Pratt & Whitney

SAP Project System Implementation

2005 Project Management Challenge Conference

March 22 & 23 2005

NOTICE
THE DATA IN THIS PRESENTATION SHALL NOT BE DISCLOSED OUTSIDE THE GOVERNMENT AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED, IN WHOLE OR IN PART, FOR ANY
PURPOSE. THIS RESTRICTION DOES NOT LIMIT THE GOVERNMENT’S RIGHT TO USE THE INFORMATION CONTAINED IN THE DATA IF OBTAINABLE FROM ANOTHER SOURCE WITHOUT
RESTRICTION. THE DATA SUBJECT TO THIS RESTRICTION ARE CONTAINED ON SHEETS MARKED WITH THE FOLLOWING LEGEND:
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT
 Agenda

• Pratt & Whitney

• ERP Program Overview
• Program Management/EVMS
• The SAP Journey

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 2
 Specialty Materials
& Services

Space
Power Systems Propulsion

Large Commercial
P&W Canada Engines and
Aftermarket
Services
Military Engines
 ERP Critical Success Factors
• Must have burning platform
• Executive involvement from top (President/CFO)
• Not an IT project - It’s about changing business process around SAP
• Tied to executive’s Incentive Compensation
• Do planning and scoping up front (before capital request)
• Vigorously compete both software and solution providers
• Integrator choice up front
• Co-locate and incentivise the ERP organization
• Don’t underestimate Change Management and site preparation
• Legacy interfaces will kill you (must have clean data)
• Manage Legacy System retirements
• Set strategy for reporting (Business Warehouse) and
execute consistently

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 4
 Burning Platform

“Enterprise Resource Planning is a major commitment to a

new way of doing business at Pratt & Whitney. We will have
unprecedented access to shared information across the
organization. It will facilitate the creation of customer value
through better integration of our marketing, engineering,
manufacturing and customer support operations.“

– Karl Krapek
President – P&W
9/17/98

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 5
 Data/Information Transformation
Finance
Purchasing systems
Key Master Data # of SAP
Master
Inventory Purchasing Files
systems Chart of Accounts 16 1

Bills of Material 40 1

Product Materials Customers 29 1

Configuration systems Cost Centers 9 1

Employee 68 1

Spares Order Entry Equipment 80 1

systems
processing Materials 71 1

Vendors 36 1
Etc.
Etc.

Developed incrementally
over 30+ years

ERP is targeting ~ 650 Legacy Systems for Retirement

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 6
 Top Level Commitment!

“…no new system development

activities or modifications to
legacy systems will be
authorized outside of ERP
without a business benefits
review and evaluation.”

Louis Chenevert
Letter to P&W Management
December 1999

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 7
 P&W’s Global Business System
Manufacturing Facilities Design Facilities
Lansing, MI Connecticut North Berwick, ME
Indianapolis, IN Stators, Seals, Ducts,
Composites Combustors
Tubes, Ducts, TOBIs
Thrust Reversers HPC Stators Repair Facilities
Manifolds
Shafts, Rotating Ireland
Components Cases Ukraine
Airfoils
Ok City Airfoil Coatings
Tooling Support Services
Coatings India
Serviceable Material
Springdale, AR Test Cells Engineering
Cases & Gear Boxes,
Bearing Housings
Global
EdwardsProcess
AFB, CA
Flight Support
Design Common Japan
Processes
Turbine Airfoils
Single
San System
Diego, CA/ Tijuana, Mexico Common Data
Composites Taiwan
Single Installation
Thrust Reversers World-wide
HPCVisibility
Stators
Nacelles Singapore
Dallas, TX Area Fan Blades
Turbine airfoils Combustors
Dallas Aerospace Turbine Airfoils
Talon, IGT Stators & Honeycomb
A/C Controlling Surfaces Tube Repair
San Antonio, TX
Military Combustors Christchurch Engine Center
Serviceable Military Material JT8D, RR Dart
San Antonio Engine Center Singapore Engine Center
F100 Columbus Engine Center JT9D, PW4000, CFM56-5
JT8D, V2500 Norway Engine Center
Middle East Propulsion Company
CFM56-3, -5, -7
Cheshire Engine Center F100
JT9D, PW4000, PW2000, V2500, F117
Engine Depots

Single Instance Strategy….Critical Early Decision!

