JD EDWARDS UPGRADE P ROJECT...The system consists of components from Oracle Corporation Canada, Inc....
Transcript of JD EDWARDS UPGRADE P ROJECT...The system consists of components from Oracle Corporation Canada, Inc....
A REPORT TO
THE BOARD OF COMMISSIONERS OF PUBLIC UTILITIES
JD EDWARDS UPGRADE PROJECT
Hydro Place
July 2011
JD Edwards Upgrade Project
Newfoundland and Labrador Hydro i
Table of Contents
1 INTRODUCTION ................................................................................................................ 1
2 PROJECT DESCRIPTION ..................................................................................................... 2
3 EXISTING SYSTEM ............................................................................................................. 3
3.1 Age of Equipment or System ............................................................................... 3
3.2 Major Work and/or Upgrades ............................................................................. 3
3.3 Anticipated Useful life .......................................................................................... 4
3.4 Maintenance History ........................................................................................... 4
3.5 Maintenance or Support Arrangements .............................................................. 4
3.6 Vendor Recommendations .................................................................................. 5
3.7 Operating Regime ................................................................................................ 5
4 JUSTIFICATION ................................................................................................................. 6
4.1 Net Present Value ................................................................................................ 6
4.2 Cost Benefit Analysis ............................................................................................ 6
4.3 Historical Information .......................................................................................... 6
4.4 Status Quo ............................................................................................................ 7
4.5 Alternatives .......................................................................................................... 7
5 CONCLUSION .................................................................................................................... 8
5.1 Budget Estimate ................................................................................................... 8
5.2 Project Schedule .................................................................................................. 8
APPENDIX A ............................................................................................................................. A1
APPENDIX B ............................................................................................................................. B1
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1 INTRODUCTION
The JD Edwards (JDE) suite of applications has been used by Hydro since 1998 to manage
data entry and reporting for all business and customer service processes within the
company. The system is used to record information in connection with the following
business activities:
Components provided by Oracle Corporation Canada, Inc.:
• General Ledger
• Accounts Payable
• Accounts Receivable
• Fixed Assets
• Job Costing
• Purchasing
• Inventory
• Human Resources
• Payroll
• Plant Equipment Management
• Work Orders
Components provided by AMX International:
• Customer Services
This suite generates Hydro’s customer billing, payroll and work orders for the maintenance
of assets. In addition, it maintains all underlying accounting transactions.
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2 PROJECT DESCRIPTION
The project will upgrade our JD Edwards suite of applications from version A7.3 Cume 14 to
the latest release of this application A9.2. Version A9.3 is due to be released in the first
quarter of 2012, therefore if that version is available at the time of installation, it will be
implemented.
All internally developed applications and third party applications that interface with the JD
Edwards suite will be tested and modified as necessary.
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3 EXISTING SYSTEM
The JDE Upgrade Project is required to upgrade the software applications to the latest
supported release. Without upgrading the software, support will no longer be available for
fixes and enhancements. Components such as the Payroll will no longer function as tables
needed for calculating taxes will no longer be updated.
The system consists of components from Oracle Corporation Canada, Inc. (Oracle); and AMX
International (AMX). The AMX component, used by the Customer Services group, was
originally purchased from Oracle.
As this budget involves the upgrade of an existing piece of software, the following items are
not considered relevant to the proposal:
• Levelized Cost of Energy;
• Legislative or Regulatory Requirements;
• Forecast Customer Growth;
• Energy Efficiency Benefits;
• Losses during Construction;
• Outage Statistics;
• Industry Experience;
• Availability of Replacement Parts;
• Safety Performance; and
• Environmental Performance.
3.1 Age of Equipment or System
The JD Edwards suite of applications was originally installed in 1998.
3.2 Major Work and/or Upgrades
Table 1 shows the upgrades that have occurred since installation.
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Table 1: Major Work or Upgrades
Year Major Work/Upgrade Costs
2004 A73 CUME 14 Upgrade $163,186
3.3 Anticipated Useful life
There is no announced end of life date for the JDE suite of applications. However, the
vendor will no longer provide support for the version used by Hydro.
Upgrading to the next scheduled release, A9.3, which is due out in Quarter 1 of 2012 will
give support until 2017. As newer versions of the software are released they will be
supported for five years from the date of availability.
