Levelling Up your Oracle Cloud Deployment – Overview of PPM

Levelling Up your Oracle Cloud Deployment – Overview of PPM

Author: Christopher Laird, PPM Consultant at Namos Solutions

So far this blog series has focussed on Levelling Up your Oracle Cloud Deployment by implementing the Advanced Procurement suite of modules. This time, we will switch our focus to one of the most powerful and feature rich sets of functionalities within the Oracle Cloud footprint: Project Management.

With such a broad range of tools comes an equally broad range of decisions around how they best can be used and where they can add the most value. This blog will discuss some of those considerations we commonly walk through with our clients when starting to shape a Project Management implementation, and hopefully give food for thought on how your organisation could leverage this toolset.

For a more comprehensive understanding of this topic, download our FREE Whitepaper on Oracle Project Management – Click Here

Whilst starting the implementation journey with a new customer, the first question we usually get asked:

Why would I consider implementing Oracle Project Management? How can it add value to my organisation?

From our experience customers have a fixed view of what a project is, whereas in Oracle, the definition of a ‘Project’ can encompass a number of other elements that can benefit an organisation.

The common definition of a Project is a piece of work with a defined scope, a fixed start and end date or a budget that needs to be met that has been approved by key stakeholders. In Oracle Project Management you can use it for any work that requires the business to carry out budgeting and cost tracking, recording of costs, reporting, billing and revenue recognition, at a level of detail greater than a summarised number just posted into the General Ledger.

From something as complex as building a new manufacturing plant, with many key milestones and deliverables, to the straightforward corporate department with multiple stakeholders wanting to track and manage their team’s annual spend, Oracle Projects can be utilised in several different ways.

Below is a sample of the various Project types where I have seen Oracle Project Management utilised and added clear value:

  • Reimbursable Time and Materials
  • Fixed Price / Lumpsum
  • Capital projects (Building/System etc)
  • Corporate Functions / Overhead
  • Indirect delivery support

How can Oracle Project Management add value for my organisation?

Some considerations to help determine how Oracle Project Management will add value (are):

  • Is the work required to have cost and revenue tracked throughout the lifecycle of the project or accounting periods?
  • Do you need to capture costs to bill onto internal, or external clients?
  • Does the work have a budget/forecast that requires monitoring at a detailed level?
    • By deliverable, milestone or Project Task (WBS)
    • By unique scope
    • By department
    • By resource type (i.e. people, service, materials etc)

If the answer is yes to any of the above, then Oracle Project Management will add value to your current Project Controls within your organisation, accurate project budgeting/forecasting and profitability, leading to making better financial and strategic decisions.

By utilising Oracle Projects your organisation will be able to capture various types of costs at a detailed level.  Creating a task structure (Work Breakdown Structure) that suits the project, will allow efficient and timely information to be visible to the Project Team, therefore allowing them to make proactive decisions, based on actual costs committed.

These are the Level 2 business processes that are covered by Oracle Project Management:

How does Oracle Project Management integrate with the wider ERP modules?

In summary, it’s a module that integrates with the rest of the Oracle ERP System that allows you to have full visibility of performance of a single Project or a Portfolio of many projects. It allows you to plan, budget and forecast your projects, manage costs, control billing/revenue, generate reports and manage KPI’s on project performance. It fulfils these functions outside of the General Ledger, for example, affording the ability to monitor costs posted across an array of account codes, against a single budget.

The below is a snapshot of some of the modules that can integrate with Oracle Project Management and examples of various types of transactions users will be able to interrogate within the module.

manage project cost - data flow

Summary

Oracle Project Management is a flexible module that can fit around many organisational needs. It offers single, real-time source of project truth – not just for project-centric organisations. This will help support the business in managing costs, revenue against budgets, and forecast, which will allow your organisation to make informed financial and strategic decisions.