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 8
 Pratt & Whitney’s ERP Scope
Engineering Product/Technical Support

Engine
Manual
IPC

CC Information C
C
UU Assembly – Development & Production Overhaul UU
SS S
S
TT
TT
OO O
O
MM
MM
EE E
E
RR
RR
Logistics
Component Production Procurement Component Repair

Program Management

Product Support/Warranty Administration/Fleet Management Programs

Finance/Plant Maintenance/Quality Human Resources/EH&S

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 9
 SAP System Overview

SD FI
APO Sales & Financial
Accounting
Distribution
MM
CO Currently on R/3 4.5B
SAP
Controlling
Materials
PP Mgmt
Production
AA
Asset
with A&D Industry
Planning Software Accounting
Solution
QM Common PS
Quality
Mgmt Infrastructure
Project
System
Plan to upgrade to 4.7
PM WF
Plant Main-
Workflow
tenance
HR IS
Human Industry
Resources Solutions August 2004 R/3 BW APO
EH&S
Daily Transactions 3,264,521 150,845 10,028
Data Base Size 1,751GB 2,949GB 304GB

Avg Mon Growth 37 GB 75 GB

BW

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 10
 ERP Functionality through 2002
1999 2000 2001 2002
7/99 - Phase 1 (ESA) 3/00 - Phase 2 (P&W) 1/01 - Phase 3 (P&W) 2/02 - Phase 5 (P&W)
• Finance • Warehouse Logistics • Labor Collection • MRO (Columbus)
• Procurement • Parts Tracking • EH&S
• MRO (part 1) • Business warehouse • Plant Maintenance
8/01 - Phase 4 (P&W) • Business Warehouse
10/99 - Phase 2 (P&W) 5/00 - Phase 3 (ESA) • MRO (Cheshire) 6/02 - (P&W)
• Core Finance • MRO (part 2) • Component Repair • MRO (Norway)
• GL - Phase 3 (P&W) • Material Valuation
8/02 - Phase 5A (P&W)
• A/P • Plant Maintenance • Spares Order
• Component Repair (EH)
• Fixed Assets • Business warehouse Processing
10/02 - Phase 5B (P&W)
• Budget/Actuals 8/00 - Phase 3 (P&W) • Engine Sales Orders
• Program Management
• Business Warehouse • Engine Assembly & • Procurement
• Product Design &
Costing • MRP
Validation
• Configuration Management • Quality Management
• Product Data
• Electronic Work Instructions • Plant Maintenance
Management for Devl.
• Labor Collection • Labor Collection
• Labor Collection
• Business Warehouse • Business Warehouse
• Space (Full Solution)
10/00 - Pratt Canada 11/01 - (P&W) • F117 Flex Program
• Business Warehouse • Product Data • Customer Owned
11/00 - UTC Management Property
• Business Warehouse • Quality
• Tooling
• Business Warehouse
11/02 - (P&W)
• Military Component
Repair (Oklahoma City)
PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 11
 Agenda

• Pratt & Whitney

• ERP Program Overview
• Program Management/EVMS
• The SAP Journey

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 12
 Product Development at P&W
~ $1B Annual Product and Technology Development Spend

Externally Funded via Contracts

• F135 Joint Strike Fighter
• F119 F22 ATF
• SSME
• AATS
• SED

Internally Funded (E&D)

• PW6000 (A318)
• GP7000 (A380)
• Space ALL development planning and
cost collection performed in SAP.
• Technology Programs

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 13
 Program Management/EVMS
System Must…
• Incorporate integrated cost and scheduling
for large programs
• Provide complete program baseline control
• Deliver EVMS tools that are robust and
comprehensive
• Enable full integration between suppliers
and OEM contractors
• Have the ability to produce accurate EACs
and USG required reports
• Include robust change control and
auditability
• Be simple to use and navigate through

