Transcript UPDATE Finance/Facilities Committee Meeting November 3, 2004 Jr11(595).ppt October 15, 2004 PROJECT ENTERPRISE ACQUISTION AND LAUNCH • Board of Trustees approval in September 2001 • Conducted software needs.

UPDATE
Finance/Facilities Committee Meeting
November 3, 2004
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Jr11(595).ppt
October 15, 2004
PROJECT ENTERPRISE ACQUISTION AND LAUNCH
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Board of Trustees approval in September 2001
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Conducted software needs assessment in winter 2001/2002
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Selected and acquired PeopleSoft in March 2002
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Spring 2002
- Hired experienced project director and technical lead
- Set up temporary office facilities on third floor of MPBC
building
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Currently budgeted for $13 million
- Financed by UMS revenue bond and interest rate swap savings
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PROJECT ENTERPRISE ACQUISTION AND LAUNCH (Continued)
• To be implemented over a 7 to 8 year period
- Human Resources/Payroll
- General Ledger/Purchasing/
Accounts Payable
- Position Management
- Projects, Contracts & Grants
- Recruiting and Admissions
- Student Records
- Student Financials
- Financial Aid
- Advisement
- Contributor Relations
July 2003
April 2005
November 2004
Summer 2006
Spring 2006
2007 thru 2009
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October 15, 2004
GOALS OF IMPLEMENTATION
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As communicated to Board of Trustees in Sept. 2001
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Modernize aging legacy systems – we have no choice!
Enhance integration among systems
Improve student processes
Provide modern reporting tools
Provide web-enabled self service
Redefine business processes – only through business process
redesign will we have savings!
– Provide strategic advantage in recruiting and fund raising
– Position Universities of the UMS as first class institutions
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•Represent interests of overall System; maintain
institution-wide perspective
•Champion the Project Enterprise implementation
and the accompanying cultural and process
changes
•Liaison between project director and campus
committees
Serve as conduit for communication to
campus
Provide oversight for campus Project
Enterprise activities
Represent campus constituencies on
implementation issues
•Monitor the progress of the project against major
milestones
•Consider Project Enterprise related technology
decisions
PROJECT ENTERPRISE STEERING COMMITTEE
Doug Gelinas, Associate VP for Acad. Affairs, CHAIR
Don Raymond, Registrar, UMFK
Beth Shorr, VP Univ. Advancement & Planning, USM
Frank Roberts, Dir. of Lib/Media Center, UMF
Sharon Nadeau, Dir. of Business Systems, UMF
John Gregory, Exec. Dir. IT, UM
Tom Potter, CFO, UMM
Laurie Pruett, Exec. Dir. of Admin., University College
Dick Kimball, VP Acad. Affairs, UMPI
Lida Pinkham, Dir. Instruct., Tech. & Sup Services, UMPI
Dick Campbell, CFO, UMA
Tracy Elliott, Dir. Internal Audit, System
Rosa Redonnett, VP Div. of Enrollment Mgmt., USM
Bill Wells, Associate Provost for Technology, USM
Virginia Gibson - Business School, UM
PROJECT ENTERPRISE
GOVERNANCE AND ORGANIZATION CHART
November 2004
Decision makers
CHANCELLOR/PRESIDENTS
AND CAO’S
SPONSORS
• Synthesize the information
• Manage the process
• Make recommendations
Joanne Yestramski, Chair
Jim Breece, Tracy Bigney,
Elsa Nunez, Gerry Dube, Doug Gelinas,
Rosa Redonnett
Quality
Advisors
ADVISORY GROUPS
Student Services Transformation Project Advisory
Committee
Student Services Campus Committees:
Admissions
Financial Aid
Registrars
INTERIM PROJECT DIRECTOR
Training Task Force
Contributor Relations Task Force
Campus Chief Financial Officers
Student Labor Task Force
IT Directors
IT Planning and Policy Committee
Cindy Mitchell
OTHER RELATED
APPLICATIONS
Contributor Relations (Safari)
Housing (RMS)
Credit Card Processing
Facility Management Software
Jr11(595).ppt
October 15, 2004
STUDENT ADMIN
TEAM
FINANCIAL
TEAM
POSITION
MANAGEMENT TEAM
Alison Cox
Bill Elsemore
Miriam White
Ann Gravelle
SSTP Core Committee
Admissions
Student Registration
Student Financials
Financial Aid
Advisement
General Ledger
Procurement/Accounts
Payable
Expense
Projects and Contracts
Grants
Manage positions
(including vacancies)
Budgeting by position
Organization charts
TECHNICAL TEAM
Mark Boyd
TRAINING AND
COMMUNICATIONS
TEAM
Cindy Mitchell
Production
Portal
Database administration
Interfaces
Conversions
Reporting
Campus Training &
Communication
Coordinators
Training Development
Training Delivery
Newsletter
Website
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HUMAN RESOURCES/PAYROLL IMPLEMENTATION – July 2003
Modules Implemented for 5,000 employees and student labor
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Human Resources
Payroll
Benefits Administration
Time and Attendance
Employee Self-Service
Challenges
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They were first; inexperienced functional and technical team
