CNS Digital Transformation - Merging Two Legacy ERPs Into Single ERP Solution On SAP HANA

Transcription

1 CNS Digital Transformation - Merging Two Legacy ERPs Into Single ERP Solution On SAP HANA v Michael P. Muir Michael.Muir@cns.doe.gov Director, Business Applications UNCLASSIFIED This document has been reviewed by a Y-12 DC/UCNI-RO and has been determined to be UNCLASSIFIED and contains no UCNI. This review does not constitute clearance for public release. Name: Date: 1

2 Mission and Goals Objective: Goals The Business System Modernization Project s (BSMP) mission is to implement a streamlined business and human resources infrastructure using leading business practices and a single ERP platform. This platform will provide CNS with the capabilities to consolidate and integrate all support functions under common processes enabled by the single system in support of its merged operations as well as provide CNS seamless, real-time reporting to meet customer expectations and fulfill mission requirements. Consolidate business operations onto a single platform. Implement more efficient and effective consolidated business processes based on industry best practices. Provide end users with easy access to meaningful and timely information. Create a framework that enables us to portray information consistently and reliably as one business. Provide a mechanism to accurately assess and compare current and historical data. Provide improved business support for the mobile workforce of the future. What s in it for me? Single set of business processes and systems across CNS Organization Management, Payroll, Projects/Accounts, Procurement Consolidated Cost Reporting Single Time Input/Approval Consolidated Workflows 2

3 Agenda Journey Lean processes and Kaizen sessions to deliver industry standard business processes Agile Project Management combined with Earned Value Management to improve project delivery Change Management challenges through innovative communications and outreach approaches Technical improvements Lessons learned and challenges overcome in delivering digital transformation in a highly regulated government environment 3

4 CNS Business Consolidation Road Map FY14 Q4 FY15 FY16 FY17 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Contract Start June 1, 2014 CNS Assumes Operations Interim Consolidated Financials Consolidated Data Warehouse First consolidated STARS submission Initial Data Warehouse Basic Financial Reporting Single HR Master Details still site specific Analysis of Alternatives Requirements Capability Fit Product Selection BSMP Functional process integration; interface(s) evaluation; Standup CNS Environment Project Establishment Kaizen Requirements Schedule 415 CD-0 approval CD-1 Conference Room Pilots CD-2 CD-3

5 Business System Modernization Project Scope Mission Ensure CNS mission is supported by modern, efficient business capabilities Ensure common and consistent CNS business practices supported by consolidated IT systems and reporting Identify and eliminate redundant systems and processes Improve business processes to better integrate across sites Increase efficiency through mobility and cloud computing Ensure capability to apply performance measurement reporting to track scope, schedule, and cost Project Scope Identify the key enterprise requirements for Finance, Human Resources, and Procurement systems Identify best practices throughout CNS to institutionalize across the enterprise Facilitate the consolidation of policies and procedures that lead to consolidated services Recommend the enterprise application software solution that allows the most efficient and effective operation of the business (i.e., SAP, Oracle PeopleSoft) Create and execute communication plan to Executive Leadership Team, Customers, and Stakeholders Implement process and software solutions 5

6 The CNS integrated project team for BSMP 6

7 Business Systems Modernization Project (BSMP) SAP HANA Project Summary Project Project Description Budget Request BSMP SAP HANA The goal of this project is to standardize processes & systems between the sites for Finance, Human Resources, and Supply Chain to allow the data to be imported and integrated into a single new ERP system. Funding Source: Infrastructure TPC Net Funding FY16 $10.2M $2.1M FY17 $18.6M $9.0M FY18 $4.4M $2.5M Total $33.2M $13.6M Estimated Start/Finish 10/1/16 3/31/18 October 2017 with a warranty period through March 2018 for Phase 1 What is it? A contractual requirement to implement a single financial system including standardization and consolidation in finance, HR and procurement across CNS A business imperative Why is it needed?/benefits Consolidated processes & a single system for finance, HR & Procurement Improved system speed/performance, advanced analytics and improved DR/COOP Platform for further system consolidation Potential cost savings & efficiencies from process improvements What happens if we do not do this? Will not meet contractual obligation to have a common financial system for CNS Show requirements not met Highly visible failure of a DOE Project Unable to consolidate systems & processes and operate as one company Milestones Date Milestone 4/15/16 CD0 Mission Need & Alternatives Analysis 6/15/16 CD1 Performance Baseline 4/10/17 CD2 Design Complete 9/29/17 CD3 Go Live 3/30/18 CD4 Warranty Period & Close Out 7

