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Slide 1 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update
Slide 2 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA
Slide 3 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP
Slide 4 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation
Slide 5 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility
Slide 6 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update
Slide 7 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background
Slide 8 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010
Slide 9 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0
Slide 10 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS.
Slide 11 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands.
Slide 12 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0
Slide 13 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s
Slide 14 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR
Slide 15 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts).
Slide 16 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months.
Slide 17 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101
Slide 18 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR
Slide 19 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04.
Slide 20 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation
Slide 21 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings.
Slide 22 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability.
Slide 23 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend?
Slide 24 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record!
Slide 25 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making.
Slide 26 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes
Slide 27 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow
Slide 28 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology
Slide 29 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure
Slide 30 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure
Slide 31 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y
Slide 32 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology
Slide 33 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object
Slide 34 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology
Slide 35 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation
Slide 36 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology
Slide 37 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity
Slide 38 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers
Slide 39 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process.
Slide 40 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM)
Slide 41 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services)
Slide 42 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210
Slide 43 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program
Slide 44 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed.
Slide 45 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views
Slide 46 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits
Slide 47 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program)
Slide 48 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay
Slide 49 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay
Slide 50 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR
Slide 51 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO
Slide 52 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO 52 Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services. Invoice receipt date — specifies the date on which the invoice was received. Invoice date — the date the vendor stamps on the invoice. Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. Account — key to identifying an account in the general ledger. Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables. Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file. Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year.
Slide 53 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO 52 Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services. Invoice receipt date — specifies the date on which the invoice was received. Invoice date — the date the vendor stamps on the invoice. Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. Account — key to identifying an account in the general ledger. Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables. Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file. Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. 53 Accounts Payable Document number (invoice) Vendor Document number (purchase order) Invoice receipt date Invoice date
Slide 54 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO 52 Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services. Invoice receipt date — specifies the date on which the invoice was received. Invoice date — the date the vendor stamps on the invoice. Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. Account — key to identifying an account in the general ledger. Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables. Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file. Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. 53 Accounts Payable Document number (invoice) Vendor Document number (purchase order) Invoice receipt date Invoice date 54 Accounts Receivable Document number (billing document) Document number (sales order)
