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 2 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. 3 Background - DENSO Products ENGINE MANAGEMENT BODY ELECTRONICS HYBRID VEHICLE COMPONENTS 4 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 5 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) 6 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) 8 Planning @ DENSO: Centralized Planning Environment 9 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) 10 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 12 Upgrading – Approval Process • ROI Worksheet – Identified Annual Savings and Spot (one-time future) savings 13 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 14 Upgrading – Environment PreSystem9 15 Upgrading – Future Environment 16 Upgrading – Implementation • Performed Migration (September 2008) – Three-Week Migration project once HW was ready • • • • • 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 17 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 19 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 20 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 21 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 22 Economic Slowdown: Management Reporting Cont. Updating Management Reporting • Report allows user to expanding the category down to the account level by clicking the arrow 23 Economic Slowdown: Management Reporting Cont. Department users download their report to Excel to input Variance Explanations or Identify GiveBack opportunities: 24 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: 25 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 27 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. 28 Where did we go from there? Moving to a permanent change in budgeting & forecasting for Fiscal Year 2009: • Smart View Option: 29 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 30 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) 31 QTD Actual to Plan (by Acct) Where do we go from here? =