Enterprise Resource Planning

(ERP) Overview

Keith L. Leung
Deputy, Supply & Contracts Dept.
SPAWAR Systems Center, San Diego
17 Oct 01
 ERP Overview

• What is ERP?
• ERP activities within the Navy
• ERP at SSC-SD
• Implementation
• What’s Next?

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 What is ERP ?

Asset Strategic
Management Planning
The integration of
...To produce
business
Program dramatic
processes that Common Financial
Management performance
optimizes Data
improvements
functions across
the enterprise ... Human
Procurement Resources

ERP provides consistent & reliable information for timely

decision-making and performance measurement
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 Typical ERP Approach

• New/re-engineered business processes

……combined with……
• Multi-function/integrated software package
..….providing……
• A common enterprise business picture
– Consistent and timely information for decision making
and performance measurement
– Single data entry point
– Seamless integration of shared information
– Production and access to information in near, “real-
time” environment
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 ERP Solution Providers
• ERP vendors provide integrated software
packages
– Leading ERP software providers
Vendor Software
SAP R/3
Oracle Oracle ERP
PeopleSoft PeopleSoft ERP
• ERP System Integrators (SI) provide support
through business process re-engineering,
implementation, change and transition
management
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 ERP Benefits the Organization
One “system” means
Now I have time to no interconnectivity
analyze the data instead issues!
of just punching numbers
Thanks!
ERP is bringing
us together! Data is available
real-time!

I have the same

info corporate does!

I only enter We’re all working

data one time! from the same
set of books!
Workflow is visible
from everywhere! 6
 Focus is Business Process Change
• ERP is a foundation lever for change…BUT

Business
Process
Change

ERP

• ...Initiating and sustaining Business Process

Change is the ultimate objective…
– Not just implementing a software package
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 ERP Activities within the Navy
• Dec 1997 SECNAV initiated Revolution in
Business Affairs (RBA) to look at areas of
opportunity for change
• Commercial Best Practices (CBP) formed to
address best practices approach for Navy business
• CBP recommended DoN should use ERP as
foundation/lever for change
• Dec 1998 RBA agreed on ERP recommendation
and authorized pilots in Navy

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 Approved ERP Pilots

Pilot Focus Lead Software Integrator

Navy Working Capital Fund SPAWAR (SSC-SD) SAP R/3 Pricewaterhouse-
(NWCF) – Project Cabrillo Coopers
Acquisition Program NAVAIR SAP R/3 KPMG
Management
Aviation Supply Chain & NAVSUP/NAVAIR SAP R/3 EDS
Maintenance Management
Regional Maintenance NAVSEA SAP R/3 IBM

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 ERP at SSC-SD
Key Program Decisions
Mar 1999-
Jun 1999 Step 1
– Business Case Analysis for SSC-SD ERP pilot
Step 2
– Selection of SAP R/3 software
Jul 1999-
– Selection of System Integrator:
May 2000 PricewaterhouseCoopers
Step 3
– Project Cabrillo - Blueprinting, Realization,
Testing
Jun 2000- Step 4
– Implementation
Jul 2001

Jul 2001
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 Proposed Solution
• Business Process Re-engineering (BPR)
– Integrated – multi functional end-to-end business
view
– Fit processes to ERP software vs. modify software
• ERP Implementation
– Configure ERP software to support our functional
business processes
– Eliminate/minimize DoN/DoD unique systems and
software, where possible – interface where necessary
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 Process Scope
• Funds Management • Accounts Payable
– Reimbursable Orders • Accounts Receivable
– Direct Cite Treasury
– Funds Control
– Daily Cash/Interfund Bills
• Reimbursable Billing – Activity Cash Reconciliation
– Mechanical Bills
– Cash Correction/ Cash Transfers
– Advance Liquidation
– Misc. Cash Adjustments (SF
– Billing Reject Correction
1081)
• Encumbrance Posting
• Vendor Pay
– Commitments
– Vendor Master
– Obligations
–
– Vendor Invoice Processing and
Accruals
Certification
– Cost Liabilities

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 Process Scope
• General Ledger/Financial • Controlling/Costing
Statements – Actual to Budget
– Financial Management Comparison
– Overhead Project
– Month-End DONIBIS/CDB Accounting
– Year-end Closing/Adjustments – Cost Center Accounting
• Asset Management – Profit Center Accounting
– Capital Purchases – Rate Application
– Cost Allocations
– Contributed Assets
– Activity Based Costing
– Sponsor-Owned Equipment – Cost Center Reporting
– Depreciation
– Physical Inventory/Custody
Maintenance
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 Process Scope
• Human Resources • Purchasing (Goods and
– Time and Attendance –
Civilian/Military Services)
– Work Schedule Administration – Outgoing Government
– Time and Attendance Reporting Order
• Receipt Management – MILSTRIP
– Goods Receipt
– Purchase Card
– Goods Return
– Simplified Acquisition
• Project Management
– Project Work Breakdown – Purchase Order
Structures Modification
– Project Tracking and Reporting – Procurement Service
Center Fees
– Material Management
Reporting
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 Implementation
• Jun - final production testing and training
– Still learning
• 1 Jun-2 Jul - transition period
– DIFMS shut down
• 2 Jul - phased implementation
– Primarily Human Resources & Financial
modules
• 16 Jul - Center-wide access
– Helpdesk, “field hospital,” superusers,
transition team
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 Implementation (cont.)
• All PR’s are created and approved in SAP
• Simplified acquisitions
– All PO’s created and released in SAP
• Large contracts
– Contracts/DO’s created and awarded in ConWrite
– Obligations are recorded in SAP as PO’s
• Purchase card reconciliations
– Cardholder can reconcile transactions on a daily basis
• Receiving
• MILSTRIP orders
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 What’s Next?

• Training
• Fixes
• Enhancements
• Large contracts solution

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