Title: Management Reporting Key Performance Indicators Getting the Most From Your Oracle Applications Doug
1(No Transcript)
2Management Reporting - Key
Performance IndicatorsGetting the Most From
Your Oracle ApplicationsDoug McHughSpectrum
Direct - 630-472-2120dmchugh_at_spectrum-ebusines
s.com
3 Management Reporting Musts
- Realistic Vision of Vertical Market
- Plan Anchored in Quantified Milestones
- Actual Performance Measured Analytically (Cause
and Effect) - Fluid Assessment / Adjustment Process
- Effective Use of KPIs is the Glue
4Overview
- Define KPIs
- Balanced Scorecard
- Supporting Processes
- Application Flow
- Oracles Approach
- 11i Specifically
- Pilot Program
- Benefits vs. Big Bang
5KPI - Definition
- Predetermined Target
- Compare Actual Results
- Best Practices
- Go Hand in Hand with KPIs
- Industry Vertical Impact
- Unique to Vertical
- Generic all Verticals
- Cause and Effect
- Enables Remedial Action
6 Balanced Scorecard
- Kaplan and Norton Mid 90s
- Balanced Emphasis of KPIs
- Finance, Customer, Internal and Learning/Growth
- Effectiveness Requires
- Predetermined Analysis Paths
- Integrated Application Processes
- Centralized Support Process
7Balanced Scorecard
Customer
Internal
Learning
Financial
ROOA
Satisfy
per P/O
Train Hrs
Days W/C
New Prod
Quality
Turnover
Orders
Key A/C
Delivery
Satisfy
Expense
Pricing
Inv Turns
Recruit
8 Days of Working Capital
A/R
INVENTORY
A/P
Channel
Product
Turns
RMA
Country
Complaints
Quality
Service
Economy
Service
Deliver
Training
RMA
Vendor
Production
Customer
Predetermination of KPI Analysis Paths
9 Days of Working Capital
Days Outstanding of Working Capital
50.4
Receivable DSO 57.6 days
Inventory Turns 6.2
Turns Drill Down
DSO Drill Down
2 turns product X
40 days product X DSO
30 days target 2 day variance
yellow
15 turns target product x 2 turn variance yellow
RMA
Customer Complaints
35 returns Product X
55 of Product X Sales
5 target 2 yellow
variance
5 target 2 variance yellow
of Service Calls
Quality Rework-Scrap
Vendor Performance
RMA
10Overview
- Define KPIs
- Balanced Scorecard
- Supporting Processes
- Application Flow
- Oracles Approach
- 11i Specifically
- Pilot Program
- Benefits vs. Big Bang
11 Business Process Definition
- Best Practices Relate to Process Activity
- Benchmarking Facilitates Activity Monitoring
- Cannot Be Modular Focused
12 Business Process Definition
- Working Capital Driven Processes
- Order to Cash
- Purchase to Pay
- Order To Distribution ( Through Production)
- Performance Measurement Processes
- Closing
- Management Reporting
13 Working Capital Driven
- Order to Cash Activity Flow
- Sales / Quote
- Order Entry
- Credit
- Billing
- Customer Service / Collection
- Cash Application
- General Ledger Interface
- RMA Process
Order to Cash Days
Won / Loss
DSO
14 Working Capital Driven
- Purchase to Pay Activity Flow
- Originating Requirements
- Select / Negotiate Vendor
- Order / Contract
- Receive / Inspect
- Invoice Match / Control
- Payment Processing
- General Ledger Interface
Purchase to Pay days Cost per P/O Line
rejected
15 Working Capital Driven
- Order to Distribution Activity
- Customer Order ( Manufacturing Req.)
- BOM Engineering Implementation
- ECO, BOM, Item Costing
- Planning and Scheduling
- Forecasting, Capacity Planning, MRP
- Work in Process
- Issues, Job Control, WIP Costing
- Inventory
- Controls, Planning, Misc. Transactions
16 Performance Measurement
- Closing
- Sub-module Transaction Flows to G/L
- G/L Setup
- Journal Processing Model
- ADI
- Organizational Review
Days to close and of journal corrections
17 PERFORMANCE MEASUREMENT
- Management Reporting Flow
- Planning/Budgeting Process
- Set Tactical KPIs Related to Key Strategy
- Apply Actual Results Against Plan
- Evaluate Variance to Plan
- Simulate Effect on Plan Change
- Adjust Plan / KPIs as Required
- Apply Actuals and Repeat Process
- Days to complete
18Overview
- Define KPIs
- Balanced Scorecard
- Supporting Processes
- Application Flow
- Oracles Approach
- 11i Specifically
- Pilot Program
- Benefits Vs Big Bang
19 Examples - Oracle e-Business
Process
Activity
KPI
Software
i-Procure
PTP
Select / Negotiate
Expense
CRM
OTC
Quoting
Sales
Workflow
all
all
all
BIS
MR
Analyze
all
20 Oracle e-Business
- General Ledger
- ADI and OFA
- Balanced Scorecard
- Business Intelligence
- Enterprise Data Warehouse
21 Oracle e-Business
- General Ledger
- Chart of Account Definition
- Product / Region Segments
- Value Set Definition
- Parent /Child Relationships
- Cause and Effect Drill Down
22 Oracle e-Business
- ADI and Oracle Financial Analyzer
- Both Can Facilitate Drill Down
- Both Can Mimic Balanced Scorecard
- Ideal for Pilot Situation
- Neither Have Standard KPIs/Alerts
23 Oracle e-Business
- Balanced Scorecard
- Part of SEM Offering
- Relates 100 to Definition
- Simulation Capability
- Excel Downloads
- Complete ERP Integration
24 Oracle e-Business
- Business Intelligence
- Targets Specific Operational Areas
- Not intended for Executive Level
- Workbook and Alert Based
- 20 Intelligence Areas
- Financials, Sales Performance, Customer
Satisfaction, Planning, Order Management, etc. - Internet Alert and Delivery
25 Oracle e-Business
- Enterprise Data Warehouse
- 1 Stop Shopping for all Data Needs
- Underlying Data Source for BIS and SEM
- Pre-built Data Collection Data Packs
- Multi Dimensional (Cube Architecture)
- Facilitates custom applications
26Overview
- Define KPIs
- Balanced Scorecard
- Supporting Processes
- Application Flow
- Oracles Approach
- 11i Specifically
- Pilot Program
- Benefits Vs Big Bang
27 Pilot Program
- Validation
- Establish Key Strategic Initiatives
- Cause and Effect Definitions
- Quantitative and Human
- Reporting Process Flow
- Finance Usually Facilitates
- Workflow Process Definitions
- FSGs ADI - OFA Are Good Tools
28 Words of Wisdom
High of data required for KPIs exists in
transaction database EDW views and BIS designed
to address most common needs Dont re-invent the
wheel Use statistical entries where appropriate
29More Words of Wisdom
- If Its Worth Doing -----
- Its Worth Measuring
- If You Are Not Measuring -----
- You Are Just Practicing
- without Reliable Data -----
- You Are Just Another Person
- with an Opinion
30Management Reporting - Key
Performance IndicatorsGetting the Most From
Your Oracle ApplicationsDoug McHughSpectrum
Direct - 630-472-2120dmchugh_at_spectrum-ebusines
s.com