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PeopleSoft Asset Management for Healthcare
Presented by: John Ferren – Director Business Strategy & Consulting – Astute Business Solutions
Unique Challenges: Healthcare on PeopleSoft
Common Challenges we Encounter
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04
02
01
Procurement IntegrationTake advantage of the fact you own an ERP system and
let it do the heavy lifting. Asset Management starts at procurement; tightly integrate these functions
Capture Accurate Detail for Accounting, Auditing & MaintenanceAt the point of acquisition – capture accurate detail at the right level to support depreciation, reporting, auditing
as well as the right level for the management of the asset for it’s full lifecycle
Non-Integrated ProcessesMultiple, non-integrated systems managing: Asset
Management, Real Estate Management, Maintenance, Finance, Procurement and other stakeholder functions
Ready to Use & Ready to DeployCapital is precious. Many companies often have
replacement assets, or warehoused, new assets on hand and ready to deploy. Internal acquisition should be
treated as diligently as any top vendor
5 Steps Towards Optimization
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34
5
Commit to long term delivery & optimization
Build champions & change agents
Structure delivery towards optimization & transformation
Execute on short-term wins Move the dial
with minimum investment
Trial for long term change management
Define Roadmap & Prioritize What needs to be
accomplished Magnitude of
effort and change required to meet goals & mission
Review Maturity Model
Focus on regulatory processes
Focus on process that align with long-term goals
Assess: Perform Health Check Where are we
today What don’t we
know (blind spots)
• Review current implementation, configuration, pain points, and business processes for Asset Lifecycle & Maintenance Management processes.
Review
• Analyze issues, process gaps, software gaps, change management needs. Identify improvement, optimization and standardization opportunities
Analyze
• Near-term solutions (low hanging fruit) in current processes & technology use. Leverage available for functionality ASAP.
• Long-term solutions in the context of strategic goals.Report
• Summary report and Detailed Analysis and Recommendations
• Process Maturity Model• Oracle supporting information
Artifacts
How to Assess
5
6
Are my Main Functional Areas Synchronized?
Procure & Define Asset
Depreciate AssetMaintain
Asset
Depreciate &
accurate reflect asset
Approve asset
request
Retire Asset
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Requirements for Asset Management & Partner Functions
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01 Time take from asset procurement to deployment for use is too long. Asset received by not put into use to meet need or demand
02 Asset depreciation reporting is cumbersome and manual due to unresolved asset conversion issues
03 PM schedules, WO notifications, Project costing activities, PO Receipt, Invoice and Voucher
04High number of clicks, non-intuitive UI and lack of contextual information resulting in inefficiencies and drop in productivity and negative user perception
05 High touch point in asset creation and maintenance is not scalable if there is a volume surge.
Time to deploy
Financial Reporting
Information sync
Usability
Scalability
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Before Deployment comes Procurement
Asset Entry Point
The procurement department is typically responsible for tagging all asset information – which affects….
Stage 1
Stage 2
Stage 3
Management &
MaintenanceClass, type, cycle,
parent – all attribute required for a successful and efficient maintenance regimen.
FinanceAll capitalization, depreciation, ownership and reporting is driven off of that original asset definition
DATA STEWARDS&
DATA OWNERS
Information Management & Integration
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CAP Thresholds Procurement
Group
Asset Profiles
Tag & Asset #s
Depreciation & Reporting
Workflow
Asset Transfer
Criticality Work Orders
Parent Child
Data Owners: Functional leaders who are responsible for communicating & soliciting feedback on the use case of a data element
Data Stewards: Care for the proper management of master configuration information and use case of transactional data
With impacts and needs shared among Finance, Procurement, and Asset Maintenance & Management, there are going to be different requirements from each group for shared data elements. Clear stewardship, ownership, and communication will ensure that each change is cleanly adopted into the organization.
A CLEAR DEFINITION ENABLES SOUND COORDINATION
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Determining Gaps
STRENGTHS•Strong definition & adherence to depreciation guidelines
• Integration with MM•Centralized PM schedule creation
WEAKNESSES• Inconsistent accounting for model related defaults
•Asset Profiles are too generic•Not enough asset information at the time of purchase
•Manual effort: Work orders & Asset creation
•Capital asset exchanges, i.e. warranty trade ins.
•Transferring Assets to a different AM Business Unit requires manual transfers of PM Schedules and Work Orders.
OPPORTUNITIES•Streamline the load/population of new assets
•Work order requisitions/inventory integration.
•Component/Asset/Equipment Hierarchy
THREATS•Increase in permanent FTE's to supplement the asset add process
•Audit risk with Joint Commission if assets aren't added in time and accurately
•Financial Audit risk if assets are not added and depreciating correctly
•Delayed asset creation could impact patient safetyLe
vera
ge S
tren
gth Address G
apsExample
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Defining & Prioritizing Strategy
•Strategic and Tactical Business Goals and Drivers •Country specific needs / challenges•Budget, Calendar, Events, Compliance
Business Needs
•Current or legacy systems overview•Integration, Data Conversion, Data Cleansing needs•Scalability, security and global instance considerations
IT Readiness
•Org readiness and support structure •Training and Change Management needs• How can you help business and IT cope with the change?
Organizational Needs
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Why a Maturity Model?
Why a Maturity Model?The use of a maturity model allows an organization to have its methods and processes assessed according to management best practice, against a clear set of external benchmarks.
