SAP Finance and Procurement Implementation Project Kick-Off January 26, 2012

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Agenda Topic

Presenter

Welcome

Marvin Cruz

Project Mission and Business Drivers

Marvin Cruz

Introductions

George Silva, Douglas Le

Project Overview

Teri Lyons, George Silva, Douglas Le

ASAP Methodology Overview

Vikas Pathak

Organizational Change Management

Christa Crawford

Wrap-up / Next Steps

Christa Crawford

Q&A

All

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Key Stakeholders Remarks • Ron Chandler, Chief Information Officer

• Mark Hovatter, Procurement Executive • Michelle King, Senior Deputy Superintendent • Megan Reilly, Chief Financial Officer • Kelly Schmader, Chief Facilities Officer • Bill Wherritt, Chief of Staff, Facilities Services Division

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Mission Statement Increased operational efficiency leads to an optimized learning environment

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ITD Mission Statement: –

We enable student achievement and operational efficiency through deployment of appropriate technical solutions for our students and their families, all employees, and the community.

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What is the Legacy Replacement Program? •

Massive overhaul of outdated Financial and Procurement legacy system (IFS) – We are currently operating on 1990s technology. IFS (Legacy system) for finance and procurement was implemented in 1993 – We are using software and hardware infrastructure that are no longer supported – Compliance with audit recommendation from the Los Angeles County Civil Grand Jury (LACCGJ)

•

Implementation of SAP Finance and Procurement Software

– Allows for the de-commissioning of IFS – Establishes one District financial system of record: SAP – Mitigates risk of catastrophic failure, inefficiency and cost related to the maintenance of two financial systems: SAP + IFS

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Business Drivers Legacy Replacement Program is a Necessity • Compliance with Audit Recommendation – The Los Angeles County Civil Grand Jury Report, dated June 30, 2010, recommended that the District “.. implement Release III, Accounts Payable and related modules of Business Tools for Schools (BTS) as soon as possible..” – The District agreed to comply with this recommendation via correspondence sent to the LACCGJ in November 2010

• Risk of catastrophic failure, inefficiency, and increased cost – Relying and supporting IFS exposes the District to these issues – Completing the SAP finance and procurement implementation (formerly called

Release III) will mitigate and/or eliminate these issues

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The Project Team • LAUSD Project Team • Phoenix Team • SAP America

• Third Party Oversight • Key vendors (such as Apple, Arey-Jones, McGraw Hill, Pearson)

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Project Overview

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System Implementation – High Level

Legacy HRS/Payroll (decommissioned)

IFS Procurement Finance (active)

Completed

Planned

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SAP Integrated Solution • • • •

Human Resources Payroll Procurement Finance

Current State SAP Human Resource

Applicant Tracking

Benefits Administration

Project Kick-Off

Payroll

Time and Attendance

Budgeting

January 26, 2012 External Organizations (e.g. STRS, PERS, LACOE)

Accounts Receivable

Cash Management

- Financial reference tables

General Ledger

- Job Cost - Financial postings - Budget data

Other ITD systems (e.g. Transportation, Facilities, Food Services, ISIS, MyData)

IFS Cost Accounting

Asset Management

Inventory

Supply Chain Management

Accounts Payable

Contract Management

Encumbrance Processing

P-Card

Vendor and Bid Management

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Key Implemented

Partially Implemented

To be Implemented

Future StateState – July 2013 Future SAP

External Organizations (e.g. STRS, PERS, LACOE)

Human Resource

Applicant Tracking

Benefits Administration

Payroll

Time and Attendance

Budgeting

Accounts Receivable

Cash Management

General Ledger

Cost Accounting

Asset Management

Inventory

Supply Chain Management

Accounts Payable

Contract Management

Other ITD systems (e.g. Transportation, Facilities, Food Services, ISIS, MyData)

Key Encumbrance Processing

P-Card

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Vendor and Bid Management

Implemented

IFS

An Example…

SAP

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The term “Requisition” in the legacy system will become “shopping carts” in the new system. Requisition approval will be replaced by on-line shopping cart approval for principals and department heads

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Schools and offices no longer have to differentiate between different document types (RX, PD CSX, PD LVX, PD LVXC1, etc.)

