Transcript Personnel Cost Planning

Personnel Cost Planning
the past, the present, the future
Henny Claessens
Universiteit Maastricht
International HERUG conference
26th - 28th March 2002
Melbourne, Australia
Agenda
1. Universiteit Maastricht
- Introduction of the university
2. The past
- HERUG 2001 development request # 13
3. The present
- Pecaso Cost Planner, add on solution
4. The future
- SAP White Paper Personnel Cost Planning
5. Summary
Introduction
Universiteit Maastricht
7 faculties
Faculty of Medicine
Faculty of Health Sciences
Faculty of Law
Faculty of Economics & Business Administration
Faculty of Arts and Culture
Faculty of Science
Faculty of Psychology
1974
1980
1982
1984
1991
1992
1995
11.000 students
3.000 staff
SAP modules implemented:
- HR
- FI, CO, MM, SD, AM
- Cost Planner (integrated add on; not SAP)
1999
2001
2002
Introduction
Universiteit Maastricht
Students and staff
14000
12000
Students
10000
8000
6000
Staff
4000
2000
0
1980
1985
1990
1995
2000
UM’s mission
•
Universiteit Maastricht
Educational innovation
• Problem Based Learning Curriculum
•
International orientation
• Geographically situated in a tri-lingual region
(Dutch, French, German)
• Growing part of Curriculum is offered in English
You can’t manage
what you can’t measure
Peter Drucker
Extremely true in a growing university !
The process
UM’s Personnel Cost Planning (2 cycles)
1. Monthly rolling forecast within the year


Months within the year (cumulation YTD actuals + planned months)
Increasing YTD actuals/decreasing planning period within the year:
–
–
–
–
Actual YTD 2002
Jan-Apr
Jan-May
Jan-Jun
Etc.
Planned months 2002
May-Dec
Jun-Dec
Jul-Dec
Etc.
Total
xxx
yyy
zzz
….
2. Yearly rolling forecast for next 5 years

After current year:
–
–
–
–
Planning period
2003-2007
2004-2008
2005-2009
Etc.
Total
XXX
YYY
ZZZ
….
The past (I)
UM’s requirements for Personnel Cost
Planning
1. Planning occupied positions





(P)
Periodic pay increases starting from …. (dd/mm/yy)
Change in working time starting from …. (dd/mm/yy)
Change in PSgroup/level starting from …. (dd/mm/yy)
End of employment contract starting from …. (dd/mm/yy)
Change in cost distribution starting from …. (dd/mm/yy)
2. Planning vacant positions
(S)
GPL based (Gemiddelde Personeels Last)
In English:  APC based (Average Personnel Cost)

3. Rolling forecast within the year

Months within current year; actuals YTD + planned periods
4. Rolling forecast for next 5 years

Beyond current year
The past (II)
1986: Personnel Planning System UM



Stand alone/tailor made legacy system
Central registration of personnel & vacancies
High accuracy rate
– Planned-actual comparisons: <2%
– ‘Sets the tone’ for everything that will follow ….
1999: SAP HR productive

Decentral registration
– Starting point: registration at the source

Interface from SAP HR to PPS
– Planned-actual comparisons: >10%
• Organisation UM was not ready for this
– Decentral registration of vacancies did not ‘take off’
• ‘Recruitment’ module not used consistently
• Matter of: Organisational change !
The past (III)
2000: Preliminary study standard SAP/PCP

Projected Pay
– Alternative I: based on Jobs (C)
– Alternative II: partly based on Jobs (C); partly on Positions (S)
– Alternative III: based on Positions (S)

Basic Pay
– Alternative I: generic percentage raise for employers’ costs
– Alternative II: dummy wage type for employers’ costs

Payroll Results
– No alternative: because of external (non SAP) Payroll
2000: Findings of preliminary study

Not flexible enough for UM’s personnel cost planning
– In particular ‘soft’ future oriented changes (starting from…)

Reason for: HERUG development request # 13
– Next major release; R/3 enterprise; won’t wait for this ….
– Temporary solution: Cost Planner (ROI 2-3 years)
The past (IV)
2000: HERUG development request # 13

