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Utilities Industry Enterprise Project Portfolio Management

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  1. Client Logo Here Utilities IndustryEnterprise Project Portfolio Management -Name- -Title-

  2. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Client Logo Here Prepared For:

  3. Agenda Leadership: Oracle in Utilities Value: Enterprise PPM (EPPM) Challenges: EPPM in Utilities Solutions: Oracle Primavera for Utilities Next Steps Contacts Client Logo Here Prepared For:

  4. <Insert Picture Here> Leadership: Oracle in Utilities Client Logo Here Prepared For:

  5. 5 of the top 5Fortune Global 500 utilitiesrun Oracle Applications 9 of the top 10Fortune Global 500 energy and utility companies run Oracle Applications 5 of the top 5Platts 250 utilities in the Americasrun Oracle applications 5 of the top 6Platts 250 utilities in Europe run Oracle Applications 7 of the top 8Platts 250 utilities in Asia-Pacificrun Oracle Applications Leadership in Utilities: All Major Sectors & Geos

  6. <Insert Picture Here> Value: Enterprise PPM (EPPM) Client Logo Here Prepared For:

  7. $ € ¥ £ Profitability Strategic Goals Monitoring Performance Talent Search Planning & Execution Distributed Information Risk Mitigation Strategy Financial Reporting Programs and Projects We Live in a Project-based World: What Gets Measured, Gets Managed and most have poorly defined processes. The result: project failure. every business manages projects 1 3 2 • Flawed project selection • Cost overruns • Overallocated resources • Increased asset downtime • No enterprise visibility Plant 1 DIV 2 LOB 2 LOB 3 LOB 1 Plant 2 JV 1 Plant 3 Cost Controls Div 3 Div 1 JV 2 Div 4 Standalone products are the problem, not the solution.

  8. Insight, Transparency and Value: Aligning Strategy and Execution Drives Performance ENTERPRISE PROJECT PORTFOLIO MANAGEMENT (EPPM) RESULTS Strategic Alignment Talent Management Cashflow Projections Performance and Control Programs Resource Management Risk Management Change Management Plan and Schedule All Projects ENTERPRISEWIDE Planners Project Managers Project Controls Resource Managers Program Managers Team Members Executives Business Value PROJECT PORTFOLIO MANAGEMENT (PPM) RESULTS Programs Resource Management Risk Management Change Management Plan and Schedule Key and Complex Projects DIVISION/LOB Planners Project Managers Project Controls Resource Managers Program Managers PROJECT MANAGEMENT (PM) RESULTS Plan and Schedule Complex Projects PROJECT CONTROLS Planners Project Managers Project Controls Strategy

  9. Oracle EPPM: Providing Complete, Global Visibility and Accountability Global, Real-time Coordination Strategic Planning Program Mgmt Align Resources Enterprise Asset Management Time Scope Report Plan Forecasting PPM Human Capital Execute Analyze What-if Monitor Finance Risk Mitigation Supply Chain Change Control Resources Profitability Visibility Visibility and Accountability Deliver Projects On Time, Within Budget, As Intended

  10. Integrate business process and data with key enterprise systems Manage the program lifecycle from idea to execution Control project costs and financials Forecast cash flow Assess risks and develop contingency plans Align workforce enterprise goals and supporting project initiatives Collaborate with entire project team including back office operations, internal resources, contractors, and executive management Align Plan Report Analyze Execute Monitor A Single Source of Truth: Linking Corporate Goals with Operational Plans MANAGEMENT FINANCIAL (ERP) PORTFOLIO PROJECT (PPM) MANAGEMENT (SCM) MANAGEMENT SUPPLY CHAIN CAPITAL HUMAN MANAGEMENT (HCM) (EPM) Business Intelligence Database MANAGEMENT ENTERPRISE PERFORMANCE Middleware

  11. Oracle’s Enterprise Project Portfolio Management: Because All Stakeholders Deserve a Single Version of the Truth Value Provide governance across the enterprise to deliver the right projects and programs. Advance warning and analysis to reduce risk and eliminate project failure. Visibility Accelerate projects and programs to satisfy customer and clients. Velocity Deliver on commitments: what gets measured, gets done. Accountability

  12. <Insert Picture Here> Challenges: EPPM in the Utilities Industry Client Logo Here Prepared For:

  13. Enterprise & Plant Challenges: Integration to Drive the Optimization of Capital, Assets and People Capital Investment • Strategically managing portfolios • Assessing, modeling and mitigating risk • Enhancing visibility of EPC partners • Managing complex programs & projects Asset Efficiency • Managing scope changes quickly • Access to real-time data • Collaboration throughout the company • Metrics/measurement to drive KPIs Talent Shortage • Assigning the right people to the right projects • Leveling resources and resource optimization • Poor resource utilization

