Easy OnBoarding EAM Project Controls Processes Easy OnBoarding
Easy On-Boarding EAM – Project Controls Processes
Easy On-Boarding Course Overview • • EAM Overview EAM Modules Introduction to EAM Project Controls Processes
Easy On-Boarding QAD EAM Overview • Enterprise Asset Management - Manage the physical assets of a business - Includes design, construction, commissioning, operation, maintenance, improvement and replacement of plant, equipment and facilities • Control MRO spend - Maintenance Spend - Non Production spend
Easy On-Boarding QAD ERP and QAD EAM • QAD ERP - Manufacturing components • QAD EAM - Maintenance components
Easy On-Boarding Successful Manufacturing Components MRP / Material Releases Production Planning Bill-of-Material Planning Production Work Order Bill-of-materials Machine and Labor Scheduling Operator Instructions Finished Goods Cost tracked to: Components Finish Goods COGS
Easy On-Boarding Successful Maintenance Components Stock Replenishment Maintenance Planning Bill-of-Material Planning Maintenance/ Tooling Work Order Bill-of-materials Operator Instructions Machine and Labor Scheduling Work Order Complete / Release to Production Cost tracked To: Asset or Tool for Lifecycle Analysis
Easy On-Boarding Domain (Business) Space QAD ERP “Core Product” Production Making Products - Purchase Ingredients - Consume Ingredients - Sell a Product Tracking all Financials “Cost of Goods Sold” QAD EAM Enterprise Asset Management Operations Keeping the Plant Running - Purchase Repair Parts - Consume Parts - Maintain the Facility Tracking Indirect Costs “Cost of Ownership” EAM-OV-070
Easy On-Boarding QAD EAM Overview • Manages the assets of a business • For Plant Equipment and Facilities includes - design construction commissioning operation maintenance replacement Plant Operations Project Controls Management QAD ERP EAM-OV-060
QAD EAM Modules
Easy On-Boarding QAD EAM Overview – Modules • Maintenance - Equipment Efficiency - Plant Reliability • Inventory - Right Size MRO/Indirect Inventory - The right parts when you need them • Purchasing - Control MRO/Indirect Spend - Comply with Corporate Financial Manual Approvals • Project Controls - Manage Project Spend - Track True Acquisition Cost of Assets EAM-OV-080
Easy On-Boarding EAM Modules Purchasing Inventory Maintenance Project Controls EAM-OV-130
Easy On-Boarding Introduction to EAM Project Controls
Easy On-Boarding Project Controls Overview • Manage project accounting to consistently deliver on time and on budget • Track “Acquisition Costs” • Monitor and control spending Plant Operations - Against budget - By project, job or sub-job - Reallocate budgets from one project to another • Track scheduled payments and reimbursements EAM-OV-390
Easy On-Boarding Who uses EAM Project Controls? • • Finance Engineering Maintenance Inventory Purchasing Quality Fixed Asset Accounting Even sometimes – Manufacturing EAM-OV-320
Easy On-Boarding Important to Know • Types of Projects • Project / Jobs Setup and Controls EAM-OV-420
Easy On-Boarding Key Concepts – Four Types of Projects • Capital - Profit enhancements - Increase capacity - Replacement • Expense Key Characteristic: Results in New Asset(s) Key Characteristic: No Assets created - Annual rebuilds - Marketing / Legal / etc. • Customer Funded - Tooling - Prototype - Very common in Automotive Verticals • ETO (Engineer to Order) Key Characteristics: -Customer owns Asset -Customer pays you to build new production line to produce a part for them. -Customer will reimburse you for the cost to build the new production equipment. -When project is complete, the production line stays at your facility, BUT you do not own the production equipment – the customer does. Key Characteristics: -Build equipment to customer specifications -Scheduled reimbursement payments from customer -At completion of project, ship equipment to customer EAM-OV-430
Easy On-Boarding Project / Job Setup and Controls • Projects - Project level budget Project authorization Special Requisition Authorization by Project Audit traceability • Jobs - Work breakdown to smaller, more controllable components - Parent / Child Hierarchy - Budget, Lock, and Close functions at Job Level - Job Level Requisition Approval Groups EAM-OV-460
Easy On-Boarding Project Costs Collected • Purchasing - External Materials - Sub-Contractor Services • Labour • Internal Materials • Manual GL EAM-OV-460
EAM Project Controls Processes 19
