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Utilities Industry
Enterprise Project Portfolio Management
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The following is intended to outline our general product
direction. It is intended for information purposes only, and may
not be incorporated into any contract. It is not a commitment to
deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any features or
functionality described for Oracle’s products remains at the
sole discretion of Oracle.
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Agenda
• Leadership: Oracle in Utilities
• Value: Enterprise PPM (EPPM)
• Challenges: EPPM in Utilities
• Solutions: Oracle Primavera for Utilities
• Next Steps
• Contacts
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Leadership: Oracle in Utilities
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Leadership in Utilities: All Major Sectors & Geos
5 of the top 5 Fortune Global 500 utilities
run Oracle Applications
9 of the top 10 Fortune Global 500 energy and
utility companies run Oracle Applications
5 of the top 5 Platts 250 utilities in the Americas
run Oracle applications
5 of the top 6 Platts 250 utilities in Europe run
Oracle Applications
7 of the top 8 Platts 250 utilities in Asia-Pacific
run Oracle Applications
Copyright ©2009, Oracle. All rights reserved.
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Value: Enterprise PPM (EPPM)
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We Live in a Project-based World: What Gets
Measured, Gets Managed
1
every business
manages projects
2
and most have poorly
defined processes.
DIV 2
Plant 1
LOB 3
Planning & Execution
$€
£ ¥
Div 3
Plant 3
Monitoring
Performance
Strategic
Goals

Cost
Controls
Div 4
JV 2



LOB 1
JV 1
3
Profitability
Plant 2
LOB 2
The result: project
failure.
Div 1
Programs
and Projects
Talent Search

Risk Mitigation
Strategy
Financial
Reporting
Distributed
Information
Copyright ©2009, Oracle and/or its Affiliates. All rights reserved.
Flawed project
selection
Cost overruns
Overallocated
resources
Increased asset
downtime
No enterprise visibility
Standalone products
are the problem, not
the solution.
7
Insight, Transparency and Value: Aligning Strategy
and Execution Drives Performance
ENTERPRISE PROJECT
PORTFOLIO
MANAGEMENT (EPPM)
Business
Value
PROJECT
PORTFOLIO
MANAGEMENT (PPM)
PROJECT
MANAGEMENT (PM)
RESULTS
Plan and Schedule
Complex Projects
PROJECT CONTROLS
Planners
Project Managers
Project Controls
RESULTS
Programs
Resource Management
Risk Management
Change Management
Plan and Schedule Key and
Complex Projects
DIVISION/LOB
Planners
Project Managers
Project Controls
Resource Managers
Program Managers
RESULTS
Strategic Alignment
Talent Management
Cashflow Projections
Performance and Control
Programs
Resource Management
Risk Management
Change Management
Plan and Schedule All Projects
ENTERPRISEWIDE
Planners
Project Managers
Project Controls
Resource Managers
Program Managers
Team Members
Executives
Strategy
Copyright ©2009, Oracle and/or its Affiliates. All rights reserved.
8
Oracle EPPM: Providing Complete, Global Visibility and
Accountability
Global, Real-time Coordination
Strategic Planning
Enterprise Asset
Management
Program Mgmt
Resources
Scope
Report
Plan
What-if
Execute
Analyze
Monitor
Risk Mitigation
Supply Chain
Profitability
Forecasting
PPM
Human Capital
Finance
Time
Align
Change Control
Resources
Visibility
Visibility and Accountability
Deliver Projects On Time, Within Budget, As Intended
Copyright ©2009, Oracle and/or its Affiliates. All rights reserved.
9
A Single Source of Truth: Linking Corporate Goals with
Operational Plans
• Integrate business process and
data with key enterprise systems
• Manage the program lifecycle from
idea to execution
• Control project costs and
Align
financials
• Forecast cash flow
• Assess risks and develop
Plan
Report
contingency plans
Analyze
Execute
• Align workforce enterprise goals
and supporting project initiatives
Monitor
• Collaborate with entire project
team including back office
operations, internal resources,
contractors, and executive
management
Copyright ©2009, Oracle. All rights reserved.
10
Oracle’s Enterprise Project Portfolio Management: Because
All Stakeholders Deserve a Single Version of the Truth
Value
Provide governance across the enterprise to
deliver the right projects and programs.
Visibility
Advance warning and analysis to reduce risk
and eliminate project failure.
Velocity
Accelerate projects and programs to satisfy
customer and clients.
