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Life after Implementing ERPIn Pennsylvania

Presented by:Harvey C. EckertCommonwealth ComptrollerCommonwealth of Pennsylvania

For:Annual NASACT ConferenceAugust 22, 2006Omaha, Nebraska

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ERP Implementation Recap

07/02 - Wave 1 agencies (Finance, Budget, Procurement, BW)

10/02 – Wave 2 agencies

01/03 – HR, Payroll

07/03 – Wave 3 agencies

07/04 – PA DOT

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Post ERP Implementation Projects

• Preparation of a more timely CAFR• Reengineering of Requisition to Check• Implementing the Supplier Relationship

Management Module• Revision to Travel Planning software • Implementing Revenue in SAP• Plant Maintenance in PA Department of

Transportation• PA Liquor Control Board Retail ERP

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Preparation of a more timely CAFR

Where we were:• ’02 CAFR issued by 12/31/02• ’03 CAFR issued by 5/31/04• ’04 CAFR issued by 3/31/05

Where we are:• ’05 CAFR issued by 12/31/05

Where we are going:• ’06 CAFR issued by 12/15/06 (5.5 mos.)• ’07 CAFR issued by 11/30/07 (5.0 mos.)

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Preparation of a more timely CAFR (cont’d)

Expedite the CAFR production and Audit Process

– “Top Down” Approach - What’s material?– Focus on Opinion Units, significant funds– Utilize variance analysis approach– Utilize estimates– Utilize Entity Wide entries

Improve coordination and communication with the Auditors

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Reengineering Requisition to Check

• Make recommendations to improve standardization, workload and cycle time and align the Commonwealth with industry best practices.

• Recommendations will cover agencies, Comptroller Offices, and Treasury.

• Includes the payment process for Procurement, Utilities, and Grants

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• Recommend options for process improvement• Delineate organizational roles and

responsibilities• Guidelines for processes and procedures• Identification of policies and statutes to update• Recommend changes to SAP configuration

Requisition to Check Deliverables

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Purpose of SRM:

• Contract automation of bidding process and auction functionality

• Automated Purchase Order from a shopping cart

• Streamline and standardize workflow

Implementing the Supplier Relationship (SRM) Management Module

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• Increase utilization of catalogs/punch out

• Enhance vendor registration process

• Electronic transmission of Purchase order and Invoice using supplier self-service or XML

Implementing the Supplier Relationship (SRM) Management Module (cont’d)

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• Short term implementation schedule• Internet Web based software• Travel plans will be synchronized into SAP• Hands-on training available to agencies• Commonwealth receives commission from

hotels for on-line bookings• Expanded flight selection options

Revision to Travel Planning software

Amadeus e-Travel Management

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• User-friendly interface that looks and feels like commercial web sites

• Flexible, one-stop online booking• Lowest nightly rate for hotels• Hotel searches by price or proximity

to location• Reporting capabilities – each agency

has license to reporting tool

Revision to Travel Planning software (cont’d)

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• Replacement of 25+ year paper-based legacy system, out-of scope during original ERP implementation

• Redundant entry of same data into multiple systems

Implementing Revenue in SAP

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Implementing Revenue in SAP (cont’d)

• Delays in recording revenue when significant funds are now electronically transferred

• Complicated reconciliation process due to timing differences and data entry errors in multiple systems

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• Utilize SAP for reporting all Commonwealth accounting data

• Decommission various legacy systems

• Eliminate duplicate data entry by utilizing file transfer

• Eliminate/reduce paper documents

• Utilize consistent number ranges to track documents/records

Improving Revenue Reporting

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• Major Project to integrate PA DOT maintenance management business into the Commonwealth’s ERP environment– 11 Engineering Districts– 58 maintenance organizations in 67 counties– Annual budget > $1 Billion

• Improve the business processes of the highway, fleet, and materials management, and sign inventory and ordering processes

• Federally mandated requirements

Plant Maintenance in PA Dept of Transportation

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• Replace antiquated Financial Systems with ERP Solution

• Issue RFP for software vendor and integrator

• Implement a Retail ERP System

• Need to reengineer the Business Process

PA Liquor Control Board Retail ERP System

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Questions?