Oracle Project Management for DoD Earned Value Compliance

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Oracle Project & Portfolio Management for DoD Earned Value

Compliance: ViaSat's Perspective Dean Herback, Principal Project Strategy Manager, Oracle ProjectsRamji Balaraman, Project Manager, ViaSatRyan Denner, Project Analyst, ViaSatTim Cronin, President, Cronin Business Solutions


Program Agenda

• Earned Value Management overview• Oracle Project & Portfolio Management

• ViaSat Overview• Earned Value Concepts• Oracle PJT Configuration• ViaSat Earned Value Reporting• Future Plans• Lessons Learned and Critical Success Factors

Earned Value ManagementSome Success Criteria

• The Right Tools• You have to be able to track at the correct level of granularity

• Solid Training• From executives to team members

• A Champion behind the Initiative• An enthused participant can spread and sustain the effort

Excerpt from PMI Network magazine, “Added Value” Oct 2007

Earned Value ManagementSome Potential Pitfalls

• Too much complexity• Focus on the principles first

• Cultural conflict• You need to accept the results

• Deficient upfront investment• EVM isn’t a quick win process

• Management Misunderstanding• Executives need training too

• Bad Timing• Tracking actuals must be done timely

Excerpt from PMI Network magazine, “Added Value” Oct 2007

Enterprise and Project Insight

Project Resource Management

Project Costing Project Billing

Project ContractsProject

Collaboration

Project Management

Personalized Role-Based Views

GlobalProject

Repository

GlobalProject

Repository

Project Portfolio AnalysisProject

InitiativesIntegration to

E-Business Suite

Oracle Project & Portfolio ManagementSupport for the Project-Driven Enterprise

SalesDelivery

Research

ProductDevelopment

InformationTechnology

Construction

Marketing

Financials

HumanResources

Time & Labor

Sales

Supply Chain

Documents


ViaSat Overview

ViaSat Overview

• About ViaSat• Oracle Footprint• Project Management Vision• Project Implementation Rollout Strategy

• Founded 1986, IPO 1996

• ~1,700 employees worldwide

• Best strategic partner for satellite networks

ViaSat OverviewAbout ViaSat

• ViaSat is a market leader in satellite and other digital communication technologies.

• Public company traded on the Nasdaq • Revenues of > 500M• Forbes list of "200 Best Small Companies“• Business Week list of "100 Best Small Corporations “• ViaSat is an ISO9001 certified company

Top 50Space

Companies

ViaSat OverviewAbout ViaSat

$0

$100

$200

$300

$400

$500

$600

FY 03 FY 04 FY 05 FY 06 FY 07

Defense CommercialFY End Mar 31

$ m

illio

nViaSat OverviewAbout ViaSat

Revenue Trends…

Government SegmentTactical Data Links Information

Assurance

Government SATCOM

Situation awareness and Communication network for our fighting forces

Encryption for classified data

Media Encryption

Secure systems & projects

DoD fixed & mobile products & networks for Satcom

“Blue Force Tracking” situation awareness of Friendly Forces

DoD application of mobile broadband

Friendlies

Hostiles

Gigabit Internet Crypto

ViaSat OverviewOracle Footprint

• ViaSat has used Oracle Applications since 1998. Modules included in our Oracle footprint include:

Agile

OracleGeneral Ledger

Agile

OraclePurchasing

OracleProject

Contracts

OracleInventory

OracleAssets

OracleTime and

Labor

OracleAccountsPayable

OracleProjectCosting

OracleProjectBilling

OracleAccounts

Receivable

OracleProject

Mfg.

OracleHuman

Resources

OracleCRM

OracleProject

Mgt.

