opn logo here utilities industry enterprise project portfolio management -name--title- client logo...

OPN Logo HereOPN Logo Here

Utilities IndustryEnterprise Project Portfolio Management-Name- -Title-

Client Logo Here

Copyright ©2009, Oracle. All rights reserved.

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be

relied upon in making purchasing decisions.The development, release, and timing of any features or

functionality described for Oracle’s products remains at the sole discretion of Oracle.

Prepared For:Client Logo

Here


Agenda

• Leadership: Oracle in Utilities

• Value: Enterprise PPM (EPPM)

• Challenges: EPPM in Utilities

• Solutions: Oracle Primavera for Utilities

• Next Steps

• Contacts


Here


<Insert Picture Here>

Leadership: Oracle in Utilities


Here


Leadership in Utilities: All Major Sectors & Geos

5 of the top 5 Fortune Global 500 utilitiesrun Oracle Applications

9 of the top 10 Fortune Global 500 energy and utility companies run Oracle Applications

5 of the top 5 Platts 250 utilities in the Americasrun Oracle applications

5 of the top 6 Platts 250 utilities in Europe run Oracle Applications

7 of the top 8 Platts 250 utilities in Asia-Pacificrun Oracle Applications



Value: Enterprise PPM (EPPM)


Here

Copyright ©2009, Oracle and/or its Affiliates. All rights reserved. 7

We Live in a Project-based World: What Gets Measured, Gets Managed

3

The result: project failure.

1

every business manages projects

LOB 3

Plant 2

Div 1

Div 3

LOB 2

JV 1

LOB 1

Div 4

Plant 3

JV 2

DIV 2Plant 1

Flawed project selection

Cost overruns

Overallocated resources

Increased asset downtime

No enterprise visibilityRisk Mitigation

Strategy

Strategic Goals

Programs and Projects

FinancialReporting

Monitoring Performance

Talent Search

Planning & Execution

Distributed Information

Profitability

$€£ ¥

Cost Controls

and most have poorly defined processes.

2

Standalone products are the problem, not

the solution.

Copyright ©2009, Oracle and/or its Affiliates. All rights reserved.

Insight, Transparency and Value: Aligning Strategy and Execution Drives Performance

BusinessValue

PROJECTMANAGEMENT (PM)

RESULTSPlan and Schedule Complex Projects

PROJECT CONTROLSPlannersProject ManagersProject Controls

PROJECTPORTFOLIOMANAGEMENT (PPM)

RESULTSProgramsResource ManagementRisk ManagementChange ManagementPlan and Schedule Key andComplex Projects

DIVISION/LOBPlannersProject ManagersProject ControlsResource ManagersProgram Managers

ENTERPRISE PROJECTPORTFOLIOMANAGEMENT (EPPM)

RESULTSStrategic AlignmentTalent ManagementCashflow ProjectionsPerformance and ControlProgramsResource ManagementRisk ManagementChange ManagementPlan and Schedule All Projects

ENTERPRISEWIDEPlannersProject ManagersProject ControlsResource ManagersProgram ManagersTeam MembersExecutives

Strategy

8


Visibility and Accountability

Resources

Oracle EPPM: Providing Complete, Global Visibility and Accountability

TimeScope

PPM

Align

PlanReport

Monitor

ExecuteAnalyze

Global, Real-time Coordination

Strategic Planning

Enterprise Asset Management

Profitability

Supply Chain

Human Capital

Finance

Program Mgmt

Resources

Visibility

Change Control

Forecasting

Risk Mitigation

What-if

Deliver Projects On Time, Within Budget, As IntendedDeliver Projects On Time, Within Budget, As Intended

9

Copyright ©2009, Oracle. All rights reserved. 10

• Integrate business process and data with key enterprise systems

• Manage the program lifecycle from idea to execution

• Control project costs and financials

• Forecast cash flow

• Assess risks and develop contingency plans

• Align workforce enterprise goals and supporting project initiatives

• Collaborate with entire project team including back office operations, internal resources, contractors, and executive management

Align

Plan

Execute

Monitor

Analyze

Report

A Single Source of Truth: Linking Corporate Goals with Operational Plans


Provide governance across the enterprise to deliver the right projects and programs.

Advance warning and analysis to reduce risk and eliminate project failure.

Accelerate projects and programs to satisfy customer and clients.

Deliver on commitments: what gets measured, gets done.

