Navy ERP Program United States Navy Propelling Transformation:

Navy ERP Program United States Navy Propelling Transformation: An Update on Navy ERP American Society of Military Comptrollers Washington Chapter January 9, 2008 Presented by Mr. Ronald Rosenthal Navy ERP Program Manager

Navy ERP Objectives Navy ERP is an integrated business management system that modernizes and standardizes Navy business operations, provides unprecedented management visibility across the enterprise, and increases effectiveness and efficiency. Modernizes, standardizes business processes SAP software establishes best commercial practices Common data supports real time information exchange Provides platform for the enterprise-wide transformation (Lean/Six Sigma, Activity Based Costing, etc.) avy ERP Washington AmSocMilCompt 20080109 Simplifies operations, enhances visibility into the enterprise Single entry, single source data, single view of organizational status Asset visibility allows better management of inventories End-to-end connectivity, visibility, improves reporting and decisionmaking capabilities Increases efficiency, saves money, returns equity for Retires legacy other systems, uses reduces number of applications Facilitates federal financial, security standards compliance Retraining requirements reduced, transportable skills increase flexibility 2

Increment Strategy Financials and Acquisition (Increment 1.0): – Designed to give an Echelon II or III command a full suite of tools to perform their business functions – Functionality falls into 5 major categories: Finance (General Fund) Finance (Navy Working Capital Fund) Plant Supply Work Force Management Acquisition / Program Management Wholesale and Retail Supply (Increment 1.1): – Aimed at the functionality of the Inventory Control Point (ICP) and regional supply centers Intermediate Maintenance (Increment 1.2): – Adds Intermediate (I) Level Maintenance for both Maritime and Aviation avy ERP Washington AmSocMilCompt 20080109 3

Navy ERP Business Process Overview Requirements Initial Planning NAVCOMP Funding Doc Budget Allocation Field Bills Buy Services from Field Budget Formulation Field Executes Work Purchase From Vendor Budget Exhibits P-Card Purchase Budget Consolidation Finance Echelon 1 Budget Allocation All Transactions Reports NAVY ERP Person Trained & Certified Certification Control avy ERP Washington AmSocMilCompt 20080109 Unplanned Maintenance Order Fixed Asset Receipt & Acceptance Field Does Asset Accounting Maintenance Inventory Reserved Advanced Planning Inventory Event Management Assignment Control Field Activities Create Notification MRP Person Hired Equipment Receipt & Acceptance Supply Monthly & Annual Close Time Management Purchase From Vendor Buy a Weapon System Head Quarters Echelon 2 Common Support Purchase Executes MILSTRIP Purchase Create Maintenance Order Repair Completed Goods Receipt & Acceptance Internal, External, & Consignment Requisitions Purchase Order Order Settled Invoice Parts Issued Configuration Management 4

Finance Functionality Financial accounting – – – – – General ledger posting / analysis / reporting Accounts receivable / Accounts payable Cash management Management of posting periods and period end closing Open and integrated data flow between financial accounting and the other components of the SAP System Funds management – Processing transactions associated with budget entry, supplements, transfers, returns, funds reservations, funds commitments, budgetary ledger, special purpose ledger, budget version planning – Performance of the year end close – Automatic availability control / checking Navy ERP will be the financial system of record! avy ERP Washington AmSocMilCompt 20080109 5

Finance Functionality Controlling – Assignment and management of cost and activity planning functions – Assignment and management of overhead allocation functions – Viewing actual costs by cost object (cost center, internal order, WBS, etc.) – Viewing and managing variances between planned cost and actual cost Asset Management – Management actions associated with plant, property, and equipment records maintenance in support of property accounting and accountability requirements avy ERP Washington AmSocMilCompt 20080109 6

Deployment of Functionality PR09 100000 90000 NAVAIR SPAWAR NAVSUP HQ NAVICP (1.0) FISCs (1.0) NAVSEA HQ SUPSHIPS/SUBMEPP NAVSEALOGCEN SSP # of Users 80000 NSWCs NUWCs FISCs (1.1) ONR RMCs AIMDs NAVICP (1.1) 70000 60000 50000 40000 30000 20000 10000 0 83 Sites 9 Sites FY08 FY09 1.0 - Financial & Acquisition SLD REV: 20070409 avy ERP Washington AmSocMilCompt 20080109 FY10 120 Sites 107 Sites FY11 1.1 - Wholesale & Retail Supply FY12 FY13 1.2 – I-Level Maintenance 7

Navy ERP Accomplishments Initiated NAVAIR 1.0 “Go-Live” on 1 October – Trained and Deployed to 14,265 users at 9 sites 14 web based courses; 65 instructor lead courses – 99.8% Data Load success rate – 21,000 Test scripts executed – 13 million objects converted in Mock 5 testing (52.7M across all Mocks) Completed NAVAIR 1.0 transition on 21 December Spiral 1.0.1 in final stages of development and testing for on schedule SPAWAR deployment – April 2008 Release 1.1 development phase ongoing for USN Wholesale and Retail Supply – “Single Supply Solution” avy ERP Washington AmSocMilCompt 20080109 8

Navy ERP Success Factors Leadership and Governance – N4 / VCNO / ASN(RD&A) / ASN(FM&C) Navy ERP Process Council Teaming with Customer Command – Leadership – Customer Command team extracted the data from Command, Navy ERP team loaded into Navy ERP, and Customer Command then validated the data – Navy ERP trained-the-Trainers, Customer Command trained the end users – Customer Command mapped the users roles, Navy ERP configured the mapped users in Navy ERP Communicate Across the Enterprise Early and Often avy ERP Washington AmSocMilCompt 20080109 9

Lessons Learned Partnership and communication is key Change Agents / Champions identified early Stand-up user Business Office during the Planning stages Schedule Integration – One Schedule; One Team Training must be sustainable, maintainable, effective, the right amount and at the right time On-time completion of role mapping / minimum access requirements Reports access should be provided early to increase understanding of business rules, critical business reports and to resolve potential access problems Complete robust testing using converted data early Cycle Testing to include early testing of workflow, converted data to validate business rules and program logic, and interfaces with representative file sizes Practice Data Conversion and Business / Financial Validation avy ERP Washington AmSocMilCompt 20080109 10

avy ERP Washington AmSocMilCompt 20080109 Questions 11