Oracle Projects Suite

ViaSat OverviewViaSat’s Reason for using Oracle Project Management

• Project Cost information available to PMs from a single integrated system, quickly

• Easy to Use -- Fully integrated with MS project• Two way data flow between MS project and Oracle PJT

• Integrated EV management & Reporting replaces MPM• Integrated with Oracle Timecard application (OTL)• Integrated with HR Oracle database• Automated tool for Team Member Project Status-ing• Configuration Control of project plans (Work plan)• One global repository for all data – makes metrics collection and

data mining possible• Established Enterprise system • Easily scalable• Automatically generates executive dashboard for viewing summary

status of all projects under purview

ViaSat OverviewProject Management (PJT) Rollout Strategy

• The functionalities of PJT will be deployed over various phases

• The functionalities with potential for highest productivity gain will be implemented and deployed in the first phase.

• Additional functionalities will be added to Rolled-out PJT module as and when they are completed.

• We currently have 3 programs running on Oracle Project Management in Production.

• Starting January, 2008, we will rollout additional PJT functionalities to currently rolled out projects.

• Starting January, 2008, we will also rollout PJT to additional projects

• Large projects at ViaSat are usually in the range of $60 to $90 million effort with average staff between 100 and 150.

• Medium size projects are usually in the range of $15 to $ 20 Millions

effort with average staff between 20 to 30.


Earned Value Concepts

• What is Earned Value?• Standard Terminology• Earned Value Illustration• Department of Defense (DoD) Earned Value

Requirements• Earned Value Certification

Earned Value ConceptsWhat is Earned Value?

• Earned Value Management (EVM) is a project management practice that integrates:• Schedule • Scope• Cost

• EVM measures the value of work performed

• “Its not how much you’ve spent, it is what you’ve done”

-Ryan Denner

Earned Value ConceptsStandard Terminology – Key Definitions & Metrics

Key Definitions:• Budget at Completion (BAC): Total Baseline Budget• Planned Value (PV): Baseline Budget through a point in time• Earned Value: The value of work completed, “Earned”

• EV = BAC * % Complete

• Actual Cost: Actual Cost incurred through a point in time

Key Metrics:• Schedule Variance: Earned Value – Planned Value• Cost Variance: Earned Value – Actual Cost

Earned Value ConceptsEarned Value Illustration

Co

st

Planned Value: “The Gold Standard”

Time

BAC

PV


% Complete is the “Key” to Earned Value


Co

st

Time

BAC

EV

PV

Schedule Variance

Don’t Forget: EV = % Complete * BAC


Co

st

Time

AC

BAC

EV

PV

Cost Variance


Co

st

Time

PV

AC

BACETC

EAC

EV

Reminder: AC + ETC = EAC


Co

st

Time

PV

AC

BAC

EV

This is what EV looks like at the end of the project

Earned Value ConceptsDoD Earned Value Requirements

• Contractor Processes and Systems comply with:

• ANSI/EIA-748-A: Standard for Earned Value Management Systems Intent Guide (See Appendix)

• 32 Guidelines that can be tailored to the contractor’s business environment

• Earned Value Certification Process

• Contractor’s work with Defense Contract Audit Agency (DCAA) to get EVMS certified

• The Contractor’s EVMS Process is certified – NOT the business system

• The business system must conform to the 32 guidelines in the ANSI/EIA-748 Document


Oracle PJT Configuration

• Oracle PJT Configuration• Configuration for Planned Value• Configuration for Progress Collection• Configuration for Actual Cost• Configuration for Earned Value• Configuration for Project Forecasting



• Oracle PJT Configuration• Configuration for Planned Value

BACPV

Oracle PJT ConfigurationConfiguration for Planned Value

• Steps to establish Planned Value in Oracle PJT:• Step 1: Build the plan in MS Project• Step 2: Import to the Oracle Project Management Workplan• Step 3: Publish the Workplan• Step 4: Generate the Financial Plan from the Workplan• Step 5: Baseline the Financial Plan

BACPV

Oracle PJT Configuration Workplan versus Financial Plan

• Oracle Project Management provides the ability to store and manage two structures

• Workplan• Financial Plan

• The Workplan is used for:• Scheduling (Equivalent of MS Project)• Resource Assignment• Collecting Progress

• The Financial Plan is used for:• Collecting Cost• Baseline Management• Project Performance Reporting• Formal Earned Value Reporting