Slide 55 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO 52 Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services. Invoice receipt date — specifies the date on which the invoice was received. Invoice date — the date the vendor stamps on the invoice. Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. Account — key to identifying an account in the general ledger. Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables. Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file. Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. 53 Accounts Payable Document number (invoice) Vendor Document number (purchase order) Invoice receipt date Invoice date 54 Accounts Receivable Document number (billing document) Document number (sales order) 55 Accounts Receivable Document number (sales order) Customer
Slide 56 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of a Competency Aligned Organization. FMO is building G/L validation tool that will be used at SPAWAR and future command implementations of Navy ERP. Navy ERP Update - SPAWAR 15 Navy ERP Update - NAVSEA Scheduled deployment October 2010 (General Fund, STARS-FL & HCM), October 2011 (Working Capital Fund, DIFMS). NAVSEA has met with NAVAIR POCs to gain insight and understanding of data conversion tripwires. NAVSEA is working with SPS POC to identify problematic contracts (shipbuilding contracts). 16 Navy ERP Update – NAVSUP Release 1.1 Scheduled deployment February 2010. Release 1.1 is Navy ERP’s Supply Solution: Release 1.1 functionality will include Environment Health & Safety, Inventory Management/Procurement, and Order Fulfillment from many systems to include ITEMP, UICP, RRAM, and HMIRS. There are approximately 60 systems/applications that will be retired/replaced by Navy ERP Release 1.1 functionality. NAVSUP Release 1.1 Integrated Systems Testing (IST) is tentatively scheduled to begin February 2009 with an expected length of 7 months. 17 Navy ERP 101 18 Integrating Navy’s Many Functions Goal: Minimize Interfaces and Enhancements ERP provides: Standardized business processes running on an integrated application A single database with shared common data, not just interoperable but integrated Airfare War Centers IMAs IMAs Shipyards SSCs DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS DONIBIS/ CDB CMET CMET MISIL MISIL BUPERS BUPERS DAASC DAASC - - Citidirect Citidirect DIFMS NIMMS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP STARS STARS - - FL FL Travel Manager CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DAASC DAASC - - Citidirect Citidirect Travel Manager DDRS DDRS CMET CMET MISIL MISIL BUPERS BUPERS STARS - - BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF CCR OBP OBP DAASC DAASC - - Citidirect Citidirect Travel Mgr CDB/DONIBIS CMET CMET MISIL MISIL BUPERS BUPERS DCPS DCPS MOCAS MOCAS DEF DEF CCR CCR OBP OBP DCPDS DCPS DCPS MOCAS MOCAS FADA DEF DEF CCR CCR OBP OBP STARS BI / FRS Air Warfare Centers Surface Warfare Centers IMAs Depots HQ/PEOs DIFMS NIMMS DIFMS NIMMS DIFMS DIFMS DAASC DAASC - - Citidirect Citidirect DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS DCPDS DCPDS DCPS DCPS MOCAS MOCAS - - FADA FADA DEF DEF CCR CCR OBP OBP CMET CMET MISIL MISIL BUPERS BUPERS DAASC- Citidirect Citidirect Travel Mgr CDB/DONIBIS STARS BI/FRS Navy Enterprise System Financial Management Materials Management Wholesale Supply/APS Plant Maintenance Workforce Management Common Data STATS BI/FRS TRAVEL MGR 19 Integrating successes of four pilot ERP efforts to reinvent and standardize business processes across the enterprise. Navy Enterprise Resource Planning Reliable and timely financial and management information End-to-end product management and improved interoperability Financial Management (Cabrillo) 50% reduction in annual cost of Business Systems support Cut simplified acquisition requisition-to-order process time from 44 days to 44 minutes for e-Catalog procurement Retired 59 0f 72 legacy systems Regional Maintenance (NEMAIS) Elimination of job rejection notification delay from 20 days to immediate Reduced total repair time by 16% -- from 96 to 81 days Material inventory provided a one time saving of $2.4M Program Management (Sigma) 66% improvement in financial statement processing time Engineering Change Proposal (ECP) approval time decreased from 87-25 days Retired 59 0f 72 legacy systems Aviation Supply (SMART) 1M+ inventory transactions with less than 0.5% error rate Reduced warehouse refusal rate from 3.5% to 0.5% Over $1.4M saved in replenishment cost for the ICP in 1st Qtr FY04. 