october 9th, 2013

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PMINAC Dinner Meeting October 9th, 2013

PDU Claim C023-131001

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Dinner Meeting Agenda

8:00 PM - 8:15PM -Questions and Closing

7:00 PM - 8:00 PM - Presentation: Capital Power ERP Project

6:00PM - 7:00PM - Dinner

5:45 PM - 6:00PM - Business Portion

4:45PM – 5:45PM - Networking

4:30PM - 5:30PM - Round Table

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Housekeeping Item – September Dinner Meeting

– Our website incorrectly sent a cost in US Funds to PayPal for SOME registrants

– PMINAC will be sending out a communication and apology to those members who were overcharged

– Those members will receive a discount code for a future meetings

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Housekeeping Item – Dinner Meetings

– Dinner Meetings are now eligible for 2 PDUs

– If you have any questions on this please contact Sameer Varma – President Elect –[email protected]

– Stay tuned for more information on this subject

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Business Agenda

Volunteer Recognition

Upcoming Events

PMP Certification Update

Mentoring/COP Update

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Former Executives

• Luli Hoxha VP - Membership

• Dotun Eliezer VP - Marketing

• Michael Smith

VP - Programs

• Ken Bainey

VP - Professional Development

• Victor Amorim VP - Administration

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Directors • Anna Wong Director - PMINAC Board Support

• Conny Avila Director - Volunteers

• Dagmar Anderwald Director – Communications • Subhan Abdul Manager - Communication and Operations

• Katherine Deypalubos Director - Social Communication • Marguerite LeBlanc Director - Mentoring CoP

• Marnie Ashcroft Director – Certification

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Dinner Meeting Events

• Ayat Rezaeifar

• Dorothy Lowrie

• Lorna Lowery

• Salena Wong

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PMP/CAPM Prep Study Group

• Bakhtawar Pastakia

• Biswajeet Ganguli

• Rajesh (Roger) Panjanani

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Conference Planning Team • Conference Chair

• Conference team • Alma Siojo

• Amanda Tan

• Ben Adekunle

• Brenda Christian

• Cathy Forner

• Cathy Julien

• Darrell Neuman

• Darren McBride

• Dean Seidler

• Dean Tercier

• Imad Najmeddine

• Karin Banasch-Vail

Cora Lee Polansky

• Laura Seeger

• Laurie Pisesky

• Linda Hawk

• Mala Beharry

• Melvin Tan • Marianne West

• Rikki McBride

• Roxane Fast

• Shannon Branconnier

• Srinivasu Thuraga

• Susan Gerbrandt

• Terri Potter

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PMINAC 2013 Golf Tournament

• Amelito Silvano

• April Thorne

• Chris Lemiska

• Daryl Mackay

• David She

• Jaideep Singh

• Mardell Burnyiuk

• Nick Lewendon

• Tannis Weins

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Business Agenda


Upcoming Events



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Business Agenda – Certification Update PMBOK 5th Edition

All exams have switched over and are now based on PMBOK 5th Edition

Initiated a Fall/Winter CAPM / PMP Study group. 15 Participants.

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Business Agenda – Certification Update

• Frequently Asked Questions • Available on PMINAC Website “Get

Certified”

• Certification Prep Questionnaire • In progress – Will be going out to

members shortly

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Business Agenda – Certification Update

Team: Bakhtawar Pastakia – Director Certification

Louis Mussbacher –Study Group Facilitator & Host

Biswajeet (Jeet) Ganguli - Study Group Facilitation Mailing, sign-in and logistics

Rajesh (Roger) Panjanani - Study Group Facilitation- Exam compilation & Printing

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Business Agenda – Certification Update 8 New PMINAC PMP’s in August 2013. Total in PMI-NAC Chapter as of end of

August: • 1,002 PMP • 33 CAPM • 3 PgMP • 5 PMI-SP • 14 PMI-RMP • 4 PMI-ACP

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Business Agenda - New PMPs

New PMINAC PMP’s

• Amit Prajapati • Greg Empey • David Prenoslo • Steven Yu

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Business Agenda


Upcoming Events



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Mentoring/Project Managers’ CoP Update • Great start to the CoP season

– 35 registrants – 16 members of the PM CoP met on Sept 20

• Apologize for some logistical challenges, solved now • Objectives set • Assumed key roles to make the community work this year • Committed a meeting room at a consistent location for the entire season • Member managing the PDU process • Great PM and leadership topics selected, good dialogue started,

relationships starting to develop • Meet 3rd Friday of month, noon – 1:30 • More interest, add a second CoP???

