navy erp: roadmap to enterprise business transformation

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1 ilename/RPS Number Navy ERP: Roadmap to Enterprise Business Transformation Beverly Veit May 27, 2009

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Page 1: Navy ERP: Roadmap to Enterprise Business Transformation

1Filename/RPS Number

Navy ERP: Roadmap to Enterprise Business

Transformation

Beverly Veit May 27, 2009

Page 2: Navy ERP: Roadmap to Enterprise Business Transformation

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

Page 3: Navy ERP: Roadmap to Enterprise Business Transformation

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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.

Page 4: Navy ERP: Roadmap to Enterprise Business Transformation

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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.

Page 5: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 6: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 7: Navy ERP: Roadmap to Enterprise Business Transformation

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

Page 8: Navy ERP: Roadmap to Enterprise Business Transformation

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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)

Page 9: Navy ERP: Roadmap to Enterprise Business Transformation

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‘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.

Page 10: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 11: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 12: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 13: Navy ERP: Roadmap to Enterprise Business Transformation

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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: [email protected]

– Quentin Gilmore Ph: 202-685-6736 email: [email protected]

– Sherri Jordan Ph: 202-685-6723 email: [email protected]

– Carl Inman Ph: 216-571-7892 email: [email protected]

Page 14: Navy ERP: Roadmap to Enterprise Business Transformation

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Backup

Page 15: Navy ERP: Roadmap to Enterprise Business Transformation

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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)

Page 16: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 17: Navy ERP: Roadmap to Enterprise Business Transformation

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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

Page 18: Navy ERP: Roadmap to Enterprise Business Transformation

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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)

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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