Bridging the Cost/Schedule Divide:

Integrating Primavera and Cost Systems

Javier Sloninsky
EcoSys
 Agenda

Speaker intro
Corporate Introduction
The Challenges of the Cost / Schedule Divide
Best Practices and Case Studies in Cost Integration with Oracle Primavera:
Elements of a Best Practices Cost Controls Solution
Case Study: B&W
Case Study: Technip
Benefits
Q&A
 EcoSys Company Background

Founded in 2000

Enterprise Project Controls Software Experts

Designers & Developers of original Primavera P6 and EcoSys EPC

Professional Services
Enterprise Consulting Expertise: Project Portfolio & Cost Management Best Practices
Global Primavera Implementation and Systems Integration Leader

Partnerships with Oracle, SAP, Accenture, Microsoft, IBM

250 Customers in Global 1000 and Public Sector

 Our Perspective
Our Perspective

Project Controls System Designers

Project Controls Implementers:
Owners and Operators
Contractors
Public sector
Enterprise architecture mindset
Partnership approach with industry
Constant evolution
Representative Customers
 Global Technology Partners

EcoSys EPC Certified to run seamlessly

with Oracle and SAP:

Professional Partnerships with Global Tech Leaders:

6
 The Cost/Schedule Divide

Control Dynamic
Structure Flexible

?
Auditable

Cost Schedule
 Challenges for Cost Controls

In most organizations, Cost Controls is not a simple affair

Departmental Budgets Project Budgets Project Forecasts

Project
Impact Planning

Teams of people consolidating data in spreadsheets

Double
Commitments entry Actual Transactions JVFunding

Spreadsheet errors
Contract General too late to address issues Funds
Performance
Databasereports available
General Management
Ledger
Ledger
Time
Cards
 Successful Cost Controls Systems

Strike a balance between flexibility and business rule enforcement

Tailorability /Configurability Project/Cost Structures
Terminology WBS
Processes CBS
Reporting OBS
Metrics Alternate Breakdown Structures
Phases/Lifecycle
Financial data structures
Actual Expenditures Project schedule data
Accruals WBS
Revenue Cash Flows / Time Phasing
Commitments Time Periods
Pricing & Rates Resource loading
Multi-currency
Full Lifecycle Project Controls
Bridging Planning & Execution
 Flexible Primavera
Integration Options
Different integration rules can be established for different
business areas, departments, project types, etc

Import Projects/WBS from P6 Export Projects, Activities to P6

Import Resources Export Actuals
Import Dates Units
Import % Complete Costs
Import time-phased Resource Resources
Assignments Dates
Units (BL, actuals, planned, remaining) Map to WBS/Activity Codes/Roles
Costs (BL, actuals, planned, remaining) Export Forecasts
Import/Map P6 Codes/Attributes Units
Project Codes Costs
Resource Codes Resources
Activity Codes Dates
Cost Accounts % Complete
Expense Categories
Map to WBS/Activity Codes/Roles
 Planning & Controls Platform

Maintain Each Version in

Create Projects and Budget in EcoSys,
Actualsorfrom General
Import Commitments
ProgressorEcoSys,
and Forecast
gaininginTrending
Import
Build WBS in EcoSys, or from Primavera, Manage
Ledger and/or from in EcoSys
EcoSys, and
Oracle Projects, etc. andcompare to
Audit Trail
import from Primavera, Accruals cost loaded schedules,
or other systems. contractor forecasts
 Full Drilldown Visibility

Departments/Programs > Program > Project > Transactions

 Planning

Customizable Web Spreadsheets for data entry

Project Budgeting

Project Forecasting

Contract Commitments
From Summary to
Variance Analysis
Dashboards
 Configurable Cost Processes

Can set up company specific custom

criteria:
Group By Capital and O&M
Filter by Outage/Online
Distribute cost manually or by curve
Compare/Reconcile
P6 and Cost Data
Capital Projects Budget Report
 Project Controls Best Practices

