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Pharmaceutical Project Portfolio Management

Comparison of Microsoft EPM vs. Primavera P6 v7


Sarah Benjamin
Taurus Project Controls
April 2012

The Agenda









Speaker
Types of Projects
Transition from Manual Tracking into Enterprise Tool
Dimensions
Project Prioritization
Budget Management for the Portfolio
Resource Management

Speaker

Sarah Benjamin








Project Scheduler
Primavera P6 v7 Web Lead
Project Portfolio Manager
Consultant

Email: sbenjamin@tauruspcc.com
Linked In: http://www.linkedin.com/in/sarahbenjamin

Who We Are
Taurus Project Controls






Consulting firm formed in 2011


Interactive Planners
Schedulers
Portfolio Managers
Cost Engineers

Why Use Project Portfolio Management

Enhancement of the project by project scheduling system

Central system for project status that allows one-stop shopping for
answers to
 Where Are We Right Now?
 Where Are We Going?
 What Are We Doing Next Year?
 What Issues and Risks Are Affecting Projects?

Site-wide project prioritization based on business drivers

Internal resources need visibility of workload and site priorities

Flexible Cost Forecasting and Reporting

Types of Biotech Projects

Projects within the scope of Project Controls for each facility are
typically capital improvements

Good Manufacturing Practices (GMP)






Change Control / Regulatory Approvals


Impact Assessments
Implementation Plans, Test Plans, Validation Reports

Example Projects:






Changes to Process Equipment to accommodate new products


Valve Replacements
Tank Repairs
Utility System Maintenance
Automation Improvements

Types of Data in the PM System






Project Business Drivers and Priority


Schedule Tracking
High Level Cost Forecasting
Project Notes

Types of Data Not in the PM System

Transactional Cost Tracking


Resource Tracking for All Projects

Situational Comparison of Microsoft EPM


vs. Primavera P6 v7


This is a situation comparison of two biotech companies


based on my personal experience over the last 4 years

Both companies are large corporate biotech manufacturers

Company A is bigger and more mature

Company B is not quite as big and has not been


manufacturing products as long as Company A

This is NOT a feature to feature checklist of all possible


software functionality in the two systems

Transition from Manual Tracking into


Enterprise Tool

Excel was the tool of choice for both biotech companies before
Enterprise Project Management was implemented

Excel Advantages:




Quick updates
Notes & Comments could be added anywhere
Portable easy to attach and share

Excel Challenges:





Version Control
Changes by many users were not tracked
Project marked complete who said its done?
Schedule Information Not Driven by Actual Schedules (outdated)

Excel Project List The Manual Method

Disadvantages:
No single version of the Truth.
Missing Important Data like Phase, PMs, Dates, Budgets, Sponsors
Schedule Dates Not Driven By Actual Schedules And Often Outdated

Enterprise System Architecture


Differences


Company As Primavera System Maintained In-House










Speed of System = Fast


Cost per Year < $50k
Speed of System via VPN = Medium
Maintenance/Updates = Slow
IT Support = Slow
Data Loss / Backups = Challenging due to DB restoration process
Reporting Capabilities = Accessible, customizable, non-graphical

Company Bs Microsoft EPM System Hosted Remotely










Speed of System = Slow


Cost per Year > $100k
Speed of System via VPN = Slow (but VPN not required)
Maintenance/Updates = Fast
IT Support = Medium
Data Loss / Backups = Manageable due to Automatic Archive DB
Reporting Capabilities = Challenging, OLAP cubes may need consultant support, graphical

Company A
Oracle Primavera P6 Web Portfolio Gantt

P6 provides more options for Multi-Project Gantt view like showing


milestones for each project.

Company B
Microsoft EPM Web Portfolio Gantt

Microsoft EPM has a standard Portfolio level Gantt chart view that
shows one bar per project.

