Pharmaceutical Project Portfolio ManagementComparison of Microsoft EPM vs. Primavera P6 v7

Sarah BenjaminTaurus Project Controls

April 2012

The Agenda

� Speaker

� Types of Projects

� Transition from Manual Tracking into Enterprise Tool

� Dimensions

� Project Prioritization

� Budget Management for the Portfolio

� Resource Management

Speaker

� Sarah Benjamin

� Project Scheduler

� Primavera P6 v7 Web Lead

� Project Portfolio Manager

� Consultant

� Email: sbenjamin@tauruspcc.com

� Linked In: http://www.linkedin.com/in/sarahbenjamin

Who We Are

Taurus Project Controls

� Consulting firm formed in 2011

� Interactive Planners

� Schedulers

� Portfolio Managers

� Cost Engineers

Why Use Project Portfolio Management

� Enhancement of the project by project scheduling system

� Central system for project status that allows one-stop shopping for answers to

� “Where Are We Right Now?”

� “Where Are We Going?”

� “What Are We Doing Next Year?”

� “What Issues and Risks Are Affecting Projects?”

� Site-wide project prioritization based on business drivers

� Internal resources need visibility of workload and site priorities

� Flexible Cost Forecasting and Reporting

Types of Biotech Projects

� Projects within the scope of Project Controls for each facility are typically capital improvements

� Good Manufacturing Practices (GMP)

� Change Control / Regulatory Approvals

� Impact Assessments

� Implementation Plans, Test Plans, Validation Reports

� Example Projects:

� Changes to Process Equipment to accommodate new products

� Valve Replacements

� Tank Repairs

� Utility System Maintenance

� Automation Improvements

Types of Data in the PM System

� Project Business Drivers and Priority

� Schedule Tracking

� High Level Cost Forecasting

� Project Notes

Types of Data Not in the PM System

• Transactional Cost Tracking

• Resource Tracking for All Projects

Situational Comparison of Microsoft EPM vs. Primavera P6 v7

� This is a situation comparison of two biotech companies based on my personal experience over the last 4 years

� Both companies are large corporate biotech manufacturers

� Company A is bigger and more mature

� Company B is not quite as big and has not been manufacturing products as long as Company A

� This is NOT a feature to feature checklist of all possible software functionality in the two systems

Transition from Manual Tracking into Enterprise Tool

� Excel was the tool of choice for both biotech companies before Enterprise Project Management was implemented

� Excel Advantages:

� Quick updates

� Notes & Comments could be added anywhere

� Portable – easy to attach and share

� Excel Challenges:

� Version Control

� Changes by many users were not tracked

� Project marked complete – who said it’s done?

� Schedule Information Not Driven by Actual Schedules (outdated)

Excel Project List – The Manual Method

Disadvantages:

No single version of the Truth.

Missing Important Data like Phase, PMs, Dates, Budgets, Sponsors

Schedule Dates Not Driven By Actual Schedules And Often Outdated

Enterprise System Architecture Differences

� Company A’s Primavera System Maintained In-House� Speed of System = Fast

� Cost per Year < $50k� Speed of System via VPN = Medium� Maintenance/Updates = Slow

� IT Support = Slow� Data Loss / Backups = Challenging due to DB restoration process� Reporting Capabilities = Accessible, customizable, non-graphical

� Company B’s Microsoft EPM System Hosted Remotely� Speed of System = Slow� Cost per Year > $100k� Speed of System via VPN = Slow (but VPN not required)

� Maintenance/Updates = Fast� IT Support = Medium� Data Loss / Backups = Manageable due to Automatic Archive DB� Reporting Capabilities = Challenging, OLAP cubes may need consultant support, graphical

Company A Oracle Primavera P6 Web Portfolio Gantt

P6 provides more options for Multi-Project Gantt view like showing milestones for each project.

Company B Microsoft EPM Web Portfolio Gantt

Microsoft EPM has a standard Portfolio level Gantt chart view that shows one bar per project.

