Management Reporting Key Performance Indicators Getting the Most From Your Oracle Applications Doug

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Management Reporting - Key
Performance IndicatorsGetting the Most From
Your Oracle ApplicationsDoug McHughSpectrum
Direct - 630-472-2120dmchugh_at_spectrum-ebusines
s.com
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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

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Overview

• Define KPIs
• Balanced Scorecard
• Supporting Processes
• Application Flow
• Oracles Approach
• 11i Specifically
• Pilot Program
• Benefits vs. Big Bang

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KPI - 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

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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

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Balanced 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
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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
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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
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Overview

• Define KPIs
• Balanced Scorecard
• Supporting Processes
• Application Flow
• Oracles Approach
• 11i Specifically
• Pilot Program
• Benefits vs. Big Bang

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Business Process Definition

• Best Practices Relate to Process Activity
• Benchmarking Facilitates Activity Monitoring
• Cannot Be Modular Focused

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Business Process Definition

• Working Capital Driven Processes
• Order to Cash
• Purchase to Pay
• Order To Distribution ( Through Production)
• Performance Measurement Processes
• Closing
• Management Reporting

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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
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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
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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

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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
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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

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Overview

• Define KPIs
• Balanced Scorecard
• Supporting Processes
• Application Flow
• Oracles Approach
• 11i Specifically
• Pilot Program
• Benefits Vs Big Bang

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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
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Oracle e-Business

• General Ledger
• ADI and OFA
• Balanced Scorecard
• Business Intelligence
• Enterprise Data Warehouse

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Oracle e-Business

• General Ledger
• Chart of Account Definition
• Product / Region Segments
• Value Set Definition
• Parent /Child Relationships
• Cause and Effect Drill Down

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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

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Oracle e-Business

• Balanced Scorecard
• Part of SEM Offering
• Relates 100 to Definition
• Simulation Capability
• Excel Downloads
• Complete ERP Integration

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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

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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

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Overview

• Define KPIs
• Balanced Scorecard
• Supporting Processes
• Application Flow
• Oracles Approach
• 11i Specifically
• Pilot Program
• Benefits Vs Big Bang

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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

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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
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More 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

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Management Reporting - Key
Performance IndicatorsGetting the Most From
Your Oracle ApplicationsDoug McHughSpectrum
Direct - 630-472-2120dmchugh_at_spectrum-ebusines
s.com