20 As a result of ERP and business transformation ….The Navy will have standardized processes across the enterprise… Organization Breakdown Structures Cost Centers Job order numbers Rates/Activity types Cost Elements (ABC and secondary elements) Budget Exhibits Work Breakdown Structures Chart of Accounts (GL) Funding Document Process Material Master Vendor Master Common Reporting –Business Warehouse Standard Large Contracts Process Standard MILSTRIP process Standard Purchase Card process Earned Value Management (EVM) Standard Local Training process Standard Travel process through DTS Standard Award Initiation and Interface Standard Qualifications Standard non-NSPS Performance Appraisals Training Catalog Employee Self Service Manager’s Self Service Centralized Help Desk Business Process Transformation 21 Master Scenario Descriptions Budget to Authorize (Financial) – Used by Echelon I commands distributing funds to Echelon II commands, this process includes transactions for cost planning, and the creation of project structures, funds allocation and control, and derivation of budgetary ledger accounts. Plan to Perform (Project Scheduling) – Plan to Perform involves all aspects of Navy project management from initiation, planning, and execution to project closing. Personnel Check-In to Check-Out (Personnel) – Personnel Check-In to Check-Out provides a cross-functional view of Workforce Management functions with SAP to support acquisition, logistics and supply., Military, and Contractor/Foreign National/Intern. Plan to Pay (Supply) – This scenario includes the standard SAP scenarios of Supply Chain Management (Plan to Delivery and Procure to Pay) and Order Fulfillment (Order to Cash). Acquire to Dispose (Asset Management) – This scenario describes the transactions that take place during the life cycle of an asset. Post to Report (Financial Posting and Closing) – Post to Report involves several logistics transactions that will be completed to provide a representative sample of budgetary and proprietary postings. 22 RICE Reports – Outputs from the Navy ERP system Interface – A shared boundary across which information is passed. For Navy ERP, these interfaces include a connection with a legacy or DoN or a DoD system of record. Navy ERP is a system of systems within the DoN / DoD. Data could be coming into Navy ERP (inbound) or going out from Navy ERP (outbound) or both (bi-directional). Conversion of Data Enhancements – Changes to the functionality of an information system. In an information technology product, an enhancement is a noteworthy improvement to the product as part of a new version of it. This term is also sometimes used to distinguish an improvement (enhancement) of some existing product capability from a totally new capability. 23 Roles SAP is designed as a role based application providing the ability to customize the authorization concept. A user role is a grouping of transactions, reports, bolt-on applications and associated authorizations that establish the scope and level of access to specific SAP functionality. – Transactions determine to what objects you have access Authorizations determine what level of access you have to the objects Role Security What do I have access to do and see? Training What courses do I need to attend? 24 General ledger posting / analysis / reporting Accounts receivable / accounts payable Cash management/Billing Management of posting periods and year end closing Processing transactions associated with budget entry, supplemental, transfers, returns, funds reservations, funds commitments, budgetary/proprietary ledger, budget version planning Automatic funds availability control / checking Assignment and management of cost and activity planning functions Assignment and management of overhead allocation functions Viewing actual costs by cost object (cost center, internal order, WBS, etc.) Viewing and managing variances between planned cost and actual cost Asset Management plant, property, and equipment records maintenance in support of property accounting and accountability requirements Finance Functionality Navy ERP will be the financial system of record! 25 Navy ERP Redesigned Processes Navy ERP is not just a replacement of the pilots – significant Reengineering Activities have occurred. Establishment of Enterprise-wide business processes leads to increased efficiency and auditability and improved quality of information to support decision making. 26 Navy ERP Redesigned Processes 27 FMB Enters Budget at the Appropriation Level Echelon I-Apportionment (From PBIS interface to Navy ERP) Echelon II-BSO/Comptroller Receives Allocations (From PBIS interface to Navy ERP) Echelon III Operating Budgets Allotted (Navy ERP) Echelon III Operating Targets Assigned (Navy ERP) Budget To Authorize Funds Allocation - Budget Flow 28 Company Code — a 4-digit code representing an Organizational Structure within Navy ERP closely aligned with the Navy’s Budget Submitting Office (formerly “major claimants”) structure. The company code naming convention consists of the agency code for Navy “17” and the code for the budget submitting office, such as “19” for NAVAIR or “39” for SPAWAR. Funds Allocation Terminology 29 DoD DoN NAVY ECHELON 1 Company Code 1710 NAVSEA CFFC Other Claimants NAVAIR NAVSUP SPAWAR NAVAIR NWCF Depot Maintenance Company Code 1781 NAVAIR NWCF Warfare Centers Company Code 1780 NAVAIR General Fund Company Code 1719 NAVSEA NWCF Depot Maintenance Company Code 1784 NAVSEA NWCF Warfare Ctrs Company Code 1783 NAVSEA General Fund Company Code 1724 NAVSUP NWCF Supply Management Company Code 1782 NAVSUP General Fund Company Code 1723 SPAWAR NWCF Warfare Centers Company Code 1785 SPAWAR General Fund Company Code 1739 CLF General