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 14
 Evolution to Enterprise
EV Management
More than Just a System Change…

2000 10/2002

Common
Common Metrics
Metrics
And
And Reporting
Reporting (wInsight)
(wInsight)

Multiple:
Multiple:
•• Tools
Tools
•• Processes
Processes
•• Metrics
Metrics
•• EV
EV for
for ME
ME only
only
ERP Program ERP
ERP
EVMS
EVMS CE
CE Program
Program ME
ME Program
Program
Management Data Data Implemented!
Implemented!
Organization
Organization Data Data
project begins
Formed
Formed Single
Single tool
tool
Common
Common Process
Process
Real-time
Real-time Data
Data
EV
EV for
for CE
CE and
and ME
ME

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 15
 Program Management –
Prior to ERP
Multiple Tools, Multiple Processes — Not Integrated!
Commercial Development Military/Space Schedules
(MS Project)
Schedules
(MS Project) Budgets
PMPS
CE Manpower
Milestones
Requirements

ME Manpower F100 Budget & EV Budget & EV

EMS Requirements
Dekker Tracker CPSIII
Work $$
Authorization $$ $$
PDC Work
(Cost Accumulation) Authorization
Project Cost
EWACS (Cost Accumulation)
Reporting
SALTI
CBS
Labor
• Spend Variance Reporting
collection Billing
• EAC EV – Cost & Schedule Variance
• Limited EV EAC
CDRLs

117 Legacy Systems

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 16
 EVMS Organization Formed!
• Drive Culture Change
• Consistent Process and Tools
• Constancy of Purpose EVMS
Organization

Systems/ EVMS
ACE Training Program
Surveillance Analyst

• EVMS Process Owner

EVMS CIPT • Program Planning
Analyst and Budgeting
• Master schedules Close
• Program management Coordination
• Standard work implementation with
instructions (how to’s)
– Requirements Program
– Templates – metrics
– Plans/schedules Office
Deployed to – Thresholds – actions
– Budgets/estimates
Module Centers/ • Plans, analysis
• CIPT schedules
Systems and reports
• Status
Engineering • Change control
• Analysis and reports
• Corrective action
• Changes

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 17
 EVMS Overview at P&W
Monthly Process in SAP

Take
Take Action
Action
and
and
Modify
Modify Plan
Plan

Establish
Establish Analyze
Analyze
Develop
Develop Close
Close
Baseline
Baseline and
and
Proposal
Proposal Project
Project
(Plan)
(Plan) Report
Report

Authorize
Authorize Monitor
Monitor
Work
Work Project
Project
(Execute)
(Execute) (Status)
(Status)

Single….Standard Process Established Across the Enterprise

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 18
 ERP EVMS Implementation Goals
• Standardization
– Business Process
– WBS structure
– Metrics and Reporting
– Labor forecasting
• Improved Visibility to Program Data
– Actual costs near real-time
– Cost detail drill down
– Open Commitments
– Timely reporting
• Less Paper!
– Work Authorization
– Program performance
PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 19
 Pratt’s IT Toolset for EVMS
SAP wInsight Performance Trending

SAP PS EVC
CPR Reporting

EV & Customer Reporting

All Program Data Business Warehouse (BW)

•Plans – resource and cost Snapshot of
plans spend profiles,
manpower
•Schedule Reports/Queries
•EV Methods Documentum
•Baseline
Work
•Actuals Authorization
Documents
•Earned Value (BCWP)
•Estimate at Complete (EAC) MS Project ®

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 20
 Program Management in SAP
Project Schedule and Milestones
- Level I, Level II, Level III
EVMS BW & SAP

Toolset Reporting Staffing, budget

costs, etc…..

