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HomeMy WebLinkAboutFIN-08-112 - Project Update for the Corporate Financial & Infrastructure Management System (Delta Project)I L REPORT 74 Report To: Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee Date of Meeting: August 11, 2008 Submitted By: Dan Chapman, General Manager of Financial Services Prepared By: Moez Mehdi, Delta Project Director (2359) Ward(s) Involved: ALL Date of Report: August 6, 2008 Report No.: FIN-08-112 Subject: Project Update for the Corporate Financial and Infrastructure Management System (Delta Project) nl:yi 1111111 0 � 'U11 4q 1210 0 On December 10, 2007, the Delta project officially kicked-off contractually supported IDS Scheer Canada, SAP Canada Inc., ESRI Canada Inc. and Loki Innovations (RIVA). Council directed Staff to provide a project status reports on a quarterly basis to ensure that the City was sufficiently satisfied with the systems being proposed to be implemented. �0140 0 0 Based on the scope of the project, the City is in the Realization Phase which commenced on March 27, 2008. The Realization Phase covers the landscape of activities to implement all the business process requirements based on the Business Blueprint. The system configuration methodology governs the Realization Phase and is provided in two work packages: Baseline (major scope); and Final configuration (remaining scope). In accordance with the Statement of Work signed between IDS Scheer and City of Kitchener, the project teams completed the baseline work phase on June 24, 2008. The project continues to make good progress, and is proceeding in accordance with the timeline contemplated in the project plan. The project has a strong focus on risk management. The project is currently tracking 21 active risks, out of which 3 are high in priority. These risks relate to the following issues: • ensuring the City remains on track with the implementation timeline; • ensuring that organizational resources are willing and ready to accept new responsibilities associated with the system implementation; and • ensuring that there is sufficient systems support within business units to administer the new systems effectively. The focus on risk management is supported by constant adjustments to the baseline plan and change management program. Teams within the project are also being actively engaged to accept, mitigate and eliminate risks. From a cost management viewpoint, project spending is strictly controlled and within the allocated budget. Contingencies remain in place for nominal unforeseen expenses and consultant support after the go-live date. Council has approved project funding of $7.3 million for the Delta Project and, as of June 30, 2008, expenditures are $3.1 million. There are also outstanding purchase orders of $1.7 million specifically for consulting services. Current projections indicate that the total project spend will be within budget. To ensure spending remains on track, the project's cost management team reviews project finances on a regular basis. A more detailed financial report will be provided to Council in conjunction with the August interim financial statements. The next Project Status Report will be provided to Finance and Corporate Services Committee on November 17, 2008, following the conclusion of the final playback of the realization phase. The project plan targets a "go live" date of January 1, 2009. This report is submitted on behalf of the Delta Project Joint Steering Committee, comprised of: Dan Chapman, General Manager of Financial Services (Chair) Joyce Evans, Director of Revenue Larry Gordon, Director of Purchasing Mike Grummett, Director of Information Technology Doug Hergott, Acting Director of Facilities Management Roger LeBrun, Director of Financial Planning & Reporting Wally Malcolm, Director of Utilities Grant Murphy, Director of Engineering Rosemary Upfold, Director of Accounting Jim Witmer, Director of Operations FINANCIAL IMPLICATIONS: Dan Chapman, CA, MPA General Manager of Financial Services Moez Mehdi, PMP, MBA Project Director