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Schools and offices will have the ability to use a point-click functionality to create shopping carts; one point of entry for schools and offices “Shopping Cart” 12

Functional Scope - Procurement Targeted Functionalities • Supplier Relationship Management (SRM) • Accounts Payable • Shopping Cart (versus line-item requisitions in IFS) • Catalog Management • Buyer Cockpit (e.g. E-commerce) • Supplier Self-Service

• Electronic Invoicing • Streamlined Goods Receipt • Payment Process • Operational and Statutory Reporting

• Full Warehouse Management

• Travel Management

• Receipt of stock • Stock put-away • Order fulfillment • Physical Inventory • Inventory Management • Bar Coding Enablement

• Travel Request Form • Employee Reimbursement Process

• Materials Management

• Procurement Card (P-Card)

• Interface between ProCharge II Software and SAP

• Material Master • Vendor Master • Contract Management • Purchase Order Processing 13

Functional Scope - Finance Targeted Functionalities • Grants

• Account Receivable and Cash Receipts

• Grant Master Data • Resource Related Billing (RRB) • Indirect Cost Calculation (IDC) • Availability Control (AVC)

• Fixed Assets

• Accounts Receivable – General (excludes Grant receivables) • Cash Receipts

• Projects

• Capital asset inventory (Master Data) • Asset valuation • Asset reporting

• Master Data, Project Definition, Work Breakdown Structure (WBS)

• Multi-Year Funding Strategy • Multi-Year Budget Plan • Settlement to Assets Under Construction

• Availability Control (AVC) • Budget consumption and availability • Real-time information on budget values • Real-time information on budget consumption values • Budget limits and tolerances

• Job Cost

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• Internal Order Master Data • Internal Billing • External Billing (A/R) • Availability Control (AVC) • Job Cost Budget

Technical and Organizational Scope • Technical scope – SAP Components • ERP Central Component (ECC 6.0) • Supplier Relationship Management (SRM 7.0) with Procurement for Public Sector (PPS 3.0) • Supplier Self Services (SUS) • Portal • Master Data Management (MDM) • Business Intelligence (BI) • Process Integration (PI) • GRC

– SAS (reporting platform) – Custom development – Security (roles and authorizations)

• Organizational scope – All offices and schools 15

Project Team Organization KEY RESPONSIBILITIES 

Executive Governance Committee Accountable: (CIO, CFO, COO, CFE) Informed: (LD Sup, CAO, Asst Sup, Exec Dir, Ch. HR Officer, Personnel Director)

 



ITD PMO LAUSD PMO Marvin Cruz

Business Advisory Committee

Project Steering Committee FI (Yumi T), Budget (Tony A); Procurement (Mark H); Facilities (Bill W); ITD (George S, Doug L, Teri L); LAUSD PM (Vikas P); PBC (Hanif S); SAP (TBD)

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(see next slide) 

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Project Management Team LAUSD PM (Vikas Pathak) PBC PM (Hanif Sarangi)

Finance

 

Procurement

3rd Party Oversight Team Vendor TBD

Technical

LAUSD and Phoenix teams

OCM (incl. Training)

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Champion the project Ultimate responsibility of project success Monitor the progress and organization impacts of the project Manage project scope to keep project on schedule Commit required resources to the project Review project status and resolve escalated issues Support project management‟s efforts to accomplish project objectives Provide day-to-day direction, develop and manage project plan and schedule Identify, resolve, and escalate issues Monitor all aspects of project progress

3rd Party Oversight  Provide independent monitoring and oversight for the duration of project  Review project deliverables  Provide independent assessment reports LAUSD Core Team and Phoenix Team  Respond to 3rd party assessments, as required  Manage project implementation  Perform activities to meet project requirements

Implementation Strategy •

Phased rollout – build and test all functionalities simultaneously,

but rollout to central offices and schools will be in four phases •

Use ASAP, SAP‟s implementation methodology

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Adopt best practices built into the system

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Train as much as possible and do extensive knowledge transfer to

LAUSD team •

Avoid “customizing” the system, use SAP standard configuration wherever possible

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Extensive demos – build functionality and play back

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Project staffed with experienced consultants with expertise in K-12 and Public Sector (at the peak periods Phoenix Business Consulting will have 40 consultants onsite)

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Extensive involvement from LAUSD staff in blueprinting,

documenting business process procedures, testing, training end users and go-live support.