Fund Company Code 1767 CPF General Fund Company Code 1767 OTHER NWCF Company Code 17XX OTHER General Fund Company Code 17XX Company Code Structure 30 Company Code Structure 31 Business Area — a 4-digit code representing a business unit or division for which an internal balance sheet and profit and loss statement can be prepared. The balance sheet and profit and loss statement do not need to comply with all the legal requirements for external financial statements. HQ – 19HQ, NAMRA – 19NM, NAPRA – 19NP, NAWCAD – 80AD, NAWCWD – 80WD Funds Allocation Terminology Last 2 Digits of Company Code Financial Reporting Organization within Company Code X X Y Y 32 Budget Object — funding is attached to 5 pieces of master data: Fund — a separate and distinct fiscal/accounting object used to segregate cash and other financial resources. The first two characters of the fund will identify the appropriation (except for Direct Cite, Allotments received, and FMS Admin). The third and fourth characters will identify the beginning year of the appropriation. The fifth character will identify the length of the appropriation. The last five characters will further define each appropriation. Fund Center — Fund centers are clearly defined areas of responsibility. The first three characters of the fund center will identify the major command, PEO, Fleet, organization, etc. The next seven characters identify departments, division, branches, and/or shops, depending on organization. Functional Area — a classification of financial information which includes RDT&E project unit, line item, SIC, OMN project unit, WCF cost categories for DONIBIS Commitment Items — represent the functional grouping of expenditures and revenues within a financial management area. Funded Program — the lowest subdivision of funding, lower level breakdown of the budget. The funded program controls the budget and execution at the project level vice the fund level.  Funds Allocation Terminology 33 Navy ERP 5-Part Budget Objects New—16 Characters Long vs. 4 New—5th dimension to the Budget Object 34 FM Area — the highest level in the FM organizational hierarchy. FM area is always 1000 for Navy. Document — Record of a business event that has occurred and has processed in Navy ERP. A document is the link between the business transaction and the posting in accounting. A document consists of: A document header: The part of a document that contains information valid for the entire document. Required data includes: Document date Document type Company code Currency/Rate (USD) Line items: The part of a document that contains information about an item. Required data includes: Posting key GL account number Amount Debit or credit assignment Funds Management - Terminology 35 Funds Management - Terminology Example of Navy ERP Document: Enactment of an Appropriation 36 General Ledger — Account master records required to support financial management reporting. Posting — The activity of making entries in a general ledger. In general accounting posting are automatically triggered as documents are created/changed within Navy ERP, as well as by incoming interface transactions. G/L postings are transparent to the end user. In SAP both budgetary and proprietary G/L accounts posted against in transactions when appropriate. Budgetary Ledger — a set of accounts that reflects budget consumption due to the creation and posting of documents, for example as commitments, obligations, unpaid/received, and paid. Each financial transaction must contain: a full budget object (fund, fund center, functional area, commitment item, and funded program). Funds Execution - Terminology 37 Budget to Authorize Benefits Common Budget Structure and organization structure across entire Navy Budget Exhibit preparation available to all Organizations PBIS will interface directly with Navy ERP simplifying the fund allocation process. There will no longer be a need to manually enter direct and reimbursable fund allocations into separate systems and eliminating the need to reconcile between STARS and PBIS The ability to place hard controls (control totals) and send warnings to ensure end users do not exceed budget authority. This allows the command to be informed and aware of funding concerns and the end-user over spending their allocated budget amount Transaction Register Reports are now hot-linked to every logistics and financial transactions that creates a general ledger postings– Trial balance reviews, triannual reviews and general auditing will be greatly simplified reducing unmatched disbursements in a more timely fashion Earmarked funding transactions used for “withholds”, “blockings” and other “non-logistics” based control/use of funds Funding is attached to the “Budget Object” which now has 5 dimensions instead of 4. The addition of “Funded Program” allows more information to be conveyed and provides a direct link between the budget and the applicable Work Breakdown Structure or Activity 38 Plan to Perform Where cost schedule and performance are maintained in the system Where budgeting is performed Where execution is performed Replaces the similar functionality to WPS (Workload Planning System) and FIMIS 2000 Provides the foundation for the POM submission and budget