WBS/Network
Structures
in SAP PS

Resource EV
Rqmts by Program
Program Measurement Baseline wInsight

Integrated Schedule & Budget CP

R
Staffing Requirements

Estimate at Completion (EAC)

Work Center Definition Billing (Project 1)
(Master Data) Earned Value Analysis
INVOICE
Blah blahhh blah blah
bla blb blah bla
doifdsfoisd dffsdsdjf

Cost Collection (Project 1)

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 21
 SAP PS Implementation Approach
• Standard PS (as much as possible)
– Customizations only for “true” gaps
– All Program Management legacy APO
SD
Sales &
FI
Financial
Accounting
systems retired – no interfaces MM
Distribution
CO

SAP
Controlling
Materials
PP Mgmt AA
• All program management data Production
Planning Software
Asset
Accounting

within SAP QM Common PS

Project
• Full integration with SAP functionality Quality
Mgmt
PM
Infrastructure
Plant Main-
WF
System

Workflow

– Finance and Billing tenance

HR
Human
Resources
IS
Industry
Solutions
EH&S
– Contracts
– Purchasing
– Warehousing BW

– Development engine assembly

– Tooling

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 22
 SAP Structure
and Cost Accumulation
ME.1061 - Level 1 Parent
Parent
ME.1061-05 - Level 2 WBS
WBS Levels
Levels
ME.1061-05-01 - Level 3
ME.1061-05-01-02 - Level 4
ME.1061-05-01-02-001 - Level 5
ME.1061-05-01-02-001-100 - Level 6 Planning Detail
WBS
WBS
Control Account (CSVAR level)
Lowest
Lowest Level
Level

Breaks down the work in the WBS

“Linked” to the lowest level of the WBS Network
Network
Can have more than one network in the WBS

Segregation of work scope in the Activity

Activity
network (WPs
(WPs and
and PPs)
PPs)
Not part of the charge number
# Can only be used once in the
network
Unique to an activity - # can only be used once in the network Element
Element
Computer
Travel
Labor – Work Centers (Units) Mat’l Outsourcing
Material (Burdened or Unburdened)
Fuel
PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 23
 WBS and Network Structure
WBS – Standard Across Programs
•Aligns with Budget and EVMS Responsibilities
•Aligns with contract line item/billing requirements

NetWork Activities
•Schedule (constraints, durations,
relationships) Activity Elements
•Resource Plan/Actuals
•EV method and status
– Work Center Hours and dollars
– Milestone, Percent Complete, – Hardware (direct mat’l) plans
0 -100, Level of Effort (LOE) – Other costs plans and actuals
– Integration with PO and
•Integration with PM, SM orders
PP orders
•Earned Value metrics
PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 24
 EVMS Month End Processing
Majority of EVMS data is the result of real-time transactions

However,
EVMS Month-end closing is executed by the IT team in background as
part of the Financial closing.

Run
Run EVC
EVC for
for
Calculate
Calculate EV
EV Apply
Apply Calculate
Calculate Summarization
Summarization wInsight
wInsight
(CNE2)
(CNE2) Overhead
Overhead ETC/EAC
ETC/EAC and
and Inheritance
Inheritance Extract
Extract

RA/
RA/ Assessments
Assessments Billing
Billing
Settlement
Settlement

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 25
Monthly EV Process (Timeline)
Month
Week 0 Week 1 Week 2 Week 3 Week 4

Financial/ IPMT Activities

EVMS
CIPTs Month • Monthly Program Review
Flash
monthly End Close Cost • Schedule
status Reports • Risk Assessments
• Issues
• Accomplishments

CIPT Activities
• Analyze Data
wInsight • Variance Analysis
database
available • Risk Assessments
to CIPT’s • Closure Plan

SAP
wInsight Bull’s Eye
Pratt & Whitney Aircraft NA OTHER OTHER
Element: $HD Bull's-eye Chart - As of: SEP 02 Name:

BEHIND
AHEADSCHEDULE,
OF SCHEDULE,
UNDER
UNDER
COSTCOST
40

30

CV % CUM Percent of Dollars

20

10
78
6
0 5
4 0
2 1
3
-10

-20

-30

-40
BEHIND
AHEAD
SCHEDULE,
OF SCHEDULE,
OVER COST
OVER COST

-40 -30 -20 -10 0 10 20 30 40 50

SV % CUM Percent of Dollars

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 26
 Change Control – Baseline & EAC
5000

