PeopleSoft Implementation

1
PeopleSoft Implementation
At
Energy Northwest

• Chad Bartram CPA,CMA
• cbbartram_at_wnp2.com

2
Agenda

• Background

• Purchase Decision

• Project Guidelines

• Implementation Timeline

• Project Team

• Interfaces

• Lessons Learned (so far)

3
Energy Northwest - Who We Are
Background

• Public utility - 1,200 MW generation

• Joint operating agency municipal corporation
• 1,100 employees
• 425M operating revenues
• 6.4B in bonds outstanding

4
HR/Financial Software
Background

• Human Resources Management
• Base Human Resources
• Benefits Administration
• Payroll
• Time Labor (time entry system)
• Financial Management
• General Ledger
• Projects Costing
• Budgets
• Asset Management

5
Accounting Drivers
Background

• Bond covenants
• Federal Energy Regulatory Commission
• Washington state law
• FASB statements and interpretations except for
  those that conflict with GASB
• Activity based management

6
Cost Dimensions
Background
7
Implementation Objectives
Purchase Decision

• Fix the Year 2000 issue
• Purchase technology
• Evolve from historical accounting system to
  management information system
• Minimize system platforms
• Process efficiencies cost reductions
• Support new business initiatives

8
Our Vision for the End User
Purchase Decision

• On-line, direct access to information
• Project costs updated daily during critical
  business periods
• Employee and contractor hours
• By name and by discipline
• Graphical depiction of cost budget
• Forward information electronically
• Work flow

9
Project Budget
Purchase Decision

• Software/Consultants 1,605K
• Hardware 104K
• Subtotal 1,709K
• Internal labor 815K
• Total 2,524K

10
Why PeopleSoft?
Purchase Decision

• A recognized market leader in enterprise resource
  planning
• Indus/PeopleSoft strategic business alliance
• Payback in 3 years
• Web enabled
• Training program

11
Why PeopleSoft ? (continued)
Purchase Decision

• Customer satisfaction - 99 would buy again
• Datamation 1998 Product of the Year
• PeopleSoft 7 is leading the way outshining SAPs
  R/3
• Scalable 3-tier architecture with Release 7.5

12
PeopleSoft 7.5 Architecture
Purchase Decision
13
Implementation Guidelines
Project Guidelines

• Very high hurdle for customization
• Look to change business processes first
• Modification rules
• Panel modifications - OK
• Table modifications - Will consider
• Cobol modifications - Almost never

14
Project Timeline - Phase 1
Project Schedule

• After implementation, decision made to move to
  Commercial Release 7.5

15
Project Timeline - Phase 2
Project Schedule
8/98
11/98
1/99
6/99
HR/Payroll Upgrade
Benefits Administration
Budgets
Time Labor
Projects
General Ledger
Asset Management
16
Very Big Bang - Passport 6.1.1
Project Schedule

• Module upgrades
• Work management
• Worker radiation exposure
• Equipment tag-outs
• Inventory/Purchasing
• Accounts Payable
• Mainframe to UNIX client server
• Must build interface to a moving target
• Implement activity based management

17
Project Scope
Project Schedule
Tune System Performance
Install Software
Build Technical Infrastructure
Train Project Team
Fit/Gap
Build and Test Prototypes
Convert Data
Develop Interfaces
Perform Testing
Go Live
Create End User Documentation
18
Project Team
Project Organization

• Project Participants
• Energy NW 7.5
• Consultants 1.5

19
A Word About Consultants
Project Team

• 145 to 250 per hour
• Critical to ERP implementation
• Full project management or team augmentation
• Functional or technical
• Both application and industry knowledge

20
Interface Design
Interfaces
21
Interfaces
Module Interfaces
Financials
HRMS
Other
22
Lessons Learned (so far)

• ERP systems very complex
• Availability of consultants
• In-house technical support
• Employee retention
• Budget - would like more
• Change management