personnel cost planning herug 27.03.2002 mit website

8/3/2019 Personnel Cost Planning HERUG 27.03.2002 MIT Website

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Personnel Cost Planningthe past, the present, the future

International HERUG conference26th - 28th March 2002Melbourne, Australia

Henny ClaessensUniversiteit Maastricht


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Agenda

1. Universiteit Maastricht- Introduction of the university

2. The past- HERUG 2001 development request # 13

3. The present- Pecaso Cost Planner, add on solution

4. The future- SAP White Paper Personnel Cost Planning

5. Summary


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Universiteit MaastrichtIntroduction7 faculties

Faculty of Medicine 1974Faculty of Health Sciences 1980Faculty of Law 1982Faculty of Economics & Business Administration 1984Faculty of Arts and Culture 1991Faculty of Science 1992Faculty of Psychology 1995

11.000 students

3.000 staff

SAP modules implemented:- HR 1999- FI, CO, MM, SD, AM 2001

- Cost Planner (integrated add on; not SAP) 2002


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Students and staffUniversiteit MaastrichtIntroduction

0

2000

4000

6000

8000

10000

12000

14000

Students

Staff

1980 1985 1990 1995 2000


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Universiteit MaastrichtUMs mission

Educational innovation

Problem Based Learning Curriculum

International orientation

Geographically situated in a tri-lingual region(Dutch, French, German)

Growing part of Curriculum is offered in English


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You cant manage

what you cant measure

Peter Drucker

Extremely true in a growing university !


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The process

UMs Personnel Cost Planning (2 cycles)1. Monthly rolling forecast within the year

Months within the year (cumulation YTD actuals + planned months)

Increasing YTD actuals/decreasing planning period within the year:

Actual YTD 2002 Planned months 2002 Total Jan-Apr May-Dec xxx

Jan-May Jun-Dec yyy

Jan-Jun Jul-Dec zzz

Etc. Etc. .

2. Yearly rolling forecast for next 5 years After current year:

Planning period Total

2003-2007 XXX

2004-2008 YYY

2005-2009 ZZZ

Etc. .


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The past (I)

UMs requirements for Personnel Cost

Planning1. Planning occupied positions (P)

Periodic pay increases starting from . (dd/mm/yy)

Change in working time starting from . (dd/mm/yy) Change in PSgroup/level starting from . (dd/mm/yy)

End of employment contract starting from . (dd/mm/yy)

Change in cost distribution starting from . (dd/mm/yy)

2. Planning vacant positions (S)

GPL based (Gemiddelde Personeels Last)In English: APC based (Average Personnel Cost)

3. Rolling forecast within the year Months within current year; actuals YTD + planned periods

4. Rolling forecast for next 5 years Beyond current year


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The past (II)

1986: Personnel Planning System UM Stand alone/tailor made legacy system

Central registration of personnel & vacancies

High accuracy rate

Planned-actual comparisons: 10%

Organisation UM was not ready for this

Decentral registration of vacancies did not take off

Recruitment module not used consistently

Matter of: Organisational change !


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The past (III)

2000: Preliminary study standard SAP/PCP Projected Pay Alternative I: based on Jobs (C)

Alternative II: partly based on Jobs (C); partly on Positions (S)

Alternative III: based on Positions (S)

Basic Pay

Alternative I: generic percentage raise for employers costs

Alternative II: dummy wage type for employers costs

Payroll Results

No alternative: because of external (non SAP) Payroll

2000: Findings of preliminary study Not flexible enoughfor UMs personnel cost planning

In particular soft future oriented changes (starting from)

Reason for: HERUG development request# 13 Next major release; R/3 enterprise; wont wait for this .