Accountability
Deliver on commitments: what gets
measured, gets done.
Copyright ©2009, Oracle and/or its Affiliates. All rights reserved.
11
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Challenges: EPPM in the Utilities Industry
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Enterprise & Plant Challenges: Integration to Drive the
Optimization of Capital, Assets and People
Capital Investment
•
•
•
•
Strategically managing portfolios
Assessing, modeling and mitigating risk
Enhancing visibility of EPC partners
Managing complex programs & projects
Asset Efficiency
•
•
•
•
Managing scope changes quickly
Access to real-time data
Collaboration throughout the company
Metrics/measurement to drive KPIs
Talent Shortage
• Assigning the right people to the right projects
• Leveling resources and resource optimization
• Poor resource utilization
Copyright ©2009, Oracle. All rights reserved.
Capital Investments: Lead the Way Out of the
Recession with a Focus on the Right Capital Projects
•Assert intensive industries – like Utilities – tend to be the last
major industries to emerge from a recession1
•The number, size, scope, and complexity of portfolios and
projects has increased
– Project investments are huge with US$12,000,000,0002 devoted to projectbased work
•Cost errors and shorter schedules have major impacts
– 25% reduction in construction schedules
– Mistakes generate cost overruns in the US$100s of millions2
•The challenge – project portfolio optimization
– Ensuring CapEx drives ROI and shareholder value
– Forecasting funding and cash flow
– Assessing risk during portfolio prioritization
– Understanding the impact of contingencies on costs and timing
Copyright ©2009, Oracle. All rights reserved.
Project Portfolio Optimization: Unique Challenges
in a Tough Economy
Plan
• Is the decision in-line with strategic objectives and market dynamics?
• Do we have the right – or enough – resources and capacity for success?
• Can we effectively score/rank projects across the company?
• Have we considered all major risk factors?
• Can we measure progress globally?
Execute
•Can we coordinate multiple projects even among multiple partners/service providers?
•Will I be able to react to changes and updates in real-time?
•Can we capture expertise and standardize best practices?
•Can I optimize resources to avoid over/under allocation?
•How can I assess schedule & cost risk effectively?
Measure
•Can we easily assess project financials – forecast vs. planned?
•How can executives get early warning indicators of potential project issues?
•Can I deliver investments on-time?
•Will I be able to measure service providers/contractors performance?
•Can I measure project cashflow, ROI and payback effectively across the enterprise?
Copyright ©2009, Oracle. All rights reserved.
Project Portfolio Optimization: Assessing, Prioritizing &
Selecting the Right Capital Projects
•Plan -- Create a
long range plan
and rank projects
•Execute –
Update, track
and react to
project changes
& risks
•Measure –
Easily assess
project financials
and KPIs
Create a competitive advantage by prioritizing enterprise investments based upon
financial considerations, risk tolerance and resource constraints
Copyright ©2009, Oracle. All rights reserved.
Project Portfolio Optimization: Managing 700
Capital Projects to Deliver Better Service
COMPANY
Duke Energy is a leading energy company focused on
electric power and gas distribution operations, and
other energy services in the Americas – including a
growing portfolio of renewable energy assets. With
revenues over $13B they’re one of the largest utilities in
the US.
“Primavera schedules are the
foundation of our capital program.”
Doug Coatney
Manager, Project Controls-Midwest
Duke Energy
BENEFITS
•Enables 12-18 months planning accuracy for
CHALLENGES
Efficiently managing an annual portfolio of $250M which
has more than 700 capital projects along with 40,000
separate activities.
SOLUTION
Primavera’s enterprise solution enables project leaders
to plan, forecast and manage the status of all their
projects down to the task and resource level. In
addition, enhanced visibility permits them to see the
projects according to the enterprise breakdown, work
breakdown or the resource breakdown structure.
resource requirements in over 10 separate
groups (from substation engineering to real
estate and maintenance)
•Budgets are formulated and tracked using
fully resource-loaded schedule data and
actual cash flows.
•Complete and total visibility across the
enterprise for craftspeople
•Scalability allows the solution to grow with
the businesses demands and requirements
Copyright ©2009, Oracle. All rights reserved.