#1 Reason for Project Portfolio Management: Schedule Management

Centralizing All Project Schedules is the #1 Reason PPM Systems are Implemented

� Schedules can have inter-project links� Schedules are more visible to all users of the software� Schedule updating is more visible to managers� Schedule reporting is simplified

P6 and EPM are Both Robust Schedule Management Systems

Schedule Management Features Used by Companies A & B:

� Inter-project links / logic between activities� Standardized schedule views – output to PDF� Schedule update cycles improved � Schedule reporting provided management a better view� Schedule templates� Activity level coding allowed enterprise level reporting

Oracle Primavera P6 Schedule Web View

Microsoft EPM Schedule in Project Professional

Graphical View of Schedule Progress Made Outside of the PM Software

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Baseline Plan (Early % Cumulative) Actual (% Cumulative) Baseline Plan (Late % Cumulative)

First Construction Contract Awarded May 8 (P)

Detail Design Complete - Apr 3 (P)

Substantial Completion Dec 23 (P)

Preliminary Design Complete - Dec 23(A)

Baseline Plan Actual Baseline Critical

Status as of 31JAN09

11.8% 7.2% 3.6%

Project on Hold -Risk assessment to determine exact scope of work required is ongoing.

P6 and EPM:Schedule Management Differentiators

Software Functionality Differences:

� EPM is “buggy” – errors arise in schedules. It is hard to pinpoint root cause

� Customer Support for troubleshooting issues is much better with P6

� Baseline functionality is better in P6

� Unlimited baselines

� Naming conventions

� Date stamp for last updated

� Layout customizations are better in P6

#2 Reason for Project Portfolio Management: Cost Management

Cost Tracking in Project Portfolio Management Software

� High Level – Total Project Budgets / Forecasts

� Detailed Level – Cash flow per week

� Resource coding available for filtering costs

� Resource Graphs show Cash Flow if detailed in schedule

Cost Tracking Spreadsheet in P6

Cost Tracking Spreadsheet in EPM

Cost Curves in P6 and EPM

P6

EPM

#2 Reason for Project Portfolio Management: Cost Management

Software Functionality Differences:

� EPM is “buggy” – forecast may change when merely opening a project. Hard to pinpoint root cause

� Customer Support for troubleshooting issues is much better with P6

� Graphical cash flow curves are possible with either tool for the detailed activity level data, but portfolio high-level cash flows are not as simple

#3 Reason for Project Portfolio Management: Project Selection Assistance

Project Selection encompasses the initial phases a project goes through prior to execution

RequestRough Scoping

Initial Approval

Detailed Execution Planning

Final Approval

ExecutionWhich Projects Should Be Approved?

Project Status = Most Important Field

Proposed ApprovedIn Close OutCompleteCancelledDeferred

ProposedSG1 ApprovedSG2 Approved CompleteCancelled Deferred

Company B’s Options:Company A’s Options:

Project Status Code is shown in every view and report

Approvals are milestones in every schedule

Elements of Project Selection

� What is not kept in codes and milestones? The general story behind status changes. Why is this important? Everyone wants to know which meeting Project X got approved. How did we incorporate this?

� P6: Project Level Notebook. EPM: Multi-line text field in PWA

Project Notes = Story Line to the Project

Microsoft EPM View: Project Web Application

Disadvantage: Need to Open Project in PWA each time to view or edit notes

Company A’s Notebook Example

0082 Project Notebook Example:

Project Team Update13Apr11 (AVS/PTeam): Per DJW- a meeting to discuss BCRB status to be held on 15Apr11.30Mar11 (DJW) BCRB pending02Mar11 (AVS/PTeam):Wait in for BCRB16Feb11 (AVS/PTeam) Waiting for APO to Implement SOP.0814Feb11 (DJW) Per CC meeting on 07Feb11 : · Change was discussed to whether proceed with the change or cancel. It was

decided by the subcommittee to proceed with the change since it captures the rational to remove the need to complete a CIP between two consecutive make-ups of the same buffer in Suite Support. Change endorsed by all stakeholders; however, still pending the BCRB endorsement form

24Jan11 (AVS): Per email from DJW: 'Waiting on a memo. There will be no PQs required. Following that, the change cannot be made until Demo period is over and another regulatory round is complete. Expect Jun 2011 at this point.'