Complex (multi-campus)
Self service requires significant cultural changes
Benefits of intra-system integration not yet available
Did not perform business process redesign first
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POST GO-LIVE ASSESSMENT
HUMAN RESOURCES/PAYROLL
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Completed in April 2004 by outside consultants
- Presented to the Audit Committee on April 30, 2004
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Recommendations and Action Steps
- Clarify roles and responsibilities between functional
and technical areas
- Consider centralizing data entry activities, particularly benefits
- Enhance communications and training
- Hire experienced professional staff where openings exist
- Establish “hot back-up” environment for disaster/recovery facility
- Write operations manuals
- Enhance Project governance
- Expand design phase to include business process redesign for all
future applications
- Enhance role of Project Enterprise Steering Committee members to
be campus project leaders
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POSITION MANAGEMENT IMPLEMENTATION - October 2004
Objectives
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Ability to look at total FTE’s
Information about vacant positions
Total position budgeting
Reduced data entry requirements for new hires
Ability to track a position or a department over time
Ability to create organizational charts
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GENERAL LEDGER/PURCHASING
IMPLEMENTATION - April 2005
Modules to be Implemented
- General Ledger
- Purchasing and some e-procurement
- Accounts Payable
- Expenses (i.e., travel expense reports)
Challenges
- New chart of accounts - 10 to 36 characters (includes business unit)
- Limited resources at System office
- Application training for approximately 1,950 employees
- 21 month conversion period
- Numerous reports and interfaces to write
- Old vendor data base clean up enormous
- Some business process redesign
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Business Process Redesign Initiative:
CREATION OF STRATEGIC PROCUREMENT DEPARTMENT
Current Services:
• Administers all purchases greater than $25,000 for all
campuses and System
• Creates System-wide contracts for commodity products
(e.g., office supplies, scientific materials, furniture, motor
vehicles). Use of contracts optional for campuses.
• Computer Connection – UM based computer sales and
service organization
- assists in planning, acquisition and licensing of
technology products and services for all
campuses
except USM
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Strategic Procurement Future Services:
• With PeopleSoft as an enabler, create and enhance strategic
procurement function within System-wide services resulting
in significant savings ($1 million targeted in Strategic Plan):
 Maximize purchasing economies of scale, mandate
common commodity purchases, require all computer
purchases to be centralized and procured according to
standards established by IT Policy and Planning
Committee
 Provide synergy with other System-wide services
(information technology, facilities, energy and
environment, electronic banking, travel management and
reimbursement, collaborative ancillary procurement)
 Continually investigate and implement state-of-the-art
purchasing practices and technology
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Strategic Procurement Future Services: (Continued):
 Provide oversight of the procurement card system
including training compliance, self-audit, rebate
management
 Implement, maintain and provide training for new
PeopleSoft Purchasing & Accounts Payable system,
including e-procurement applications
 Collaborate with other higher ed institutions and with the
State
 Establish and monitor purchasing policies and
procedures; overall increased empowerment for
purchasing as a centralized function
 Enhance risk management and governmental compliance
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Business Process Redesign Initiative:
STUDENT SERVICES TRANSFORMATION PROJECT (SSTP)
Timing: February 2003 to December 2003
Process
– Team comprised of student administration representatives from
all campuses
– External consultant for facilitation
– Review and document “as is” process
– Identify and recommend process improvement opportunities
– Presidential review
– Implement as appropriate
Challenges
– Campus autonomy
– Team was not able to address organizational issues
– Perceived conflict with campus mission
– Improvement opportunities to be implemented with student
modules as appropriate
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SSTP PROJECT FOLLOW-UP:
CREATE DESIGN FOR CONSOLIDATED BACK-OFFICE OPERATIONS
Rationale
- Considerable savings expected
- Business process redesign must be implemented in order
for campuses to reap savings from technology investment;
must be done before software implementation
Design Proposal
- SSTP core team to continue work to design consolidated
back-office operations and other efficiencies
- Led by strong internal project leader and organizational
development professional