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Business Agenda


Upcoming Events



Decision Making for Project Managers Mark Mullaly • Dates: November 15-16, 2013 • Location: Matrix Hotel • Format: Hands-on interactive workshop • Price: $500 Members/$750 Non-Members • Provided: Meals and materials • PDUs: 14 • More Information: http://pminacconference.com/seminarcity/

First 50 registrants are entered to win a 40” Samsung Smart TV!

http://pminacconference.com/seminarcity/

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Upcoming Dinner Meeting Presentations • November Dinner Meeting, Coaching for PMPs

• Presentation by Marguerite Leblanc

• January Dinner Meeting: Forensic Scheduling: • Who Owns Total Float? by Russ Zack

• February Dinner Meeting: COOA – Workface Planning

• Report on Joint Initiative with CII: Tools and Templates Available for Project Planning

• March/April Dinner Meeting, March12 • Project of the Year – Edmonton Remand Centre

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Presentation October 9th, 2013

Capital Power: Delivering an ERP and Business Intelligence Project – Under Budget and on Schedule in 15 months Darryl Vleeming, Director, IS & Chief Information Officer Troy Seitz, Senior Project Manager October 9, 2013 PMI Presentation

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• Capital Power (CPX:TSX) is a North American power producer, with over $5B in plant assets, headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources.

• Capital Power owns more than 3,600 megawatts of power generation capacity at 15 facilities across North America.

• An additional 595 megawatts of owned generation capacity is under construction or in advanced development.

• Capital Power has ~900 employees and 5 offices across North America in addition to the power generation facilities.

Capital Power

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Capital Power’s Generation Portfolio

5 7

8

1 0

1 2

1 5

1 8

1 9

1

1 7

2

Quality Wind

Island Generation ONTARIO Kingsbridge I K2 Wind Ontario 4

Port Dover & Nanticoke

MAINE Rumford

RHODE ISLAND Tiverton

CONNECTICUT Bridgeport

NORTH CAROLINA Roxboro Southport

ALBERTA

Keephills 31

Clover Bar Energy Centre Genesee 1 & 2 Halkirk Wind t Joffre 2

Genesee 31

BRITISH COLUMBIA

*Excludes the 5-MW Clover Bar Landfill Gas plant 1 50/50 Joint venture with TransAlta Corporation. Genesee 3 operated by Capital Power Corporation, and Keephills 3 operated by TransAlta Corporation. 2 Jointly owned with ATCO Power and Nova Chemicals, operated by ATCO. 3 Jointly owned with ENMAX Corporation 4 Jointly owned with Samsung Renewable Energy Inc. and Pattern Renewable Holdings Canada U.L.C.

In construction or development

Shepard Energy Centre3

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• On July 9, 2009 Capital Power was divested from EPCOR, a city owned utility, via an initial public offering (IPO).

• As part of the divesture arrangement, Capital Power took EPCOR’s business processes and a copy of their Oracle ERP system.

• Given the urgency of the timing for transition, the processes and systems were not modified for Capital Power’s new business model.

• Only data was ‘split’ between the two systems to ensure confidentiality for each company was maintained.

Capital Power’s ERP History

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• 2 years after the creation of the company, it was evident that the processes as well as the ERP system were suboptimal for Capital Power’s business.

• The ERP had been highly customized over the years. The Chart of Accounts did not reflect our business.

• These issues resulted in significant process inefficiencies, increasing labor costs, and errors.

• Capital Power was unable to beat key competitors to market when releasing financial results.

• The Oracle Business Intelligence Enterprise Edition installation, as copied over, did not support any Capital Power business processes.

The Business Challenge

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• A complete redesign of the business processes and the underlying system was required to support Capital Power’s business model.

• We needed to “build a platform for growth”.

• We needed a mechanism to ensure new processes and system changes going forward would be sustained.

• We needed to change our thinking and our culture, to adopt an efficient industry standard design.

What did We Need?

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• Ability to meet and support our growth targets.

• Redirect our efforts to higher value activities replacing manual, labour-intensive transactional processes.

• Increase our ability to produce timely and accurate management and financial reports.

• Decrease risk associated having a suboptimal system and processes.

• Support our goal of releasing our financial results to the market before our competitors.

• Have one system supporting Canada and the U.S. which is also the one source of truth for CPC’s financial reports.