• During configuration, a relationship is defined between the two structures


Configuration - Process

• Develop the plan in MS Project

• Rates• Resources• Schedule

BACPV



• Generate Approved Cost Budget from the Workplan

• Baseline the Approved Cost Budget

• The Approved Cost Budget is PV

BACPV

Oracle PJT Configuration Configuration for Progress Collection

• Steps to Collect Progress in Oracle PJT• Step 1: Resources update their ETC• Step 2: Task Managers review Step 1 updates and

submit Task status• Step 3: Progress is applied to the Workplan• Step 4: Progress is copied to the Financial Plan


Progress Collection• By Assignment

• Actual Start• Actual Finish• Estimated Start• Estimated Finish• ETC


Progress Collection• By Task

• Review input from Resources

• Determine % Complete• Add Comments• Submit


• Customizations to support progress collection• Earned Value Calculation Methods:

• 50/50, 0/100 calculation• Level of Effort

Oracle PJT Configuration Configuration for Actual Cost

AC

• Steps to Collect Actual Cost in Oracle PJT• Step 1: Collect cost using standard Oracle Project Costing

functionality• Step 2: Run update processes to populate the PJT tables

Oracle PJT Configuration Configuration for Earned Value

• Steps to Calculate Earned Value in Oracle PJT• Step 1: Generate and Baseline the Approved Cost Budget (i.e

Planned Value) • Step 2: Update the Financial Plan with % Complete

EV


• EV is calculated as follows:• Baseline BAC * % Complete

• Earned Value on the Financial Plan

• Copy progress from the workplan

EV

Oracle PJT Configuration Configuration for Project Forecasting

• Steps to Generate a Forecast in Oracle PJT• Step 1: Collect Actual Cost • Step 2: Collect ETC Progress• Step 3: Define a new Financial Plan for Forecasting:

• Forecast Cost Budget• Step 4: Generate the Forecast Cost Budget• Step 5: Submit/Approve the Forecast Cost Budget

ETC

EAC

AC


• Generate the Forecast from the Workplan• The forecast is managed in

the Financial Plan

ETC

EAC

AC


Reporting

• ViaSat Earned Value Reporting• Project Performance Reporting• Cost Performance Reporting in Oracle PJT

ReportingProject Performance Reporting

• Standard Earned Value Reporting• Financial Performance Indicators• Key Performance Area Summary• Exception Reporting


• Standard Earned Value Reporting


• Financial Performance Indicators

• Key Performance Area Summary


• Exception Reporting

ReportingCost Performance Reporting- Overview

• ViaSat developed a custom Cost Performance Report that meets DoD guidelines and standards

• Leverages data from the underlying Oracle tables• Employ Project and Task level UDA’s• Developed in Report 6i/XML• Run via a concurrent request.• Reports are output to MS Excel

ReportingCost Performance Reporting- Report Design

• System only stores total burdened cost for Planned Value

• CPR requires that specific financial elements be reported separately. Examples include:• General and Administrative burden• Cost of Money Calculation

• ViaSat developed a custom applet that allowed these elements to be reported separately

• Data from underlying tables was passed through burden API to separate the elements

ReportingCost Performance Reporting- Format Summary

• The CPR contains four primary formats:• Format 1: Provides task based Earned Value• Format 2: Provides organizational based Earned Value• Format 3: Provides incremental Planned Value forecast• Format 4: Provides staffing forecast

• These formats provide different levels of visibility into the project

ReportingCost Performance Reporting- UDA’s

• User Defined Attributes: Header Data

ReportingCost Performance Reporting- Header, Format 1

• Data pulled from

• Oracle Contracts

• PJT UDA’s

ReportingCost Performance Reporting- Format 1

• Report Body and Lower Detail

• Current Period/Cumulative Values


Future Plans, Lessons Learned and Critical Success Factors

Future PlansViaSat’s future plans include

• OTL/Team Member Progress Enhancement• Integration with ViaSat internal Estimating/Proposal tool• Internal Program Review Snapshot• MSP UDA Integration• Stored Custom Measures• Ad hoc Discoverer Reporting