3.4 Maintenance History
There have been no upgrades to this software since 2004. Since then, the vendor, Oracle
Corporation Canada introduced an “Applications Unlimited” strategy for all its applications.
Under this strategy Oracle guaranteed support of Hydro's version of the JD Edwards suite of
applications until December 13, 2013. This removed the need to upgrade during that period
See Appendix A - Applications Unlimited Support Dates for JD Edwards World Releases.
3.5 Maintenance or Support Arrangements
Hydro has an agreement with Oracle Corporation for approximately $340,000 per year to
maintain Oracle components. Hydro also has an agreement with AMX International for
approximately $7,000 per year to maintain support for the Customer Services module.
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3.6 Vendor Recommendations
The vendor recommends that all customers upgrade to one of its A9 versions. The versions
are A9.1 and A9.2. Version A9.3 is scheduled to be available in Quarter 1 of 2012.
3.7 Operating Regime
The JDE Suite of applications is normally run on a continuous basis. However, during the
nightly backup of system data, the system is unavailable. Normally during two weekends
per year the server operating the JDE system is upgraded. During that period, the system is
unavailable.
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4 JUSTIFICATION
This project is justified because Premier (highest level) support for Hydro’s existing JDE
version A7.3 expires December 31, 2013.
Without the upgrade Hydro will be dropped to “Sustaining Support” status. Sustaining
support does not provide the following:
• New updates, fixes, security alerts, data fixes, and critical patch updates
• New tax, legal, and regulatory updates
• New upgrade scripts (routines to upgrade the software)
All of this support functionality is important. In particular, Hydro needs tax updates to
correctly calculate payroll taxes. Without this upgrade Hydro will no longer be compliant
with tax regulations under the Canada Income Tax Act. See Appendix B.
4.1 Net Present Value
A net present value calculation was not performed as there are no viable alternatives.
4.2 Cost Benefit Analysis
As there are no quantifiable benefits, a cost benefit analysis has not been performed.
4.3 Historical Information
There is no historical information pertaining to this upgrade.
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4.4 Status Quo
The status quo is not an option because the current version of JDE will not be supported by
the vendor after December 31, 2013. Without this support Hydro will not be complaint with
tax regulations.
4.5 Alternatives
There are no viable alternatives that will incorporate into the existing system. The only alternative
would involve replacing the entire existing JD Edwards suite of Applications.
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5 CONCLUSION
The JD Edwards suite has been in use since 1998. It supports Hydro’s core business
transactions. An upgrade is required to ensure that these core business transactions remain
supported by the application provider.
5.1 Budget Estimate
The budget estimate is shown in Table 2.
Table 2: Budget Estimate
Project Cost:($ x1,000) 2012 2013 Beyond Total
Material Supply 0.0 0.0 0.0 0.0
Labour 130.3 136.8 0.0 267.1
Consultant 135.4 296.4 0.0 431.8
Contract Work 0.0 0.0 0.0 0.0
Other Direct Costs 4.9 8.4 0.0 13.3
Interest and Escalation 13.4 39.2 0.0 52.6
Contingency 0.0 106.8 0.0 106.8
Sub-Total 284.0 587.6 0.0 871.6
Cost Recoveries (96.6) (199.8) (296.3)
TOTAL 187.1 388.8 0.0 575.3
5.2 Project Schedule
The anticipated project schedule is shown in Table 3.
Table 3: Budget Schedule
Activity Start Date End Date
Planning Planning Activity May 2012 Aug 2012
Design Design Activity Aug 2012 Sept 2012
Procurement Procurement Activity Aug 2012 Sept 2012
Construction Construction Activity Sept 2012 April 2013
Commissioning Commissioning Activity May 2013 May 2013
Closeout Closeout Activity June 2013 June 2013
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Appendix A
Newfoundland and Labrador Hydro A1
APPENDIX A
Applications Unlimited Support Dates for JD Edwards World Releases
JD Edwards Upgrade Project
Appendix A
Newfoundland and Labrador Hydro A2
JD Edwards Upgrade Project
Appendix B
Newfoundland and Labrador Hydro B1
APPENDIX B
JD Edwards Upgrade Project
Appendix B
Newfoundland and Labrador Hydro B2