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Alex Beired Rachel Murphy Chris Loran How Guardian Combines Financial and Operational Drivers for a Truly Integrated Plan
Alex BeiredRachel Murphy
Chris Loran
How Guardian Combines Financial and Operational Drivers for a Truly Integrated Plan
About Guardian Industries⦿ Manufacturer specializing in
Float Glass & Automotive Trim
⦿ 18,000 employees⦿ 25 countries / 5 continents⦿ Revenue US$4.0 billion⦿ HQ in Auburn Hills, MI, USA⦿ Acquired by Koch
Industries in 2017
About Guardian Glass⦿ Main division of Guardian
Industries.
⦿ 10,000 employees
⦿ 25 countries / 5 continents
⦿ Revenue US$2.6 billion
⦿ HQ in Auburn Hills, MI, USA
… and this is what we do
⦿ Float⦿ Pattern
⦿ Vacuum Coated
⦿ Laminated⦿ Tempered
⦿ Acid Etched
⦿ Mirror
Our Main Products
OneStream Evolution at Guardian
Financial Reporting
Consolidation Q2 2013
Glass Segment Report Q2 2013
Tax Provision Q4 2017
Glass Segment Report Q3 2018
Compliance
Guardian Tax Package Q4 2014
Account Reconciliation
Q2 2017
Forecasting
Glass 3 Year Outlook
Consolidation Q3 2013
SRG Forecast Consolidation
Q1 2014
Planning
AOP and Long Term Q2 2016
KPI Driver Based AOP Q3 2017
Glass People Planning Q3 2017
Long Term Plan Q2 2018
Monthly Forecast Q2 2018
Performance Tracking Q3 2018
SRG People Planning Q3 2018
By:Scope & Vision Alex Beired
Opportunity Statement⦿ Our financial planning system was not integrated with all the underlying
performance assumptions (OpEx bets, headcount, etc…)
⦿ Regions used their own Excel based tools to model individual business assumptions only using OneStream to consolidate results at a global minimum standard.
⦿ Planning models were different in every region with limited harmonization.
⦿ Regional models were not globally scalable as we grow our business and impractical to maintain through Excel.
⦿ These disconnected models prevented us from doing variance analysis within the system and force the region to perform this analysis on the side.
CPM - Vision“Integrated global financial planning system that will allow the business to :
⦿ plan future performance
⦿ track variances to the underlying assumed KPIs”
CPM - Vision“Integrated global financial planning system that will allow the business to :
⦿ plan future performance
⦿ track variances to the underlying assumed KPIs”
Integrated
CPM - Vision“Integrated global financial planning system that will allow the business to :
⦿ plan future performance
⦿ track variances to the underlying assumed KPIs”
Global
CPM - Vision“Integrated global financial planning system that will allow the business to :
⦿ plan future performance
⦿ track variances to the underlying assumed KPIs”
Plan andTrack Performance
CPM - HowGoal-
Setting
Planning
Consolida-tionReporting
Analysis & Modeling
Insight Profitable
Action
“Integrated global financial planning system that will allow the business to plan future performance and track variances to the underlying assumed KPIs”
CPM Project Scope
Leveraging OneStream’s SmartCPMTM Platform
ü One Product
ü One Application
ü Multiple Solutions
ü Maximize Reuse
Project Scope
⦿ 2017◉ New driver-based planning solution to replace Excel processes◉ 2018 Annual Operating Plan (Budget) generated using new solution
⦿ 2018◉ Strategic Plan (5 Year Forecast)◉ Monthly Forecast Revisions◉ Align S&P (data warehouse) data with reported OneStream Actuals◉ Improved Walk Reporting with aligned drivers across scenarios
By:Project Considerations Rachel Murphy
We’ve been here before…
ForecastingGlass 3 Year Outlook
Consolidation
Q3 2013
SRG Forecast Consolidation
Q1 2014
PlanningAOP and Long Term Q2 2016
KPI Driver Based AOP Q3 2017
Glass People Planning Q3 2017
Long Term Plan Q2 2018
Monthly Forecast Q2 2018
Performance Tracking Q3 2018
SRG People Planning Q3 2018
So what’s different?
We actually USED OneStream
Critical Success Factors
⦿ Global Project Team⦿ User-friendly modeling:
◉ Embedded modeling logic that the business can manage ourselves.
⦿ Process / summarize large volume of data ⦿ Workflow management for guided user experience⦿ Real time calculation:
◉ Change drivers or assumptions then immediately see the calculated effect ◉ Beyond just data roll-up, businesses need real-time calculation so changes
instantly ripple through all connected plans to reveal the impact right across the enterprise—all the way to the profit and loss account and cash flow forecast.
