USER GROUP CONFERENCE LAS VEGAS

16 10 Minutes 12 months 12 months Direct Business Impact: estimated time savings Before After 1000 Projects Entry time down to < 1m 1000 Projects 2,000 hours 200 hours Winshuttle USER GROUP CONFERENCE LAS VEGAS

17 Business Solution outcomes Overview Designate input field specifically for In-service date Establish LOB accountability for updating dates Establish timeline for timely In-service date updates Utilize Winshuttle workflow tool for efficient communication of updates Process Impact Timely capitalization of a project Improved data quality for depreciation forecasting Greater risk of inaccurate financial & management reporting Time savings from efficient communication Project scope is agreed upon by operations and LOB owner LOB Project Owner creates project in SAP Uses Basic Finish date field to store In-service date in SAP Operations completes project construction of asset Operations updates turnover date in SAP when necessary Uses Forecast Finish date field on Level 1 WBS element to update turnover date LOB Project Owner estimates In-service date of asset monthly Project owner uses Winshuttle template to update In-service date Update required by Friday before each month-end Uses Basic Finish date field to store updated In-service date in SAP Winshuttle USER GROUP CONFERENCE LAS VEGAS

18 Our business solution Designated SAP fields Winshuttle USER GROUP CONFERENCE LAS VEGAS

19 Winshuttle Template Winshuttle USER GROUP CONFERENCE LAS VEGAS

20 Our business solution New business process Winshuttle USER GROUP CONFERENCE LAS VEGAS

21 Benefits Realized 1. Faster instantiation of Capital in-service dates in SAP 2. Increase capitalization date reliability for capital projects 3. Increase depreciation forecast reliability via Inservice date 4. Reduce manual work effort by Capital Reporting and Shared Services to validate In-service date prior to key reporting periods 5. Improve accuracy of financial, management, and tax reports for capital projects Winshuttle USER GROUP CONFERENCE LAS VEGAS

22 Lessons Learned Defining the optimal business process is critical to ensuring the expected business value will be achieved using Winshuttle It is important to secure leadership/executive commitment for a change in the business process prior to implementation this will reduce any rework to your Winshuttle template scripts during implementation Winshuttle USER GROUP CONFERENCE LAS VEGAS

23 Future Projects using Winshuttle Future projects being explored for use with Winshuttle: Updating forecast for capital projects using new template Creating Material Master data for a project with a very large volume Working to be able to implement Winshuttle Query to pull data directly from SAP R3 for analysis Adding new retail locations in SAP Winshuttle USER GROUP CONFERENCE LAS VEGAS

24 Questions Winshuttle USER GROUP CONFERENCE LAS VEGAS