#1 Reason for Project Portfolio Management:


Schedule Management

Centralizing All Project Schedules is the #1 Reason PPM


Systems are Implemented





Schedules can have inter-project links


Schedules are more visible to all users of the software
Schedule updating is more visible to managers
Schedule reporting is simplified

P6 and EPM are Both


Robust Schedule Management Systems

Schedule Management Features Used by Companies A & B:









Inter-project links / logic between activities


Standardized schedule views output to PDF
Schedule update cycles improved
Schedule reporting provided management a better view
Schedule templates
Activity level coding allowed enterprise level reporting

Oracle Primavera P6 Schedule Web View

Microsoft EPM Schedule in Project Professional

Graphical View of Schedule Progress


Made Outside of the PM Software

100%
90%

Status as of 31JAN09
80%
Baseline Plan
Actual
Baseline Critical

70%

11.8%
7.2%
3.6%

Substantial
Com pletion Dec
23 (P)

First Construction
Contract Awarded
May 8 (P)

60%
50%

Detail Design Complete Apr 3 (P)

40%
30%
Prelim inary Design
Complete - Dec 23(A)

20%

Project on Hold -Risk assessment to


determine exact scope of work
required is ongoing.

10%

Week Ending
Baseline Plan (Early % Cumulative)

Actual (% Cumulative)

Baseline Plan (Late % Cumulative)

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P6 and EPM:
Schedule Management Differentiators

Software Functionality Differences:




EPM is buggy errors arise in schedules. It is hard to


pinpoint root cause

Customer Support for troubleshooting issues is much


better with P6

Baseline functionality is better in P6






Unlimited baselines
Naming conventions
Date stamp for last updated

Layout customizations are better in P6

#2 Reason for Project Portfolio Management:


Cost Management

Cost Tracking in Project Portfolio Management Software




High Level Total Project Budgets / Forecasts

Detailed Level Cash flow per week

Resource coding available for filtering costs

Resource Graphs show Cash Flow if detailed in schedule

Cost Tracking Spreadsheet in P6

Cost Tracking Spreadsheet in EPM

Cost Curves in P6 and EPM

P6

EPM

#2 Reason for Project Portfolio Management:


Cost Management

Software Functionality Differences:




EPM is buggy forecast may change when merely


opening a project. Hard to pinpoint root cause

Customer Support for troubleshooting issues is much


better with P6

Graphical cash flow curves are possible with either tool for
the detailed activity level data, but portfolio high-level
cash flows are not as simple

#3 Reason for Project Portfolio Management:


Project Selection Assistance

Project Selection encompasses the initial phases a project goes


through prior to execution

Request

Rough
Scoping

Initial
Approval

Detailed
Execution
Planning

Final
Approval

Which Projects Should Be Approved?

Execution

Project Status = Most Important Field


Company As Options:

Company Bs Options:

Proposed
Approved
In Close Out
Complete
Cancelled
Deferred

Proposed
SG1 Approved
SG2 Approved
Complete
Cancelled
Deferred

Project Status Code is shown in every view and report


Approvals are milestones in every schedule

Elements of Project Selection

What is not kept in codes and milestones? The


general story behind status changes. Why is this
important? Everyone wants to know which meeting
Project X got approved. How did we incorporate this?

P6: Project Level Notebook.


field in PWA

EPM: Multi-line text

Project Notes = Story Line to the Project


Microsoft EPM View: Project Web Application

Disadvantage: Need to Open Project in PWA each time to view or edit notes

Company As Notebook Example

0082 Project Notebook Example:


Project Team Update
13Apr11 (AVS/PTeam): Per DJW- a meeting to discuss BCRB status to be held on 15Apr11.
30Mar11 (DJW) BCRB pending
02Mar11 (AVS/PTeam):Wait in for BCRB
16Feb11 (AVS/PTeam) Waiting for APO to Implement SOP.
0814Feb11 (DJW) Per CC meeting on 07Feb11 : Change was discussed to whether proceed with the change or cancel. It was
decided by the subcommittee to proceed with the change since it captures the rational to remove the need to complete a CIP
between two consecutive make-ups of the same buffer in Suite Support. Change endorsed by all stakeholders; however, still
pending the BCRB endorsement form
24Jan11 (AVS): Per email from DJW: 'Waiting on a memo. There will be no PQs required. Following that, the change cannot be made
until Demo period is over and another regulatory round is complete. Expect Jun 2011 at this point.'
11Jan11 (DJW): Meeting on 07 Jan11 determined that there is reg impact. Preapproval not required. No testing required. Change
control to be completed. Target usage and sign off of CC for end of demo runs(May/June timeframe).
05Jan11 (AVS): No Change per DJW. Still waiting on Regulatory response. Moved DD and maintained RA approval date in
21Jan2011. Rebaseline?

