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Session ID: BTOT-WE-1145/6

Best practices: Financial resource and project management, process maturity, Project and HP PPM tips and tricks

Speaker Name: Andrea Ciavarella

Date: Wednesday

Session ID: BTOT-WE-1145/6

Agenda•Current Trends

•Understanding the new Financial Summary

•Advice on Resource Management

•When the standard features are not enough

PPM is never an isolated technology

Current Trends in the PPM Implementations

85% - use PPM to manage Demand processes

74% - use PPM to manage Program & Project

22% - Integrate PPM with Other Apps (mainly SAP)

13% - Integrate PPM with Other HP SW Solutions

15% - Are using PPM to manage non IT processes

26% - use PPM for Resource Management

30% - use Time Management

Source: elaboration of HP data as of April 2010

Available, Approved,Forecast and Actual

The funding process

Jan

300

Feb

200

Mar

500Finance Approved

=

Total allocation of 1M€

Finance Approved

Finance Approved

PM plans

PM plans

PM plans

Actuals Actuals Actuals

The funding process (2)The PPM naming convention

Approved

Plan of Records

Forecast

Actuals

Approved = the amount (1 number) of money allocated to this project

Plan of Records = the amount of money assigned (usually from Proposal) to this project, over time

Actuals = how the money is really spent in reality over time

Forecast = how the project manager plans to spend the money over time=

PPM interface

– Complete financial overview across the life of the investment (proposal, project, or asset)

– At-a-glance status of approved spend vs. forecast with clear budget overrun indicator

– Quick access to edit approved budget, forecasts, actuals & benefits

– Fine-grained security control

– Supports export to Excel

It depends on the company’s needs. But at least we can keep track

Do we need to reconcile Forecast with Plan of Records?

Finance Approved

PM plans

•Do I loose money if I dont spend them?

•May I reuse them in the project or somewhere else?

•Is PPM in sync with ERP or PlanOfRecord is just for PM?

Finance Approved

PM plans

•Otherwise project delays?

•Or I deliver less?

•Or I accept RED project?

If finance re-assignes the budget (centralized)?

How do I modify the Financial Summary?

Jan Feb

Old finance number

Finance Review

a) Develop an external procedure

b) Update your forecast values with your new Topdown budget, take a snapshot, make it PlanOfRecord and replan your Forecast again

c) Use Userdata to manually map the status (approved\not approved) of your line and planOfRecords is only for PM

Finance Review

300

200

Is all about having the following information

Resource Management

Demand ActualsSupply

How much

capacity I have

How much I am

planning to use

How much I’ve

used

Resource Pools, Staffing Profiles and TimesheetsPPM Entities

Demand ActualsSupply

Assets/Services

Projects

MISCResource Pools

Asset Requests

Tasks

MISC

Can’t be planned

20%*

20%*

60%*

* = experience

The capacity of a group of people

Resource Pools

Resource Pools

•Logical container of (human) resources

•Use 1 Resource:1RP Relationship (100%

participation)

•Use 1:1 RP to Org Chart

•Overall Demand not exceed 140-150% of

capacity

•Internal and external (body shops). Not fixed

price.

Unscheduled Time-offDemand - Miscellaneous

Demand

MISC • Vacations, Meetings, Absence, etc.

• Can’t be planned.

• Reduce the capacity through resource calendar

Planning the project work

Demand - Projects

Demand• Initiatives that require a significant amount of

effort

• Evolutionary maintanances

• New implementations\features on existing

applications

• More than XX days of work

Projects

Is it a double-work for the Project Manager?

Staffing Profiles versus WBS

Staffing WBS

Main characteristic 1 shot view to the project team and APPROVED allocation

Enables the PM to detail its plan

For whom is needed? Top Management , Resource manager who require a summarized view

For the project manager to list the detailed activities for executing the project

Communicationwith the Resource Manager

Facilitates the resources request process providing a summarized view of roles demand

There is no formal approval process if using only WBS.

Granularity Low (Month) High (Days)

Maintenance Very Low Very High

Daily unscheduled activities on applications

Demand - Assets

Demand• Small maintenances and Ordinary maintenance

• Application Maintenance (tickets)

• 1 per each application/service

• Clear view for Resource Manager and Time Writer

• Service CatalogAssets/Services

Small is investment and requires a process, ordinary is cost and frequent

Divide Small from Ordinary

Pros Cons

1 Asset* for both SimpleActivities can divide actuals

Loose planning details Managed by different groups

1 Asset for Small1 Asset for Ordinary

Separated planning and actuals Cant manage the process for managing a new RFC

1 Asset for Small +1 Request for Small

1 Asset for Ordinary

Separated plans and actualsManage the process for managing a new RFC

ComplexView plan vs actuals only with reporting

(* per application\service)

Analyze Assignment Load targets your ultimate needs

Best kept Secret

Analyze Assignement Load targets your ultimate needs

Best kept Secret

Pro ConsDaily basis planning

Precise snapshot on where people are working

Very hard to maintain. Every unscheduled event requires to replan everything

Monthly basis planning

Top Managers\Resource manager have a view on what’s going on with a monthly accuracy. It requires lesser maintenance for PMs and RMs. Higher probability that data are up to date.

I don’t know where one of my resource is working next Wednesday

PPM is not the best in this area

PPM is the best in

this area

HP PS have developed several solutions..When standard is not enough - KPI

HP PS have developed several solutions..

When standard is not enough – Work Council

A series of queries that check data consistenciesWhen standard is not enough – Data Quality

• Notifications via email on data to be fixed • Clear Dashboards at different Org levels • Examples of checks:

• Planned\Allocation on closed projects• Resources expired still allocated on Projects• Moved Resources still allocated in the old Org

Position January February March Total

Junior

Andrea 50/30 50/70 50 170

Master

Enrico 10/5 0/5 15

ERROR!

I want to replan the 20 days of previous month for this month

1st Feb

Replace actuals into the forecast to save time while replanning

When standard is not enough – Data Quality

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