Lessons Learned and Critical Success Factors

• Lessons Learned and Critical Success Factors• Executive Leadership and Support• Project Team Composition

• Functional Scheduling & Earned Value Expert• Pilot Projects provide insight to real world business

challenges outside of the test environment• Communication and Usability Feedback from end users• Project Structures

• Fully Shared Structure vs. Other

AQ&Q U E S T I O N SQ U E S T I O N S

A N S W E R SA N S W E R S

Where to find more information

Meet the EBS Projects ExpertsMoscone West – 2nd FloorMoscone West – 2nd FloorOverlook Space 3Overlook Space 3 Wednesday 2.30 pm – 5.30 pm

• Timothy Cronin, President, Cronin Business Solutions

• www.CroninINC.com • [email protected]

• Experts in the Oracle Projects Suite

Visit us at booth: 417Visit us at booth: 417

And For Even More Information

• Visit the Oracle Projects Demo Pods in the DEMOgrounds

• Transforming PPM into Strategic Advantage (Location B12)• Driving Business Success (Location B9)

• Related Web Sites For More Information• www.oracle.com/applications/project-management.html

• search.oracle.com

project management

Project & Portfolio ManagementSession Schedule

Session - LocationSession - Location DayDay TimeTime

Oracle Project Management for DoD Earned Value Compliance: ViaSat's Perspective; Moscone West 2016

Monday 4:45 PM

Driving Business Success: Oracle Project Resource Management at Unisys; Moscone West 2016

Tuesday 3:15 PM

TIBCO Adopts Oracle Project Resource Management for Its Services Organization; Moscone West 2016

Tuesday 4:45 PM

Oracle Projects: You've Got Questions; We've Got Answers; Moscone West 2016

Wednesday 9:45 AM

Meet the EBS Projects Experts; Moscone West – 2nd Floor, Overlook Space 3

Wednesday 2:30– 5:30 p.m.

Oracle Projects Extensions for Billing, Revenue Accruals, and More: An NSF Case Study; Moscone West 2016

Wednesday 11:15 AM

Public Sector Projects: Managing Reimbursable Agreements with Oracle Projects; Moscone West 2016

Wednesday 3:00 PM

Managing Complex Contracts with Oracle Project Contracts; Moscone West 2016

Thursday 8:30 AM

Leverage the Power of Billing Extensions in Oracle Projects: Five Common Requirements Met; Moscone West 2016

Thursday 10:00 AM


Appendix


Earned Value Concepts

Earned Value ConceptsEarned Value Certification

• The Defense Contact Audit Agency(DCAA) is responsible for certifying Earned Value

• DCAA’s audit methodology• Certify the business process• Once a process is certified, the contractor must validate that

their system can support the business process and the 32 ANSI guidelines.

Earned Value ConceptsDoD Earned Value Requirements

• Helpful Resources:• DoD Earned Value Implementation Guide

• http://guidebook.dcma.mil/79/EVMIG.doc

Earned Value ConceptsDoD Earned Value - Key ANSI/EIA-748 Requirements

• Section 2.1 - Organization• Used Task Level UDA’s to store Organizational attributes

• Section 2.2 - Planning, Scheduling and Budgeting• Use MS Project as our schedule engine• Oracle calculates costs (Burden Structures/Schedules)

• Section 2.3 - Accounting Considerations • Labor hours collected through OTL (Tasks set in PJT)• Material collected through AP• Data summarized, and passed to PJT

• Section 2.4 - Analysis and Management Reports• 4 Reports submitted monthly• Discussed later in this presentation

• Section 2.5 - Revisions and Data Maintenance

Earned Value ConceptsEarned Value Certification

• Contractor’s work with Defense Contract Audit Agency (DCAA) to get EVMS certified

• The Contractor’s EVMS Process is certified – NOT the business system

• The business system must conform to the 32 guidelines in the ANSI/EIA-748 Document




• A series of configuration activities are necessary to configure BCWS within Oracle Project Management

• ViaSat has divided these activities into two categories• Configuration – Setup• Configuration – Process

BACPV


Configuration - SetupHow ViaSat develops the project plan

• The project is planned/scheduled using MS Project• Resource loaded tasks• Strive for 95%+ linked – minimal use of constraint dates• Key Milestones identified and linked to tasks• High Level Planning Packages used when necessary

• MSP/PJT are linked through MSP integration functionality• MSP Linked to workplan versions, not Financial Plans

• Accounting Calendar:• ViaSat uses a 4-4-5 Fiscal Calendar System• Accordingly, we plan and bill based on fiscal periods• MSP doesn’t support fiscal calendars, but PJT does!