Value

Visibility

Velocity

Accountability

Oracle’s Enterprise Project Portfolio Management: Because All Stakeholders Deserve a Single Version of the Truth

11



Challenges: EPPM in the Utilities Industry


Here


Enterprise & Plant Challenges: Integration to Drive the Optimization of Capital, Assets and People

Capital Investment• Strategically managing portfolios

• Assessing, modeling and mitigating risk

• Enhancing visibility of EPC partners

• Managing complex programs & projects

Asset Efficiency• Managing scope changes quickly

• Access to real-time data

• Collaboration throughout the company

• Metrics/measurement to drive KPIs

Talent Shortage• Assigning the right people to the right

projects

• Leveling resources and resource optimization

• Poor resource utilization


Capital Investments: Lead the Way Out of the Recession with a Focus on the Right Capital Projects

•Assert intensive industries – like Utilities – tend to be the last major industries to emerge from a recession1

•The number, size, scope, and complexity of portfolios and projects has increased

– Project investments are huge with US$12,000,000,0002 devoted to project-based work

•Cost errors and shorter schedules have major impacts– 25% reduction in construction schedules– Mistakes generate cost overruns in the US$100s of millions2

•The challenge – project portfolio optimization– Ensuring CapEx drives ROI and shareholder value

– Forecasting funding and cash flow

– Assessing risk during portfolio prioritization

– Understanding the impact of contingencies on costs and timing


Project Portfolio Optimization: Unique Challenges in a Tough Economy


•Plan -- Create a long range plan and rank projects

•Execute – Update, track and react to project changes & risks

•Measure – Easily assess project financials and KPIs

Create a competitive advantage by prioritizing enterprise investments based upon financial considerations, risk tolerance and resource constraints

Project Portfolio Optimization: Assessing, Prioritizing & Selecting the Right Capital Projects


Project Portfolio Optimization: Managing 700 Capital Projects to Deliver Better Service

COMPANY

Duke Energy is a leading energy company focused on electric power and gas distribution operations, and other energy services in the Americas – including a growing portfolio of renewable energy assets. With revenues over $13B they’re one of the largest utilities in the US.

CHALLENGES

Efficiently managing an annual portfolio of $250M which has more than 700 capital projects along with 40,000 separate activities.

SOLUTION

Primavera’s enterprise solution enables project leaders to plan, forecast and manage the status of all their projects down to the task and resource level. In addition, enhanced visibility permits them to see the projects according to the enterprise breakdown, work breakdown or the resource breakdown structure.

“Primavera schedules are the foundation of our capital program.”

Doug Coatney

Manager, Project Controls-Midwest

Duke Energy

BENEFITS

•Enables 12-18 months planning accuracy for resource requirements in over 10 separate groups (from substation engineering to real estate and maintenance)

•Budgets are formulated and tracked using fully resource-loaded schedule data and actual cash flows.

•Complete and total visibility across the enterprise for craftspeople

•Scalability allows the solution to grow with the businesses demands and requirements


•The deteriorating economy requires a greater focus on existing assets

– “…utilities most focus on operational excellence to extend the life of assets and extract more value.”1

– Spare capacity could be tight because the new financial environment could squeeze investment2

– Responsiveness to changing market conditions is asset driven

– Preventative maintenance reduces costly reactive maintenance

•Maintenance management drives return on assets (ROA)– Essential to an organization’s financial success and a key Wall Street

metric3

– Proactive maintenance organizations can dramatically increase craft productivity4

•The challenge – optimizing existing assets – Optimizing both the routine/daily and complex maintenance process– Accessing real-time data & responding to rapid changes – Collaborating throughout the enterprise– Integration to EAM, ALM and ERP systems

Asset Efficiency: “Rust” Never Sleeps, Neither Should Maintenance Programs


Optimizing Existing Assets: Operational Excellence Drives Success in a Down Economy


Optimizing Existing Assets: Completing Projects On-time and On-budget

•Plan – Quickly develop & communicate projects more effectively

•Execute – Manage tasks & activities

•Measure – Assess costs and risks easily

Reduce operating costs by managing schedules, resources, and costs across all complex – shutdowns, turnarounds – and routine/daily maintenance projects


Optimizing Existing Assets: Execute Best-in-Class Outages and Standardize Processes

COMPANY

Ameren distributes electricity to 2.4 million customers and natural gas to almost 1 million customers in Missouri and Illinois. Their generating capacity is more than 16,500 MW and revenues in 2008 were $7.8B.

CHALLENGES

Taking a generating unit out of service for major maintenance means lost revenue. So the quicker the work can be planned and executed the better. Ameren needed to minimize risk and financial exposure during the outage process as well as plan 3,000 different tasks and coordinate 900 workers – most of which were contractors.

SOLUTION

By standardizing on Primavera, Ameren has created an enterprise project management process that enables both internal and contract resources to better coordinate and execute major maintenance programs.

“Primavera helps us deal with the additional tasks, scope changes, that inevitably develop once you get into a project. It can tell us how many more resources we need, or if they aren’t available, how much more time the project will take.”

