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Implementing Oracle Time & Labour for Projects

Diane Bayes and Michele Lane Deloitte Inc.

© Deloitte & Touche LLP and affiliated entities.

Implementing Oracle Time & Labour for Projects
Do you know the labour cost for your projects? Oracle Time and Labour (OTL) will tell you! This presentation is a summary of the OTL functionality implemented for a client in late 2006 for over 1,300 users. Learn about the various stages of implementation, the challenges encountered, the experience of having a Pilot Group, and the benefits achieved.
2 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

What we will cover
‡ Plan & Scope
± Plan, Scope & Objectives ± Overview of OTL

‡ Design & Build
± Design by Prototype ± Overview of the Solution ± Customizations

‡ Test & Deliver
± ± ± ± ± Testing Training Pilot Roll Out Full Roll Out Support

‡ Key Messages
3 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

.Plan & Scope 4 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

. SQL) Developer (Customizations. Discoverer. Alerts.Plan ‡ Rapid Implementation. Workflow) Training Communications ‡ Dedicated Steering Committee 5 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. ± Pilot rollout in 3 months ± Room for improvement with a full rollout in 5 months ‡ Team skills and resources required: ± ± ± ± ± ± Oracle Time & Labour Oracle Project Costing Report Writer (XML.

just over 60 of the over 1.000 employees ‡ Employees and Contractors ‡ Primary objective of time tracking is: ± Costing Capital Project work ± Management reporting 6 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.300 potential OTL users from over 27.Scope & Objectives ‡ Consolidation of four different time entry systems into Oracle Time and Labor ‡ Two business units. .300 departments ‡ Approximately 1.

Payroll/HR. . and Purchasing (contingent worker integration) ‡ Approved time entries are available for retrieval by any of the applications that require them 7 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.OTL is µjust¶ a time entry tool ‡ OTL is designed to facilitate time entry for both employees and contingent workers (contractors) ‡ Timecard layouts capture data for Project Costing.

. scheduling and assignment of resources is supported through an integrated solution with Oracle¶s Resource Management and Oracle Projects suite ‡ HR/Payroll tool ± Integration allows time entries and time exceptions to be retrieved by the HR/Payroll applications to affect entitlement and payroll calculations 8 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.OTL is not a« ‡ Project Costing tool ± Integration allows time entries to be retrieved by the Project Costing module where the appropriate costing and accounting rules are applied and processed ‡ Resource Management tool ± Planning.

9 Implementing Oracle Time & Labour for Projects .Features of OTL ‡ Time entry can be completed through: ± a configurable web-based time entry screen ± an offline spreadsheet ‡ Time entry can be completed by the individual worker or by a designated µTimekeeper¶ ‡ Timecards are customizable to suit unique business requirements ‡ Specific business rules or ³Preferences´ can be applied to various groups of people to control a variety of data entry attributes ‡ Approval rules can be configured differently for each application receiving the data and applied to various groups through the µPreferences¶ *offline spreadsheet entry and Timekeeper functionality was not included in this solution © Deloitte & Touche LLP and affiliated entities.

Design & Build 10 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

11 Implementing Oracle Time & Labour for Projects .The Design and Build phase was facilitated by a series of Prototypes Prototype 1 Gather Requirements & Feedback ‡ Build based on basic requirements and assumptions from experience with the client and existing Oracle environment Build Prototype ‡ Focus on demonstration of available functionalities ‡ Facilitate discussion of configuration options Prototype 2 ‡ Detailed build incorporating business decisions for both OTL & PA and feedback from Prototype 1 ‡ Larger audience to critique solution in Validation Workshop Pilot Go Live (Prototype 3) Conduct Validation Workshop ‡ Full build in Production with all major decisions confirmed ‡ Allow small user group to experience and critique solution for ease of use © Deloitte & Touche LLP and affiliated entities.

. Operating (Indirect) and Administrative Projects -Employees enter ABSENCE hours to account for their minimum work week Validate timecard against CONFIGURABLE warnings and critical errors 24 hrs / day < employee standard week End of Week Correction s Required? No Yes Changes Required ? Send to Supervisor for Approval Yes Contracto r Timecard ? ALERT If timecard not completed on time No No Timecard Approved 12 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.Process and Approve Timecards Yes Employees & Contractors enter/correct all hours WORKED to Capital.