  14. Capital Investments: Lead the Way Out of the Recession with a Focus on the Right Capital Projects • Assert intensive industries – like Utilities – tend to be the last major industries to emerge from a recession1 • The number, size, scope, and complexity of portfolios and projects has increased • Project investments are huge with US$12,000,000,0002 devoted to project-based work • Cost errors and shorter schedules have major impacts • 25% reduction in construction schedules • Mistakes generate cost overruns in the US$100s of millions2 • The challenge – project portfolio optimization • Ensuring CapEx drives ROI and shareholder value • Forecasting funding and cash flow • Assessing risk during portfolio prioritization • Understanding the impact of contingencies on costs and timing

  15. Project Portfolio Optimization: Unique Challenges in a Tough Economy

  16. Project Portfolio Optimization: Assessing, Prioritizing & Selecting the Right Capital Projects • Plan -- Create a long range plan and rank projects • Execute – Update, track and react to project changes & risks • Measure – Easily assess project financials and KPIs • Create a competitive advantage by prioritizing enterprise investments based upon financial considerations, risk tolerance and resource constraints

  17. Project Portfolio Optimization: Managing 700 Capital Projects to Deliver Better Service COMPANY Duke Energy is a leading energy company focused on electric power and gas distribution operations, and other energy services in the Americas – including a growing portfolio of renewable energy assets. With revenues over $13B they’re one of the largest utilities in the US. CHALLENGES Efficiently managing an annual portfolio of $250M which has more than 700 capital projects along with 40,000 separate activities. SOLUTION Primavera’s enterprise solution enables project leaders to plan, forecast and manage the status of all their projects down to the task and resource level. In addition, enhanced visibility permits them to see the projects according to the enterprise breakdown, work breakdown or the resource breakdown structure. • “Primavera schedules are the foundation of our capital program.” • Doug Coatney • Manager, Project Controls-Midwest • Duke Energy • BENEFITS • Enables 12-18 months planning accuracy for resource requirements in over 10 separate groups (from substation engineering to real estate and maintenance) • Budgets are formulated and tracked using fully resource-loaded schedule data and actual cash flows. • Complete and total visibility across the enterprise for craftspeople • Scalability allows the solution to grow with the businesses demands and requirements

  18. Asset Efficiency: “Rust” Never Sleeps, Neither Should Maintenance Programs • The deteriorating economy requires a greater focus on existing assets • “…utilities most focus on operational excellence to extend the life of assets and extract more value.”1 • Spare capacity could be tight because the new financial environment could squeeze investment2 • Responsiveness to changing market conditions is asset driven • Preventative maintenance reduces costly reactive maintenance • Maintenance management drives return on assets (ROA) • Essential to an organization’s financial success and a key Wall Street metric3 • Proactive maintenance organizations can dramatically increase craft productivity4 • The challenge – optimizing existing assets • Optimizing both the routine/daily and complex maintenance process • Accessing real-time data & responding to rapid changes • Collaborating throughout the enterprise • Integration to EAM, ALM and ERP systems

  19. Optimizing Existing Assets: Operational Excellence Drives Success in a Down Economy

  20. Optimizing Existing Assets: Completing Projects On-time and On-budget • Plan – Quickly develop & communicate projects more effectively • Execute – Manage tasks & activities • Measure – Assess costs and risks easily Reduce operating costs by managing schedules, resources, and costs across all complex – shutdowns, turnarounds – and routine/daily maintenance projects

  21. Optimizing Existing Assets: Execute Best-in-Class Outages and Standardize Processes COMPANY Ameren distributes electricity to 2.4 million customers and natural gas to almost 1 million customers in Missouri and Illinois. Their generating capacity is more than 16,500 MW and revenues in 2008 were $7.8B. CHALLENGES Taking a generating unit out of service for major maintenance means lost revenue. So the quicker the work can be planned and executed the better. Ameren needed to minimize risk and financial exposure during the outage process as well as plan 3,000 different tasks and coordinate 900 workers – most of which were contractors. SOLUTION By standardizing on Primavera, Ameren has created an enterprise project management process that enables both internal and contract resources to better coordinate and execute major maintenance programs. • “Primavera helps us deal with the additional tasks, scope changes, that inevitably develop once you get into a project. It can tell us how many more resources we need, or if they aren’t available, how much more time the project will take.” • Ozzie Lomax, Plant Manager, AmerenUE • BENEFITS • 10% reduction in outage time, the recouped revenue falls straight to the bottomline • One “true” master schedule even though most resources are external contractors • Enhanced resource management allows the planning, scheduling and updating of both internal and external resources • Integration of contractor’s schedules helps to reduce errors, delays and costs • Visibility of project status from the boardroom to the field

