Post on 22-Nov-2014
description
1Filename/RPS Number
Navy ERP: Roadmap to Enterprise Business
Transformation
Beverly Veit May 27, 2009
2
Agenda
Enterprise Business Office Stand up
Program of Record Roll Out Schedule
Business Backbone Rollout Strategy
NAVAIR/NAVSUP Sustainment
Refinement and Standardization of Operations
‘Go Live’ Preps for SPAWAR/NAVSEA
Navy ERP Release 1.1
Summary
3Filename/RPS Number
Navy Enterprise Business Office (EBO) (Stand up)
Chief Management Officer (CMO)/Deputy CMO(DCMO) – created by National Defense Authorization Act (2009) Sec 209
– Directed Military Department to establish an Office of Business Transformation
– DCMO issued memo 8 May 2009 – establishing the EBO as part of the Navy Office of Business Transformation
Navy EBO Mission and Objective:
– Integrate the acquisition, finance, logistics, and supply chain management functions into defined end-to-end, compliant business processes
– Define business value metrics that measure the efficiency of these business processes as implemented in operating procedures (i.e. time required to process a given contract type)
– Define enterprise policies for business processes, adjudicating contradictions in acquisition and finance regulations within the Department and with OSD
– Create and oversee a transparent process for program office resource allocation decisions between user change requests and deployment requirements.
4Filename/RPS Number
Navy Enterprise Business Office - Continued
Evaluate Procure to Pay End to End process for improvement opportunities:
– Policy/Procedure Memos issued 15 May 2009: Acquisition/Contract/Finance communities – Alignment of acquisition, contract, finance, logistics data in Procure 2 Pay process
– Emphasis of policy memo to ensure coordination in the beginning of P2P process that the appropriate level of line item details is created in the Purchase Requisition and Contract to eliminate many of disconnects during pre-validation/invoice payment/receipt later in process
Develop Business Value/Strategy
– Communicate Enterprise metrics that provide insight into the Business Health when operating within the Navy ERP solution
– Standardized process for pulling metric information from the official system of record with consistent reporting across SYSCOMs
– Standardized process for evaluating results from an end-to-end process
– Documented processes that are stable and repeatable Develop Standard Business Process Documentation and Std Operating Procedures
– Evaluate work done to date by Process Owners (FM&C), NAVAIR/Contractors – leverage & edit to bring up to Enterprise level
– Standardizing and consolidating end to end business processes across the Navy enterprise
– Focus on completing business documentation for the Procure to Pay, Internal Entitlement process.
– Prior to SPAWAR go-live goal: to develop SOPs of the internal entitlement process, i.e. electronic invoice processing, Purchase card, Pre-Purchase Requisition/Purchase Requisition, F110 Processing, creation of service entry sheet etc.
5Filename/RPS Number
Program of Record Roll Out Schedule
Release 1.0
– Naval Air Systems Command (NAVAIR) – October 2007 (FY 08)
– Naval Supply Systems Command (NAVSUP) HQ, FISC, ICP – October 2008 (FY 09)
– Space and Naval Warfare Systems (SPAWAR) HQ, SSC – October 2009 (FY 10)
– Naval Sea Systems Command (NAVSEA) HQ (GF activities) – October 2010 (FY 11)
– Naval Sea Systems Command (NAVSEA) WC (NWCF activities) – October 2011 (FY 12)
– Strategic Systems Programs (SSP) and Office Naval Research (ONR) – October 2012 (FY 13)
Release 1.1
– Naval Supply Systems Command (NAVSUP) – February 2010
6
Business Backbone Rollout Strategy
Accelerated approach implements Navy ERP solution with minimal development / modifications to accommodate SYSCOM specific desires:
– Current POC kept in tact – developing acquisition strategy to have business backbone managed as a separate program
– Limited Gap Analysis (only 4 Shipyards, FRCs, and NAVFAC)
– Conversion of master data only
– Rollout schedule being developed
– Navy ERP PMO preparing a questionnaire so they can gain an understanding of Commands’ functions
– Commands responsible for organic costs (end user training, master data conversion, change management)
Accelerated approach timeline:
– D-12, Receiving organization obtains Getting Started briefs and technical documentation from ERP website:
• Getting Started, 1.0 Walk-thru, ARIS Models, Role Matrix, Reports Catalogue, Business Process Overviews, Business Process Matrix
– D-11, Initial meeting with ERP team to obtain organization structure, define data cleanup requirements, and perform basic preparation work
– D-6, ERP team uploads org. structure and starts LSO
– D-5, Train-the-trainer begins
– Go-Live
– On Site-Support continues for 6 months after Go-Live
7
NAVAIR/NAVSUP Sustainment
Naval Air Systems Command (NAVAIR) (1 October 2007)
– Transition Days - 77
– Trained and Deployed to 14,265 users at 9 sites
– 145,858 Roles assigned
– 21,000 Test scripts executed
– 14,834,338 master and transactional data objects converted
– 99.8% data load success rate
IOC - May 2008
Naval Supply Systems Command (NAVSUP) (1 October 2008)
– Transition days - 25
– Trained and deployed to 6,222 users at x sites
– 8,427 Roles assigned
– 338,023 master data objects converted
– 99.78% data load success rate
8
Refinement and Standardization of Operations
Automated Service Entry Sheets
– Service Entry Sheets are being manually entered by DFAS/NAVAIR personnel for external entitled pre-validation of invoices. Navy ERP concept of operations calls for a 3-way match which is already captured in the external entitlement system.
