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Using technology to streamline
reporting and communication for
capital project in-service dates
Brian Nash |
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 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 2016 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 2007- 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 2016 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 2016 5
Project Initiate to Close (PIC) – Context
Human Resources
HR
SAP PS
Accounting and
ControllingFI-CO Materials
Management and
ProcurementMM
Sales and Billing
SDPlant
MaintenanceCustomer Service
PM & CS
Production Planning
PP
Capacity and Resource Planning
Time SheetsCATS
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 6
SAP Work Breakdown Structures
Project Definition
Work Breakdown Structure
WBS Element
WBS Element
Work Breakdown Structure
WBS Element
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 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 day-to-day
confirmations, frequently
Evaluateprogress by
reporting
Settle to intended receiver
Close Project
Create
Project
Input or Allocate Budget
and ForecastManage 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 2016 10
Project Initiate to Close Team Goals
PIC Team Goalso 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 2016 11
Our business challenge
Overview• Different interpretations of the capital In-
service 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
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
Current Process
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 2016 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 30-50
• Updates required monthly
• Manual entry into SAP is approx. 10 minutes per project
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 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 2016 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 2016 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 2016 16
Direct Business Impact: estimated time savings
10
Min
ute
s
12
mo
nth
s
1000 Projects
2,000hours
Before
12
mo
nth
s
1000 Projects
200hours
Entry time down to <
1m
After
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 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
Impact• Timely capitalization of a project• Improved data quality for depreciation
forecasting• Greater risk of inaccurate financial &
management reporting• Time savings from efficient
communication
Process
Project scope is agreed
upon by operations and
LOB owner
Operations
completes project
construction of asset
LOB Project Owner
estimates In-service
date of asset monthly
• 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 when necessary
• Uses Forecast Finish date field on Level 1 WBS element to update turnover date
• 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 2016 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 In-service 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 2016 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 re-work to your Winshuttle template scripts during implementation
Winshuttle USER GROUP CONFERENCE | LAS VEGAS 2016 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