Temporary solution: Cost Planner (ROI 2-3 years)


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The past (IV)

2000: HERUG development request # 13 Description

Personnel Cost Planning in standard R/3 (release 4.6) is notflexible enough for our needs. We would like to use PersonnelCost Planning as follows:

Basic Pay for employees (Infotype 0008)

Projected Pay for vacant positions (Infotype 1018)

More flexibility is needed with regard to:

Employee specific scheduled payments

Expiration date of the job assignment

For planning purposes these data have to be manipulated

separately without causing changes in real basic pay data(Infotype 0008)

Business motivation

Personnel Cost Planning in standard R/3 does not meet thebusiness needs of the university. Personnel Costs typicallyrepresent 70% of total costs of the university. So relatively

small differences tend to have substantial financial impact


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The past (V)2001: Pilot Cost Planner

Flexibility occupied positions

Additional Infotype 9008 for planning purposes only

Limited customizing during pilot

GO-decision (July 2001)

Completing the customizing

Developing tailor made enhancements

Drill down functionality from Cost Planner to HR

Scheduled pay increases for 72 months rolling forecast

Post pilot finding (December 2001)

No decentral usebecause of Chart of accounts structure..

Findings of the pilot: Cost Planner meets all essential functional requirements

Additional programming required for: Drill down reports from Cost Planner to HR

Scheduled pay increases for 6 year period Simulating 72 consecutive RPITUM00 runs in just one run


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C

P IT 0008basic pay

detailed

info?

Wage element:

basic pay (PSgroup/period)

IT 0014fixed additional

pay

S

3000

27

3000

OM

(vacant positions)

yes

no

IT 1011work schedule

IT 1015cost planning

CO

K

PA

(occupied positions)

Wage element: GPL (average personnel costs)

E.g..:

work schedule

GPL

direct valuation

...

IT 0001organisation

IT 1007vacancy

O

PERSONNEL COST PLANNING

basic pay for occupied positions (P)

projected pay for vacant positions (S)

IT 1015cost planning

IT 1018cost distribution

Cost distribution:

internal orders (OD)

IT 0015variable additional

pay

95%

5%

Wage elements: additional pay

Wage elements:

additional pay

OD

HR

2000700

150


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The present (I)Integration HR Cost Planner CO

CO

CostPlanner

HR Infotype 0008 Infotype 0014 Infotype 0015

Cost element

Wage-element

UM specific developmentof drill down functionality

(two steps):1. K or OD S or P2. Detail of S or P

Drill down functions within

standard Cost Planner: cost center (K)

request (OD)

object (O, P, S, C)

Infotype 9008

Wage-type


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The present (II)

StandardCost Planner

functions


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Cost Planner


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Plan ScenarioAdministration


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The present (III)

Personnel Cost Planningfinalized

when transferredfrom Cost Planner

to CO

..(HR Plan Version)


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The present (IV)

UM specific drill down

functions

from Cost Plannerto HR

Step 1. Drill down at large

- Cost Center (K)

- Internal order (OD)

Step 2. Drill down detail

- Person (P)

- Vacant Position (S)

UM specific drill downUM specific drill down

functionsfunctions

from Cost Plannerfrom Cost Plannerto HRto HR

Step 1. Drill down at largeStep 1. Drill down at large

- Cost- Cost CenterCenter (K)(K)

- Internal order (OD)- Internal order (OD)

Step 2. Drill down detailStep 2. Drill down detail

- Person (P)- Person (P)

- Vacant Position (S)- Vacant Position (S)


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The future2002: R/3 Enterprise (4.7a)

Ramp up (first shipments): start in July 2002

Far superior to the previous SAP Personnel CostPlanning solution Based on separate planning Infotype

Data transfer to SAP BW for detailed analyses

SAP BW contains Personnel Cost Planning InfoCube

Continious improvements: web, portal, workflow

Install on DEV; install on PRD ?

2003: R/3 Enterprise (4.7b) Unrestricted availability: in the beginning of 2003

Install on PRD; expected to be mature

White Paper: see download section SAPnet www.sap.com/solutions/hr/factsheets.asp


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Agenda1. Universiteit Maastricht

- Brief introduction of the university

2. The past- HERUG 2001 development request # 13

3. The present- Pecaso Cost Planner, add on solution

4. The future- SAP White Paper Personnel Cost Planning

5. Summary


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Planning run

1. View of cost center (K)

2. View of requests (OD)

3. Detailed view of requests(cost objects: persons,

vacant positions, organisationalunits)

4. Detailed view of personnel costs(wage elements)

1

2

3

4


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Questions ?

E [email protected]

T +31 43 388 2510

F +31 43 388 4890

W www.unimaas.nl

personnel cost planning herug 27.03.2002 mit website

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