Oracle Primaveras Structure for Project and Activity


Notebooks is a rich-text format and is more functional
than Microsofts.

Microsoft Enterprise Project


Management (EPM) View of Projects

Status Indicators

Schedule/Cost Indicators

Proposed

No Info

SG1 Approved

OK

SG2 Approved

Caution

Cancelled

Problem

Oracle Primavera P6 v7 View of Projects

Project Selection
Which Projects Fit in the Budget?

Budgets for next year were requested between July and


September based on best info at that time

Budgets approved in October

Project portfolio constantly in flux

How to decide which projects are IN?

PRIORITIZATION!

Project Prioritization

Project Request

Enterprise Project Management

4 Business Drivers

P6 > Project Level User Defined Field


Microsoft > Portfolio Analysis

Ranking of Projects
1)
2)
3)
4)
5)
6)

Project B (top priority)


Project F

Project L
Project M
Project C (lowest priority)

Company As Business Drivers


Impact
Critical

Major

cGMP Compliance

Worker Safety & Health

Could result in product recall, warning Could result in a fatality event and/or
letter, regulatory or enforcement
willful regulatory citation.
action, severe adverse effect or
consent decree.

Environmental Impact
Could result in significant
environmental impact beyond the site
boundaries and/or regulatory action
and/or legal liability.

Could result in serious injury and/or Could result in significant


Could result in critical regulatory
observation, severe product quality exposure to workplace health-hazards environmental impact in excess of
permitted levels and/or regulatory
complaint, or equivalent. Could result and/or regulatory compliance
compliance violation.
violation.
in non-compliance with approved
Level I/II.

Moderate Could result in batch rejections, major Could result in injury or health
observation or multiple minor
impact.
observations.

Could result in and/or enhances


current environmental compliance.
Facilitates meeting internal
environmental objectives.

Marginal Could result in internal observation.

Could result in minor injury to


personnel, no compliance
issues/concerns.

Could result in and/or required to


meet current standards.

Safety enhancement.

Environmental enhancement.

Negligible Enhances compliance in existing


operations.

Scoring Behind the Project Request to


Calculate Project Score

Company As Excel-Based Project Request


Form Showing Project Business Driver

Company As Oracle Primavera P6


Web Portfolio View Graphical Output

Company Bs Business Drivers







Compliance Need
Operational Need
Capability Improvement
Unit Cost Improvement

These were ranked 0, 1, 2, or 3 based on strength and


urgency. Compliance and Operational need were
weighted higher than Capability and Unit Cost.


Microsoft Enterprise Project Management (EPM) produced a pairwise comparison of projects and ranked them in order of priority

Leadership teams judged the prioritization output and made


adjustments to keep business drivers application consistent

Microsoft EPM View of Project


Prioritization Driver Prioritization

Microsoft EPM View of Project


Prioritization Business Drivers

Manual Data Input from Project Request Form

Microsoft EPM View of Project


Prioritization - Table Output

Priority Values
are Relative
Within Each
Portfolio Not
Consistent
Enterprise Wide

Company Bs Microsoft EPM View of


Project Prioritization Graphical Output

Company Bs Microsoft Excel View of


Project Prioritization Export

Advantage: These weekly Excel spreadsheets were easy to distribute, modify


and filter
Disadvantage: EPM does not export Business Driver data in the same file so
two exports had to be merged prior to each distribution, not able to include
prioritization on standard reports

Company As Portfolio Report


Generated by Oracle Primavera P6

The Project Score is a Project Code that is easily


included on any view or report

Project Prioritization - Commonalities


Both Companies:
 Weekly Review of Priorities by Leadership Team
 Management Stood Behind Focus on Business Drivers
 Final Score / Ranking Drove Project Prioritization
 Prioritization Drove Resource Assignments
 Forcing In Allowed, but Not Commonly Utilized
 Systems Do Not Track Changes to Drivers
 Prioritization Drove Inclusion in Overall Portfolio Budget