• Approved Work Scope Changes

4000
Baseline
3000 • All changes documented
2000

1000 Baseline Plan

0
$’s
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Manpower Plans
Workscope Changes Engineering Requirements Firm Through 2003
2001 - 2003 Requirements
7000

Plan 6000
M f g S up p o rt , IDWA s , Ot he rt

Staffing Requirements
5000 A f t e rmarke t

Revisions
P o w e r S ys t e ms r

V2 5 0 0 Co s t R e duc tio n
4000 GP 7 0 0 0
P W6 0 0 0

Eng ine S urg e

OC E Te c hno lo g y/ C o ntra c ts
3000
F 117 / OM E/ Othe r
F 10 0

2000 External
JS F 50% Contract
(Revenue)

F 119
1000

EAC Changes 0
S pa c e

2001 Q1 2001 Q2 2001 Q3 2001 Q4 2002 Q1 2002 Q2 2002 Q3 2002 Q4 2003

22

5000

4000
EAC EA VAC
3000 C
• Approved EAC Changes
2000
Baseline • All changes documented
1000
Actual Costs
Plan

0
Earned Value • Must be consistent with funding levels
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 27
 Common Metrics
Monthly Program Reviews Organizational Metrics
TASK TITLE: High Pressure Combuster Blue cells updated automatically Module Center-Control Tower On Plan

TASK MGR: Jon Smith

Plan

Earned Value
$300k

$250k

$200k
DATE July 20, 2001

Programs Information Flow Module

Centers
Metrics
March 2001

Quality Cost Delivery

Off Plan

People

Mod Center
Actuals $150k Overall

$100k Quality Cost Delivery People

Dev Dev
EV - Earned Value $50k Progam Warrant Performa
Reliability Hrdwre
Module EVMS Cost
Hrdwre Fill
EVMS Sched
Staffing
Program s Score y Costs nce Cost Variance Fillrate
SV - Schedule Variance Cost rate
CV - Cost Variance $k
BAC - Budget at Completion
J F M A M J J A S O N D
Quality Cost Delivery People
End of Month
Des Rev Salary
E&D Overhead FETT Repair Dev Salary Salary Employee
EV SV CV BAC COST Engineering Escapes
Rework
Turnbac
Rate
E&D Productivity
Leadtime Leadtime
Trips to
staffing training scorecard
ks Medical
$ 242,000 0 -22,000 242,000 264,000
% 100.0 0.0 -9.1
Quality Cost Delivery People
COMMENTS: (expand as needed)
Cost per Comm Total
Module Mil Spares Inventory Total Injury Hourly
Manufacturing Escapes Scrap Del PPV Spares Fill Recordable Total Waste
Fill Rate fill rate Turns Rate Training
Hour Rate Rtae

Standard & Disciplined

WTT
WTT Approach Required Module
Module
Across Programs & Center
Center
Module Centers

IPMT
IPMT EVMS Program Engrg
Engrg Product
Product
Analyst Director
Director Director
Director

Business
Business
CIPT
CIPT Center
Center
CIPT
CIPT
EVMS CIPT
Analyst
IPT
IPT
IPT
IPT

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 28
 Customizations

• Baseline creation and maintenance

• Work Authorization – documentation
and archival
• EAC calculation
• SAP Reporting (Report Painter and ABAP)
• System Performance!!