  22. Talent Shortage: Enhance the Use of Limited Talent & Capture Best Practices • The largest number of retirements will occur over the next decade1 • The average age of an employee is 46 to 492 • Retirement poses the most immediate challenge to the stability of the electricity industry's workforce2 • Limited talent is a risk to portfolios & projects • Lack of skilled talent is increasing project costs and complete dates • Mistakes due to poor/deteriorating project management skills are driving up costs • The challenge – doing more with less • Investing in the right projects to maximize resource optimization • Assigning the right staff to the right project • Capturing best practices/methodologies for the future workforce

  23. Doing More with Less: Get the Right People On the Right Projects at the Right Time

  24. Doing More with Less: Manage Resources and Capture Knowledge • Plan – Get the right resources for the job • Execute – Manage resource bottlenecks and over allocation • Measure – Capture best practices Level resources across all projects – capital, shutdown, routine, etc. – and proactively track resource demand so workforce is not over allocated

  25. Doing More with Less: Integrate with Disparate Systems for Enhanced Resource Utilization “The use of a standard, province wide IT solution is helping us provide timely scheduling information that can improve service and reduce overhead costs.” JJ Blais, Project Director, Hydro One COMPANY Hydro One Networks is responsible for 97% of Ontario's electricity transmission system and about one-third of the province's distribution system. Their distribution system brings electricity to approximately 1.3 million homes and businesses across rural Ontario. CHALLENGES Providing electricity to an area about the size of Western Europe, serving 92 municipalities and 18 remote communities is a daunting task. However, imagine also filling the service orders, performing the construction and maintenance work while using multiple manual processes and a jumble of highly customized, poorly integrated software for workforce management. This is what Hydro One was facing. SOLUTION Adopting a best of breed approach, Hydro One selected Primavera for it’s core resource management capabilities. Integration to a number of disparate systems, including an Oracle database, enabled the client to seamlessly move data among applications. This resulted in a solution that was flexible and could meet future growth needs. • BENEFITS • Enhanced ability to plot work activities and determine what resources will be required to supplement existing resources • Consolidation of resource requirements for the peak project season by specific geographies • Reduced data entry means better information accuracy which results in better service for customers at a lower cost. • Increased efficiency by shifting the dispatching of resources to schedulers in local offices • Better coordination and management of resources based on local conditions and constraints.

  26. <Insert Picture Here> Solutions: Oracle Primavera for Utilities Client Logo Here Prepared For:

  27. Committed to Asset Intensive Industries: Enabling Optimization Through EPPM Build Maintain Proven capital project planning, control and execution within a rigorous risk framework to optimize CapEx spend, mitigate risk and reduce costs Successful planning and management of complex global projects – plant shutdowns and turnarounds – as well as routine maintenance to reduce OpEx, enhance craft productivity and increase asset efficiency We are the de facto standard for the global Utilities Industry

  28. Solutions for Utilities: Focused Offerings for Capital Projects & Maintenance Primavera P6 Enterprise Project Portfolio Management • Prioritize project portfolios • Balance resource capacity • Plan, schedule, and control • Allocate best resources and track progress • Monitor and visualize project performance vs. plan • Foster team collaborative management • Integrates with ERP & EAM systems Primavera Risk Analysis: • Determination of cost and schedule risk exposure • Predictive forecasting • Contingency and mitigation modeling and assessment • Manage risks to maximize return and minimize uncertainty • Set realistic expectations of project cost and schedule Primavera Inspire for SAP: • Create master schedules from related work • Increase visibility of all work types, ensure efficient resource utilization • Reduce system administration requirements and IT/maintenance Oracle | Primavera PPM • Effectively maintain and increase the efficiency of existing assets • Monitor budget allocations against key performance indicators • Identify and select the best exploration and production opportunities • Invest in and deliver projects with superior returns • Coordinate existing resources and quickly train new talent • Maximize labor pools globally through an integrated approach Client Logo Here Prepared For:

  29. Solutions for Utilities: Leading Technology to Meet Challenges of Executives and Project Teams • Interoperability – no more siloed/fragmented data • Leverage a single version of the truth – one source of integrated information • Manage CapEx more effectively – successfully choose, plan and execute projects • Drive down OpEx – increase craft productivity through better planning, allocation of resources, and cross-training • Deliver on time and on budget – effectively coordinate & collaborate on multiple projects and programs • Do more with less – maximize productivity of limited resources Client Logo Here Prepared For:

  30. Next Steps

  31. Contacts