Ozzie Lomax, Plant Manager, AmerenUE

BENEFITS

•10% reduction in outage time, the recouped revenue falls straight to the bottomline

•One “true” master schedule even though most resources are external contractors

•Enhanced resource management allows the planning, scheduling and updating of both internal and external resources

•Integration of contractor’s schedules helps to reduce errors, delays and costs

•Visibility of project status from the boardroom to the field


Talent Shortage: Enhance the Use of Limited Talent & Capture Best Practices

•The largest number of retirements will occur over the next decade1

– The average age of an employee is 46 to 492

– Retirement poses the most immediate challenge to the stability of the electricity industry's workforce2

•Limited talent is a risk to portfolios & projects– Lack of skilled talent is increasing project costs and complete dates

– Mistakes due to poor/deteriorating project management skills are driving up costs

•The challenge – doing more with less– Investing in the right projects to maximize resource optimization

– Assigning the right staff to the right project

– Capturing best practices/methodologies for the future workforce


Doing More with Less: Get the Right People On the Right Projects at the Right Time


Doing More with Less: Manage Resources and Capture Knowledge

•Plan – Get the right resources for the job

•Execute – Manage resource bottlenecks and over allocation

•Measure – Capture best practices

Level resources across all projects – capital, shutdown, routine, etc. – and proactively track resource demand so workforce is not over allocated

Copyright ©2009, Oracle. All rights reserved. 25

“The use of a standard, province wide IT solution is helping us provide timely scheduling information that can improve service and reduce overhead costs.”

JJ Blais, Project Director, Hydro One

COMPANYHydro One Networks is responsible for 97% of Ontario's electricity transmission system and about one-third of the province's distribution system. Their distribution system brings electricity to approximately 1.3 million homes and businesses across rural Ontario.

CHALLENGES

Providing electricity to an area about the size of Western Europe, serving 92 municipalities and 18 remote communities is a daunting task. However, imagine also filling the service orders, performing the construction and maintenance work while using multiple manual processes and a jumble of highly customized, poorly integrated software for workforce management. This is what Hydro One was facing.

SOLUTIONAdopting a best of breed approach, Hydro One selected Primavera for it’s core resource management capabilities. Integration to a number of disparate systems, including an Oracle database, enabled the client to seamlessly move data among applications. This resulted in a solution that was flexible and could meet future growth needs.

BENEFITS•Enhanced ability to plot work activities and determine what resources will be required to supplement existing resources

•Consolidation of resource requirements for the peak project season by specific geographies

•Reduced data entry means better information accuracy which results in better service for customers at a lower cost.

•Increased efficiency by shifting the dispatching of resources to schedulers in local offices

•Better coordination and management of resources based on local conditions and constraints.

Doing More with Less: Integrate with Disparate Systems for Enhanced Resource Utilization



Solutions: Oracle Primavera for Utilities

Client Logo HerePrepared For:


Committed to Asset Intensive Industries: Enabling Optimization Through EPPM

Proven capital project planning, control and execution within a rigorous risk framework to optimize CapEx spend,

mitigate risk and reduce costs

Successful planning and management of complex global projects – plant shutdowns

and turnarounds – as well as routine maintenance to reduce OpEx, enhance craft productivity and increase asset efficiency

Build Maintain

We are the de facto standard for the global Utilities Industry


Solutions for Utilities: Focused Offerings for Capital Projects & Maintenance

Oracle | Primavera PPM

Effectively maintain and increase the efficiency of existing assets

Monitor budget allocations against key performance indicators

Identify and select the best exploration and production opportunities

Invest in and deliver projects with superior returns Coordinate existing resources and quickly train

new talent Maximize labor pools globally through an

integrated approach


Primavera P6 Enterprise Project Portfolio Management•Prioritize project portfolios

•Balance resource capacity

•Plan, schedule, and control

•Allocate best resources and track progress

•Monitor and visualize project performance vs. plan

•Foster team collaborative management

•Integrates with ERP & EAM systems

Primavera Risk Analysis:•Determination of cost and schedule risk exposure

•Predictive forecasting

•Contingency and mitigation modeling and assessment

•Manage risks to maximize return and minimize uncertainty

•Set realistic expectations of project cost and schedule

Primavera Inspire for SAP:•Create master schedules from related work

•Increase visibility of all work types, ensure efficient resource utilization

•Reduce system administration requirements and IT/maintenance


• Interoperability – no more siloed/fragmented data

• Leverage a single version of the truth – one source of integrated

information

• Manage CapEx more effectively – successfully choose, plan and

execute projects

• Drive down OpEx – increase craft productivity through better planning,

allocation of resources, and cross-training

• Deliver on time and on budget – effectively coordinate & collaborate on

multiple projects and programs

• Do more with less – maximize productivity of limited resources

Solutions for Utilities: Leading Technology to Meet Challenges of Executives and Project Teams



Next Steps


Contacts

opn logo here utilities industry enterprise project portfolio management -name--title- client logo...

Documents

oracle primavera

project failure

utilities value

europe run oracle applications

oracle andor i

sole discretion of oracle

utilities solutions

projectbased world