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Avista’s Remittance Processing System UpgradeA Project Manager’s Perspective

Lorrainna Sherman, PMPSr. Project Manager

Utility Payment Conference

Overview

Remittance Project Benefits

What to Expect

Plan 2 years start to finish

Initiation

Charter

PlanningRFP

Require

ments

Execution

Sending the first ICL to the Bank(Judy has worked in Avista’s Remittance department for 31 years, amazing! She has seen a lot of change!)

Strong partnership between Remittance Supervisor and IT PM

Engaged Subject Matter Expert

Criteria for success well defined

Commitment from the Project Sponsor/Steering Committee

• Vendor Commitment to our goals

Communication channelswith internal and external

resources

Keys to Avista’s Success

Appendix

•Sample project plan task list

Sample Remittance Upgrade Task List Predecessor Milestone

Project hours 1,425 hrs

Project Duration603 days

Initiation No 50 hrs 30 days

Planning 2 No 533 hrs 205 daysPre-vendor selection No 64 hrs 45 days

Research No 10 hrs 15 daysDefine requirements No 20 hrs 30 daysCreate future process flow No 4 hrs 5 daysDevelop RFP 6 No 30 hrs 15 days

Vendor Selection 8 No 29 hrs 10 daysPick top vendors No 5 hrs 5 daysDemos 10 No 24 hrs 5 daysVendor selection complete 10 Yes 0 hrs 5 daysInfrastructure Detail design 12 No 200 hrs 30 dayshardware No 40 hrs 10 dayssoftware No 40 hrs 10 daysnetwork No 40 hrs 10 dayssecurity No 80 hrs 30 daysInfrastucture detail design complete Yes 240 hrs 150 daysSOW & Contract Negotiations No 160 hrs 120 daysCustomization gathering 20 No 60 hrs 30 daysICL planning with Bank 14FS+40 days No 20 hrs 10 days

Planning phase complete 22 Yes 0 hrs 1 day

Sample Task List - Planning

Sample Remittance Upgrade Task List Predecessor Milestone

Project hours 1,425 hrs

Project Duration603 days

Execution 13 No 822 hrs 317 daysProcure Vendor supplied Equipment 14 No 8 hrs 5 daysProcure company provided infrastructure equipment 14 No 4 hrs 1 dayProcure company provided licensing 14 No 4 hrs 1 dayEquipment lead time 25 No 0 hrs 190 daysSoftware development 14 No 0 hrs 160 daysVendorEqiupment installation 28 No 0 hrs 2 daysCompany equipment upgrade/ installation 28 No 40 hrs 20 daysBuild databases 31 No 40 hrs 5 daysSoftware deployment 30 No 240 hrs 30 daysPre-installation system validation 31 No 40 hrs 1 dayUser Training 33 No 80 hrs 8 daysUser Acceptance Testing 35 No 80 hrs 20 daysICL Testing 33 No 40 hrs 10 daysBug fixes 36SS No 160 hrs 20 daysProduction go-live 38 Yes 0 hrs 1 dayPost Go-Live support 39 No 40 hrs 10 daysSystem Acceptance 39FS+60 days No 1 hr 1 daySystem Documentation 31 No 40 hrs 10 daysVendor Support established 40 No 5 hrs 1 day

Sample Task List - Execution

Sample Remittance Upgrade Task List Predecessor Milestone

Project hours 1,425 hrs

Project Duration603 days

Execution 13 No 822 hrs 317 daysProcure Vendor supplied Equipment 14 No 8 hrs 5 daysProcure company provided infrastructure equipment 14 No 4 hrs 1 dayProcure company provided licensing 14 No 4 hrs 1 dayEquipment lead time 25 No 0 hrs 190 daysSoftware development 14 No 0 hrs 160 daysVendorEqiupment installation 28 No 0 hrs 2 daysCompany equipment upgrade/ installation 28 No 40 hrs 20 daysBuild databases 31 No 40 hrs 5 daysSoftware deployment 30 No 240 hrs 30 daysPre-installation system validation 31 No 40 hrs 1 dayUser Training 33 No 80 hrs 8 daysUser Acceptance Testing 35 No 80 hrs 20 daysICL Testing 33 No 40 hrs 10 daysBug fixes 36SS No 160 hrs 20 daysProduction go-live 38 Yes 0 hrs 1 dayPost Go-Live support 39 No 40 hrs 10 daysSystem Acceptance 39FS+60 days No 1 hr 1 daySystem Documentation 31 No 40 hrs 10 daysVendor Support established 40 No 5 hrs 1 day

Sample Task List – Closing

System Benefits Gained•Longer processing day without the restriction of the courier resulted in less carryover•Reduced response time to Customer Service inquiries •Mini-Account Master File enables validation of up to date customer data •Bank fees remained the same, expected to decrease as paper check fees rise•Check 21 compliant•Extract to Mainframe for payment posting remained the same to make integration simple •Advanced reporting; Automatic Payment Service, Customer Correspondence and Project Share•Staff of six reduced to fiveImage Cash Letter will:Automate the preparation and delivery of check deposits to the bank. Deposit deadline for same day ledger credit is 8:00 p.m. Pacific TimeProvide for faster notification of returned items based on faster deposit timeDeliver deposits to the bank through a secure electronic connection Reduced courier costs Consolidate redundant operations, streamlining deposit reconciliation process ArchiveElectronic image of remittance slip and check will be archived for three yearsIncreased search capabilitiesFaster response time to customer inquiriesNo more boxing remit slip documentation to store in the warehouse

Speaker Information:Lorrainna Sherman, PMPSr. Project Manager