How to InterpretYour organization likely has some process or practice in place today. The efficiency and value benchmarked vs. function ‘best practices’ are used to determine the current maturity level.
Moving the DialRecommendations are mapped to indicate which milestone and work packages move your enterprise higher on the maturity model for the various sub-functions
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Maturity Models Categories & Criteria
•Low: No procurement integration, no internal warehouse search capabilities•High: Integration & cross-functional champions
Procurement & Asset Receipt
•Low: Siloed processes, procedures by department•High: Master data management with defined owners & stewards.
Data Management
•Low: Maintenance/Engineering must identify and provide asset detail required for deployment management.
•High: Asset acquisition provides detail required for WO executions, mature workflow
Maintenance
•Low: Each asset reviewed individually for cap & depreciations rules•High: Complete & exhaustive asset profile definitionsDepreciation
•Low: Population and merging of data post-extract from source•High: Complete information set sourced from ERP for financial, asset & maintenance management.
Reporting
•Low: No follow through on asset decommission•High: Warehouse for either reintroduction where a used asset is appropriate, or streamlined process to liquidation
Asset Disposal
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LAGGING ACHIEVING EXCEEDING LEADING Criteria
Procurement & Asset Receipt
Fully searchable Asset Database (e.g., for redeployment or testing)Purchasing categories linked directly to Asset definitions & schedulesDefined list of "Approved" AssetsTight coupling with Maintenance & Purchasing"Hands-off" Asset definition from Purchasing forwards through process
Data ManagementSingle management system for Procure to MaintainZero one-off or siloed processesSingle master set of policies, procedures, and definitions
Maintenance Capability for Maintenance/Technicians/Engineering to update Asset records (consistently) to reflect current utilizationTightly & completely coupled AM & MM work order systems
Depreciation- Linked Financial & Management reporting-Standard, common profiles defined- Common rules, common tax books
ReportingNo manipulation of reports post-system generation (aside from formatti ng)Standard, but unique report suite for Purchasing, Asset Management, Accounting, Maintenance, Engineering
Asset DisposalAsset detail captured and maintained for ability to fully report on Asset performanceAbility to recapture capital through asset liquidation
MATURITY MODEL
Current Target
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Defining & Prioritizing Strategy
CaptureCurrent State Capture Pain Points Known Root Causes
[Capture]
Hypotheses for remaining issues & pain
points
Identify and Align Cause with Current Process
MECE(Mutually Exclusive,
Collectively Exhaustive)Root Cause Analysis
DefineEmpirical Solutions
Sets
Root Cause Analysis
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Sample Result: Priorities
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• Updated policies• Trained workforce• Informed partners & stakeholders
Informed Workforce
Improved Utilization
& Reporting
• Assets defined with appropriate detail• Assets profiles refined
Enable Tech &
Engineering
• Detail on asset & PO required for maintenance
• Informed at asset creation
Accounting & Depreciation
• Asset relationships, detail, & useful life issues remediated
Data Integrity
• One time clean up• Configuration & checks to maintain
integrity• Trained workforce, appropriate use
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RoadmapIntermountain Asset Lifecycle Management Milestone Roadmap
Acco
untin
g &
De
prec
iatio
n(2
)
Data
Inte
grity
(1)
Deta
il to
Util
ize
&
Man
age
(4)
Enab
le T
echn
icia
ns &
En
gine
erin
g(3
)
Info
rmed
-Ena
bled
-Tra
ined
W
orkf
orce
(5)
Process & IntegrationData & Configuration Policy and/or Training
LEGEND
AM 1.0
AM 1.2
AM 9.0
AM10.0
AM 12.0
AM 14.0
MM 6.0
MM 10.0
AM 1.1
AM 2.0
AM 2.1
AM 4.0
AM 6.2
AM 8.1
AM 8.2
AM 11.0
AM 17.0
MM 2.1
AM 3.0
AM 3.1
AM 5.0
AM 5.1
AM 6.0
AM 6.1
AM 7.0
AM 8.0
AM 15.0
AM 15.1
MM 2.0
MM 3.0
MM 11.0
MM 12.0
AM 14.1
AM 16.0
MM 5.0
MM 8.0
MM 7.0
MM 9.0
MM 13.0
MAPPED MILESTONES1) Data Integrity throughout Purchasing, AM, AP Functions
2) Capability to account & depreciate at appropriate level of detail3) Technicians & Engineering have detail & process for standard asset service and
maintenance4) Capability to manage, utilize, maintain, & report upon assets with the
appropriate level of data segments & detail5) Informed & updated operations workforce
MM 1.0
Medium Term
PriorityNo
Action Retain
***Not a timeline – simply a milestone to work effort map***
Short Term
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Champions & Change Management
Program Management
Recognize
Evaluate & Implement
Change Champions
Communication
Change Control• For any policy or system
change: communicate, communicate, communicate.
• Begin training right along side the development lifecycle.
• Astute recommends a central and dedicated change management team of resources to manage the change and communication.
Our Position on Change
Conclusion: 5 Steps Towards Optimization
12
34
5
Commit to long term delivery & optimization
Build champions & change agents
Structure delivery towards optimization & transformation
Execute on short-term wins Move the dial
with minimum investment
Trial for long term change management
Define Roadmap & Prioritize What needs to be
accomplished Magnitude of
effort and change required to meet goals & mission
Review Maturity Model
Focus on regulatory processes
Focus on process that align with long-term goals
Assess: Perform Health Check Where are we
today What don’t we
know (blind spots)