Asset Efficiency: “Rust” Never Sleeps, Neither Should
Maintenance Programs
•The deteriorating economy requires a greater focus on
existing assets
– “…utilities most focus on operational excellence to extend the life of
assets and extract more value.”1
– Spare capacity could be tight because the new financial environment
could squeeze investment2
– Responsiveness to changing market conditions is asset driven
– Preventative maintenance reduces costly reactive maintenance
•Maintenance management drives return on assets (ROA)
– Essential to an organization’s financial success and a key Wall Street
metric3
– Proactive maintenance organizations can dramatically increase craft
productivity4
•The challenge – optimizing existing assets
– Optimizing both the routine/daily and complex maintenance process
– Accessing real-time data & responding to rapid changes
– Collaborating throughout the enterprise
– Integration to EAM, ALM and ERP systems
Copyright ©2009, Oracle. All rights reserved.
Optimizing Existing Assets: Operational
Excellence Drives Success in a Down Economy
Plan
• Can we prioritize the maintenance backlog?
• Do we have the right – or enough – resources and capacity for success?
• Have we considered major risk factors including suppliers/service providers, weather, etc?
• Can we leverage best practices to reduce planning time and mistakes?
• Can we effectively communicate status/progress internally and externally?
Execute
•Can I collaborate/coordinate with service providers through the project lifecycle?
•How do I balance resources across daily work, turnarounds and capital projects?
•Can I level resources to avoid over-allocation?
•Are we preventing scope creep?
•How can I continuously assess schedule & cost risk effectively?
Measure
•Can I improve unplanned downtime through better resource management?
•Will I minimize safety issues if I have the right people on the right projects?
•Can I increase wrench time and craft productivity with a diminishing pool of resources?
•Will I be able to measure service providers/contractors performance?
•How can I improve ROA and asset efficiency for stakeholders?
Copyright ©2009, Oracle. All rights reserved.
Optimizing Existing Assets: Completing Projects
On-time and On-budget
•Plan – Quickly
develop &
communicate
projects more
effectively
•Execute –
Manage tasks &
activities
•Measure –
Assess costs
and risks easily
Reduce operating costs by managing schedules, resources, and costs across all
complex – shutdowns, turnarounds – and routine/daily maintenance projects
Copyright ©2009, Oracle. All rights reserved.
Optimizing Existing Assets: Execute Best-inClass Outages and Standardize Processes
COMPANY
Ameren distributes electricity to 2.4 million customers
and natural gas to almost 1 million customers in
Missouri and Illinois. Their generating capacity is more
than 16,500 MW and revenues in 2008 were $7.8B.
“Primavera helps us deal with the additional
tasks, scope changes, that inevitably develop
once you get into a project. It can tell us how
many more resources we need, or if they
aren’t available, how much more time the
project will take.”
CHALLENGES
Ozzie Lomax, Plant Manager, AmerenUE
Taking a generating unit out of service for major
maintenance means lost revenue. So the quicker the
work can be planned and executed the better. Ameren
needed to minimize risk and financial exposure during
the outage process as well as plan 3,000 different tasks
and coordinate 900 workers – most of which were
contractors.
BENEFITS
SOLUTION
planning, scheduling and updating of both
internal and external resources
By standardizing on Primavera, Ameren has created an
enterprise project management process that enables
both internal and contract resources to better
coordinate and execute major maintenance programs.
•10% reduction in outage time, the recouped
revenue falls straight to the bottomline
•One “true” master schedule even though
most resources are external contractors
•Enhanced resource management allows the
•Integration of contractor’s schedules helps to
reduce errors, delays and costs
•Visibility of project status from the boardroom
to the field
Copyright ©2009, Oracle. All rights reserved.
Talent Shortage: Enhance the Use of Limited Talent &
Capture Best Practices
•The largest number of retirements will occur over the next
decade1
– The average age of an employee is 46 to 492
– Retirement poses the most immediate challenge to the stability of the
electricity industry's workforce2
•Limited talent is a risk to portfolios & projects
– Lack of skilled talent is increasing project costs and complete dates
– Mistakes due to poor/deteriorating project management skills are
driving up costs
•The challenge – doing more with less
– Investing in the right projects to maximize resource optimization
– Assigning the right staff to the right project
– Capturing best practices/methodologies for the future workforce
Copyright ©2009, Oracle. All rights reserved.
Doing More with Less: Get the Right People On
the Right Projects at the Right Time
Plan
•How do I forecast my resource requirements 5, 10, 15 years into the future?
•How do I ensure I have the right resources for the project?
•Are we over/under allocating resources?
•Do our partners or service providers have the necessary skill sets?
Execute
•How can I quickly adjust for illness and other risk factors?
•If my other projects are delayed how does this affect my resource plan?
•Can I continuously monitor projects for issues and resource bottlenecks?
