Transcript Document

Upgrading to Hyperion Planning System 9.3
& Utilizing Hyperion in a Downturn Economy
June 3rd, 2009
DENSO & Hyperion Topics
• A little background about DENSO
• Upgrading to System 9.3
• Utilizing Planning and Essbase during
a downturn
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Background - DENSO in the
Americas
DENSO is a leading global supplier of automotive technology,
systems and components
• DENSO International America, Inc.:100% Owned by DENSO
Global in Japan
• N.A. Regional Headquarters: Southfield, Mich.
• Companies: 38
• Employees: 17,000
• Net Sales: US$6.5 billion
• Operating Income: US$247.4 million
As of March 31, 2007
U.S. dollar amounts have been translated from Japanese yen for convenience only at the rate of 118 yen= US$1
Sales figures represent total sales by DENSO company locations, including sales between DENSO companies.
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Background - DENSO Products
ENGINE
MANAGEMENT
BODY
ELECTRONICS
HYBRID VEHICLE
COMPONENTS
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CLIMATE
CONTROL
DRIVING CONTROL
& SAFETY
INFO. &
COMMUNICATIONS
Background - Hyperion @ DENSO
Hyperion Planning has been in use at DENSO for the
past four years supporting about 500 users.
• Introduced at NA HQ in Southfield, Mich. – 2004
• Implemented at two plants in Tenn. – 2005
• Implemented at plant in Battle Creek, Mich. – 2006
• Implemented at plant in Arkansas - 2007
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Background - Hyperion @ DENSO
Hyperion Essbase – since 2005 (previously used Enterprise)
Note: HFM used for Global Consolidations
• NA Consolidations
• Credit Limit Analysis
• Treasury Cash Flow
• AR Analysis
• Quality PPM Reporting • BOD Dashboard
Related Technology in Use at DENSO
• JDE – General Ledger
• Oracle – HR (Benefits & Performance Management)
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Planning @ DENSO
Planning @ DENSO: Problem Solving
Dept plan
Dept plan
Dept plan
ORACLE
(wage)
OCEANS
(std cost)
Summarize
Manual calc
Dept plan
Manual calc
JDE (FA)
Manual calc
Why Planning? Escape from
Excel (only) Hell
Manual Collection of data
JDE (P/L)
Create
Plan P/L
Plan Analysis
(return to each
source file)
Follow-up Actual
vs. Plan
(return to each
source file)
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Planning @ DENSO: Centralized Planning
Environment
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Planning @ DENSO: Core Benefits
1.
2.
3.
4.
5.
6.
Data accuracy improvements from an increased
amount of iterations that can be performed in a
planning cycle
Calculation and consolidation consistency (removes
the spreadsheet errors issue, manual consolidation)
Capability for monthly forecasting
Data integrity
Security
Versions (Working, Final, What-if’s) & Scenarios (Actual, Plan,
Forecast)
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Upgrading to System 9.3
Planning
Upgrading – Approval Process
• Complete Internal approval process (est. four month
process; Completed in May 2008)
– Finance & IT driven; 20+ PowerPoint page
documentation process
– Used to generate consensus between everyone
impacted and ensure ROI
– Negotiation with Hyperion and HW vendors
– Interviews with companies who made this jump
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Upgrading – Approval Process
• ROI Worksheet – Identified Annual Savings and
Spot (one-time future) savings
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Upgrading – Core Benefits
• Five W’s & One H of DENSO
– Navigation, Office Integration (Smart View); Task Lists,
Business Rules; Reporting Improvements; Security
Management; Performance (based on existing Essbase
Sys9 usage)
– Centralization of our HW Environments and
strengthening of Production and Development
– Expanding analytical capabilities to our end-users;
Managing budgets at a deeper level
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Upgrading – Environment PreSystem9
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Upgrading – Future Environment
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Upgrading – Implementation
• Performed Migration (September 2008)
– Three-Week Migration project once HW was ready
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Two-Man team sitting with IT Group (server admins)
Five Applications; ~500 users;
Challenges: Migration of user groups; ‘NOLINK’ UDA
Dropped Load Balancing
Only one web server in dev.
– Visit to each affiliate site to train administrators and
support end-user training
– Additional End-User training provided locally by
administrators
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Utilizing Planning during a
Downturn
Economic Slowdown: Backdrop
NA HQ Challenges - Southfield Mich.
• In FY08, by the end of the mid-year Planning cycle
we realized we needed to re-vamp our reporting
process
• Contingency Planning (from Cuts to Give Backs):
– Economic situation was getting worse month by
month
– Forced into a monthly forecasting mode
– Three cut/give-back cycles before end of fiscal year
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Economic Slowdown: Reporting
Updating Management Reporting
• New Director of Corporate Planning needed to take
action:
– Updated what core expenses should be managed closer
From list of 300+ Accounts to ~100 with Categories
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Economic Slowdown: Reporting
Updating Management Reporting
• New Director of Corporate Planning and Finance
Controller
– Learned how to utilize the Hyperion tools to navigate the
Planning database himself and develop ideas and
performed analysis on the fly
• Hyperion Essbase Excel Add-In and Smart View
• Hyperion Financial Reporting – automated reports
• Hyperion Web Analysis – Expense Trending by Year
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Economic Slowdown: Reporting
Updating Management Reporting
• New Director of Corporate Planning needed to take
action:
– Improve Department Management and Divisional
monthly review of Actual to Plan
• Process re-engineering on how departmental and divisional
financials are reviewed
• Newly Designed Reports
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Economic Slowdown: Management
Reporting Cont.
Updating Management Reporting
• Report allows user to expanding the category down
to the account level by clicking the arrow
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Economic Slowdown: Management
Reporting Cont.
Department users download their report to Excel
to input Variance Explanations or Identify GiveBack opportunities:
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Economic Slowdown: Management
Reporting Cont.
In addition, the department managers can sign-up
to receive a batch report automatically when we
load actual data every month:
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Where do did we go from
[t]here?
Where did we go from there?
Fiscal Year 2009 Process Change:
• Implement a ‘Quarterly Commitment’ Scenario next to Plan to
help us stay on budget for the year.
• Commitment amount will be captured at a department total level.
• Eliminate budget variances at the end of each quarter:
– Under budget depts. dollars will be reallocated to division top
– Over spending will be carried forward to be offset by
reallocations
– Planning Business rules will automatically reallocate variances
by dept into divisional placeholder
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Where did we go from there?
Moving to a permanent change in budgeting &
forecasting for Fiscal Year 2009:
• Utilize web input form & Smart View to capture Commitment
amounts at a Quarter level. Budget reduction forms for
adjustments to budget
• The amount is a by department for all accounts.
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Where did we go from there?
Moving to a permanent change in budgeting &
forecasting for Fiscal Year 2009:
• Smart View Option:
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Where did we go from there?
Divisional Review Template – Used by Marketing, Engineering and
Corporate Function Division Tops
Plan – Commitment
– Actual QTD
Actual to Plan
- QTD
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Where did we go from there?
Departmental Review Template – Used by all Department
Managers in their divisional reviews
QTD Actual to
Commitment
Monthly Actual to
Plan (by Acct)
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QTD Actual to Plan
(by Acct)
Where do we go from here?
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