exhibits Supports the A-11 process Supports the transfer of funds from one command to another Supports both General Fund, Foreign Military Sales (FMS), and Working Capital Fund (WCF) billing for both Navy and non-Navy customers 39 Project Management - Terminology Program— is the highest level of the reporting structure in the Investment Management (IM) module. It is a prerequisite for the creation of the reporting structure hierarchy. The Navy will use Investment Programs to support Program Management functions. Project— a business undertaking involving a predetermined goal to achieve with prescribed funds and operating resources, to an agreed level of quality, and by a particular date. Work Breakdown Structures (WBS)— a hierarchical outline of an undertaking described in the project definition. The work breakdown structure (WBS) is the basis for the organization and coordination of a project. A WBS consists of WBS elements. The WBS elements describe tasks or subtasks in the project to perform within a defined time period. Network Activity— A task in a work package, or network, that is planned for and executed. Each activity has a unique network activity number. Activities are classified as internal, external, or general cost. Work Center— comprised of a group of people (or a single person) that performs the actual maintenance work. Assigned to work orders to accomplish the work in the scheduling process. 40 Project Structure/Management Functionality Program / project status controls - Limits actions which can be performed Open or release project for charging Logistical close of projects Temporarily lock a project from charging Financial close of projects Project simulation capability Perform scheduled “what-if” analysis Scheduling activities and events Detailed project scheduling Project milestone scheduling Integrated program scheduling Earned Value Management (EVM) 41 Plan to Perform WBS Element: A deliverable-oriented project element that organizes and defines the scope of the project WBS Elements exist in a hierarchy with each descending level representing an increasingly detailed definition of a project component (project components may be products or services) 42 Budget/Project Structure Examples Budget Structure:– PMA265 – F/A-18 Program Office Appropriations: APN1, APN5, RDT&E, OM&N Project Structures (Examples):– AN/APG-79 Airborne Radar System Advanced Targeting Forward Looking Infrared (ATFLIR) Block Upgrades Advanced Crew Station Mission Planning System Digital Wingtip Electronic Warfare Signal Data Computer Replacement (SDCR) Automated Maintenance Environment (AME) Joint Helmet Mounted Cueing System ARC-210 43 Funds Control activated at - Fund - Fund Center - Functional Area - Funded Program Fund availability check performed at the funded program level Funded Program represents sales order line item Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. Reimbursable agreement must be modified to add additional funding, then transaction can be re-processed. Reimbursable Agreements Need example or screen shot WBS Element represents the funded program 44 WCF – CPP Projects Funds Control activated at Fund Fund Center Functional Area Funded Program Funded Program represents CPP Project / WBS Elements / Network Activity Cannot post Commitments, Obligations, Expenditures, Cost Allocations or Disbursements when funding exceeded at Funded Program Level If funding is not available transactions will be rejected. CPP Project must be modified to add additional funding, then transaction can be re-processed. 45 Plan to Perform Benefits Budget and Execution in the same system Improved planning visibility across commands Earned Value Management (EVM) enhanced capability - Earned Value Composite (EVC) will be deployed April 2008 All projects will be hard controlled within the assigned funded program Simplified project structures - Ability to multiple fund WBS billing elements Eliminate need to replicate structures based on incoming funding Direct Projects will no longer require a separate WBS billing element for each sales order line item Multiple sales orders can be assigned to a single WBS element Enhanced BFM functionality to allow funds movement/alignment at the project = comptroller-like functionality for BFMs Projects linked to investment program structures to provide program management views 46 Ability to perform cost/schedule planning for prime and support contractors within projects via “planning” networks Ability to establish an Integrated Master Schedule (IMS) Enhanced validations to help prevent user errors Assignment of resources, by name if desired, to activities during planning Project stock – planning, execution, and management of materials within projects Final bill process for reimbursable sales orders Funding transfers between commands will occur via MIPR or SF2276A Ability to capture ALL project costs (including G&A and surcharges) prior to billing Ability to automatically generate purchase requisitions from within project Plan to Perform Benefits 47 Plan to Pay Purchase Requests (PR)/Purchase Orders (PO) Automatically posts commitments (PR) and obligations (PO) Workflow used to process and approve documents Approval of Purchase Requisition (PR) results in creation of the asset master record for tracking purposes automatically via a nightly batch run (Create Asset Master Record program) PR approval triggers automatic creation of the Purchase Order (PO) Approved transactions released to interfaces (SPS, MILSTRIP) Project stock and limited Manufacturing Resource Planning (MRP) Goods Receipt - Allows the user to record purchased property items delivered. When goods are delivered, they are entered into Navy ERP as a Goods Receipt. The Goods Receipt will charge either a cost center or a project based on the PO Upon Goods Receipt, value is posted to the asset automatically via a nightly batch run (Post Asset Value program) 48 Purchase-Card P-Card buys and approval EDI links to Citibank Automated Reconciliation assistance (Paperless reconciliation) Improved Internal Controls (separation of duties) Goal: Decreased cycle time for PCard Invoice certifications Plan to Pay 49 Material Master The material master contains descriptions and information on all the materials that a company procures or produces, stores, and sells. It is the company's central source for retrieving material- specific data. This information is stored in individual master records for each material. Each Plant has its own material master records. The material master is used by all components in Navy ERP Logistics. Vendor Master The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:– The currency used for ordering from the vendor Terms of payment Names of important contact persons (sales staff) Accounting information* The vendor master record is maintained by both Accounting and Procurement. *In Financial Accounting, vendors are generally creditors (accounts payable). The vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger. Plan to Pay 50 P-Card PR 51 P-Card PO 52 Accounts Payable/Accounts Receivable – Terminology Vendor — business partner that provides materials or services. Invoice receipt date — specifies the date on which the invoice was received. Invoice date — the date the vendor stamps on the invoice. Document number — a 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. Account — key to identifying an account in the general ledger. Accounts Receivable — Process of sending invoices to customers, receiving payment, and applying payment to the proper open receivables. Customer —Navy ERP Code that identifies a customer. A customer is a business partner who orders goods and/or services. The customer number for Navy will reference the DODAAC number assigned from the DODAAF file. Document number — A 10 digit sequential number uniquely identifying a posted document in Navy ERP. The document number is unique for a given company code and fiscal year. 53 Accounts Payable Document number (invoice) Vendor Document number (purchase order) Invoice receipt date Invoice date 54 Accounts Receivable Document number (billing document) Document number (sales order) 55 Accounts Receivable Document number (sales order) Customer 56 Play to Pay Benefits Supply and maintenance in same system with integrated execution Fully financially and logistically compliant for inventory, procurement, and tracking to include sponsor owned material (SOM) Ability to reconcile credit card items (821 daily) and CITIBANK (810 monthly) statement within Navy ERP Ability to systematically generate PRs from within a Project (PROMAN / MRP) Single location and greater visibility of Project Stock Items Ability to monitor and manage Project Material availability within a central location Automated interface to Standard Procurement System (SPS) before converts PRs to POs systematically Purchase Info Records programmatically created to link vendors to materials to facilitate the process of creating purchase orders for materials. Each Info Record indicates the current and historical vendor prices for a particular material Automated Commitments and Obligations Workflowed Approval and Release Strategies Replaces manual process with automated Local ATP (Available to Promise) Full I&S (Interchangeable and Substitute) functionality Manage Vendor-owned material within the plant Full Warehouse Management Capability
Slide 57 - 1 Beverly Veit May 27, 2008 DRAFT Navy ERP 2008 Update 2 Navy ERP in the DON and DoD Environment Navy ERP Program Update Navy ERP 101 Reference Materials Navy ERP Terms/Glossary DoD/DON Acronym List Agenda AGENDA 3 Business Transformation Agency Defense Business Systems Management Committee TRANSCOM Logistics ERP Air Force Logistics ERP Navy ERP Army Logistics ERP DLA Supply Chain & Financials ERP DoD Financials ERP Marine Corps Logistics ERP Army Financials ERP DoD ERP Landscape Air Force Financials ERP 4 NSPS LSS Financial Improvement Plan NSPS Navy ERP/USMC V-ERP LSS DON Business Transformation Performance Driven Better Resource Decisions Financial Improvement Program- Auditability and Internal Controls Processes Systems People - Measurement - - Standardization - and Internal Controls Accurate, Timely, and Transparent Financial Visibility The pillars of Business/Financial Transformation are the tools we’re employing to get a better return on our investment in people, processes, and systems. The Financial Improvement Program (FIP) focuses on heightening the