•How do we ensure adequate communication between the resources and project controls?
Measure
•Has craft productivity increased?
•Are we capturing best practices for the next generation?
•Did we reduce errors by assigning the right skill to the right task?
•Are resource constraints delaying the delivery of the project?
Copyright ©2009, Oracle. All rights reserved.
Doing More with Less: Manage Resources and Capture
Knowledge
•Plan – Get the
right resources
for the job
•Execute –
Manage
resource
bottlenecks and
over allocation
•Measure –
Capture best
practices
Level resources across all projects – capital, shutdown, routine, etc. – and proactively
track resource demand so workforce is not over allocated
Copyright ©2009, Oracle. All rights reserved.
Doing More with Less: Integrate with Disparate
Systems for Enhanced Resource Utilization
COMPANY
Hydro One Networks is responsible for 97% of Ontario's
electricity transmission system and about one-third of the
province's distribution system. Their distribution system
brings electricity to approximately 1.3 million homes and
businesses across rural Ontario.
“The use of a standard, province wide IT
solution is helping us provide timely
scheduling information that can improve
service and reduce overhead costs.”
CHALLENGES
Providing electricity to an area about the size of Western
Europe, serving 92 municipalities and 18 remote communities
is a daunting task. However, imagine also filling the service
orders, performing the construction and maintenance work
while using multiple manual processes and a jumble of highly
customized, poorly integrated software for workforce
management. This is what Hydro One was facing.
BENEFITS
• Enhanced ability to plot work activities and
determine what resources will be required to
supplement existing resources
• Consolidation of resource requirements for the
peak project season by specific geographies
• Reduced data entry means better information
accuracy which results in better service for
customers at a lower cost.
• Increased efficiency by shifting the dispatching
of resources to schedulers in local offices
• Better coordination and management of
resources based on local conditions and
constraints.
SOLUTION
Adopting a best of breed approach, Hydro One selected
Primavera for it’s core resource management capabilities.
Integration to a number of disparate systems, including an
Oracle database, enabled the client to seamlessly move data
among applications. This resulted in a solution that was
flexible and could meet future growth needs.
JJ Blais, Project Director, Hydro One
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25
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Solutions: Oracle Primavera for Utilities
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Committed to Asset Intensive Industries: Enabling
Optimization Through EPPM
Build
Maintain
Proven capital project planning, control
and execution within a rigorous risk
framework to optimize CapEx spend,
mitigate risk and reduce costs
Successful planning and management of
complex global projects – plant shutdowns
and turnarounds – as well as routine
maintenance to reduce OpEx, enhance craft
productivity and increase asset efficiency
We are the de facto standard for the global Utilities Industry
Copyright ©2009, Oracle. All rights reserved.
Solutions for Utilities: Focused Offerings for Capital
Projects & Maintenance
Primavera P6 Enterprise Project Portfolio
Management
• Prioritize project portfolios
• Balance resource capacity
• Plan, schedule, and control
• Allocate best resources and track progress
• Monitor and visualize project performance vs. plan
• Foster team collaborative management
• Integrates with ERP & EAM systems
Oracle | Primavera PPM






Effectively maintain and increase the efficiency of
existing assets
Monitor budget allocations against key
performance indicators
Identify and select the best exploration and
production opportunities
Invest in and deliver projects with superior returns
Coordinate existing resources and quickly train
new talent
Maximize labor pools globally through an
integrated approach
Primavera Risk Analysis:
• Determination of cost and schedule risk exposure
• Predictive forecasting
• Contingency and mitigation modeling and assessment
•
•
Primavera Inspire for SAP:
• Create master schedules from related work
• Increase visibility of all work types, ensure efficient
•
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Manage risks to maximize return and minimize
uncertainty
Set realistic expectations of project cost and schedule
Copyright ©2009, Oracle. All rights reserved.
resource utilization
Reduce system administration requirements and
IT/maintenance
Solutions for Utilities: Leading Technology to Meet
Challenges of Executives and Project Teams
• Interoperability – no more siloed/fragmented data
• Leverage a single version of the truth – one source of integrated
information
• Manage CapEx more effectively – successfully choose, plan and
execute projects
• Drive down OpEx – increase craft productivity through better planning,
allocation of resources, and cross-training
• Deliver on time and on budget – effectively coordinate & collaborate on
multiple projects and programs
• Do more with less – maximize productivity of limited resources
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Next Steps
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Contacts
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