⦿ In order to get here…we had to change our approach
Model Requirements
⦿ Metadata Consistency◉ Entity◉ General Ledger Accounts◉ ABC Process
⦿ Model Consistency◉ Strategic Plan◉ Annual Operating Plan◉ Monthly Forecast Revisions
⦿ Financial Reporting◉ Income Statement◉ Balance Sheet◉ Cash Flow
Same as Consolidation
Same Planning Model
Same as Consolidation
Model Innovations
⦿ Expanded Product Dimensions◉ Commercial View (UD6)◉ Operations View (UD2)◉ Process View (UD3)
⦿ Revisions Dimension
⦿ Customer Type Dimension
⦿ Regional vs Plant Workflows
Ultimate Game Changer!
Model Innovations
⦿ Automated Intercompany Sales Eliminations⦿ Integrated Material Cost
⦿ Inventory Flow Calculations
Trace the flow of inventory from plant to plant, production, consumption, outside sale and apply driver based cost
Float
Raw Material Hot End Cold End
Coated
Float Produced
Float Purchased
(IC Material)
Warehouse
Storage Shipping
Sale
Data Integration
⦿ People Planning⦿ Internal Sales & Profitability Data Warehouse
⦿ Internal Operations Data Warehouse
By:Implementation Details Chris Loran
About Agium EPM
⦿ European OneStream Platinum partner, based in the Netherlands
⦿ We are passionate about finance and financial systems
⦿ Average EPM experience per consultant > 10 years, some over 25 years in EPM
⦿ Partner since Q1-2014 – one of the first in Europe
⦿ We are true specialists, not generalists- All consultants are OneStream trained and OneStream focused
⦿ 25 OneStream projects in 5 countries
⦿ Regular contributor for ready-to-use modules / starter kits (e.g. IFRS16/ASC842)
Specialty Apps
⦿ One myth is that you do all your driver calculations only inSpecialty Apps, then consolidate the plan using the cube.
Consolidation Cube(s)
Specialty Apps
⦿ One myth is that you do all your driver calculations only inSpecialty Apps, then consolidate the plan using the cube.
⦿ Actually… Cubes are still a powerful and most suitable place to calculate much of the forecast data.Specialty Apps are usually supplemental to that process.
Planning Considerations
⦿ Enter/modify drivers and instantly see calculated results⦿ Data spreading and top-down allocations
⦿ Extensible dimensionality
⦿ Data blending with relational data⦿ Re-use of form items (cube views) for various scenario types
⦿ Calculations are focused on specific accounts(rather than on complete Data Units)
⦿ Span multiple years (rolling fcst and long-term)⦿ Work mostly with periodic data (instead of YTD)
Instant calculation on data entry⦿ Demo
Linking Calc Rules to Cube Views
⦿ Dashboard links cube views to business rule functions.⦿ Allows customer to self-service what calculations get automatically
triggered when saving data from specific forms.
Automatic Top-Down Allocations⦿ Demo: Immediate top-down allocation/spreading of high-level input data
⦿ Can make good use of Extensible Dimensionality
⦿ Not just through user interface (right-click action) but also through API.Data.Allocate(…).
⦿ Demo: Toggle box for Actual data comparison periods
Dynamic Row & Column Filtering⦿ Matrix-Style control on what products get displayed in each entity⦿ New feature from v4.2 to show/hide suppressed rows (but this matrix implementation goes further)⦿ Want to show blank rows, but only for those valid entity/product combinations⦿ Demo:
Data Blending◉ Users can retrieve a blend of relational and cube data◉ Data is loaded regionally or centrally, users see a filtered view for their
own entity/plant.◉ Demo:
Filtered stage dataSales detail for this entity
Flexible Seeding ⦿ Dashboard allows regional FP&A to control population of baseline⦿ Selectable number of actual periods to average
Re-Use of Components
⦿ Various scenarios have different time frequencies
⦿ All these scenarios are implemented using one set of cube-views…
⦿ Remember copying form designs in previous-generation EPM products?
Examples
Annual Operating Plan Jan-Dec (Monthly)
Monthly Forecast Revisions Forecast + Actual Monthly Blend
Strategic (5Y) plan Y to Y+6 ; Yearly Input
Re-Use of Components
⦿ Extensive use of dynamic member lists⦿ Controls what periods should be shown in columns
- Scenario Input Frequency ( yearly, quarterly, monthly )- Scenario Data Range ( year range, rolling fcst range )
Re-Use of Components
⦿ Gets even better when using dynamic member lists in a column template.
⦿ Control the layout of 100s of Cube Views in one place.
Re-Use of Components
⦿ Annual Operating Plan ( Jan – Dec)
One Set of Cube Views !
⦿ Strategic Plan (yearly frequency)
⦿ Monthly Forecast Revisions ( monthly frequency )
Actual data Input from this month…
Columns dynamically change to 5-years
… or rolling forecast with prior periods fixed.
Walk Report - Example
⦿ We can not only report on financial variances, but also variances in the underlying drivers (e.g. changes in prices, fx rates)
By:Questions…
Come and visit us at the Agium EPM BoothAsk Me Anything Lounge.
