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Integrated Project & Program Management
Engineering & Construction
-Name-
-Title-
Client Logo Here
The following is intended to outline our general product
direction. It is intended for information purposes only, and may
not be incorporated into any contract. It is not a commitment to
deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any features or
functionality described for Oracle’s products remains at the
sole discretion of Oracle.
Prepared For:
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Copyright ©2009, Oracle. All rights reserved.
Agenda
• Leadership: Oracle in Engineering & Construction
• Challenges: Forecasts, Productivity, Collaboration & Transparency
• Value: Integrated Project and Program Management
• Solutions: Oracle|Primavera for Engineering & Construction
• Vision: Enterprise Project Portfolio Management
• Q&A
Copyright ©2009, Oracle. All rights reserved.
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Leadership: Oracle in Engineering & Construction
Copyright ©2009, Oracle. All rights reserved.
Project-intensive Companies Get Better Results with
Oracle Project and Portfolio Management
10 of the Top 10 Fortune 1000 Oil and Gas
companies run Oracle PPM applications.
13 of the Top 15 Fortune 1000 Utilities run Oracle
PPM applications.
9 of the Top 10 Fortune 1000 Aerospace and Defense
companies run Oracle PPM applications.
91 of the Top 100 ENR Contractors run Oracle PPM
Applications.
13 of the 16 US Government agencies run Oracle
PPM applications.
Copyright ©2009, Oracle. All rights reserved.
5
Leadership in Engineering & Construction
19 of the 25 Top ENR 400 Contractors in construction
run one of Oracle’s family of Applications
44 of the 100 Top ENR 400 Contractors in construction
run one of Oracle’s family of Applications
9 of the 10 Top ENR 100 Global Design Firms' run
Oracle applications
16 of the 20 Top ENR 100 Global Design Firms' run
Oracle applications
9 of the top 10 America’s Most Admired Engineering &
Construction companies run Oracle applications
Copyright ©2009, Oracle. All rights reserved.
6
Broadest Product Portfolio in the E&C Industry
• Database
• Java Application Server
• Primavera
• Real Application Clusters
• Development Tools
• PeopleSoft Enterprise
• Partitioning
• Business Process Mgmt
• Siebel CRM
• OLAP / Data Mining
• Identity Management
• e-Business Suite
• Spatial
• Data Integration
• JD Edwards
• Times Ten
• Content Management
• Hyperion
• Database Vault
• Business Intelligence
• SPL
• Secure Enterprise Search
• User Interaction
• Lodestar
• AutoVue
• Crystal Ball
Copyright ©2009, Oracle. All rights reserved.
Oracle’s Application Strategy
Complete
Open
Integrated
Comprehensive
Industry Portfolio
Standards-Based
Architecture
Designed to
Work Together
Acquisition Strategy
Open Standards
Integrate the Enterprise
Strategic Fit
Customer Fit
Corporate Integration Fit
Financial Fit
Connect with Partners
New Business Services
Do It For Less
Business Processes
Business Intelligence
User Experience
Copyright ©2009, Oracle. All rights reserved.
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Challenges: Engineering & Construction
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Challenges in Engineering & Construction
Make Proactive
Decisions
How can I ensure that we see problems before they hit the
books, so that we can act to avoid them rather than only
react to them?
“It is important to note that cost and schedule control systems provide more than reactive accounting – they also provide timely
information for management intervention. Cost overruns and schedule delays are predicted, not just reported. Timely information allows
The Construction Users Roundtable
the opportunity … to mitigate the overall impact of negative occurrences.”
Increase Project and
Business Productivity
Even when projects go well, we know we could be more
efficient. How can we better leverage technology to increase
productivity and improve our margins?
“The productivity of the construction industry … has gradually declined (with some modest exceptions) over the past 40 years at an
average compound rate of -0.59% [per] year.”
Paul Teicholz, Ph.D. – Stanford University
Collaborate Accountably
How can I improve project team collaboration to reduce
financial and performance risk, minimize waste, eliminate
claims and increase client satisfaction?
“If technologically unregulated or unsupported, the latency incurred in the difficult collaboration and change management environment of
the construction industry kills projects.”
Scott Lowe, P.E. Vice President – Trauner Consulting
Gain Project Lifecycle
Visibility
How can I get a comprehensive view of all projects, and directly
report on their performance if needed?
“In an industry operating under constant pressures, the ability to identify, access and integrate information across multiple systems
becomes essential for maintaining a competitive edge.”
McGraw Hill Construction
Copyright ©2009, Oracle. All rights reserved.
Oracle|Primavera Enables you to
Copyright ©2009, Oracle. All rights reserved.
