Life after Implementing ERP In Pennsylvania

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Life after Implementing ERPIn Pennsylvania
For Annual NASACT Conference August 22,
2006 Omaha, Nebraska
Presented by Harvey C. Eckert Commonwealth
Comptroller Commonwealth of Pennsylvania
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ERP Implementation Recap

• 07/02 - Wave 1 agencies
• (Finance, Budget, Procurement, BW)
• 10/02 Wave 2 agencies
• 01/03 HR, Payroll
• 07/03 Wave 3 agencies
• 07/04 PA DOT

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Post ERP Implementation Projects

• Preparation of a more timely CAFR
• Reengineering of Requisition to Check
• Implementing the Supplier Relationship Management
  Module
• Revision to Travel Planning software
• Implementing Revenue in SAP
• Plant Maintenance in PA Department of
  Transportation
• PA Liquor Control Board Retail ERP

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Preparation of a more timely CAFR

• Where we were
• 02 CAFR issued by 12/31/02
• 03 CAFR issued by 5/31/04
• 04 CAFR issued by 3/31/05
• Where we are
• 05 CAFR issued by 12/31/05
• Where we are going
• 06 CAFR issued by 12/15/06 (5.5 mos.)
• 07 CAFR issued by 11/30/07 (5.0 mos.)

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Preparation of a more timely CAFR (contd)

• Expedite the CAFR production and Audit Process
• Top Down Approach - Whats material?
• Focus on Opinion Units, significant funds
• Utilize variance analysis approach
• Utilize estimates
• Utilize Entity Wide entries
• Improve coordination and communication with the
  Auditors

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Reengineering Requisition to Check

• Make recommendations to improve standardization,
  workload and cycle time and align the
  Commonwealth with industry best practices.
• Recommendations will cover agencies, Comptroller
  Offices, and Treasury.
• Includes the payment process for Procurement,
  Utilities, and Grants

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Requisition to Check Deliverables

• Recommend options for process improvement
• Delineate organizational roles and
  responsibilities
• Guidelines for processes and procedures
• Identification of policies and statutes to update
• Recommend changes to SAP configuration

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Implementing the Supplier Relationship (SRM)
Management Module

• Purpose of SRM
• Contract automation of bidding process and
  auction functionality
• Automated Purchase Order from a shopping cart
• Streamline and standardize workflow

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Implementing the Supplier Relationship (SRM)
Management Module (contd)

• Increase utilization of catalogs/punch out
• Enhance vendor registration process
• Electronic transmission of Purchase order and
  Invoice using supplier self-service or XML

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Revision to Travel Planning software
Amadeus e-Travel Management

• Short term implementation schedule
• Internet Web based software
• Travel plans will be synchronized into SAP
• Hands-on training available to agencies
• Commonwealth receives commission from hotels for
  on-line bookings
• Expanded flight selection options

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Revision to Travel Planning software (contd)

• User-friendly interface that looks and feels like
  commercial web sites
• Flexible, one-stop online booking
• Lowest nightly rate for hotels
• Hotel searches by price or proximity to location
• Reporting capabilities each agency has license
  to reporting tool

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Implementing Revenue in SAP

• Replacement of 25 year paper-based legacy
  system, out-of scope during original ERP
  implementation
• Redundant entry of same data into multiple
  systems

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Implementing Revenue in SAP (contd)

• Delays in recording revenue when significant
  funds are now electronically transferred
• Complicated reconciliation process due to timing
  differences and data entry errors in multiple
  systems

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Improving Revenue Reporting

• Utilize SAP for reporting all Commonwealth
  accounting data
• Decommission various legacy systems
• Eliminate duplicate data entry by utilizing file
  transfer
• Eliminate/reduce paper documents
• Utilize consistent number ranges to track
  documents/records

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Plant Maintenance in PA Dept of Transportation

• Major Project to integrate PA DOT maintenance
  management business into the Commonwealths ERP
  environment
• 11 Engineering Districts
• 58 maintenance organizations in 67 counties
• Annual budget gt 1 Billion
• Improve the business processes of the highway,
  fleet, and materials management, and sign
  inventory and ordering processes
• Federally mandated requirements

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PA Liquor Control Board Retail ERP System

• Replace antiquated Financial Systems with ERP
  Solution
• Issue RFP for software vendor and integrator
• Implement a Retail ERP System
• Need to reengineer the Business Process

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• Questions?