Daily Cost Control Using P6 and PCM
Transcript of Daily Cost Control Using P6 and PCM
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Daily Cost Control Using P6 and PCM
Prepared by:
Nicole Jardin, P.Eng. - CEO
Emerald Associates Inc.
Preventing Margin Erosion in an Engineered Manufacturing Organization
Session ID#: 200070
@nicolejardineai
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Agenda Daily Margin Control through Automation
■ Background
1. Project Creation
▪ Sell Price vs Cost Estimate
2. Managing Changes
▪ BCO/VCE/CO
3. Daily Actuals Integration – Time & Expenses
4. PM Forecasting
5. Month End
▪ Closing
▪ Snapshotting
▪ Reporting
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Background
This is a subtitle or bulleted list
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Presenter Emerald Associates Inc.
Nicole Jardin, P.Eng.
Founder & CEO
Delivering Primavera for 20 years
■ Platinum Partner
■ Canada, US, Australia
■ P6, PCM, Unifier, Risk Analysis, UPK,
OPPM, Instantis
■ ODA, managed services, hosting
■ Contact Info
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Client Background
■ Custom Module Manufacturer
▪ Worldwide Projects
▪ 100-125 projects on the go at once
▪ 3-24 months durations
▪ 8-10 PMs in the team
■ Projects
▪ Types - Pre-fab Buildings/Skids/Camps
▪ Phases - Engineer/Procure/Manufacture/Ship/Install
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Automations the only way to go!
This is a subtitle or bulleted list
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Automations Margin Erosion Controls
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1. Project Award Sell Price vs Cost Estimate
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Project Creation PCM->P6 Project Loader
■ Create project in PCM only manual step!
■ PCM-> P6 – auto create
▪ Grab matching template
▪ Put into EPS
▪ Put into OBS
▪ Load in project codes
▪ Load in start and must finish (if applicable)
▪ Load in budgeted costs
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Sell Price - Revenue Prorate Payment Milestones P6->PCM
■ Client Contract - Payment Milestones
▪ P6-Rollups & Calculators – Original Sell Price
■ Budget Costs P6 -> Budget Contract PCM
▪ Backpump PCM ->P6 for integrity
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Cost Estimate P6-Cost Loader Sheet
■ Populate P6 with Excel estimates
▪ Expenses – buyouts (sub-contracts, materials), inventory
▪ Resources – hours & costs
▪ Markups, overheads reporting
■ P6-Rollups & Calculators – Bid Margins, Markups
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Procurement Spending Plan P6->PCM Commitment Loader
■ Load into PCM Modules
▪ Cost Estimate – Original Procurement (Bid Price)
▪ Bid Package Items – for buyouts
▪ Internal Work – Contracts
▪ External Work – PO
■ Backpump PCM -> P6 activities for integrity
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Procurement Spending Plan P6->PCM Commitment Loader
■ Load into PCM Modules
▪ Cost Estimate – Original Procurement (Bid Price)
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Procurement Spending Plan P6->PCM Commitment Loader
■ Load into PCM Modules
▪ Internal Work – Contracts
▪ External Work – PO
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2. Managing Changes Estimates & Change Orders
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PCM Vendor Change Estimates-Order VCE Loader
■ VCE-Load – from same Excel estimate sheet
▪ Load multiple Proposals
▪ Create a new PO if new scope!
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PCM Change Orders Loaded into P6 CO Loader
■ CO-Loader
▪ Approved change order
▪ Verify match -> to P6 activities
▪ Load CO to date
▪ Revise current budget
■ P6-Rollup & Calculators
▪ Margin for changes, overall, variances
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3. Daily Actuals Integrating Accounting ->P6
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Nightly Integration Accounting ->P6 -> PCM
1. Accounting -> P6
▪ Load actuals to financial & holding buckets
▪ Error handling
2. Autorun EAI Auto-scheduler
3. Summarize
4. PM Integration & Status Dashboard
▪ Run in verifiers
▪ Run in electors – forecasts vs accounting
▪ Run rollups – margins
5. Autorun Snapshot Current – EP-datawarehouse
6. Autorun P6->PCM payment certificate loader
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Financial Period Actuals Loads Timesheets & Invoices ->P6
■ Timesheets
▪ Actual hours & costs
▪ Match role or add new roles
■ Invoices
▪ Expenses – services, materials
▪ Bundles – non-planned
▪ Inventory – long lead
■ P6 Rollup & Calculator
Current margins, indicators
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PM Integration & Status Dashboard see problems and drill in
■ Error handling layouts
■ Month Close Special Holding Buckets
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PCM Payment Certificates Auto Create & Actual Loader
■ Auto create new payment requisitions
▪ Nightly load actuals this period
▪ Runs after integration
■ Always ready to invoice client
■ Always ready to capture accruals
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4. PM Forecasting diaries to tasks
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Forecasting Controls PCM diaries->P6 Loader
■ PM Forecast
▪ Efficiencies
▪ Overruns
▪ Start
▪ Finish
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Forecasting Controls PCM diaries->P6 Loader
■ Elaborate Electors accounting <> forecast
▪ Not started
▪ In progress
▪ Complete
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5. Month End closing, snapshotting & reporting
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Closing P6 & PCM
■ PCM – Accruals
▪ Review Accruals – PCM->Accounting
■ P6 - Progress & Notes
▪ Finalize Progress
▪ Clear any coding errors
— Costs coded by mistake
— New POs not pre-authorized
— Review inventory transfers
▪ Finalize Straggler transactions from accounting
▪ Make progress notes
— Efficiencies/overruns
— Delays
■ Re-baseline if needed
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Snapshotting P6->EP-datawarehouse
■ Snapshot - Project & Baseline
▪ Financial period spreads
▪ Special Holding buckets
— True Month End Reporting
■ EP-datawarehouse
▪ All snapshots available for reporting against
— Month over month, year over year
— Current period to last period
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BI Reporting Project Manager & Management
■ Project Progress Report
▪ P6 & PCM info combined
■ Management
▪ Portfolio progress
▪ Revenue recognition
■ Adhoc
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Project Progress status & margins
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Portfolio Progress
■ Portfolio Rollups by WBS elements
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P6 & PCM Info Combined
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Questions?
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