Project Prioritization - Differences


Software Generation of Prioritization:



P6 Uses Standard Mathematical Formula


Projects Easily Ranked Against Each Other


Example: Score 14 vs. Score 12

Score is an Enterprise-wide Project Code

Microsoft Uses Pair wise Comparison


Projects Ranked within Portfolios and Score Not Easily Transferable
Absolute Value of Projects Priority Difficult to Calculate
Rankings Kept in Separate Module of EPM, Not Project Code





Project Prioritization:
Theoretical vs. Practical

Both P6 and EPM use a calculation of business drivers to score


projects

Theoretically there are many more attributes related to whether or


not the project should be approved

There is considerable maturity still left to be gained at pharmaceutical


companies in regards to project selection

Net Present Value and Return on Investment are not factored in

Overall financial implications of doing projects versus not doing them


need to be better modeled to produce overall Value to the company

Better modeling requires more time spent on scoping the projects

P6 Portfolio View of Value Over Time

Resource Forecasting








High Level Resource Estimating Immature Process


Ballpark Total Hours Provided by Each Department
Estimates Not Input into EPM or P6
Estimates Used for Approval Decision
Company A Tried Implementing a Separate Resource
Management Tool, no integration to project schedules
Company B did not have a mechanism for calculating total
resource forecasts across the portfolio
Resource Forecasting = Political Black Hole

P6 Resource Histogram Based on Roles

Microsoft EPM or Oracle Primavera P6?

Strengths to Either System:






One Single Source of Project Information


Schedule Maintenance and Automatic Roll Up / Reporting
The Ability for Future Maturity:






Improved Portfolio Management


Cost Forecasting / Tracking
Resource Forecasting / Tracking
Flexibility of Reporting for Varied Audiences
Business Intelligence Data Mining

Microsoft EPM or Oracle Primavera P6?


Oracle Primavera P6
Oracle Primavera P6 Wins My Heart







Speed!
Efficiency of Linking Tasks Between Project Schedules
Efficiency of Switching Between Projects for Common Tasks
like updating Project Notebooks
Web Client Customization Features and Usability
Speed!

Why Did Company A Choose Primavera vs.


Other Portfolio Management Tools?

Centralized Database (no file revisions)

Accessible via web portal included with licenses

Future Integration Capabilities with SAP and/or Process Scheduling


Software

Email Notifications about Issues

WBS Standardization

In-House Expertise Site has utilized Primavera for 10+ years

Why Did Company B Choose Microsoft EPM vs.


Other Portfolio Management Tools?





Company Culture Liked Microsoft Project


Believed MS Project is Easier to Use
Less Training Required for PMs

Microsoft EPM or Oracle Primavera P6?


CONCLUSION
Based on the robust capabilities of the Oracle Primavera P6
solution compared to the relatively less mature Microsoft
Enterprise Project Management, the preference for a company
with no other influences should be to
Use Oracle Primavera P6.
Certain company cultures may already be entrenched in
Microsoft technologies and may shy away from supporting a
major Oracle-based solution due to corporate standards. This
would need to be weighed with the long term commitment that
will be made to the project management solution and the
various headaches that will need to be overcome by the
project management departmental software users and
administrators.

Extra Slides for Reference

The following slides are included for reference purposes

References


GMP

http://en.wikipedia.org/wiki/Good_manufacturing_practice

Oracle Primavera

http://www.oracle.com/us/products/applications/primavera

Microsoft Enterprise Project Management




http://www.microsoft.com/project/en-us/solutions.aspx

Project Server 2010: A financial management solution for projects, programs and portfolios
(white paper)

http://go.microsoft.com/fwlink/p/?LinkId=216201

Portfolio strategy with Project Server 2010 (white paper)



http://go.microsoft.com/fwlink/p/?LinkId=194203

Thank You

Thanks for listening to my story.


Feel free to contact me with questions or comments.



Email: sbenjamin@tauruspcc.com
Linked In: http://www.linkedin.com/in/sarahbenjamin

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