Make Proactive Project Decisions
Oracle|Primavera enables you to track project status in real-time, calculate ongoing project performance
metrics, and forecast project completion metrics so that you no longer react to changing project needs, but
instead avoid surprises and proactively manage projects to successful conclusion.
Plan
• Consider all major project risk factors
• Accurately forecast project completion dates and costs against estimates
• Plan projects to capture full client and business requirements
Execute
• Anticipate issues and potential changes before they occur
• Balance resources across changing project requirements
• Continuously assess schedule & cost risk effectively
Measure
• Forecast cost to completion and project completion date
• Track project, division and enterprise cash flow
• Measure project specific and business wide risk exposure
Copyright ©2009, Oracle. All rights reserved.
Make Proactive Project Decisions
At a glance, account
for Original, Revised,
and Projected Project
Costs
Quickly Identify
Critical Issues
behind schedule
Quickly measure
pending RFI volume,
RFI Turnaround and
Submittal Schedule
Copyright ©2009, Oracle. All rights reserved.
Make Proactive Project Decisions
Anticipate issues,
cost or schedule
exceedance across
your business
Track Project,
Division, or
Enterprise wide
cash flow
Copyright ©2009, Oracle. All rights reserved.
Increase Project and Business Productivity
Oracle|Primavera enables your organization to ensure that project execution consistently meets project
needs and goals. Standardize project management best practices and repeatable project processes
across the diverse needs of your organization’s project work, to reduce project start-up, identify project
management wastage and implement initiatives to increase productivity throughout your organization.
Plan
• Leverage best practices to reduce planning time and mistakes
• Prioritize the project backlog
• Roll-out enterprise wide productivity enhancing project delivery procedures
Execute
• Quickly identify successful change mitigation strategies from previous projects
• Capture expertise and standardize best practices
• Reduce the IT effort and cost to maintain project data and systems
Measure
• Compare project-to-project performance
• Identify over-/under- performers
• Identify bottlenecks
Copyright ©2009, Oracle. All rights reserved.
Increase Project and Business Productivity
Create a long range
plan and rank projects
Update, track and react
to project changes &
risks
Compare project to
project performance,
and review project
manager or
subcontractor
performance
Create a competitive advantage by prioritizing enterprise investments based upon
financial considerations, risk tolerance and resource constraints
Copyright ©2009, Oracle. All rights reserved.
Collaborate Accountably
Oracle|Primavera enables you to establish and enforce collaboration processes throughout your own
organization and outside project teams to maintain accountability to projects. Tie resources to change
management processes, assign project tasks, track ball-in-court responsibilities and measure team
member and subcontractor performance. What gets measured, gets done.
Plan
• Establish and enforce a rigorous change management and control process
• Establish an effective collaboration environment, keeping all participants accountable
• Effectively avoid unwarranted change orders and claims
Execute
• Get the right information to the right people at the right time
• Centrally track submittal schedules and ball-in-courts
• Eliminate double data entry
Measure
• Get early warnings of potential problems
• Easily track ball-in-courts
• Track and measure team and subcontractor performance
Copyright ©2009, Oracle. All rights reserved.
Collaborate Accountably
Manage tasks &
activities with direct
and secure updates
from the field
Quickly develop &
communicate
project plans
Collaboratively
develop and
explore what-if
scenarios to
respond to change
Copyright ©2009, Oracle. All rights reserved.
Collaborate Accountably
Hold internal and
external team
members
accountable
Compile a clear,
complete and
searchable record
for claims
protection
Manage change
across project
teams
Copyright ©2009, Oracle. All rights reserved.
Gain Project Lifecycle Visibility
Oracle|Primavera provides transparency into project status performance across all projects in your
enterprise. User configured dashboards and access rights, ensure that all personnel have
immediate access to the appropriate information to progress projects. Full reporting capabilities
enable you to meet any project status and performance reporting requirements without additional
effort.
Execute
• Plan out business requirements across the entire backlog
• Discover project issues or problems early on at any level in the organization
• Gain real-time visibility into project performance across the business
Measure
• Measure effective project, divisional and enterprise performance
• Determine project profitability impact to the enterprise
• Determine resource efficacy to the project success ratios
Report
• Meet all client, regulatory and funding reporting requirements
• Decrease the number of man-hours spent tracking project status and compiling data
• Decrease the number of executive hours spent in project review and data analysis
Copyright ©2009, Oracle. All rights reserved.
Gain Project Lifecycle Visibility
See requirements across
your entire
backlog
See revenue
and
performance
across
divisions
Track major
milestones
across
projects and
enterprise
Copyright ©2009, Oracle. All rights reserved.