What Benefits did We Expect

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• Redesign 6 key business processes to be industry standard, enabling a full implementation of the supporting Oracle eBusiness Suite R12.1 modules (all in 15 months)… This was NOT an Upgrade!

• Design a new Chart of Accounts that would support Capital Power’s business needs and reporting requirements.

• Build a flexible reporting environment in Oracle Business Intelligence Enterprise Edition.

• Beat a key competitor to market when releasing our financial results.

• Do all of the above while achieving an internal rate of return (IRR) of at least 8.5% (Capital Power’s hurdle rate) over a 10 year period.

The Project Objectives

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Budget-to-Asset

This process deals with the financial aspects of planning and executing capital and operating projects. It includes the creation and tracking of commitments in Oracle, the collection and reporting of actual costs, the creation and update of the budget and forecast (both on a fiscal and total project basis) and the eventual closeout to Fixed Assets.

Customer-to-Cash The financial management of the Accounts Receivable and Treasury processes for all receivables transactions and the application of cash receipts are included in this process.

Accounting-to-Financial Reporting

This stream deals primarily with the core financial month/quarter/year end close processes.

A key outcome of this process will be the development of a new chart of accounts to meet CPC’s specific business needs. In addition, this also includes such functions as intercompany transactions, the consolidation of financial results, foreign currency translation, cash flow analysis, joint venture accounting, and the Management Discussion and Analysis (MD&A) support.

The Business Processes

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Analyze-to-Decide This process involves facilitating both the management and financial reporting needs, including analysis for decision making purposes using internal and external information, and the creation or use of existing models.

For the purpose of this project, the focus was on the creation of a robust reporting framework that will meet the current and future needs of the organization.

Sourcing-to-Pay Sourcing-to-pay deals with the overall supply chain function from the creation of a material or service sourcing need, to the establishment of a vendor engagement, the delivery and receipt of the goods or services and finally through to vendor payment. This includes all methods of procurement as well as the associated management approval requirements and controls.

Hire-to-Retire Hire-to-Retire deals with all HR related business processes including recruitment, beginning of service, compensation and benefits including Payroll, time management (i.e. OTL), position management including employee reporting relationships, employee transfers, and end of service.

The Business Processes

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Phase I Timeline Obtain

approval for Phase I

High level business process redesign

Detailed Business Case Development

Obtain Approval for

Phase II Jan 3, 2012

Dec 2011

Oct 2011 – Dec 2011

Aug 2011

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Phase II Timeline Mar 2012: Complete low level business process design

Apr 2012: Complete

application design

Jul 2012: Complete

configuration and build

Aug 2012: Complete

initial conversion

testing

Oct 2012: Complete

Conference Room Pilots

Nov 1: Ready for

Go Live

• Start to finish the entire project took 15 months.

• Four Conference Room Pilot (CRP’s) testing cycles were completed.

• After the January 1, 2013 go live there was a 3 month warranty period.

Jan 1 2013: GO LIVE!!

Jan 2012: Phase II Kick-off

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• Project was run as an internal project, with different vendors brought in on fixed price contracts for certain key areas.

• The Phase I business process design was managed as a fixed price contract.

• The Phase II configuration of Oracle eBusiness Suite and Oracle Business Intelligence were managed as a fixed price contract.

• A PhD in Change Management was brought in to design the overall change management plan.

Project Approach

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• Oracle eBusiness Suite R12.1 modules (22): • Financial Management (General Ledger, Payables, Receivables,

Fixed Assets, Cash Management, iExpenses, E-Business Tax, Payments)

• Human Capital Management (Human Resources, Time and Labour, Learning Management, iRecruitment, Payroll, Compensation Workbench, Self-Service Human Resources)

• Procurement (Purchasing, Inventory, iProcurement) • Projects (Project Costing, Project Management, Project

Foundation) • iSupplier

• Oracle Business Intelligence Enterprise Edition 11g modules (3): • Financial Analytics • Procure and Spend Analytics • Project Analytics

Oracle Products Implemented

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• Number of Key Business Processes Redesigned: 6

• Number of Interfaces Created/Modified: 36

• Number of custom reports created: 80

• Number of Test Phases Completed: 4

• Number of Testing Workshops Completed: 197

• Number of Test Scripts Executed: > 3000

• Number of months to complete the implementation: 15

• Number of training courses created: 37

• Number of people trained: > 600

Project Statistics

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• Given the history, there was the possibility of significant user resistance to the new system and processes.