– Navy ERP recently implemented the automation of Service Entry Sheets since the receipt and invoice data is already captured in MOCAS.
– The benefit of automating the SES is that it will save 12 FTE’s.
Data Roll-up
– Early on root cause of pre-validation and disbursement mismatches was identified as a misalignment of transaction detail (contract/obligation, invoice, and receipt).
– Navy ERP implemented CLIN/SLIN/ELIN rollup to enable system to automatically match at the lowest level of detail available.
– Navy DCMO recently published guidance requiring a process to align pre-contract award finance, procurement, and logistics planning with post-contract award administration of finance procurement, and logistics operations.
Navy ERP continues to refine the configuration of the system to improve efficiency and reduce the level of manual intervention required. 27 ECP’s have been approved by the NESIB. 17 draft ECP’s are in various stages of requirements definition. Examples of system changes:
VENDOR PAY: VENDOR PAY: % ACCEPTANCE COMMERCIAL PAY% ACCEPTANCE COMMERCIAL PAY
(MAJOR CONTRACTS)(MAJOR CONTRACTS)
9
‘Go Live’ Preps for SPAWAR/NAVSEASpace and Naval Warfare Systems (SPAWAR)
SPAWAR Status Update
– Mock Data Conversion:
• Mock 5 to be completed 27 May 09 -- reviewing the General Ledger throughout the Mock as well as the addition of Business Data Validation has provided SPAWAR/Navy ERP the ability to correct data related issues immediately upon discovery.
• Cutover Practice to begin 1 June 09 -- this practice will include both Data Conversion and Business Data Validation as well as a Catch Up practice in which numerous catch up transactions will be tested within the Navy ERP mock client.
– Operations/Cutover/Transition:
• Workforce Management (WFM) early go-live is on schedule. Select WFM data will be loaded into Production in July to ensure that Echelon II will be ready to perform their Time and Attendance (T&A) entry in Navy ERP on 1 Oct 09.
• Navy ERP/SPAWAR are currently reviewing the Cutover plan ensuring each task is on schedule for completion and capturing any action items/issues.
• Navy ERP PMO has stated SPAWAR data conversion will not impact commands already operating in SPAWAR
– Key Near Term Tasks:
• Cutover Practice Workshop – 6 May 09
• War Room Full Operational Tempo – 15 May 09
• Start Cutover Practice – 1 Jun 09
Naval Sea Systems Command (NAVSEA)
NAVSEA Status Update
– Road Map Under Development
– ERP workshops held November 2009 - February 2009 to begin orientation of NAVSEA employees to ERP functionality
– Data Conversion Strategy Agreed Upon
– Major Change Management initiative underway associated with re-engineering Shipbuilding Contract Execution/Administration
– Mock Data Conversion began in May 2009
– Sandbox has been delivered so NAVSEA can become more familiar with ERP functionality and determine impact to business processes.