Construction Company Successfully Manages
Thousands of Projects
Business challenges:
• Provide clients with consistent and
profitable engineering and construction
management services
• Deliver project management, detailed
design, procurement and management of
one-of-a-kind projects
Business results:
“It gives us a strategic advantage to say that we
use Primavera software, because our clients
trust the Primavera name.”
Cost and Scheduling Manager
Parsons Infrastructure and Technology
• Over 4,000 projects managed and 6,000
team members coordinated
• Consistent project control across the
enterprise
• Decreased schedule development time by
50%
• Accurate and timely performance data to
support management decisions
Copyright ©2009, Oracle. All rights reserved.
Increased Executive Visibility and Standardized Best
Practices
Business challenges:
• Build Efficiency and Profitability by
Standardizing Best Practices across very
large Capital Programs
• Control the enormous flow of information
and provide each project’s key players with
the data they need to make informed
decisions and keep projects moving forward
Business results:
“Primavera was able to give us the resources we needed
for solid, streamlined management approach. We got out
of the gate quickly and operated like a well-oiled
machine—and our clients could see that we were using
proven best practices along the way.”
Chairman & CEO
Hill International
• 200,000 man hours saved by executive and
•
•
•
•
Copyright ©2009, Oracle. All rights reserved.
senior staff members
40% time savings in responding to RFIs
25% increase in planning productivity
30% reduction in IT effort required to
maintain data
Increased competitive margin in bidding
price and overall profitability
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Solutions: Oracle|Primavera for E&C
Copyright ©2009, Oracle. All rights reserved.
Solutions for Engineering and Construction
Primavera P6 Enterprise Project Portfolio
Management
• Balance resource capacity
• Plan, schedule, and control
• Allocate best resources and track progress
• Monitor and visualize project performance vs. plan
• Foster team collaborative management
• Integrate with ERP & EAM systems
Oracle | Primavera IPM







Optimize use of limited capital to meet
increasingly rigorous stakeholder demands
Optimize project delivery performance to win in
tightening competitive field
Proactively manage project and program delivery,
and proactively drive business performance
Standardize best practices across projects,
programs and portfolios to ensure consistent
project success
Gain transparency and proactively manage
projects, programs and businesses
Coordinate existing resources and quickly train
new talent
Maximize labor pools globally through an
integrated approach
Primavera Contract Management
• Field contract and cost control tool
• Negotiate and manage changes
• Monitor subcontractor performance
• Protect against claims
Primavera Risk Analysis:
• Determination of cost and schedule risk exposure
• Predictive forecasting
• Contingency and mitigation modeling and
•
•
•
Copyright ©2009, Oracle. All rights reserved.
assessment
Manage risks to maximize return and minimize
uncertainty
Set realistic expectations of project cost and
schedule
Imports and analyzes P6, P3 and Microsoft Project
schedules
<Insert Picture Here>
Vision: Enterprise Project Portfolio Management
Copyright ©2009, Oracle. All rights reserved.
The following is intended to outline our general product
direction. It is intended for information purposes only, and may
not be incorporated into any contract. It is not a commitment to
deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any features or
functionality described for Oracle’s products remains at the
sole discretion of Oracle.
Copyright ©2009, Oracle. All rights reserved.
We Live in a Project-based World: What Gets
Measured, Gets Managed
1
every business
manages projects
2
and most have poorly
defined processes.
DIV 2
Plant 1
LOB 3
Planning & Execution
$€
£ ¥
Div 3
Plant 3
Monitoring
Performance
Strategic
Goals

Cost
Controls
Div 4
JV 2



LOB 1
JV 1
3
Profitability
Plant 2
LOB 2
The result: project
failure.
Div 1
Programs
and Projects
Talent Search

Risk Mitigation
Strategy
Financial
Reporting
Distributed
Information
Copyright ©2009, Oracle. All rights reserved.
Flawed project
selection
Cost overruns
Overallocated
resources
Increased asset
downtime
No enterprise visibility
Standalone products
are the problem, not
the solution.
