Revolutionizing Capital Planning

Revolutionizing Capital
Planning

Data-Driven Strategies
for the Modern VP

Martin Aztiarazain

Senior Manager, OnIndus

At the end of the fiscal year, it becomes critical for the Vice President of the Program to review the latest Capital Plan to understand the road ahead and ensure that there is a clear vision of achieving the most critical needs for the organization.

A multitude of spreadsheets are combined to create a master table that reveals the state of current and projected financials and resource allocations. The process is often described as the most demanding, mentally draining and stressful period of the year due to the number of resources and time it takes to create the results the VP desires, while still turning the wheels of production.

Capital project planning is a critical component to ensure that the prioritization of projects is backed by precisely analyzed data related to cost and scheduling that enables a program to uncover the “state of possible”. The components of any respectful capital construction plan include the following:

Funding Projections

Projected and predictable funding from a multitude of sources.

Active Project Financials and Scheduling

All projects that are currently in motion, specifically those that will financially impact the program in the future.

Projected Project Financials and Scheduling (High Level)

This can also be referred to as the “Project Stack”. It is a list of future projects that are complemented with high-level financial estimates and scheduling projections. The reason they are referred to as the “Project Stack” is that each project can change position in the order of prioritization at any given time. The flexibility to easily move projects in this space/stack and analyze how the plan will “Pan Out” is critical for many large-scale programs to envision the future state.

Resource Allocation Analysis

A report that is a result of projected scheduling and an understanding of current and future resourcing needs.

Risk Assessment

An assessment produces a list of potential risks for current projects and how they can impact the planned projects.

Typically, each of the components listed above is managed in separate spaces or systems, i.e., PMIS, ERPs and you guessed it SPREADSHEETS. Organizations that have evolved in using PMIS systems to manage all critical components of their projects such as cost and high-level scheduling have an edge in efficiently generating Capital Plans required to forecast future fiscal year activities. The main reason for this is that the information, or better stated, the project “Data” is all in one place.

Why is centralized project Data a game changer in the Capital Planning world?

A Capital Plan is essentially a report that is made up of data combined in such a way that REVEALS the capital planning STORY. In essence, if project managers, vendors, directors, program managers, etc. all are collaborating in one place, data gets gathered and staged throughout the fiscal year. If protocols are followed and the data is precise and “clean” , a reporting engine can be set up to gather the data and automate the necessary architecture to produce the state of the possible. This approach reduces or ELIMINATES the sharing of combined multiple spreadsheets via email and the risks of generating an inaccurate capital plan. “Garbage In, Garbage out”! Furthermore, if technology is utilized as described, the Capital Plan essentially has a PULSE throughout the fiscal year and is developed in real time as the projected “Project Stack” is adjusted.

See How We Helped Pierce Transit to Automate their Reporting

A Capital Plan is a logically driven asset that many programs rely on to predict the future state. If systems are deployed to gather the intelligence required to create this asset, the result is a “Work of Art” enabling the VP and all of his/her constituents to understand the road ahead.

Introduction: Pierce Transit’s Ambitious Venture

● Pierce Transit: Transportation Agency in Washington State
● Adopted e-Builder PMIS in 2019 for project data management
● Objective: Manage Capital and Operational projects efficiently

Challenges: Manual Efforts and Outdated Data

● Utilized e-Builder for project data management
● Compiled Capital Improvement Program (CIP) Report manually
● CIP Report aimed to provide informed outlook on future projects
● Data points captured by the report: Project Description, Project Purpose, Problem Solving Intent, Opportunity narrative, Anticipated Results, 5 Year Cost Projections, Location, Project Management Team, Funding Information
● Manual compilation was time-consuming and led to outdated information
● Needed a more efficient and real-time solution for generating the report

Seeking Automation: OnIndus Steps In

● In March 2023, Pierce Transit enlisted OnIndus
● Objective: Automate CIP Report generation using existing technology
● OnIndus leveraged e-Builder and MS Power BI

Leveraging Existing Technology: e-Builder and MS Power BI

● e-Builder collects capital planning data
● Challenge: Extract and combine data seamlessly for digital CIP Report
● Solution: Utilize e-Builder’s data warehouse and MS Power BI’s data processing capabilities

Transformative Solution: Automated CIP Report in 60 Days

● OnIndus collaborated with Pierce Transit to achieve the goal
● New version of CIP Report was crafted and deployed within 60 days
● Retained comprehensive insights of the manual report
● Added capability to generate the report on demand with real-time data
● Enabled more frequent and agile capital planning analysis
● Resulted in a clearer and more detailed vision of upcoming projects

Maximizing Technology: Pierce Transit’s Success Story

● Pierce Transit maximized the capabilities of existing technology
● Combined e-Builder and MS Power BI for enhanced reporting
● Addressed the limitations of manual reporting
● Realized an efficient and foresight-driven reporting process
● Achieved comprehensive and accurate depictions of future projects.

Conclusion: A Journey of Innovation and Progress

● Pierce Transit’s transition from manual to automated reporting
● Reflects their commitment to progress and efficiencies in creating the reporting process.
● Highlights the transformative power of purpose-driven technology
● Illustrates the collaborative innovation between Pierce Transit and OnIndus
● The story stands as a testament to embracing change.

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Revolutionizing Capital Planning