11Jan11 (DJW): Meeting on 07 Jan11 determined that there is reg impact. Preapproval not required. No testing required. Change control to be completed. Target usage and sign off of CC for end of demo runs(May/June timeframe).

05Jan11 (AVS): No Change per DJW. Still waiting on Regulatory response. Moved DD and maintained RA approval date in 21Jan2011. Rebaseline?

Oracle Primavera’s Structure for Project and Activity Notebooks is a rich-text format and is more functional than Microsoft’s.

Microsoft Enterprise Project Management (EPM) View of Projects

Status Indicators

Cancelled

SG2 Approved

SG1 Approved

Proposed

Problem

Caution

OK

No Info

Schedule/Cost Indicators

Oracle Primavera P6 v7 View of Projects

Project SelectionWhich Projects Fit in the Budget?

� Budgets for next year were requested between July and September based on best info at that time

� Budgets approved in October

� Project portfolio constantly in flux

� How to decide which projects are “IN”?

� PRIORITIZATION!

Project Prioritization

Project Request

4 Business Drivers

Enterprise Project Management

P6 > Project Level User Defined FieldMicrosoft > Portfolio Analysis

Ranking of Projects

1) Project B (top priority)2) Project F3) …4) Project L5) Project M6) Project C (lowest priority)

Company A’s Business Drivers

Impact cGMP Compliance Worker Safety & Health Environmental Impact

Critical Could result in product recall, warning letter, regulatory or enforcement action, severe adverse effect or consent decree.

Could result in a fatality event and/or willful regulatory citation.

Could result in significant environmental impact beyond the site boundaries and/or regulatory action and/or legal liability.

Major Could result in critical regulatory observation, severe product quality complaint, or equivalent. Could result in non-compliance with approved Level I/II.

Could result in serious injury and/or exposure to workplace health-hazards and/or regulatory compliance violation.

Could result in significant environmental impact in excess of permitted levels and/or regulatory compliance violation.

Moderate Could result in batch rejections, major observation or multiple minor observations.

Could result in injury or health impact.

Could result in and/or enhances current environmental compliance. Facilitates meeting internal environmental objectives.

Marginal Could result in internal observation. Could result in minor injury to personnel, no compliance issues/concerns.

Could result in and/or required to meet current standards.

Negligible Enhances compliance in existing operations.

Safety enhancement. Environmental enhancement.

Scoring Behind the Project Request to Calculate Project Score

Company A’s Excel-Based Project Request Form Showing Project Business Driver

Company A’s Oracle Primavera P6 Web Portfolio View – Graphical Output

Company B’s Business Drivers

� Compliance Need

� Operational Need

� Capability Improvement

� Unit Cost Improvement

These were ranked 0, 1, 2, or 3 based on strength and urgency. Compliance and Operational need were weighted higher than Capability and Unit Cost.

� Microsoft Enterprise Project Management (EPM) produced a “pair-wise” comparison of projects and ranked them in order of priority

� Leadership teams judged the prioritization output and made adjustments to keep business drivers application consistent

Microsoft EPM View of Project Prioritization –Driver Prioritization

Microsoft EPM View of Project Prioritization – Business Drivers

Manual Data Input from Project Request Form

Microsoft EPM View of Project Prioritization - Table Output

Priority Values are Relative Within Each

Portfolio – Not Consistent

Enterprise Wide

Company B’s Microsoft EPM View of Project Prioritization – Graphical Output

Company B’s Microsoft Excel View of Project Prioritization – Export

Advantage: These weekly Excel spreadsheets were easy to distribute, modify and filter

Disadvantage: EPM does not export Business Driver data in the same file so two exports had to be merged prior to each distribution, not able to include prioritization on standard reports

Company A’s Portfolio ReportGenerated by Oracle Primavera P6

The Project Score is a Project Code that is easily included on any view or report

Project Prioritization - Commonalities

Both Companies:

� Weekly Review of Priorities by Leadership Team

� Management Stood Behind Focus on Business Drivers

� Final Score / Ranking Drove Project Prioritization

� Prioritization Drove Resource Assignments

� Forcing In Allowed, but Not Commonly Utilized

� Systems Do Not Track Changes to Drivers

� Prioritization Drove Inclusion in Overall Portfolio Budget

Project Prioritization - Differences

Software Generation of Prioritization:

