Operational Drivers for a Truly Integrated Plan Alex Beired Rachel - - PowerPoint PPT Presentation
How Guardian Combines Financial and Operational Drivers for a Truly Integrated Plan Alex Beired Rachel Murphy Chris Loran About Guardian Industries Manufacturer specializing in Float Glass & Automotive Trim 18,000 employees 25
Alex Beired Rachel Murphy Chris Loran
⦿ Manufacturer specializing in Float Glass & Automotive Trim ⦿ 18,000 employees ⦿ 25 countries / 5 continents ⦿ Revenue US$4.0 billion ⦿ HQ in Auburn Hills, MI, USA ⦿ Acquired by Koch Industries in 2017
⦿ Main division of Guardian Industries. ⦿ 10,000 employees ⦿ 25 countries / 5 continents ⦿ Revenue US$2.6 billion ⦿ HQ in Auburn Hills, MI, USA
… and this is what we do
⦿ Float ⦿ Pattern ⦿ Vacuum Coated ⦿ Laminated ⦿ Tempered ⦿ Acid Etched ⦿ Mirror
Consolidation Q2 2013 Gl Glass S Seg egmen ent Re Report Q2 2013 Tax Provision Q4 2017 Gl Glass S Seg egmen ent Re Report Q3 3 2018
Guardian Tax Package Q4 2014 Account Reconciliation Q2 2017
Gl Glass 3 3 Y Yea ear Ou Outlook Co Conso nsolidat ation n Q3 Q3 20 2013 SRG Forecast Consolidation Q1 2014
AOP AOP and Long Term Q2 Q2 2016 KP KPI Dri river r Based AOP Q3 Q3 2017 Gl Glass Peo eopl ple e Planni nning ng Q3 Q3 2017 Lo Long ng Ter erm Plan n Q2 Q2 2018 Mo Monthly Forecast Q2 Q2 2018 Pe Perfor
Q3 Q3 2018 SRG People Planning Q3 2018
By:
Alex Beired
⦿ Our financial planning system was not integrated with all the underlying performance assumptions (OpEx bets, headcount, etc…) ⦿ Regions used their own Excel based tools to model individual business assumptions only using OneStream to consolidate results at a global minimum standard. ⦿ Planning models were different in every region with limited harmonization. ⦿ Regional models were not globally scalable as we grow our business and impractical to maintain through Excel. ⦿ These disconnected models prevented us from doing variance analysis within the system and force the region to perform this analysis on the side.
“Integrated global financial planning system that will allow the business to : ⦿ plan future performance ⦿ track variances to the underlying assumed KPIs”
“Integrat rated global financial planning system that will allow the business to : ⦿ plan future performance ⦿ track variances to the underlying assumed KPIs”
“Integrated gl global financial planning system that will allow the business to : ⦿ plan future performance ⦿ track variances to the underlying assumed KPIs”
“Integrated gl global financial planning system that will allow the business to : ⦿ pl plan future performance ⦿ trac rack variances to the underlying assumed KPIs”
Goal- Setting Planning Consolida- tion Reporting Analysis & Modeling Insight Profitable Action
“Integrated global financial planning system that will allow the business to plan future performance and track variances to the underlying assumed KPIs”
CPM Project Scope
ü One Product ü One Application ü Multiple Solutions ü Maximize Reuse
⦿ 2017
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New driver-based planning solution to replace Excel processes
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2018 Annual Operating Plan (Budget) generated using new solution
⦿ 2018
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Strategic Plan (5 Year Forecast)
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Monthly Forecast Revisions
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Align S&P (data warehouse) data with reported OneStream Actuals
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Improved Walk Reporting with aligned drivers across scenarios
By:
Rachel Murphy
Gl Glass 3 3 Y Yea ear O Outlook Co Conso nsolidat ation Q3 Q3 20 2013 SRG Forecast Consolidation Q1 2014
AOP AOP and Long Term Q2 Q2 2016 KPI Driver Based AOP Q3 2017 Glass People Planning Q3 2017 Long Term Plan Q2 2018 Monthly Forecast Q2 2018 Performance Tracking Q3 2018 SRG People Planning Q3 2018
⦿ Global Project Team ⦿ User-friendly modeling:
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Embedded modeling logic that the business can manage ourselves.
⦿ Process / summarize large volume of data ⦿ Workflow management for guided user experience ⦿ Real time calculation:
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Change drivers or assumptions then immediately see the calculated effect
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Beyond just data roll-up, businesses need real-time calculation so changes instantly ripple through all connected plans to reveal the impact right across the enterprise—all the way to the profit and loss account and cash flow forecast.