.OTL Preferences All Employees Timecard Periods Timecard Layout Create Templates Append Templates Timecard Edits Validate on Save Delete Timecards Contractors Approval Style Pubic Template Group Time Entry Rule Group 13 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

Process Labour Costs Start Import timecard s from OTL to Oracle Projects Is time charged to ³Absence´ (vacation. . Sick) Yes Labour Cost Extension: Cost rate is set to zero based on Project Type No Yes Labor Cost Overrides: Individual contractor cost rate Calculate cost: multiply hours by cost rate Cost Rates influenced by: ‡ Project Type ‡ Person Type (Internal or External) ‡ Parent Organization ‡ Job ‡ Specific Contractor rates or ³Labour Cost Overrides´ Is ³Person Type´ contractor No Get employee Parent Organization Organization Rate: Rates set by Job at Parent Org level Stop 14 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

Auto Accounting Rules Labor Cost Account Type of Project Debit (Charge) Construction in Progress Organization responsible for the Person Organization responsible for the Project/Task Labor Cost Clearing Account Credit (Offset) Type of Resource Capital Indirect (Special ³Admin´ Project Type) Indirect (General Maintenance & Expense) Organization responsible for the person All Labor Special Liability suspense account Contingent Worker Labor 15 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

system confirms ³hours received´ before releasing invoice for payment Hire Contingent Worker (into HR).Contingent Worker ³Workaround´ Oracle¶s ³Out of the Box´ Solution: ‡ ‡ ‡ ‡ ‡ ‡ ‡ Create Project(s) Issue PO to hire Worker for Project(s) ± Distribution(s) are to the Project(s) Our Workaround: ‡ ‡ ‡ ‡ ‡ ‡ Issue PO ± Distribution(s) are to the Special Liability account Hire Contingent Worker (into HR) and reference PO Use OTL to charge time to Project ± as identified on the PO Choose to integrate OTL with Purchasing ± Timecards become receipts Choose to process costs in PA from the timecard or from the PO Receipt Use standard PO Matching to validate and process invoices. . do not reference PO Create Project Use OTL to charge time to Project Choose NOT to integrate OTL with Purchasing Choose to process costs in PA from the timecard (not the PO Receipt) ± Auto Accounting credits OTL entries to Special Liability Account ‡ Use manual reconciliation process to verify invoices and approve for payment ± Invoice distribution debits the Special Liability Account 16 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

.Test & Deliver « with Lots of Training & Communication! 17 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

Testing Activities UAT Integration Testing Unit Testing Develop Test Scripts 18 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

Training ‡ Logistics ± ± ± ± Presentation only No Hands On Teach up to 1200 end users in 2 weeks in 2 different locations Approximately 100 remote end users (Microsoft Live Meeting) Additional classes were added after Go-Live ‡ Reference Materials ± Instruction Guide ± Quick Reference Guide ± Frequently Asked Questions Guide ‡ Curriculum: Delivered the same training to all types of users ± People entering time ± People approving timecards ± People running reports 19 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

. Employees and Managers ‡ Pilot users ± ± ± ± worked directly with the implementation team for support were actively involved in weekly user feedback sessions provided valuable input in preparation for the January go-live Made significant recommendations regarding go live communications and leading to the timecard modification 20 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.The use of a pilot was extremely helpful to the success of the project ‡ Approximately 20 people were identified from both business areas including Contractors.

Customized Timecard 21 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

.Assigning an OTL Group to a Project 22 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

financial year end. holiday schedules ‡ Extensive. not the project team ‡ Our Super Users !!!! ± Approximately 50 people from across the organization assisted in support and communication between the project team and the 1300 users ± Team recruited during training and remained dedicated through production support 23 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. reminders. repeated bulletins. . vacation roll over.Communication was key ‡ Needed to ensure we ³got their attention´ ± Time span was relatively short ± Competition was high. helpful tips and gentle warnings ‡ Demonstrated support from all levels of Management ± Messages were sent from key executives.