Babcock & Wilcox, Nuclear Power Generation company, establishes EVM

standards and reporting mechanisms

Technip Project Cost Management System integrating systems for global

standard project controls
 Case Study

Nuclear Power Generation & Operations company

with major R&D, Construction, and Services projects
in US & Canada

Also in Alliance with Bechtel for Modular Nuclear

Reactor technology

Standardized on SAP and Primavera P6

Selected EcoSys for integrated earned value

performance management, project reporting, and
controls

Expanded EcoSys for Outage Reporting in 2012

 CaseStudy
Case Study

Integration Approach
Timesheets

Actual Costs Projects, WBS

Integrated Earned Value Mgmt
Timesheets Dates
Budgets & Forecasts
Commitments Labor plans
Commitments
Revenue Percent Complete
Actual Costs, Revenue
Change Orders
WBS & WBS Status Project Cost Reporting
Budgets, Forecasts Historical Snapshots
Transaction/Audit Repository
 CaseStudy
Case Study

Highlights of B&W Approach

EV Technique Varies by Work Package
Full Time-Phased History of Earned Value by Month
EV Measures based on both Hours and Costs
Performance analysis by Month, Year, and Project Life
Change & Trend Management integrated into Current Budget & Current Forecast
EV Reports can be run by toggling Baseline Budget =Cur Budget or Cur FC
Ability to analyze performance & ETC by Alternate Breakdown Structures:
Discipline
OBS
Cost Type (Labor, Material, ODCs, etc.)
 Standardized Performance
Reporting

Cumulative & Periodic Performance

 Standardized Performance
Reporting

Cumulative & Periodic Performance

 Flexible Earned Value Analysis

By Project, Category Code and EV Method

Comparisons by
EVM Dashboards
Alliance Partner
CPI / SPI
WBS
WBSand ABS
& CBS
 Case Study

World leader in Project Management

and Engineering & Construction
in the Energy Industry
Revenues of 6 Billion Annually
48 countries
27,000 people

32
 Case Study

Uses P6 and Oracle E-Business

Sought Common Work Process for
Budgeting
Forecasting
Change Management (client vs. internal changes)
Commitment Management
Standardized reporting
JV / Client reporting
Multi-currency forecast analysis: spot & fixed
Multi-project reporting
Selected EcoSys EPC for Global Project
Cost Controls System

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 Cost Analysts Spent 61% of Time
on Wasteful Activities
Analyzing Budgets & Actuals
Forecasting & Trending
2% 1%
Change Management
6%
Fixing Oracle Issues
20%
Monitoring &
Controlling Costs 30%
16% Correcting
Labor Coding

12% 13%
Collating Internal &
Manual Downloading External Reports
 Cost Analyst Target Utilization
Provides Much Greater Value Added

Troubleshooting
Running Reports 5%
5%

Forecasting & 25%

Trending 65%

Analyzing Data
 Case Study

Work Breakdown Structure (WBS)

Total Project

Can be unique per Project

3 4
Yard Fab
Frees project teams to report Procurement

based on needs of project or 3.1

3.2 Main Eq
Company Assigned
contract
3.2.1 3.2.2
Rotating Eq Pressure Vessels

M0900 M1000
Pumps Compressors

M0910
Cent Pumps
M0920
Recip Pumps
M0930
Rotary Pumps
 Case Study

Cost Breakdown Structure (CBS)

Standardized Globally Via EPC

Corporate
Top Four Levels for Corporate Reporting
Reporting
and Consolidation
Levels 5+ Allow Regions Flexibility
Typically broken out by Cost Types and
Disciplines
Material Codes
Construction Codes
Dept. & Common Common
Financial/Accounting Codes Financial Material Constr.
Codes Codes Codes

Work hours Material Quantities Work hours

Labor $ Unit $ Labor $
Total $ Total $
 Case Study

EPC aligns all work by both CBS and WBS

Provides Flexibility at Project Level

AND Standardization at Regional and Corporate Levels

High Level Budgets, forecasts, actuals can exist at any level,

but still roll up
 Reference & Initial Budgets

Forecasts in same view

Time-Phased Budgeting
Budgeting of Material Quantities
 Benefits

Visibility
Executives and Strategic Planning gain Visibility into Execution
Ability to Drill Down and Respond Quickly
Data Reportable by Any Attribute
o Project, Project Type, Division, Location, Plant, Asset
o Vendor, Unit, Phase, Sub-Asset, Resource, Activity

Increase Efficiency and Accuracy

Less Effort Consolidating Data, Supporting Data Calls,
Troubleshooting Errors
 Benefits

Achieve Process Standardization

Increased Predictability
Instill Best Practices and Institutional Learning

Improve Financial Performance

Ability to Prioritize Work more effectively
Resource Optimization
Cost and Schedule Performance Improvements
More effective management of global project financials,
such as hedging
Questions?

Thanks!