⦿ In order to get here…we had to change our approach
⦿ Metadata Consistency
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Entity
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General Ledger Accounts
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ABC Process
⦿ Model Consistency
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Strategic Plan
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Annual Operating Plan
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Monthly Forecast Revisions
⦿ Financial Reporting
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Income Statement
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Balance Sheet
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Cash Flow
Sa Same as Consolidation Sa Same Planning Mo Model Sa Same as Consolidation
⦿ Expanded Product Dimensions
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Commercial View (UD6)
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Operations View (UD2)
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Process View (UD3)
⦿ Revisions Dimension ⦿ Customer Type Dimension ⦿ Regional vs Plant Workflows
Ul Ultimate G Game C Cha hang nger!
⦿ Automated Intercompany Sales Eliminations ⦿ Integrated Material Cost ⦿ Inventory Flow Calculations
Tr Trace th the flow of in inve ventory y from plan lant to pl plant nt, pr produc uction, n, co consumptio ion, outsid ide sale sale an and ap apply d ly drive river r ba based c d cos
Float
Raw Material Hot End Cold End
Coated
Float Produced Float Purchased (IC Material)
Warehouse
Storage Shipping
Sale
⦿ People Planning ⦿ Internal Sales & Profitability Data Warehouse ⦿ Internal Operations Data Warehouse
By:
Chris Loran
⦿ European OneStream Platinum partner, based in the Netherlands ⦿ We are passionate about finance and financial systems ⦿ Average EPM experience per consultant > 10 years, some over 25 years in EPM ⦿ Partner since Q1-2014 – one of the first in Europe ⦿ We are true specialists, not generalists
⦿ 25 OneStream projects in 5 countries ⦿ Regular contributor for ready-to-use modules / starter kits (e.g. IFRS16/ASC842)
⦿ One myth is that you do all your driver calculations only in Specialty Apps, then consolidate the plan using the cube.
Consolidation Cube(s)
⦿ One myth is that you do all your driver calculations only in Specialty Apps, then consolidate the plan using the cube. ⦿ Actually… Cubes are still a powerful and most suitable place to calculate much of the forecast data. Specialty Apps are usually supplemental to that process.
⦿ Enter/modify drivers and instantly see calculated results ⦿ Data spreading and top-down allocations ⦿ Extensible dimensionality ⦿ Data blending with relational data ⦿ Re-use of form items (cube views) for various scenario types ⦿ Calculations are focused on specific accounts (rather than on complete Data Units) ⦿ Span multiple years (rolling fcst and long-term) ⦿ Work mostly with periodic data (instead of YTD)
⦿ Demo
⦿ Dashboard links cube views to business rule functions. ⦿ Allows customer to self-service what calculations get automatically triggered when saving data from specific forms.
⦿ Demo: Immediate top-down allocation/spreading of high-level input data ⦿ Can make good use of Extensible Dimensionality ⦿ Not just through user interface (right-click action) but also through API.Data.Allocate(…). ⦿ Demo: Toggle box for Actual data comparison periods
⦿ Matrix-Style control on what products get displayed in each entity ⦿ New feature from v4.2 to show/hide suppressed rows (but this matrix implementation goes further) ⦿ Want to show blank rows, but only for those valid entity/product combinations ⦿ Demo:
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Users can retrieve a blend of relational and cube data
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Data is loaded regionally or centrally, users see a filtered view for their
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Demo:
Filtered stage data Sales detail for this entity
⦿ Dashboard allows regional FP&A to control population of baseline ⦿ Selectable number of actual periods to average
⦿ Various scenarios have different time frequencies ⦿ All these scenarios are implemented using one set of cube-views… ⦿ Remember copying form designs in previous-generation EPM products?
Examples Annual Operating Plan Jan-Dec (Monthly) Monthly Forecast Revisions Forecast + Actual Monthly Blend Strategic (5Y) plan Y to Y+6 ; Yearly Input
⦿ Extensive use of dynamic member lists ⦿ Controls what periods should be shown in columns
⦿ Gets even better when using dynamic member lists in a column template. ⦿ Control the layout of 100s of Cube Views in one place.
⦿ Annual Operating Plan ( Jan – Dec)
⦿ Strategic Plan (yearly frequency) ⦿ Monthly Forecast Revisions ( monthly frequency )
Actual data Input from this month… Columns dynamically change to 5-years … or rolling forecast with prior periods fixed.
⦿ We can not only report on financial variances, but also variances in the underlying drivers (e.g. changes in prices, fx rates)
By:
Come and visit us at the Agium EPM Booth Ask Me Anything Lounge.