Wrap Up 24 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

year end ± Logistics of training a high volume of end users ‡ Providing effective Go Live support ± Almost 100% of users hitting the system on the first cutoff day 25 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.Challenges ‡ Contingent worker functionality was relatively new ‡ An upgrade to Full HR from Shared HR was required ‡ Varying levels of process change for different user groups ± Which Projects to charge for different activities ± Adherence to different time entry schedules ± Changes to the on-going effort to setup and maintain the noncapital projects required for time reporting ‡ Planning for and participation in Training ± Encouraging people to attend sessions. . busy schedules.

Accomplishments ‡ Replaced four different time tracking systems from two different business units with one common system and common processes ‡ Eliminated manual consolidation. costing and entry of hours to Projects ‡ Facilitated Project managers to be more accountable for the costs that are charged to their projects ‡ Enabled Project and Departmental managers to drill down to specific time entries from their Project summary amounts ‡ Generated interest from other business units to adopt the OTL solution ‡ Significantly increased the compliance rate within the first two weeks 26 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

Success Factors ‡ Dedicated Steering Committee ± quickly identified the key objectives and used them effectively to keep scope in line and guide process and configuration options ‡ Extensive Communications Plan ‡ Early focus on Training ± Visible support from Executives who provided opening introductions to all training sessions in person ‡ Pilot rollout ‡ Super User community ‡ Significant short term Go Live support 27 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

terminations. particularly in a non-Oracle HR environment ± Importance of assignment dates ‡ Confirm the approach for utilizing Projects to track time which is not otherwise considered to be ³Project´ time ‡ Prepare Training plan & logistics EARLY ‡ Provide at least one report that includes ³Everything´ ± Individual management styles differ. reports that allow each user to sort and summarize their people data are well received ‡ Recruit an extended team to facilitate communications and assist with Go Live support. contractors.Key Learnings ‡ Ensure an understanding of what OTL is and is not ± What other modules may be required to satisfy requirements ± Understand the Contingent Worker functionality ‡ Understand the use of HR data in a Full HR model ± Processes for new hires. . our ³Super Users´ 28 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.

Questions? 29 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

Appendix 30 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

Loc.Loc. Entry Capital Projects Costs Employees Contractors Operating Projects / Operating Tasks in Capital Projects Employees Contractors Admin Project Employees Contractors Charge (DR) Task Company & CIP account Employee Organization (Co.Dept) & Allocated Capital Labour Recovery Account Task Organization (Co.Accounting Approach The agreed approach allows internal costs to be reflected in project management reports without creating a cross charge to departments who utilize internal resources for non-capital activities.Dept) & Contracted Labour Expense Account Employee Organization (Co.Loc.Dept) & Allocated Capital Labour Recovery Account Employee Organization (Co.Loc.Loc.Dept) & Allocated Capital Labour Recovery Account Contractor Organization (Co only) & Contractor Clearing Account Offset Contractors (CR) Contractor Organization (Co only) & Contractor Clearing Account Contractor Organization (Co only) & Contractor Clearing Account 31 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities.Dept) & Contracted Labour Expense Account Offset Employees (CR) Employee Organization (Co.Loc.Loc. .Dept) & Allocated Capital Labour Recovery Account Contractor Organization (Co.Dept) & Allocated Capital Labour Recovery Account Employee Organization (Co.

Summary of Costing & Accounting Rules Type of Project Type of Resource Project Cost Results Financial Statement Impact Charge (Debit) Offset (Credit) Capital Internal External Average Cost Actual Cost Average Cost Actual Cost $0 Average Cost Actual Cost Capital Capital No Impact Task Owning Org Expense No Impact No Impact Contractor Org Expense Employee Org (Allocated Recovery) Clearing (Liability) Expense & Maintenance Internal External Clearing (Liability) Absence Administrative Internal (*no external) Internal External Clearing (Liability) 32 Implementing Oracle Time & Labour for Projects © Deloitte & Touche LLP and affiliated entities. .

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