� P6 Uses Standard Mathematical Formula

� Projects Easily Ranked Against Each Other

� Example: Score 14 vs. Score 12

� Score is an Enterprise-wide Project Code

� Microsoft Uses Pair wise Comparison

� Projects Ranked within Portfolios and Score Not Easily Transferable

� Absolute Value of Project’s Priority Difficult to Calculate

� Rankings Kept in Separate Module of EPM, Not Project Code

Project Prioritization:Theoretical vs. Practical

� Both P6 and EPM use a calculation of business drivers to score projects

� Theoretically there are many more attributes related to whether or not the project should be approved

� There is considerable maturity still left to be gained at pharmaceutical companies in regards to project selection

� Net Present Value and Return on Investment are not factored in

� Overall financial implications of doing projects versus not doing them need to be better modeled to produce overall Value to the company

� Better modeling requires more time spent on scoping the projects

P6 Portfolio View of Value Over Time

Resource Forecasting

� High Level Resource Estimating – Immature Process

� Ballpark Total Hours Provided by Each Department

� Estimates Not Input into EPM or P6

� Estimates Used for Approval Decision

� Company A Tried Implementing a Separate Resource Management Tool, no integration to project schedules

� Company B did not have a mechanism for calculating total resource forecasts across the portfolio

� Resource Forecasting = Political Black Hole

P6 Resource Histogram Based on Roles

Microsoft EPM or Oracle Primavera P6?

� Strengths to Either System:

� One Single Source of Project Information

� Schedule Maintenance and Automatic Roll Up / Reporting

� The Ability for Future Maturity:

� Improved Portfolio Management

� Cost Forecasting / Tracking

� Resource Forecasting / Tracking

� Flexibility of Reporting for Varied Audiences

� Business Intelligence Data Mining

Microsoft EPM or Oracle Primavera P6? Oracle Primavera P6

Oracle Primavera P6 Wins My Heart

� Speed!

� Efficiency of Linking Tasks Between Project Schedules

� Efficiency of Switching Between Projects for Common Tasks like updating Project Notebooks

� Web Client Customization Features and Usability

� Speed!

Why Did Company A Choose Primavera vs.Other Portfolio Management Tools?

� Centralized Database (no file revisions)

� Accessible via web portal – included with licenses

� Future Integration Capabilities with SAP and/or Process Scheduling Software

� Email Notifications about Issues

� WBS Standardization

� In-House Expertise – Site has utilized Primavera for 10+ years

Why Did Company B Choose Microsoft EPM vs. Other Portfolio Management Tools?

� Company Culture Liked Microsoft Project

� Believed MS Project is Easier to Use

� Less Training Required for PMs

Based on the robust capabilities of the Oracle Primavera P6 solution compared to the relatively less mature Microsoft Enterprise Project Management, the preference for a company with no other influences should be to Use Oracle Primavera P6.

Certain company cultures may already be entrenched in Microsoft technologies and may shy away from supporting a major Oracle-based solution due to corporate standards. This would need to be weighed with the long term commitment that will be made to the project management solution and the various headaches that will need to be overcome by the project management departmental software users and administrators.

Microsoft EPM or Oracle Primavera P6?CONCLUSION

Extra Slides for Reference

The following slides are included for reference purposes

References

� GMP

� http://en.wikipedia.org/wiki/Good_manufacturing_practice

� Oracle Primavera

� http://www.oracle.com/us/products/applications/primavera

� Microsoft Enterprise Project Management

� http://www.microsoft.com/project/en-us/solutions.aspx

� Project Server 2010: A financial management solution for projects, programs and portfolios (white paper)

� http://go.microsoft.com/fwlink/p/?LinkId=216201

� Portfolio strategy with Project Server 2010 (white paper)

� http://go.microsoft.com/fwlink/p/?LinkId=194203

Thank You

Thanks for listening to my story.

Feel free to contact me with questions or comments.

� Email: sbenjamin@tauruspcc.com

� Linked In: http://www.linkedin.com/in/sarahbenjamin