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

    Sarah Benjamin

    Taurus Project Controls

    April 2012

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    The Agenda

    Speaker

    Types of Projects Transition from Manual Tracking into Enterprise Tool

    Dimensions

    Project Prioritization Budget Management for the Portfolio

    Resource Management

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    Speaker

    Sarah Benjamin

    Project Scheduler Primavera P6 v7 Web Lead

    Project Portfolio Manager

    Consultant

    Email: [email protected]

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

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    Who We Are

    Taurus Project Controls

    Consulting firm formed in 2011

    Interactive Planners

    Schedulers

    Portfolio Managers

    Cost Engineers

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    Why Use Project Portfolio Management

    Enhancement of the project by project scheduling system

    Central system for project status that allows one-stop shopping foranswers 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

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    Types of Biotech Projects

    Projects within the scope of Project Controls for each facility aretypically 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

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    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

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    Situational Comparison of Microsoft EPMvs. Primavera P6 v7

    This is a situation comparison of two biotech companiesbased 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 possiblesoftware functionality in the two systems

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    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

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    Enterprise System ArchitectureDifferences

    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

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    Company AOracle Primavera P6 Web Portfolio Gantt

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

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    Company BMicrosoft EPM Web Portfolio Gantt

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

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    #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

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    P6 and EPM are BothRobust 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

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    Oracle Primavera P6 Schedule Web View

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    Microsoft EPM Schedule in Project Professional

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    Graphical View of Schedule ProgressMade Outside of the PM Software

    0%

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    Week Ending

    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 DesignComplete - Dec 23(A)

     

    Baseline Plan

    Actual

    Baseline Critical

    Status as of 31JAN09

      11.8%

    7.2%

    3.6%

    Project on Hold -Risk assessment todetermine exact scope of workrequired is ongoing.

    d

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    P6 and EPM:Schedule Management Differentiators

    Software Functionality Differences:

    EPM is “buggy” – errors arise in schedules. It is hard topinpoint 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 R f P j t P tf li M t

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    #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

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    Cost Tracking Spreadsheet in P6

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    Cost Tracking Spreadsheet in EPM

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    Cost Curves in P6 and EPM

    P6

    EPM

    #2 Reason for Project Portfolio Management:

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    #2 Reason for Project Portfolio Management:Cost Management

    Software Functionality Differences:

    EPM is “buggy” – forecast may change when merelyopening 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-levelcash flows are not as simple

    #3 Reason for Project Portfolio Management:

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    #3 Reason for Project Portfolio Management:Project Selection Assistance

    Project Selection encompasses the initial phases a project goesthrough prior to execution

    RequestRough

    ScopingInitial

     Approval

    DetailedExecution

    Planning

    Final Approval

    ExecutionWhich Projects Should Be Approved?

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    Project Status = Most Important Field

    Proposed ApprovedIn Close OutCompleteCancelledDeferred

    ProposedSG1 ApprovedSG2 ApprovedCompleteCancelledDeferred

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

    Project Status Code is shown in every view and report

     Approvals are milestones in every schedule

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    Elements of Project Selection

    What is not kept in codes and milestones? The

    general story behind status changes. Why is thisimportant? Everyone wants to know which meetingProject X got approved. How did we incorporate this?

    P6: Project Level Notebook. EPM: Multi-line textfield in PWA 

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    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

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    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 CIPbetween two consecutive make-ups of the same buffer in Suite Support. Change endorsed by all stakeholders; however, stillpending 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 madeuntil 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. Changecontrol 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 in21Jan2011. Rebaseline?

    Oracle Primavera’s Structure for Project and ActivityNotebooks is a rich-text format and is more functionalthan Microsoft’s.

    Microsoft Enterprise Project

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    Microsoft Enterprise ProjectManagement (EPM) View of Projects

    Status Indicators

    Cancelled

    SG2 Approved

    SG1 Approved

    Proposed

    Problem

    Caution

    OK 

    No Info

    Schedule/Cost Indicators

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    Oracle Primavera P6 v7 View of Projects

    Project Selection

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    Project SelectionWhich Projects Fit in the Budget?

    Budgets for next year were requested between July andSeptember based on best info at that time

    Budgets approved in October

    Project portfolio constantly in flux

    How to decide which projects are “IN”?

    PRIORITIZATION!