10
Navy ERP Release 1.1 – Single Supply Solution Overview
DemandPlanning
SupplyPlanning
InventoryManagement
Procurement
Vendors
Customers
OrderFulfillment
Master Data&
FinancialsCore
• Sourcing• Req. processing• Available to promise• Shipping
• Material movements• Goods Receipts• Whse. Management• Physical inventories
• Demand Capture• Forecasting• Simulations
• Buy vs. Repair• Deployment• Inventory balancing• Surplus & Obsolescence• Terminations• Financial and Logistics Integrated Requirements Report • Redistributions
• Contracts• Awards• Commercial Repair• Sub-contracting
• Organic Navy Depots• Commercial• Original Equipment Manufacturer• Defense Logistics Agency
• Fleet/Industrial Sites• Navy Working Capital Fund Stock Points• Foreign Military Sales• Other Services
11
Types of Testing
Integrated System Test (IST)Cycle 1, 2 & 3, User Acceptance Testing (UAT), Operational Assessment (OT-C2A)
Technical TestData Recovery, Host Stress, Network Connectivity and Stress, Continuity of Operations / Disaster Recovery / High Availability / Failover and Application Output / Print
Information Assurance / Security Roles / Authorizations, DIACAP (Security Certification)
Initial Operational Test & Evaluation (IOT&E)
Will consist of field-validation testing at the initial deployment sites and will resolve the remaining COIs and as well as evaluating the operational effectiveness and operational suitability of the Navy ERP system .
Developmental TestingUnit Test (UTs), Business Process Procedures (BPPs) and Development Unit Test (TDS), FDS End to End Test (HLD), Functional Test Plans (FTP) and Functional Test Execution (FTEs) at transaction and Business Process level
Follow-On Operational Test & Evaluation (FOT&E)
Conduct if Required
Post Go-LivePre Go-Live
Regression TestingPerformed in each cycle as required for changes in solution and defect resolution
Supplemental TestingPeriod for extended non-core development and testing
Regression TestingScenario testing to support new functionality and defect resolution
12Filename/RPS Number
Update on Implementation - Release 1.1
Release 1.1 Cycle 1 Testing Completed– 2777 Test Cases were executed– 47 Defects were logged
Release 1.1 Cycle 2 Testing Completed– 3262 Test Cases were executed– 101 Defects were logged
Release 1.1 Cycle 3Testing– Cycle 3 began 18 May 2009– Cycle 3 will consist of three Dry Runs
each with one week of defect resolution
•DR1 18 May - 26 June •DR2 6 July - 14 Aug•DR3 24 Aug - 8 Oct
– Reports, Interfaces, Conversions and Enhancements (RICE) objects will be included
User Acceptance Testing (UAT) Testing – November 2009
NAVSUP Release 1.1 Initial GO LIVE scheduled for February 2010
Integrated System Test Cycles
13
Summary
Navy ERP is the Cornerstone of our FM framework for DON Business Transformation
– Standard business processes
– System of record for both General Fund and Working Capital Fund financial accounting and funds control
– USSGL,SFIS, and BEA compliant
– Enables significant reduction in the number of legacy systems requiring support
– Enables, but does not guarantee, audit readiness
Navy ERP will provide increased efficiency and improved quality of information to support decision making.
FMO is fully committed to support Navy ERP as the target solution for achieving a vision of improved, integrated, and compliant financial management.
We are working with DFAS, BTA, the EBO, FMB, the Navy ERP Program Office, and Commands to ensure a successful roll out.