8 HANA Deployment Model CNSNet SAP HANA (QA) Failover Standby SAP HANA (PROD) Database Replication SAP HANA (Development and Sandbox) PX Master PeopleSoft Legacy Pantex Mission CIC Data Warehouse SAP Legacy Mission Y12

9 BSMP Successfully Delivered Over 7K Requirements on time with go-live of October 2, 2017 BSMP Key Objectives 9

10 Overall Health Project Manager: Sumter Tisdale Budget Authority: $33.3M Total Estimate: $33.3M BSMP August 2016 Executive Summary & Objectives for Phase 1 Establish a single operations and business model for core Financial, HR, and SCM processes based upon common business practices across Pantex and Y-12. The current go live date scheduled for October, 2017 is on target Completed Activities During this Period Continued Product Backlog prioritization and sequencing Continued Scrum training classes at both sites Selected Implementation Partner vendor Began sprints 8/2 Attended annual ecpic training CD-0 approved 7/20/2016 Received initial CD-1 Comments from IPT Analysis of Alternatives signed 8/8/2016 Upcoming Activities Green = on schedule; Yellow = Schedule recoverable/deliverables at risk; Red = Schedule unrecoverable impacted Schedule: Project is generally on schedule; Implementation Partner and Training procurements proceeding. Cost: Estimated portions for FY16-17 of the total estimated range of $24m-$44m. Actual costs are being tracked. Actual Costs: $6,583,427 (as of July 2016) Continue with Sprints(2 week cycle) Success Factors Security Test Respond to CD-1 Comments Conduct Steering Committee meeting (8/15) Award Implementation Partner and Training procurements(8/31) SPI CPI ID Project Schedule and Milestone Status Risks (R), and Issues (I) R R Milestones and Major Deliverable Describe Impact For Risks: Include Action/Mitigation Plan Significant process improvement opportunities missed by failure to implement re engineered business processes and delays of key business decisions Unavailability of business and technical resources through out the project Phase Finish Date Initiation Planning Build Testing Production Warranty Residual Risk Moderate Moderate Status & % Comp. CD00 CD 0 Charter Submission 04/15/ % CD01 CD 1 ProjectBaseline Submission 06/15/ % A0010 SANDBOX Environment Complete 07/12/ % 5790 SAPHANA Acquisition Complete 07/14/ % A1390 Review Implementation PartnerBids Complete 07/07/ % A0030 DEV Environment Complete 07/28/ % A0050 Explore/Realize Sprints Start 07/29/2016 On schedule 1710 Training Purchase Completed 06/30/2016 Behind Schedule A1400 ImplementationPartner Contract Award 07/14/2016 Behind Schedule A0070 QAEnvironment Complete 11/07/2016 Not Started B1000 Conference Room Pilot1 12/09/2016 Not Started A0170 PRD Environment Complete 02/28/2017 Not Started 1980 Conference Room Pilot2 04/12/2017 Not Started CD02 CD 2 Design Complete 04/10/2017 Not Started Finance Functional Requirements 07/27/2016 On Schedule HR Functional Requirements 07/28/2016 On Schedule SCM FunctionalRequirements ( P2P) 07/28/2016 On Schedule* Trend Decreasing Increasing Discussions / Decisions Required

11 Kaizen Process Requirement Determination Y 12 Current Platform / SAP Platform PX Current Platform / PeopleSoft Platform Functional Process Areas Current Current Software Used Interfaces System Requirements (SAP, with other Pros Customization, systems External) System Cons Migration to PeopleSoft Impacts Gaps/Mitigations /Barriers/Risks Current Software Used (PSoft, Customization, External) Current Interfaces with Other Systems System Pros System Cons Migration to SAP Impacts Gaps/Mitigations /Barriers/Risks Each Functional Team Identified their high level requirements. Discussed and documented how each site (in SAP, PeopleSoft, or otherwise) met the requirements. 11

12 The team will use an Agile approach as we go through the key process steps for implementation Initiation Planning Build Testing Production Warranty Agile IT Project Management Approach Kanban Board/ Story Board Table Points Size Level of Effort 1 Small 1 person for less than a day 3 Medium 1 person for 3 days 5 Large 1 person for 1 week 10 X-Large 1 person for 2 weeks 20 XX-Large 1 person for 1 month 12

