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Daily Cost Control Using P6 and PCM

Prepared by:

Nicole Jardin, P.Eng. - CEO

Emerald Associates Inc.

Preventing Margin Erosion in an Engineered Manufacturing Organization

Session ID#: 200070

@nicolejardineai

Agenda Daily Margin Control through Automation

■ Background

1. Project Creation

▪ Sell Price vs Cost Estimate

2. Managing Changes

▪ BCO/VCE/CO

3. Daily Actuals Integration – Time & Expenses

4. PM Forecasting

5. Month End

▪ Closing

▪ Snapshotting

▪ Reporting

Background

This is a subtitle or bulleted list

Presenter Emerald Associates Inc.

Nicole Jardin, P.Eng.

Founder & CEO

Delivering Primavera for 20 years

■ Platinum Partner

■ Canada, US, Australia

■ P6, PCM, Unifier, Risk Analysis, UPK,

OPPM, Instantis

■ ODA, managed services, hosting

■ Contact Info

nicolej@emerald-associates.com

Client Background

■ Custom Module Manufacturer

▪ Worldwide Projects

▪ 100-125 projects on the go at once

▪ 3-24 months durations

▪ 8-10 PMs in the team

■ Projects

▪ Types - Pre-fab Buildings/Skids/Camps

▪ Phases - Engineer/Procure/Manufacture/Ship/Install

Automations the only way to go!

This is a subtitle or bulleted list

Automations Margin Erosion Controls

1. Project Award Sell Price vs Cost Estimate

Project Creation PCM->P6 Project Loader

■ Create project in PCM only manual step!

■ PCM-> P6 – auto create

▪ Grab matching template

▪ Put into EPS

▪ Put into OBS

▪ Load in project codes

▪ Load in start and must finish (if applicable)

▪ Load in budgeted costs

Sell Price - Revenue Prorate Payment Milestones P6->PCM

■ Client Contract - Payment Milestones

▪ P6-Rollups & Calculators – Original Sell Price

■ Budget Costs P6 -> Budget Contract PCM

▪ Backpump PCM ->P6 for integrity

Cost Estimate P6-Cost Loader Sheet

■ Populate P6 with Excel estimates

▪ Expenses – buyouts (sub-contracts, materials), inventory

▪ Resources – hours & costs

▪ Markups, overheads reporting

■ P6-Rollups & Calculators – Bid Margins, Markups

Procurement Spending Plan P6->PCM Commitment Loader

■ Load into PCM Modules

▪ Cost Estimate – Original Procurement (Bid Price)

▪ Bid Package Items – for buyouts

▪ Internal Work – Contracts

▪ External Work – PO

■ Backpump PCM -> P6 activities for integrity

Procurement Spending Plan P6->PCM Commitment Loader

■ Load into PCM Modules

▪ Cost Estimate – Original Procurement (Bid Price)

Procurement Spending Plan P6->PCM Commitment Loader

■ Load into PCM Modules

▪ Internal Work – Contracts

▪ External Work – PO

2. Managing Changes Estimates & Change Orders

PCM Vendor Change Estimates-Order VCE Loader

■ VCE-Load – from same Excel estimate sheet

▪ Load multiple Proposals

▪ Create a new PO if new scope!

PCM Change Orders Loaded into P6 CO Loader

■ CO-Loader

▪ Approved change order

▪ Verify match -> to P6 activities

▪ Load CO to date

▪ Revise current budget

■ P6-Rollup & Calculators

▪ Margin for changes, overall, variances

3. Daily Actuals Integrating Accounting ->P6

Nightly Integration Accounting ->P6 -> PCM

1. Accounting -> P6

▪ Load actuals to financial & holding buckets

▪ Error handling

2. Autorun EAI Auto-scheduler

3. Summarize

4. PM Integration & Status Dashboard

▪ Run in verifiers

▪ Run in electors – forecasts vs accounting

▪ Run rollups – margins

5. Autorun Snapshot Current – EP-datawarehouse

6. Autorun P6->PCM payment certificate loader

Financial Period Actuals Loads Timesheets & Invoices ->P6

■ Timesheets

▪ Actual hours & costs

▪ Match role or add new roles

■ Invoices

▪ Expenses – services, materials

▪ Bundles – non-planned

▪ Inventory – long lead

■ P6 Rollup & Calculator

Current margins, indicators

PM Integration & Status Dashboard see problems and drill in

■ Error handling layouts

■ Month Close Special Holding Buckets

PCM Payment Certificates Auto Create & Actual Loader

■ Auto create new payment requisitions

▪ Nightly load actuals this period

▪ Runs after integration

■ Always ready to invoice client

■ Always ready to capture accruals

4. PM Forecasting diaries to tasks

Forecasting Controls PCM diaries->P6 Loader

■ PM Forecast

▪ Efficiencies

▪ Overruns

▪ Start

▪ Finish

Forecasting Controls PCM diaries->P6 Loader

■ Elaborate Electors accounting <> forecast

▪ Not started

▪ In progress

▪ Complete

5. Month End closing, snapshotting & reporting

Closing P6 & PCM

■ PCM – Accruals

▪ Review Accruals – PCM->Accounting

■ P6 - Progress & Notes

▪ Finalize Progress

▪ Clear any coding errors

— Costs coded by mistake

— New POs not pre-authorized

— Review inventory transfers

▪ Finalize Straggler transactions from accounting

▪ Make progress notes

— Efficiencies/overruns

— Delays

■ Re-baseline if needed

Snapshotting P6->EP-datawarehouse

■ Snapshot - Project & Baseline

▪ Financial period spreads

▪ Special Holding buckets

— True Month End Reporting

■ EP-datawarehouse

▪ All snapshots available for reporting against

— Month over month, year over year

— Current period to last period

BI Reporting Project Manager & Management

■ Project Progress Report

▪ P6 & PCM info combined

■ Management

▪ Portfolio progress

▪ Revenue recognition

■ Adhoc

Project Progress status & margins

Portfolio Progress

■ Portfolio Rollups by WBS elements

P6 & PCM Info Combined

Questions?

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