• A three pronged approach was taken to address this:

1. Enact Executive support for the outcome.

2. Setup a robust Change Management function.

3. Create an ERP Center of Excellence.

Project Challenge 1: User Adoption

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Project Challenge 1: User Adoption

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• The change had to happen at a calendar year end to coincide with Capital Power’s fiscal year end.

• Missing the deadline would have meant a full year delay and an estimated 50% budget overage.

• Three of the primary things we did to address this was:

1. Select an Implementation Partner with the specific individual skill sets in each functional area.

2. Implement a fixed price contract with a penalty/bonus clause for on-time completion.

3. Built in two months schedule contingency.

Project Challenge 2: Immovable Date

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• Integration to Capital Power’s pre-existing Computerized Maintenance Management System (CMMS) was complex, the software was not well written, and initial estimates did not anticipate the complexity.

• In addition, after system design, it was determined that several new interfaces and customizations were required.

• To address these issues, a number of things were done:

1. The President of the vendor supporting the Work Management System was engaged.

2. Vendor resources were brought onsite (initially had been planned to work off site).

3. Additional resources were added during the first 2 testing cycles to assist with the fixing any issues quickly.

Project Challenge 3: Integration

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1. Unwavering Executive Support / Sponsorship 2. Change Management Early and Often 3. Get the right people 4. Align Implementer Interests with Yours 5. Ensure the Business is Driving 6. Create a Robust Sustainment Structure 7. Relentless Management of Schedule 8. Scope Control is Critical 9. Don’t underestimate the complexity of Conversions 10.Do the Process Design up front 11.Test early and often 12. Design Reporting for future needs

12 Key Success Factors and Lessons Learned

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• On numerous occasions, the Project required a firm commitment from our Sponsor and the Executive.

• This support never wavered throughout the project. • We were able to use the Sponsor / Executive support as an effective

tool for both Change Management and task completion.

• The sponsor was the CFO.

• The Steering Committee was made up of four members of the Executive plus other senior people from each Process Area.

#1: Unwavering Executive Support / Sponsorship

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• A strong Change Management team needs to be created at the VERY beginning of a project.

• The Change Management team needs to develop a strong understanding of the organization and how the project was going to affect individuals.

• We ramped up a Change Management function early, but would have benefited by having it in place during Process Design.

• As a result we played 'catch up' from a communications perspective during the first couple of months of the Implementation phase.

#2: Change Management Early and Often

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• It’s ALL about the people!

• A strong project manager with an attention to detail but can also operate at an Executive level is critical.

• Focus less on the implementer that you’re looking at working with, and instead focus on the people being proposed (don’t get fooled because they’ve worked in 85 countries – you’ll never meet those people).

• Get Executive commitment to get the best internal technical and functional people on the project.

#3: Get the right people

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• Time and Materials does NOT work (for the customer anyway) – do a fixed price contract.

• Contractually include bonuses and penalties for meeting or not meeting the schedule.

• Build in milestone payments based on the key project deliverables.

• Build in milestone payments based on proving out key system functionality in PRODUCTION (what’s REALLY important to you?).

• If the project fails, the implementer should fail; if it succeeds, they should succeed.

#4: Align Implementer Interests with Yours

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• This is NOT an IT project.

• The business needs to be accountable for achieving the benefits.

• Business decisions need to made by The Business.

• A challenge process was used to ensure business decisions that were made did not negatively impact the business case.

#5: Ensure the Business is Driving

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• An ERP Center of Excellence (COE) was created at the outset of the project.

• The cost for CoE was factored into the overall Business Case.

• The CoE is responsible for the following key functions: 1. Acting as the single point of contact for all business matters related

to the ERP and the associated integrated systems. 2. Providing training and support as necessary on system and

processes. 3. Defines and maintains Business Intelligence Reporting.

• The CoE is supported by the IT department.

#6: Create a Robust Sustainment Structure

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• Create a sense of urgency - In our case this wasn’t hard:

• Immoveable deadline. • Contractually defined bonus/penalty clause based on quality and

delivery.

• Manage the results: • Make sure the ‘Right’ resource is doing the work. • Manage their priorities (don’t send mixed messages). • Check in (minimum of once per week – more often as required). • Don’t rely on the hope model if something seems off-track.

• Lead by example:

• Be visible, and make sure your sense of urgency is always clear. • Remove roadblocks instantly (get senior management support to do

this) – One day of slipped schedule is too much.

#7: Relentless Management of Schedule

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• The objective of the project was to use the “out of the box” Oracle functionality.

• The early design stages were used to test the viability of the approach.