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Project Implementation Schedule 2012

2013

2014

2015

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J Project Preparation and Planning Business Blueprint (Design) Realization (Configuration, Development) System Testing Final Preparation

Rollout 1

Financials + 4% Schools

Rollout 2

32% of Schools

Rollout 3

50% of Schools

Rollout 4

14% of Schools

Go-Live and Rollout 1 System Stabilization Rollout 2 System Stabilization Rollout 3 System Stabilization Rollout 4 System Stabilization IFS Decommission (Decommission includes year-end closing, historical data extraction, etc)

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ASAP Methodology Overview

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Project Methodology (ASAP) ASAP Methodology provides the links between business and the system processes

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Phase 1 – Project Preparation (Scoping & Planning)

Purpose:  



Initial Planning and Preparation Define the project goals, scope and objectives Identify, on-board and train Team Members

Milestones & Key Decisions:

Deliverables:      

Project Scope Defined Implementation Plan & Rollout Strategy Costs and Benefits Validation Project Standards Project Infrastructure Implementation Workplan

  

 



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High Level Scope Defined Project Team Staffed and Trained Project Team Organization, Responsibilities and Location Roll-out Plan Key Stakeholders for Communications Identified Implementation Plan in Place

Phase 2 – Business Blueprint

Purpose: 



 

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Align Business Requirements to the SAP Business Model Identify Additional Functionality Requirements Identify Data Input Requirements Document Business Process Documentation Obtain Business Sign-off on Requirements

Deliverables: 

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      

Complete and Documented Business Design  Project Plan Update  Sub Process Definition Document  Sub Process Flows  Business Activity Scripts  Key Functional Specs  Business Process Master List Assessment of Organization and Business Process Changes Detailed Scope Document Inventory of Reports and Conversions Knowledge Transfer Approach Master Data Design Interface List Testing Strategy 22 Data Cleansing Strategy

Milestones:    





Complete Design Phase Quality Assessment Communication Plan Policies for To Be Finance Organization System Retirement Objectives/Mandates/ Constraints Training Approach

Phase 3 - Realization

Purpose: 

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

Build and Test a Complete Business and System Environment Develop Training Material and End User Documentation Obtain Business Approval

Deliverables:     

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   

Test Data and Configuration Business Process Procedures Quality Assurance System Environment Production System Environment Develop and Test Interfaces, Conversions and Reports Evaluate and Enhance Security and Controls End-User Training Material and Plan End-User Training System Environment Data Conversion Plan User Acceptance 23 Test

Milestones: 

     

Project Team Trained (Realization) Final Design and Configuration Integration Test End-User System Infrastructure User Acceptance Phase Quality Assessment Readiness Review

Phase 4 – Final Preparation

Purpose: 

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Prepare System for Production Release Prepare the Internal and External Organization for GoLive

Milestones:

Deliverables:     



Data Converted Cut-Over Plan End-Users Trained End-User System IDs Created

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System Support Organization in Place  Help Desk  Technical Support Operational Production System Environment

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Organizational Changes Implemented Go/No-Go Decision

Phase 5 – Go-Live and Support

Purpose: 

Business Owns and Executes New Business Processes and Systems

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Monitor Business Process Results Monitor Production Environment Establish Center of Excellence for Support and Enhancements

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Deliverables:   

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Live Production Environment Operational Help Desk Cut-Over and Conversion Activities Completed Post Go-Live End-User Training Lessons Learned

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Milestones:  

Go-Live Project Close

Organizational Change Management Workforce Transition Org Impact Assessment Org. Impact Summary Role Mapping

User & Project Team Training Attend Training Develop Courseware Prepare Training Facilities Manage Registration Process Deliver Training

Communications Readiness User Readiness Functional Readiness Site Readiness Technical Readiness

Leadership Alignment/ Stakeholder Mgmt Understand Stakeholder Segments Communicate w/Leadership & Stakeholders 26 Conduct Info Sessions

Establish Plan Support Departments with Effective Communications Gather Feedback Provide Demos/Roadshows

Wrap Up / Next Steps • Business Blueprint is the next phase – Blueprint sessions start February 13, 2012 – Design the „TO-BE‟ processes • Complete project team training • Complete project implementation plans

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Welcome to Team LRP!!!

“Coming together is a beginning. Keeping together is progress. Working together is success.” - Henry Ford

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