quality of financial information. Pillars of Transformation 5 Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) Modernizes, standardizes business processes Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decision-making capabilities Increases efficiency, saves money, returns equity for other uses Retires legacy systems, reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 6 Navy ERP Program Update 7 First Go-Live Chief Financial Officer’s (CFO) Act 1990 1999 2000 2001 2003 2002 2004 ASN (RD&A) directs convergence of pilots Pilots Award Contracts to Integrators Navy Launched 4 Pilot Programs NAVSEA Pilot NEMAIS went “Live” NAVAIR Pilot SIGMA went “Live” SPAWAR Cabrillo Pilot went “Live” NAVSUP Pilot SMART went “Live” (Jan 03) DoD Business Environment Driving Navy to ERP 2005 Sea Power 21 initiates Sea Enterprise 2007 Navy ERP Background Defense Business Systems Modernization Committee Certification of Funds for FY06 2006 Navy ERP MS A/B 2008 Navy ERP MS C Defense Business Transformation Agency Established Navy ERP Background 8 Current Deployment Schedule 1.0 (and the Spiral Releases) NAVSUP HQ, FISC, ICP – October 2008 SPAWAR HQ, SSC – October 2009 NAVSEA HQ (GF activities) – October 2010 NAVSEA WC (NWCF activities) – October 2011 1.1 NAVSUP – February 2010 9 Navy ERP Release 1.0, Financial and Program Management, was deployed on October 1, 2007 to NAVAIR HQ, NAWC-AD, NAWC–WD, and other sites Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses 99.8% Data Load success rate 21,000 Test scripts executed 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December 2007 Navy ERP Spiral Release 1.0.1 deployed on April 1, 2008 (includes enhanced functionality e.g., new reports) System Sustainment in progress Navy ERP - Increment 1.0 10 Navy ERP - Spiral 1.0.1 Spiral 1.0.1 was grouped into separate releases based upon: Customer priority Resource Availability Logical / Technical dependencies The first group, Release 1.0.1.1, included: Open Obligation Report Encumbrance Report IF4/5/5a Budget Exhibits Report These reports were made available to the end users March 2008 Release 1.0.1.2 included: BW Reports: Seller Elimination, A/R Aging, Purchasing, Inventory, Reimbursable Order/Billing Relationship Query Report (Asset Management) These reports were made available to the end users March 2008 Release 1.0.1.3 and 1.0.1.4 included: Common Cost Management Framework (CCMF) WARS extracts (exact objects in process of being identified) These functionalities were made available to the end users April 2008 Release 1.0.1.5 was put into production April 2008, and included the remaining Spiral 1.0.1 functionalities, such as ATR, Civilian Training Interface, PR enhancement, and NSPS. 11 NAVAIR Sustainment NAVAIR’s “Black out period” was from Oct 1– Mid Dec 2007. During the “black out” period NAVAIR: Performed only mission critical functions Had limited access to systems. Vast majority of mission critical business transactions were manually performed NAVAIR entered Sustainment period in January 2008. Working within Navy ERP to perform all required tasks – however, they were initially unable to fully use Navy ERP to accomplish key aspects of their 5 key business processes. The five key business processes are: - Contract/Vendor Pay - Employee Pay - Employee Travel - Program Billing - Financial Reporting Navy ERP, NAVAIR, OASN(FM&C) and DFAS are working together to discuss and correct systemic defects when required, re-train NAVAIR staff, work with interface partners to ensure interfacing systems are working as required. (OASN)FM&C, RDA, Navy ERP and NAVAIR are working to “SWARM” the issues and define what actions will indicate NAVAIR has reached sustainment and Navy ERP is ready to be deployed to other commands. 12 Scheduled deployment October 2008. Conversion Strategy Limited financial data conversion to Navy ERP from legacy financial systems STARS-HCM – NAVSUP HQ STARS-FL – NAVICP, COMNEXCOM, NOLSC DBMS – NAVSUP HQ, NAVICP, COMFISC Complete open documents in legacy until retirement of system At time of deployment NAVSUP will only process new business in Navy ERP ** Release 1.0 to NAVSUP does not include the Supply Management Functions. NAVSUP will get that functionality with Release 1.1. Navy ERP Update – NAVSUP 1.0 13 Navy ERP Update – NAVSUP 1.0 Why NAVSUP is different Preponderance of funding 1 year for obligation Majority of funding executed to run organization (labor & transportation) 94.9% of funds expended in first 18 months Legacy systems will be active 12 months after go live to support other commands Preponderance of funding 3+ years for obligation Majority of funding executed for development of weapon systems Funding expended over entire 5+ years allowed period NAVSUP Other SYSCOM’s 14 Scheduled deployment October 2009. Navy ERP, SPAWAR, DFAS, OASN(FM&C), and NAVSISA are working on data conversion throughout the SPAWAR enterprise. STARS- FL - SPAWAR Norfolk & New Orleans STARS-HCM - SPAWAR HQ DIFMS - SPAWAR Charleston CABRILLO - SPAWAR SSC-SD Delay of implementation date will minimize potential impacts on other high priority initiatives such as enabling the opportunity for SPAWAR to complete work associated with the Base Realignment and Closure and the creation of