Easy On-Boarding Section Objectives • Define project accounting. • Set Up Projects • Set Up Jobs
Project Controls Overview • Manage project accounting to consistently deliver on time and on budget • Track “Acquisition Costs” • Monitor and control spending - Against budget - By project, job or sub-job - Reallocate budgets from one project to another • Track scheduled payments and reimbursements Plant Operations
Easy On-Boarding Project Accounting • EAM downloads a project number from QAD ERP. • All project management is controlled in EAM. • Financial Transactions feed to QAD ERP. - Purchase receipts (material and contract labor) Material issues from EAM inventory Labor transactions Other (Manual GLs, such as interest expense) • Shared Tables / Information QAD ERP application Project Master EAM Project
Easy On-Boarding Project Accounting Features • Examples of types of projects: - Capital • Profit enhancements • Increase capacity • Replacement - Expense • Annual rebuilds • Marketing / Legal / etc. - Customer • Tooling • Prototype • Very common in Automotive Verticals
Easy On-Boarding Project Accounting Features • Project reporting - Consolidate projects based on business segment • Business segment can represent a plant or group of plants. With customer-funded projects, the business segment may be a client. - Report spending by fiscal year and lifetime - EAM Project Accounting Reports
Easy On-Boarding Project Accounting Features • Project controls - Record level security - Job hierarchy • Enables project engineers to break a project into smaller, more controllable components - Project authorization • Restricts internal and external spending until the project has been electronically authorized - Lock (stop spending) project or job • Prevents further spending against the job while final receipts against open purchase orders are processed - Audit traceability
Easy On-Boarding Project Accounting Features • Project administration - Copy project • Reduce the effort of creating similar projects repeatedly - Budget reallocation • Enables budgeted dollars to be reallocated from one project to another - Create equipment from project • Bridges the process of turning over the asset to operations
Project Controls Basic Process Plan Approve Work Track Complete
Easy On-Boarding Project Initiation 28
Easy On-Boarding Project Accounting Sample • Setup a new project - Download project number from QAD ERP. - Set up various project information (description, type, account number). - Add budget information. - 10% of project budget into next fiscal year. - Setup 3 Jobs (design, installation, and prototype). • Under Installation, create 2 sub-jobs (internal and external) - Add an authorize group. - Make spending limit equal to budget. - Start approval.
Easy On-Boarding Project Sample
Easy On-Boarding Plan Set Up a New Project No. must Equal ERP!! Note the Variety of Tab Pages on a Project As with Purchasing – Authorization may be enabled at Site Level Project. Specific Approvals Approve Work Track Complete Owner Field Key Record Level Control and may be Individual or Group. If left blank, anyone with security access can modify the record. Note the Variety of Sub. Modules on a Project
Plan Approve Work Track Complete Easy On-Boarding Set Up a New Project, cont. Spending Limit – THE most important field for a project: -Amount used for approval -Increasing amount routes for reapproval (like a change-order) Refresh! The most common mistake is not understanding that this Cost tab page does not reflect most current spend until “Refresh” is selected. Expense Accounting: -Primary Displays here -Can be setup under Sub. Module or added to the Jobs
Easy On-Boarding Project Calculations • Original Budget - Value comes from the Budget submenu in Projects • Net Budget - The original budget +/- any re-allocations • Original Estimate - A user entered swag value. • Spending Limit - Does not flow up from the jobs spending limit because you may want to have a spending limit for larger jobs and not for smaller jobs. - Is a cap for overall spending on the project. - EAM stops you if you try and charge over this amount. - This value is also the value used for project authorization. • Authorized Spending - The spending limit at the time of authorization. It can differ from the spending limit if the project is in re-routing for project increase. • Warning limit - When the total spent reaches the warning limit, EAM begins to send email to the notify on the project.