28
Insight, Transparency and Value: Aligning Strategy
and Execution Drives Performance
ENTERPRISE PROJECT
PORTFOLIO
MANAGEMENT (EPPM)
Business
Value
PROJECT
PORTFOLIO
MANAGEMENT (PPM)
PROJECT
MANAGEMENT (PM)
RESULTS
Plan and Schedule
Complex Projects
PROJECT CONTROLS
Planners
Project Managers
Project Controls
RESULTS
Programs
Resource Management
Risk Management
Change Management
Plan and Schedule Key and
Complex Projects
DIVISION/LOB
Planners
Project Managers
Project Controls
Resource Managers
Program Managers
RESULTS
Strategic Alignment
Talent Management
Cashflow Projections
Performance and Control
Programs
Resource Management
Risk Management
Change Management
Plan and Schedule All Projects
ENTERPRISEWIDE
Planners
Project Managers
Project Controls
Resource Managers
Program Managers
Team Members
Executives
Strategy
Copyright ©2009, Oracle. All rights reserved.
29
Oracle EPPM: Providing Complete, Global Visibility and
Accountability
Global, Real-time Coordination
Strategic Planning
Enterprise Asset
Management
Program Mgmt
Resources
Scope
Report
Plan
What-if
Execute
Analyze
Monitor
Risk Mitigation
Supply Chain
Profitability
Forecasting
PPM
Human Capital
Finance
Time
Align
Change Control
Resources
Visibility
Visibility and Accountability
Deliver Projects On Time, Within Budget, As Intended
Copyright ©2009, Oracle. All rights reserved.
30
A Single Source of Truth: Linking Corporate Goals with
Operational Plans
• Integrate business process and
data with key enterprise systems
• Manage the program lifecycle from
idea to execution
• Control project costs and
Align
financials
• Forecast cash flow
• Assess risks and develop
Plan
Report
contingency plans
Analyze
Execute
• Align workforce enterprise goals
and supporting project initiatives
Monitor
• Collaborate with entire project
team including back office
operations, internal resources,
contractors, and executive
management
Copyright ©2009, Oracle. All rights reserved.
31
Oracle’s Enterprise Project Portfolio Management: Because
All Stakeholders Deserve a Single Version of the Truth
Value
Provide governance across the enterprise to
deliver the right projects and programs.
Visibility
Advance warning and analysis to reduce risk
and eliminate project failure.
Velocity
Accelerate projects and programs to satisfy
customer and clients.
Accountability
Deliver on commitments: what gets
measured, gets done.
Copyright ©2009, Oracle. All rights reserved.
32
ValleyCrest
Primavera and J.D. Edwards: perfect together
CUSTOMER PERSPECTIVE
“Forecasting total costs and final results of a
project has never been easier or more accurate.
Having the systems working interactively gives
up-to-the minute projections. Our project
managers love it..”
COMPANY OVERVIEW
• No. 60 in ENR 400 (2008)
• Revenues in excess of US$1B a year
• Completes 80-90 % of it’s own work; subcontracts the rest
• On average ~700 projects underway at any given time
Sandy Kayser, Contract Manager Administrator
CHALLENGES
• Project execution in the field disconnected from back office
• Ability to forecast cost to completion accurately
• Accounting for pending project cost changes
RESULTS
• 25+ categories of data items are exchanged
between JD Edwards and Contract
Management
• Change management collaboration and accountability
• Integration is leveraged in all 17 branch offices
and 2 satellite offices
SOLUTIONS
• Double data entry eliminated
• Oracle|Primavera Contract Management
• Accurate project forecasts in the field and
backoffice
• JD Edwards
Copyright ©2009, Oracle. All rights reserved.
Oracle|Primavera – Your Long Term Partner in E&C
Engineering & Construction Solution Map
Business
Plan and
Source And
Development
Design
Procure
Capital
Supplier
Planning &
Relationship
Budgeting
Management
Sales Force
Design /
Strategic
Automation
Engineering
Marketing
Lead
Subcontract
Scheduling
Tracking
Estimating
Sourcing
Management
Construct
Asset
Financial
Business
Manage
Management
Management
Support
Performance
Human
Enterprise
Capital
Performance
Management
Management
Capital
Project
Costing
Change
Management
Planning &
Budgeting
Equipment
Management
Fixed
Assets
Capital
Budgeting
and Planning
Maintenance
Planning
Material
Purchasing
Maintain
and Service
Field Service
Management
Legal &
Regulatory
Enterprise
Warranty
Reporting
Management
Time &
Project
Customer
Expense
Reporting
Support
Training
Reporting
Accts Rec,
Contract
Billing
Maintenance
Accts Pay
General Ledger
Project
Budget
Operate,
Risk
Management
Project
Forecasting &
Performance
Management
Project
Management
Tools
Decommission
Managerial
Employee
Sarbanes
Invoicing
And Disposal
Accounting
Self Service
Oxley
& Collections
Asset
Performance
Management
Budgeting &
Forecasting
Sarbanes
Oxley
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Payroll
Next Steps
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Contacts
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Questions & Answers
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