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 29
 e-Business Tools..Ease of Use
e-BTR (Budget Transfer Request)

Take
Take Action
Action e-CSVAR
and
and (Cost/Schedule
Modify
Modify Plan
Plan Variance)

Establish
Establish Analyze
Analyze
Develop
Develop Close
Close
Baseline
Baseline and
and
Proposal
Proposal Project
Project
(Plan)
(Plan) Report
Report

Authorize
Authorize Monitor
Monitor
Work
Work Project
Project
(Execute)
(Execute) (Status)
(Status)

e-PRF (Project Request Form)

PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 30
 Post Go-Live Efforts
9 • Contract Rollover – business process and functionality to facilitate
movement of WIP, material etc., from one project to another
9 • Proposal (ProPricer) Conversion – import plans to SAP PS
9 • Travel and Expense
9 • More Reports – Well over 100 and still growing. Reports added for
data validation and planning, not just management reporting.
• Ease of Use
9 • System/User status maintenance screen
• Baseline/EAC maintenance
• EV Cockpit
• Integrated Master Schedule Incorporation

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 31
 Today…Two Years Later!
Legacy

268 Commercial
1768 Projects 1312 Military
188 Space
Zero
1,010,696 WBS elements
61,824 Networks
1,263,818 Activities/Elements
809,860 Assigned Orders

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 32
 Standard EVMS Processes
Business Process Elements

9 Standard Work Breakdown

Structure (WBS)
9 Baseline Plans
9 Work Authorization Standard
Processes
9 Cost and Schedule Variances Across
9 EAC Process Programs

9 Change Control
9 Reporting
9 EVMS Standard Work

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 33
 Big Hits at Pratt & Whitney
$
Project Plan, Goods Integration!
EV and Costs receipts •Data timeliness
•Visibility to details
Labor hours & $s

Services

BW Reporting
Actual $ when invoiced (particularly staffing)

Common process for

Military and Commercial

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 34
 EVMS Standard
Documentation and Work

System
Description
Standard
Policies & Work
Procedures

Program Specific
PMI’s

Work Step Instructions

(WSI’s)

Earned Value Training

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 35
 The EVMS IT Team
Development/Go-Live Sustaining
PW Subject Matter PW: 4-5
Experts: 9 IT Technical: 3
IT Technical: 5-6 Consultants: 0.50
Consultants: 4
Plus help from SAP
consulting for system
performance
improvements.

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 36
 Pratt’s EVMS Transformation

FROM
FROM TO
TO
Roles
Roles and
and Responsibilities
Responsibilities •• Inconsistent
Inconsistent •• Consistent
Consistent with
with IPD
IPD
Ownership
Ownership of
of Process,
Process, Metrics,
Metrics, •• Multiple
Multiple •• Central
Central EVMS
EVMS Organization
Organization
Systems
Systems and
and Tools
Tools
Metrics
Metrics •• Multiple
Multiple •• Common
Common
Process
Process and
and Documentation
Documentation •• Separate
Separate •• Single
Single
Resource
Resource Plans
Plans •• Multiple
Multiple Sources
Sources •• Based
Based on
on Standard
Standard Work
Work
Cost
Cost and
and Schedule
Schedule Systems
Systems •• Multiple
Multiple •• Single
Single
Source
Source of
of Management
Management •• Multiple
Multiple •• SAP
SAP wInsight
wInsight
Data/Reports
Data/Reports

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 37
 Looking Back…
What Worked Well
• Business Process experts leading development
• Early involvement of end-users in integration testing
• Report development (both SAP and BW) begun early
• 3+ Go-Live dress rehearsals for data conversion
• Co-location with of IT and Business Teams at go-live

Lessons-Learned
•The user interface matters – What is acceptable for working with a
small amount of data may not be acceptable when working with
large projects.
• Test system performance early…

PRATT & WHITNEY PROPRIETARY

USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 38
 Summary
• ERP/SAP is a game changer for Pratt & Whitney
• Single instance strategy allows world wide visibility
and process consistency
• Unprecedented level of data available to drive
rapid decisions
• EVMS – process, tools, organization, and culture
• Full application of SAP to Program Management/EVMS
• The ERP and EVMS journey continues…

Thank you!
PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 39
 PRATT & WHITNEY PROPRIETARY
USE OR DISCLOSURE OF DATA CONTAINED ON THIS SHEET IS SUBJECT TO THE RESTRICTION ON THE TITLE PAGE OF THIS DOCUMENT 40