Easy On-Boarding Project Calculations • Spending Estimate - Comes from the Jobs Spending Estimate. If you have no jobs, then a user can manually enter a value. EAM uses it in reporting. • Planned Purchases - Purchases with a status of un-authorized planned purchases (status= P) • Authorized Purchases - Authorized, planned purchases • Committed - Purchases on order, excluding any partial receipts • Receive - Received purchases
Easy On-Boarding Project Calculations • Labor/Internal Material/External Material/Contract Cost/Manual - Distributed cost charged against a project • Total Spent • Estimate to Complete • Vouchered- Those receipts that have been vouchered in QAD ERP application - Sum of all cost - Spending Estimate – total spent • % Spending Estimate- - The sites calc spending estimate field (total spent, committed, auth purchase, or planned purch)/spending estimate • Over Spend Estimate - If no jobs • (Total Spent – Spending Estimate) / Spending Estimate - If job • Includes Total spent and estimates fields from completed jobs using the formula above • Note: If less than 0 then that means that less has been spent as estimated
Plan Approve Work Track Complete Easy On-Boarding Set Up a Job Project Jobs Note: -Jobs are not mandatory, but are highly recommended -“Job(Project)” Mandatory Field Consideration in other Modules
Plan Easy On-Boarding Set Up a Job Note the Job No. format: -15 characters -“dashes” count -Format defined in EAM System Registry Job Level Req Approval Approve Work Track Complete
Plan Easy On-Boarding Set Up a Job, cont. What rolls up to Parent and Project? 1. Spending Estimate 2. Actual Costs Approve Work Track Complete
Easy On-Boarding Exercise: Set Up a Project with Jobs 1. 2. 3. 4. 5. 6. 7. 8. 9. Create a project numbered <your initials> 001. Enter details on General tab: a) b) c) d) e) f) Description: Update break room Start Date: today Expense type: capital Auth by: Bhagler Bus segment: use lookup to find corporate Notify: your user ID a) b) Original estimate: $40, 000. Auth spend: $40, 000. a) b) Activity: use the lookup to locate Other corporate expense. Description: Replace appliances. a) Original estimate: $20, 000. a) b) Activity: use the lookup to locate Other corporate expense. Description: Replace cabinets. a) Original estimate: $20, 000. Enter details on Cost tab: Add job number <your initials> 001 a. Enter details on the Details tab: Enter amounts on the Amounts tab: Add job number <your initials> 001 b. Enter details on the Details tab: Enter amounts on the Amounts tab:
Easy On-Boarding Project Resource Development 40
Project Controls Process – Step Through Plan Approve Work Track Complete
Easy On-Boarding Project Authorisation 42
Plan Easy On-Boarding Approve Work Track Complete Project Approval Routing 2 1 3 4 Project goes into Routing.
Plan Approve Work Track Easy On-Boarding Project Approval Routing, cont. Approver receives notification. Complete
Plan Approve Work Track Easy On-Boarding Project Approval Routing, cont. 2 3 1 4 Project Authorized by Final Approver. Complete
Easy On-Boarding Plan Approve Project Approval Routing • Once a project is approved can begin: - Project Work (Cost Accumulation) - Project Tracking and Reporting Work Track Complete
Easy On-Boarding Hold Projects 47
Easy On-Boarding Cancel Projects 48
Project Controls Process – Step Through Plan Approve Work Track Complete
Easy On-Boarding Project Execution 50
Easy On-Boarding Plan Approve Work Track Project Work • In the “Work” Phase a Project is very similar to Work Order - Labor Costs Part Costs Subcontractor Costs Purchase Costs Manual GLs • But… a Project provides greater control and traceability - Project and Job Level Controls Spending Controls Warning Limits Project and Job Specific Purchase Requisition Approvals • And… a Project provides additional functionality - Customer Reimbursements* - Supplier Scheduled Payments* Complete
Easy On-Boarding Plan Approve Work Track Project Work – Labor Costs Labor can be accumulated by: 1. Direct Post to Project/Job Using Action Button 2. Standard Work Order Labor Posting Complete
Easy On-Boarding Plan Approve Work Track Project Work – Labor Costs Refresh! View Labor Details in Cost Analysis Complete
Easy On-Boarding Plan Approve Work Track Complete Project Work – Part Costs Internal Material Costs can be accumulated at Project / Job Level by: 1. Issue Part Directly from Inventory to Project / Job 2. Issue Part to WO linked to Project / Job
Easy On-Boarding Plan Approve Work Track Project Work – Part Costs Refresh! View Inventory Transaction Details in Cost Analysis Complete
Easy On-Boarding Plan Approve Work Project Work – Purchasing Costs Purchasing is linked to Project and Job. Note the importance of the “Contractor? ” flag. Track Complete