13 STANDARD TWO WEEK SPRINT TIMELINE ACTIVITIES 13

14 Burndown Charts will be used to monitor performance of each teams sprint activity Actual Burndown Example Planned Burndown Forecast Burndown based on team velocity 14

15 Burndown Chart - Example 2 15

16 BSMP Overall Health Green => (10% variance); Yellow= or ; Red=<.85 or >1.26 Project Manager: Sumter Tisdale complete 3/5/2017 Schedule: Project is generally on schedule 1.00 ID Project Schedule and Milestone Status Milestones and Major Deliverable Phase Finish Date Status & % Comp. Budget Authority: $33.0M Total Estimate: $33.0M Cost: Estimated portions for FY16-17 of the total estimated range of $24m-$44m. Actual costs are being tracked. Actual Costs: $31,015,194 (February 2018) Executive Summary & Objectives for Phase 1 Establish a single operations and business model for core Financial, HR, and SCM processes based upon common business practices across Pantex and Y-12. The current go live date scheduled for October, 2017 occurred as scheduled Completed Activities During this Period 1.03 CD 04 GoLive 09/30/17 Success Factors Planning 10/31/17 Success Factors Employee Central Workshop 10/31/17 Success Factors LMS Workshops 11/05/17 Success Factors Recruiting Workshop 11/05/17 Success Factors Onboarding Workshop 11/15/17 CD 4 Complete 03/31/18 100% 100% 100% 100% 100% 100% 40% Provided customer support and answer Service Desk incidents. Initiation Planning Build Testing Production Warranty Risks (R), and Issues (I) Describe Impact For Risks: Include Action/Mitigation Plan Residual Risk Trend Upcoming Activities Provide customer support and answer Service Desk incidents. Monthly Steering Committee meeting 3/6. Complete Sprint 38 (3/6/18), kickoff Sprint 39 (through 3/27) R Warranty period demands may effect follow-on ERP Consolidation project. Moderate Decreasing Discussions / Decisions Required

17 BSMP Scope- As Promised vs As Delivered BSMP preliminary scope defined in CD-1 and further refined in CD-2 specifying Minimal Viable Product (MVP) were targeted for delivery by golive date Scope defined as non-mvp (contingent scope) was delivered during the warranty period. As of CD-4, 95% of the total scope (23,366 story points) were defined as MVP scope and 5% of contingent scope. 97.9% of MVP scope was delivered by CD4 17

18 Communications FAQ BSM Logo BSM Information Sheet Faces of Change General BSM Information and Schedule BSM Questionnaire Manager s Briefing OneBuy Logo BSM Message Platform BSM Focus Groups Web Link to Submit Questions Enterprise-wide Representation BSM Videos Training Support Internal Use Only 18

19 Focus Group sessions Provide input to the Functional and Design Teams and preliminary communications with field ELT A demo of key system features is planned for each Focus Group Session Function/Design Teams Go Live Future Projects May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar The Focus Group s input is to guide the vision for the system 19

20 Delivery 20

21 Bootstrap Mobile Friendly 21

22 Powered by SAP Hana Data Services Columnar/Multi-Dimensional Modelling Real-time Analytics Dashboards 22

23 BSMP Agile Scrum Process- Lessons Learned What Went Well Meeting/ information cadencefrequency to learn status/issues Progress information via burndown charts & Accuracy of earned value metrics Conference room pilots of integrated teams Team re-alignment and flexibility Project leadership and governance model Warranty period, incident and problem management process Internal training program What Did Not Go Well Definition of done, needs to be more specific Some key decision were made later than earlier Issues tracking was not centralized prior to ServiceNow Large Scrum teams Resource availability/ dual hat with operational responsibility Some daily stand up meetings durations were too long 23

24 Conclusion Project Completed On-Time and Under Budget SPI 1.00 CPI Requirements Implemented Single Payroll and Time Collection Single Consolidated General Ledger Consolidated Procurements through single system Single Human resources system 185 Processes integrated between sites Modern Platform for future consolidation activities Plant Maintenance Full SCM deployment Modern Dashboards and Analytics Scalable template for Agile delivery of IT projects 24