- Initial focus will be on recruiting/admissions due to
PeopleSoft implementation schedule
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SSTP Project Follow-Up (Continued)
Deliverables by March 2005
- Identification of back room processes
- Description of processes at the centralized and campus locations
- Incorporation of document imaging into the process improvements, as
appropriate
- Proposed staffing for back room operations
- Proposed location(s) for back room operations
- System wide annual campus cost savings to be achieved ($3 million
targeted in Strategic Plan from centralizing/consolidating services,
including student administrative services)
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PROJECT ENTERPRISE FUNDING UPDATE
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Of the $13 million set aside for the project, $7.1 million has been spent
through June 30, 2004
- Software - PeopleSoft and Oracle - $3.1 million
- Consulting
- Paid by System
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Ongoing incremental support costs (such as maintenance, technical and
training) - $1.5 million per year charged to campuses
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Hardware costs funded under base UNET budget or campus budgets
(i.e., desktop hardware upgrades)
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OTHER RELATED APPLICATIONS
Various advisory groups/retreats in 2003/2004
- Auxiliary Services (campus cards, parking, scheduling, 3rd party
billing, housing, health services)
- Contributor Relations (enhanced reporting
using current software)
- Document management/imaging system
Objectives
- Collaboration resulting in cost savings
- Common software applications System wide, funded by State IT
bond
- Reduce/eliminate the haves/have nots
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CONCLUDING COMMENTS
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This is a major undertaking for the University of Maine System,
initiated by campus demand
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Senior level leadership absolutely required for successful
implementation
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Project Enterprise necessary and crucial to replace legacy systems –
WE HAD NO CHOICE!
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We must do BPR to reach our goals (efficiencies will be gained)
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Change management is our greatest challenge
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Efficiencies not fully realized until all modules implemented
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GUIDING PRINCIPLES
ATTACHMENT
In making decisions about the ERP Project, UMS will apply the following guiding principles:
1. Selection of the ERP system will be determined by how well the system meets the needs of the major
applications, with the student information system having the greatest weight.
2. To the extent possible there will be a centralized System approach to implementation, while preserving and
enabling the unique mission of each university.
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Multi-university model for enrollment and operations
Consistent definitions and procedures; uniformity
System-wide maintenance and upgrades
Single person record with separate university-specific affiliations/additions
Integration across applications
Implement universal interfaces from required utility software to PeopleSoft (i.e., timeclock, work order,
housing, campus cards, etc.)
Build foundation to enable future flexibility, where cost effective
3. Solutions will not be customized. UMS will not make modifications to the software.
4. Business processes will be re-defined to coincide with best practices built into the software design. Common
procedures will be developed to result in operational efficiencies and wide spread knowledge.
5. Use of web-based self-service applications will be expanded for all constituents.
6. The system will be designed to provide ease of maintenance of desktops.
7. Analytical reporting tools will be user friendly and will add value.
8. Current staff will be retrained with new software architecture.
9. Functional systems will be implemented in a timeframe and order that minimizes interfaces and bridges to
legacy systems.
10. Only emergency changes to legacy systems during ERP implementation.
11. Final decisions regarding overarching policies and permanent changes will be made by Presidents/Chancellor.
12. Commitment to on-going communication with presidents and key stakeholder groups
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PROJECT OPERATING PRINCIPLES
1. Each university will pay for any needed desktop equipment.
2. Each university will continue to pay the salary and travel costs of their staff members
mutually selected to work on the project, including those dedicated to the project.
3. All universities will contribute human resources to the project.
4. There will be no System funding to backfill positions of staff dedicated to the project.
5. Project timelines must be met.
6. All universities will contribute to the maintenance costs for the ERP system.
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