Target Identification

& Prioritization

Drug Discovery Pre-Clinical Clinical

Development

Governance & Risiko Management

Compliance Management (inkl. FDA, OGI, SOX and SPL)

Chemische- und Prozessentwicklung

Portfolio und Projektmanagement (inkl. Budgetierungsprozess)

Marketing

Forschungs- & Entwicklungs-ProzessForschungs- & Entwicklungs-Prozess

R&D Project Management

Processes, Approaches and Tools

Dr. Thomas Henkelmann

Director Consulting, The Project Group GmbH

Event: Digital Pharma: Efficient Research and Development Processes in Pharmaceutical and Life Science Businesses

Agenda

R&D budget planning and project management Transparent resource management and KPIs Reporting and controlling Integration with financial systems, e.g. SAP

R&D budget planning and project management

The foundation for planning and controlling

Budget planning for R&D projects

Top Down approach Budget progress principle Focused on competition Focused on revenue and margin

Bottom Up approach Based on projects and programmes Zero based budgeting

Counter current process Combines both approaches Ensures integrity with liquidity planning and shows realistic data

Counter current process: Top Down and Bottom Up

Strategic GoalsStrategic GoalsPlanning by key dataPlanning by key data

R&D ProgrammesR&D ProgrammesProject oriented planning of financial needsProject oriented planning of financial needs

Target oriented Target oriented R&D budgetR&D budget

Strategic alignment:Strategic alignment:- Gap analysis- Gap analysis- Competition analysis- Competition analysis- Scenario planning- Scenario planning

Program planning:Program planning:- Portfolio analysis- Portfolio analysis- Project analysis- Project analysis- Project priority- Project priority

In Anlehnung an Specht/Beckmann/Amelingmeyer, R&D In Anlehnung an Specht/Beckmann/Amelingmeyer, R&D ManagementManagement

Budget planning across all project phases

ExploratoryExploratory FeasibilityFeasibility DevelopmentDevelopment

R&DR&DProject Project

PortfolioPortfolio

R&DR&DProject Project

PortfolioPortfolio

R&DR&DProject PortfolioProject Portfolio

Pro

ductio

nPro

ductio

n

R&D BudgetR&D Budget R&D BudgetR&D Budget R&D BudgetR&D Budget

Ideas

Ideas

Strategic goalsStrategic goals

R&D project management

Up-to-date base data for budget planning Compilation and priorization of programmes Scheduling and coordination Allocation of resources and controlling of resource usage Controlling of project cost and dates

Components

ControllingControllingReportingReporting

Project managerProject managerResource managerResource manager

Data storeData storeAccess controlAccess controlMicrosoft OfficeMicrosoft OfficeProjectserverProjectserver

MicrosoftMicrosoftProject Project

ProfessionalProfessional

Microsoft OfficeMicrosoft OfficeProject Web AccessProject Web Access

Unified approach to planning

Portfolio of all projects

Resource management and KPI

Reliable data for successful project management

Resource management

Capacity planning High level effort and cost estimate Alignment to strategic goals Target: correlation to budget

Resource planning By phases and qualifications/skills Alignment by organizational structures Target: load balance per department/team

Resource allocation Detailed tasks Assignment and tracking per team member Target: organize work

Load by department/team/skill etc.

Key performance indicators - KPI

Portfolio at a glance The most important key data overview

Schedule reliability Cost and budget limits Quality of the planning process

Portfolio with KPI

Reporting and Controlling

Foundation for decisions

Reports and Analysis

Project management Critical projects Milestone overview

Resource management Identify bottlenecks Manage scenarios

Portfolio management Check alignment with strategic goals Run the right projects!

Milestone overview, What-if analysis

Controlling

Deliver data for ERP systems Project/Program controlling

Plan vs. actual comparison Budget alignment

Business unit controlling Resource requirements and usage Cost center planning vs. Project planning

Enterprise controlling Revenue planning Cash flow planning

Controlling integration with SAP

Integrate what – and why?

Overview on integration with controlling

High level integration Microsoft Project for detail planning SAP for controlling

No project details in SAP! Exchange information:

Base data: WBS structures or internal orders Current data: Cost and work Time tracking: work receipt or CATS Reporting data: cost, budget

Levels of controlling integration

Projects: Microsoft EPM Technology

Enterprise role

Project managers, teams

PMO, departments

Upper Management

Critical milestones, project success

Portfolios, milestones, budgets, centralized resource planning,

risks, problems, change management etc.