• Configuration - Setup• Create a centrally

controlled Planning Resource List

BACPV


Configuration - Setup

• Enable structures to be “Fully Shared”

• Enable Workplan Versioning

BACPV


Configuration - Setup

• Define Planning Rates

BACPV

Oracle PJT Configuration Configuration for Planned Value


• Send time phased cost and work data for resources

BACPV

Oracle PJT Configuration Configuration for Planned Value


• Publish the Workplan in Oracle Project Management

BACPV

Oracle PJT Configuration Workplan versus Financial Plan

Why use both?

• Using the workplan allows for greater flexibility in the following:• Scheduling• Collecting Progress• “Who’s working on what and when”• Task Details

• We use the Baseline Workplan Versions and specific published versions to generate the following financial plan types:• Approved Cost Budget (Performance Management Baseline)

• Generated from the Baseline Workplan• Forecast Cost Budget (ETC’s & EAC’s that vary from the Baseline)

• Generated from Latest Published (or Specific) Version


Progress Collection• Progress is collected via the team member home page


Progress Collection• Progress can be

collected by:• Tasks• Assignments• Deliverables

Reporting Progress & Fiscal Month End

• ViaSat is only required to report financial/earned value data on a monthly basis

• We report based on a fiscal period basis• PJT does not support a PA Period Progress Cycle• We created a new progress cycle called “Friday of each week”• Allows ViaSat to collect progress on a more frequent basis, while

still the requirement of collecting progress for the fiscal period end date



Progress Collection• PJT will calculate %

Complete • Derivation Method- Task

Type• Rollup Method- Task


Progress Collection• Copy % Complete from the Work Plan to the

Financial Plan


Cost Collection

• Leverage standard Project Costing functionality• Burden

• Rate Schedules

• Transaction Controls

AC


Cost Collection

• Export actual cost to MSP • Role Based Security• Burden• Rates• Transaction Controls

AC


• ViaSat calculates Earned Value as follows:• Earned Value = BAC * % Complete• For Earned Value to be calculated on the financial plan, % Complete

must be copied to the Financial Plan• EV must be calculated at the most detailed task and then rolled up. It

should not be calculated at each summary level of the WBS.• The EV in the reporting tab uses the Approved Cost Budget from the

financial plan and the % Complete from the financial plan


• EV is calculated on the Workplan as follows:• Baseline BAC * % Complete• Earned Value on the

Workplan

EV


• ViaSat generates Project Forecasts as follows:• ETC is collected on the Team Member Home page via progress

collection• ETC logged in workplan • Forecasts are a different type of financial plan that are generated based

on Actual Costs and ETC.• The Forecast Cost Budget is used in Formal Earned Value reporting

(ETC, EAC)• Define forecast generation options for forecasts, you can also specify

the period through which to include actual amounts in the generated forecast (for example, current period, last closed period, or prior period).


• Actual Amounts through• Prior Period (Preferred Selection)• Current Period• Specific Period

• ETC Source• Staffing Plan (Project Resource Management)• Task Level Selection (Preferred Selection)

• Select the Workplan Version with latest ETC info


• Approve the Forecast• The forecast is managed in the Financial Plan

ETCEAC

AC


Reporting


• Cost Performance Report• User Defined Attributes: Header Data


• Cost Performance Report• User Defined Attributes: Header Data, cont’d


• Cost Performance Report• User Defined Attributes: Task Data


• Cost Performance Report• User Defined Attributes: Task Data


• Submit the Concurrent Request











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