• ANY form of customization required a business case that would be challenged by the Business Lead and Project Manager.

• Should resolution not be met at this level, the challenge process would then escalate to the project Steering Committee for final resolution.

• The result was that there was an extremely low number of customizations.

#8: Scope Control is Critical

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• Kept conversion to a minimum.

• For each requested conversion element, it had to be proven that is was TRULY required for business to continue.

• Each request was further challenged by the Business Lead and PM.

• This greatly simplified the overall complexity of conversion and kept the usual debate on what should be converted to a minimum.

• We STILL required an additional conversion cycle between Nov 1 and go-live.

#9: Don’t underestimate Conversion

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• Complete a separate and distinct process design phase prior to starting Implementation.

• This approach will allow the Process Owners to become familiar with the overall design of what was intended to be implemented before entering the Implementation Phase.

• For our project, this was the intent, however the finalization of the

process design overlapped with the Implementation phase by approximately 1 month.

• This caused some confusion with the Implementation vendor (overall no schedule impact occurred as a result).

#10: Do the Process Design up front

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• The Conference Room Pilot (CRP) approach works best for ERP implementations.

• We did 4 CRP’s:

1. CRP1 – Initial Configuration Test. 2. CRP2 – Final Configuration Test. 3. CRP3 – Full Integration (including interfaces and conversion). 4. CRP4 – User Acceptance.

• A concerted effort was made to ensure “cross module” integration was

designed and tested appropriately.

• Life Cycle tests were added to CRP3 and CRP4.

#11: Test Early and Often

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• Expect the users will struggle defining what they really need from a reporting perspective.

• Most ERP projects view reporting as an afterthought which results in the business being unable to get what they need from the system.

• We took the opposite approach by ensuring that Reporting was a driver.

• We focused on two key components: 1. Designing and developing an extensible framework. 2. Ensuring all custom reporting was defined early in the project.

#12: Design Reporting for future needs

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Financial Benefits Achieved

25.2%IRR

Original Business Case

12.5% Project Under Budget

0.6%

Additional FTE

reductions 9.2%

Audit Fees & Overtime

-0.6%

EPCOR Asset Usage Fee

2.5%

Additional SCM Savings:

0.5%

Inventory Consolidation

0.5%

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Financial Benefits: Headcount Reduction

• Headcount savings were primarily from Controller and Management Reporting Finance departments.

• After project approval, Finance immediately stopped hiring vacancies to prepare for the reduced headcount requirements post go-live.

• The automation of the month end processes exceeded expectations, and was a key reason for the higher than anticipated reduction.

Category Expected Benefit Actual Benefit

Headcount Savings 13 22

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Financial Benefits: Audit Fees

• Overall savings are within expected ranges.

• Savings represent manual effort required in the year end Audit.


Audit fees & Overtime

<$200k Per Expected

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Financial Benefits: Licensing

• License fees associated with the legacy asset (arrangement based on the divestiture) were no longer applicable.


Licensing N/A >$1.5M

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Financial Benefits: Supply Chain

• The addition of iSupplier negated the need for planned project to automate the Purchase Order invoice matching process.


SCM Budget Savings

N/A $200k

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Financial Benefits: Inventory Consolidation

• In the old ERP, the system of record for inventory was each plants individual Computerized Maintenance Management System (CMMS).

• In the new ERP, inventory was centralized and the system of record was Oracle eBusiness Suite.

• This change allowed for the consolidation of duplicates parts within the plants.

• The savings are a result of reduced burdened costs associated with lower inventory level.


Inventory Consolidation

N/A >$75k

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Additional Benefits Achieved • Greatly improved control environment especially around segregation of

duties.

• A more robust HR organization structure due to the introduction of a position hierarchy rather than an employee hierarchy.

• Ability to beat competitors to the market with financial results (achieved in the second quarter after go live).

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• Achieved widespread use of Oracle Business Intelligence, providing Executives with a single dashboard view and enabling employees to view financial, supply chain, and project information in a flexible, intuitive and individually configured way.

• To date have maintained consistency with the designed business processed due to governance by the ERP Center of Excellence.

• And . . . . won the 2013 Project Management Institute® Project of the Year for Northern Alberta in the Information System Category.

Other Benefits Achieved

- Questions -

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Wrap Up

• Dinner Meeting Survey Please fill out before you leave!

• PDU Number:

Provider ID: C023 Activity Code/Number: 130901

Thank You for coming. See you next time!

october 9th, 2013

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