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    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 F

    3) …4) Project L

    5) Project M6) Project C (lowest priority)

    C A’ B i D i

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    Company A’s Business Drivers

    Impact cGMP Compliance Worker Safety & Health Environmental Impact

    Critical Could result in product recall, warningletter, regulatory or enforcementaction, severe adverse effect orconsent decree.

    Could result in a fatality event and/orwillful regulatory citation.

    Could result in significantenvironmental impact beyond the siteboundaries and/or regulatory actionand/or legal liability.

    Major Could result in critical regulatoryobservation, severe product qualitycomplaint, or equivalent. Could resultin non-compliance with approved

    Level I/II.

    Could result in serious injury and/orexposure to workplace health-hazardsand/or regulatory complianceviolation.

    Could result in significantenvironmental impact in excess ofpermitted levels and/or regulatorycompliance violation.

    Moderate Could result in batch rejections, majorobservation or multiple minorobservations.

    Could result in injury or healthimpact.

    Could result in and/or enhancescurrent environmental compliance.Facilitates meeting internalenvironmental objectives.

    Marginal Could result in internal observation. Could result in minor injury topersonnel, no complianceissues/concerns.

    Could result in and/or required tomeet current standards.

    Negligible Enhances compliance in existingoperations.

    Safety enhancement. Environmental enhancement.

    Scoring Behind the Project Request to

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    g j qCalculate Project Score

    Company A’s Excel-Based Project Request

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    Company A s Excel Based Project RequestForm Showing Project Business Driver

    Company A’s Oracle Primavera P6

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    p yWeb Portfolio View – Graphical Output

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    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 wereweighted 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 madeadjustments to keep business drivers application consistent

    Microsoft EPM View of Project

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    Prioritization –Driver Prioritization

    Microsoft EPM View of Project

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    Prioritization – Business Drivers

    Manual Data Input from Project Request Form

    Microsoft EPM View of Project

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    Prioritization - Table Output

    Priority Valuesare Relative

    Within EachPortfolio – Not

    Consistent

    Enterprise Wide

    Company B’s Microsoft EPM View of

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    Project Prioritization – Graphical Output

    Company B’s Microsoft Excel View of

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    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 sotwo exports had to be merged prior to each distribution, not able to include

    prioritization on standard reports

    Company A’s Portfolio Report

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    Generated by Oracle Primavera P6

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

    P j t P i iti ti C liti

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    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

    P j t P i iti ti Diff

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    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:Theo etical s P actical

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    Theoretical vs. Practical

    Both P6 and EPM use a calculation of business drivers to scoreprojects

    Theoretically there are many more attributes related to whether ornot 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

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    P6 Portfolio View of Value Over Time

    Resource Forecasting

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    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 ResourceManagement Tool, no integration to project schedules

    Company B did not have a mechanism for calculating totalresource forecasts across the portfolio

    Resource Forecasting = Political Black Hole

    P6 Resource Histogram Based on Roles

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    P6 Resource Histogram Based on Roles

    Microsoft EPM or Oracle Primavera P6?

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    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

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    Oracle Primavera P6

    Oracle Primavera P6 Wins My Heart

    Speed!

    Efficiency of Linking Tasks Between Project Schedules

    Efficiency of Switching Between Projects for Common Taskslike updating Project Notebooks

    Web Client Customization Features and Usability

    Speed!

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

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    Other Portfolio Management Tools?

    Centralized Database (no file revisions)

     Accessible via web portal – included with licenses

    Future Integration Capabilities with SAP and/or Process SchedulingSoftware

    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?

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    g

    Company Culture Liked Microsoft Project

    Believed MS Project is Easier to Use Less Training Required for PMs

    Microsoft EPM or Oracle Primavera P6?CONCLUSION

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    Based on the robust capabilities of the Oracle Primavera P6solution compared to the relatively less mature Microsoft

    Enterprise Project Management, the preference for a companywith no other influences should be toUse Oracle Primavera P6.

    Certain company cultures may already be entrenched inMicrosoft 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 thatwill be made to the project management solution and thevarious headaches that will need to be overcome by theproject management departmental software users and

    administrators.

    CONCLUSION

    Extra Slides for Reference

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    Extra Slides for Reference

    The following slides are included for reference purposes

    References

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    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

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    Thank You

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    Thanks for listening to my story.

    Feel free to contact me with questions or comments.

    Email: [email protected]

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