Operational project management, supervision

Core processes: ERP system

Strategic view :indicators, customer profitability,strategic direction (SAP CO, FI, BW,…)

Controlling view :budgets, cost centers, revenues, purchasing,customer management(SAP PS, CO ...)

Project view: staff resources, unit costs(SAP PS, HR, CATS)

Information exchange

ERP System (SAP)

Project Server

Structures, dates, work,cost, budgets, actual data

Resource data

EmployeeID, cost center, Org. Unit etc.

Project data

Requirements for the integration

Flexible configuration for the synch process Flexible configuration for roles and rights

Based on Microsoft Project User Management Bidirectional data exchange Leading system at field level Manual and automated synchronization

Example for project structures

Option 1 Option 2

Example for work and cost

Fiscal Year: 2004

WBS-ID Cost Center Act. Type Period WorkComment

CXXX.1.0001 1000 001 12 20 Task 1 Assignment 1

CXXX.1.0001 1000 002 12 80 Task 1 Assignment 2 and

Task 2 Assignment 1

Fiscal Year: 2005

WBS-ID Cost Center Act. Type Period WorkComment

CXXX.1.0001 1000 002 1 100 Task 2 Assignment 1

ID Task Name SAP-WBS Work

1 Task 1 CXXX.1.0001 40 hrsRes 1 (CC:1000-AT:001) 20 hrsRes 2 (CC:1000-AT:002) 20 hrs

2 Task 2 CXXX.1.0001 160 hrsRes 2 (CC:1000-AT:002) 160 hrs

Details

WorkWorkWorkWorkWork

12 01 02 03Qtr 4, 2004 Qtr 1, 2005

40h20h20h60h 100h60h 100h

Example for time tracking with SAP CATS

ID Task Name SAP-WBS Work

1 Task 1 CXXX.1.0001 40 hrsRes 1 (CC:1000-AT:001) 20 hrsRes 2 (CC:1000-AT:002) 20 hrs

2 Task 2 CXXX.1.0001 160 hrsRes 2 (CC:1000-AT:002) 160 hrs

3 Task 3 CXXX.1.0001 160 hrsRes 1 (CC:1000-AT:001) 160 hrs

4 Task 4 CXXX.1.0002 444 hrsRes 2 (CC:1000-AT:002) 240 hrsRes 3 (CC:2000-AT:001) 204 hrs

5 Task5 44 hrsRes 1 (CC:1000-AT:001) 44 hrs

Details

WorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWorkWork

12 01 02 03 04 05Qtr 4, 2004 Qtr 1, 2005 Qtr 2, 2005

40h20h20h60h 100h60h 100h60h 100h60h 100h

100h 320h 24h68h 160h 12h32h 160h 12h

44h44h

WBS Element MSP Task Cost Ctr …

CXXX.1.0001 Task1 1000 …

CXXX.1.0001 Task2 1000 …

CXXX.1.0002 Task4 1000 …

CXXX.1.0001

CXXX.1.0002

SAP PS(No tasks here!)

CATS for Resource 2(All tasks here!)

Example for actual data from SAP

SAP actual cost information in Microsoft Project:

ID Task Name SAPPlan cost

SAPActual cost

SAPObligo

SAPAllocated

SAPAvailable

1 Engine XY 100.000 € 30.000 € 5.000 € 35.000 € 65.000 €2 Construction 100.000 € 30.000 € 5.000 € 35.000 € 65.000 €3 Functional Groups 100.000 € 30.000 € 5.000 € 35.000 € 65.000 €4 Power supply 30.000 € 0 € 0 € 0 € 30.000 €8 Control 50.000 € 30.000 € 5.000 € 35.000 € 15.000 €12 Aggregates 20.000 € 0 € 0 € 0 € 20.000 €

Thank you for your attention!Please address questions to:

Dr. Thomas Henkelmann, The Project Group GmbHDirector Consulting Services

Neherstr. 9, 81675 MünchenTel +49-89 / 61559330Fax +49-89 / 61559340www.theprojectgroup.de