h t t p : / / w w w . b e a s t u t e . c o m

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

03

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

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)

• 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

7

Requirements for Asset Management & Partner Functions

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

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

16

Sample Result: Priorities

16

• 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

17

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

18

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)