Description
– Personnel Cost Planning in standard R/3 (release 4.6) is not
flexible enough for our needs. We would like to use Personnel
Cost Planning as follows:
• Basic Pay for employees (Infotype 0008)
• Projected Pay for vacant positions (Infotype 1018)
– More flexibility is needed with regard to:
• Employee specific scheduled payments
• Expiration date of the job assignment
– For planning purposes these data have to be manipulated
separately without causing changes in real basic pay data
(Infotype 0008)

Business motivation
– Personnel Cost Planning in standard R/3 does not meet the
business needs of the university. Personnel Costs typically
represent 70% of total costs of the university. So relatively
small differences tend to have substantial financial impact
The past (V)
2001: Pilot Cost Planner

Flexibility occupied positions
– Additional Infotype 9008 for planning purposes only
– Limited customizing during pilot

GO-decision (July 2001)
– Completing the customizing
– Developing tailor made enhancements
• Drill down functionality from Cost Planner to HR
• Scheduled pay increases for 72 months rolling forecast

Post pilot finding (December 2001)
– No decentral use because of Chart of accounts structure…..
Findings of the pilot:


Cost Planner meets all essential functional requirements
Additional programming required for:
– Drill down reports from Cost Planner to HR
– Scheduled pay increases for 6 year period
• Simulating 72 consecutive RPITUM00 runs in just one run
PERSONNEL COST PLANNING
• basic pay for occupied positions (P)
• projected pay for vacant positions (S)
IT 0014
fixed additional
pay
95%
IT 0015
Wage elements:
• additional pay
PA
variable additional
pay
Wage elements:
• additional pay
(occupied positions)
IT 0001
organisation
IT 0008
P
basic pay
3000
Wage element:
• basic pay (PSgroup/period)
CO
HR
150
OM
K
O
700
C
IT 1015
OD
2000
(vacant positions)
IT 1007
vacancy
detailed
info?
no
yes
5%
E.g..:
•work schedule
•GPL
•direct valuation
•...
cost planning
IT 1018
27
S
3000
cost distribution
IT 1011
IT 1015
work schedule
cost planning
Cost distribution:
• internal orders (OD)
Wage element:
• GPL (average personnel costs)
The present (I)
Integration HR
Cost Planner
CO
Wage-type
HR
• Infotype 0008
• Infotype 0014
• Infotype 0015
Wage-element
• Infotype 9008
Cost
Planner
Cost element
CO
UM specific development
of drill down functionality
(two steps):
1. K or OD  S or P
2. Detail of S or P
Drill down functions within
standard Cost Planner:
• cost center (K)
• request (OD)
• object (O, P, S, C)
The present (II)
‘Standard’
Cost Planner
functions
Cost Planner
Plan Scenario
Administration
The present (III)
Personnel Cost Planning
‘finalized’
when transferred
from Cost Planner
to CO
…..
(HR Plan Version)
The present (IV)
UM specific ‘drill down’
functions
from Cost Planner
to HR
Step 1. Drill down at large
-- Cost
Cost Center
Center (K)
(K)
-- Internal
Internal order
order (OD)
(OD)
Step 2. Drill down detail
-- Person
Person (P)
(P)
-- Vacant
Vacant Position
Position (S)
(S)
The future
2002: R/3 Enterprise (‘4.7a’)


Ramp up (first shipments): start in July 2002
Far superior to the previous SAP Personnel Cost
Planning solution
–
–
–
–
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Based on separate planning Infotype
Data transfer to SAP BW for detailed analyses
SAP BW contains Personnel Cost Planning InfoCube
Continious improvements: web, portal, workflow
Install on DEV; install on PRD ?
2003: R/3 Enterprise (‘4.7b’)


Unrestricted availability: in the beginning of 2003
Install on PRD; expected to be mature
White Paper: see download section SAPnet

www.sap.com/solutions/hr/factsheets.asp
Agenda
1. Universiteit Maastricht
- Brief introduction of the university
2. The past
- HERUG 2001 development request # 13
3. The present
- Pecaso Cost Planner, add on solution
4. The future
- SAP White Paper Personnel Cost Planning
5. Summary
1
Planning run
1. View of cost center (K)
2. View of requests (OD)
3. Detailed view of requests
(cost objects: persons,
vacant positions, organisational
units)
4. Detailed view of personnel costs
(wage elements)
3
2
4
Questions ?
E [email protected]
T +31 43 388 2510
F +31 43 388 4890
W www.unimaas.nl