For additional information, please contact:
– Beverly Veit Ph: 202-685-6703 email: beverly.veit@navy.mil
– Quentin Gilmore Ph: 202-685-6736 email: quentin.gilmore@navy.mil
– Sherri Jordan Ph: 202-685-6723 email: sherri.jordan@navy.mil
– Carl Inman Ph: 216-571-7892 email: carl.inman@dfas.mil
Filename/RPS Number 14
Backup
Filename/RPS Number 15
NAVY ERP CONVERGENCE
DoD Business Environment Driving Navy to ERP
Chief Financial Officer’s (CFO)
Act
2003
ASN (RD&A) directs convergence of pilots
NAVSUP Pilot SMART went
“Live” (Jan 03)
NAVAIR Pilot SIGMA went “Live” NAWC, WCF (Jan 03)
2007
2009
2011
SPAWAR 1.0 “Go-Live”(Oct 09)
NAVSUP 1.1 Single Supply
Solution(Feb 10)
NAVSEA 1.0 General Fund
“Go-Live”(Oct 10)
NAVSEA 1.0 Working Capital
Fund(Oct 11)
2005
NAVAIR 1.0 “Go-Live”(Oct 07)
Cabrillo
Pilot
NAVSEA Pilot NEMAIS went “Live”
(Jun 02)
NAVAIR Pilot SIGMA went
“Live”(GF, Oct 02)
SPAWAR Cabrillo Pilot
went“Live” (Jul 01)
N
EMAIS Pilot
SIGMA Pilot
SMART Pilot
1990
Navy Launched 4 Pilot Programs (1999)
1999
2001
Pilots Award Contracts toIntegrators
NAVSUP 1.0 “Go-Live”(Oct 08)
Milestone C(May 07)
Initial Operating Capability(May 08)
Filename/RPS Number 16
Navy Financial Management Systems Transition Summary
NOTIONAL
SCHEDULED
SYMIS
MFCS
STARS HCM
Cabrillo (SAP Pilot)
2007 2017201620152014201320122011201020092008
Sigma (SAP Pilot)
IMPS
DWAS
DIFMS
NAVY ERP
MSC FMS
STARS FL
BUSINESS
TRANSFORMATION
POM
FY 2018
Legacy Legacy EnvironmentEnvironment
Target Target EnvironmentEnvironment
17Filename/RPS Number
Current Enterprise Metrics
Internal Entitlement– % Acceptance, WAWF Vendor Pay– % Payment with Manual Invoices– Count of Invoices over 30 days old – % of Penalties vs. Total Payments – % of Invoices with Interest Penalties vs. Total Count
External Entitlement– % Successful Awards, SPS – % Successful Modified Awards, SPS – % Acceptance Commercial Pay – DDEF success rate (Gen Fund) – DDEF success rate (NWCF) Outcome Metrics:– # of Late Entitlement Payments/Week, – Late External Entitlements $/Week – $ Unrecorded Expenditures/Collections
External Reporting– % External Reports Complete
Internal Reporting– % Critical Internal Reports Complete
18
OBJECTIVE 95%
THRESHOLD 85%
FUTURE:-CLIN/SLIN MISMATCH +10% -7 WYs
ELIN CROSS REFERENCE TABLE + 8%(JAN 09 DELIVERY, METRIC 2 MONTH
LAG)-5 WYs
AUTOMATEDACCOUNTS
PAYABLE (JUL 08 DELIVERY, METRIC 2
MONTH LAG)-1 WY
-AUTOMATED SES (MOCAS) + 5% (JUN 09 DELIVERY, METRIC 2 MONTH LAG) -
12 WYs
LONG TERM TARGET = MINIMUM OF OBJECTIVE LEVEL
85%
58%
73%68%68%68%
75%
13%
90%
0%
25%
50%
75%
100%
JAN08
APR08
JUL08
AUG08
SEP08
JAN09
AUG09
TBD
FIR
ST
PA
SS
SU
CC
ES
S R
AT
E
SUCCESS RATE THRESHOLD OBJECTIVE PROJECTION
OCT NOV08 08
MANUAL OBLIGATION POSTINGS + 4% (SEP 09
COMPLETION, METRIC 1 MONTH LAG)
-4 WYs
61%
80% 75%
58%
DEC08
75%
FEB MAR APR MAY JUN JUL09 09 09 09 09 09
- NAVY ERP ACTION SCHEDULED
- NAVAIR ACTION
- DECISION AND SCHEDULE STILL REQUIRED
71%
EXTERNAL ENTITLEMENT% Acceptance Commercial Pay (Major Contracts)
19
Test Schedule – Release 1.1
Testing Events Date/Periods
Test Readiness Review – Cycle 1 5 Feb 2009
Cycle 1 Test 9 Feb 2009 – 5 Mar 2009
Test Readiness Review – Cycle 2 26 Mar 2009
Cycle 2 Test 30 Mar 2009 – 23 Apr 2009
Test Readiness Review – Cycle 3 14 May 2009
Cycle 3 Test 18 May 2009 – 8 Oct 2009
Test Readiness Review – UAT 29 Oct 2009
User Acceptance Test (UAT) 2 Nov 2009 – 25 Nov 2009
Regression Testing 9 Feb 2009 – 17 Dec 2009
Supplemental Testing Phase 2 Nov 2009 – 17 Dec 2009
Operational Assessment (OT-C2A) 9 Feb 2009 – 10 Dec 2009
OT-C2A Independent Event 7 Dec 2009 – 10 Dec 2009
Operational Test Readiness Review (OT-C2B) Apr 2010
Initial Operational Test and Evaluation (OT-C2B) Apr 2010 – May 2010