Easy On-Boarding Plan Approve Work Track Project Work – Purchasing Costs, Planned, Auth, Committed Refresh! Track In-Process Purchases at Project and Job Level, based on Requisitions. Complete
Easy On-Boarding Plan Approve Work Track Project Work – Purchased Costs, Received, Cont, Ext, Tax Refresh! Received Purchase Amounts are Divided on Project / Job by: 1. Contractor Costs – designated by “Contractor? ” = yes on PO Line 2. External Material Costs – all receipts not marked “Contractor? ” = yes 3. Tax Cost – Separated out from Cont/Materials for Capitalization Cost Calculations later Complete
Easy On-Boarding Plan Approve Project Work – Purchasing Costs Vouchered/Paid Refresh! A/P Costs are pulled from ERP: 1. Vouchered Amount (Invoice entered to ERP. ) 2. Cost Analysis provides details of Paid Amounts Work Track Complete
Plan Approve Work Easy On-Boarding Project Work – Manual GL Costs Refresh! Manual GL’s may also be created in EAM, and can be sent to ERP if desired. -Freight -Capitalized Interest Track Complete
Easy On-Boarding Plan Approve Work Project Work – Job Level Costs Note similar Cost tracking at Job Level Track Complete
Easy On-Boarding Plan Approve Work Track Project Work - Scheduled Payments and Invoices Throughout the course of the Project’s Life A/P and A/R may be scheduled. - Setup an Invoice Schedule for Customer Reimbursement - Setup a Supplier Payment Schedule to graduated payments Complete
Project Controls Process – Step Through Plan Approve Work Track Complete
Easy On-Boarding Budget v Cost Variance Analysis 64
Easy On-Boarding Plan Approve Work Project Track – Project Reporting • Key Business Requirements around Project Reporting - • Project Progress Budget to Actual Performance Real-Time Data Typical Approaches - Local Project Level Reporting: • • - Custom Browses / Export to Excel Tabbed Page Views Cost Analysis Standard Reports Consolidated Corporate Reporting: • Often combines data from multiple sources • Data Warehousing and/or BI Solutions are common Track Complete
Easy On-Boarding Plan Approve Work Track Complete Project Track – Custom Browses Using the Browse is the most powerful way to report on multiple projects. • Remember characteristics: - Add / Remove Columns Sort Group Export to Excel
Easy On-Boarding Plan Approve Work Project Track – Cost Tabbed Page Track Complete
Easy On-Boarding Plan Approve Work Track Project Track – Cost Tabbed Page, cont. Complete
Easy On-Boarding Plan Approve Work Track Project Track – Cust Funded Tabbed Page Complete
Easy On-Boarding Plan Approve Work Track Project Track – Cust Funded Tabbed Page, cont Complete
Easy On-Boarding Plan Approve Work Track Project Track – Cust Funded Tabbed Page, cont. Complete
Easy On-Boarding Plan Approve Work Track Project Track – Program Tabbed Page - Very Automotive Specific Used primarily for filtering and browse reporting Complete
Easy On-Boarding Plan Approve Work Track Complete Project Track – Lifetime Budget Tabbed Page - Calculations based on work in Annual Budget Screen Used primarily where costs can be moved from one project to another Hint: Remember User Defined Fields to provide even more fields for “slicing and dicing” project data.
Easy On-Boarding Plan Approve Work Track Project Track – Cost Analysis - Provides transaction level details behind spend Also available at Job level Complete
Project Controls Process – Step Through Plan Approve Work Track Complete
Easy On-Boarding Close Projects 76
Easy On-Boarding Plan Approve Work Track Complete Project Complete - Lock Available at Project and at Job Level Stops all “new” spend: - Purchasing - Labor - Inventory - Manual GLs Allows continued processing of: - Purchase order Receipts - PO Payments (A/P) - Customer Invoicing (A/R) Usually restricted function: - Project Manager
Easy On-Boarding Plan Approve Work Track Complete Project Complete - Close Available at Project and at Job Level Stops all activity - Purchasing - Labor - Inventory - Manual GLs - Receipts - Payments - Invoicing Usually restricted function: - Finance “Reopen” is very restricted due to Financial implications (ex: Fixed Assets)
Easy On-Boarding Questions • Can you set up a job without a project? • How many jobs can you associate with a project? • Can you copy an existing project to use its settings for a new project? • How do you associate POs to a project?
Review • There are three types of projects: capital, expense and customer-funded. • Set up and modify projects in Project Accounting • Projects can have multiple layers of Job for more detailed traceability. • Purchase receipts, material issues, labor transactions, and other costs such as manual GLs feed to QAD ERP. • Track Project Costs in a variety of ways. • Lock / Close to Complete Project.
Easy On-Boarding Questions? 81
www. qad. com © 2011 QAD Inc 82
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