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Professional Service Provider (PSP) Support Scenario
Created by James Sheridan
For
BPM and SA Training, Feb 2006
For
UNSW/ADFA Defence Training
Table of Contents
Professional Service Provider (PSP) Support Scenario 1
Overview 1
The PSP Support Process 1
Business Rules 3
OV1 4
Organisational Units and Roles (OV-4) 4
Functions/Operational Activities (OV-5) 5
System Entities and Functions (SV-1, SV-2, SV-4) 6
Data Objects (OV-7) 7
Standards (TV-1 9
Annex A – OV1 – PSP Spt Context (High Level Operational Concept) 11
Annex B – OV4 - The-Ent Organisational Structure and Associated Organisations 12
Annex C – OV5 - Node Tree – Functional Decomposition of PSP Spt 13
Annex D – SV1 – System Interfaces (Incomplete) 14
Annex E – SV4 – System Functionality System 14
Annex E – SV4 – System Functionality System 15
Overview
In this exercise/scenario you are to provide EA support in the form of BPM to an organisation (Theorg) that regularly hires PSP Support to carry out tasks. The head of Theorg is not concerned with what tasks PSP’s are being engaged for but rather, that the processes used for the engagement and management of the PSP resources are efficient and effective. The head of Theorg is wondering if changes to processes, staffing levels and systems are required but wants to understand the current business environment before proceeding with any changes. You are tasked with modelling the ‘As Is’ environment for PSP Support Engagement in Theorg. The resultant architectural products will be used by the head of Theorg to consider and plan for any possible future change.
The PSP Support Process
Theorg is part of a larger enterprise (The-ent) who provides a Financial System (FS), and a Contract Management System (CMS). Within The-ent there is a Finance Group (FG) and a Contract Management Group (CMG) who are responsible for the FS and CMS respectively. Theorg has access to relevant parts of both FS and CMS to support their business activities.
Theorg uses the Project Management System (PMS) to manage its projects including the work performed by the PSP assets. PSP Assets record their efforts in timesheets that are passed to the Project Manager (PM) for both endorsement and recording. The PSP resource gets a copy of the acknowledged timesheet, which they pass back to their PSP Companies for invoicing purposes.
When a need for a PSP is identified the Project Manager (PM) concerned, within Theorg, raises a Need Proposal Document (NPD). The NPD is sent to Head Theorg for approval. The NPD becomes the draft Project Initiation Document (PID) in the PMS and is considered by the Project Management Board (PMB) which meets every Tuesday afternoon to consider and approve new projects and changes to existing projects. The Head of Theorg is a member of the PMB. Individual PM’s are invited to attend when their projects are being considered. Approved PID’s include an approved budget, which is recorded as a budget forecast, for Theorg, in the Budget Plans module of the FS. The PMB receive stoplight reports on the progress of projects, these are shown at each PMB meeting on Tuesday afternoons.
The PM uses the PID to create the Project Plan (PP). The project plan details tasks, timings, resources assigned to tasks and effort/cost expended on these tasks. Funds expenditure forecasts are added to the FS. The Head Theorg approves the PP. Once a PP is approved the PM can commence the process of hiring the required PSP.
The PM uses the PID and approved PP as the basis for tasking the CMG to raise a request for tender. PID and PP details are entered into the CMS as the start of the Contracting process. The PM and Contracts Management Officer (CMO) work together on the Request for tender. Once an agreed tender request is ready it is sent to Head Theorg and Head CMG for approval. Once approved the CMO raises the advertisements and has them placed in local news papers.
PSP companies respond to the requests for tender adverts and send in their tender submissions. These are received by the Tenders Management Officer (TMO) who records them into the CMS and sends an acknowledgment back to the PSP companies. The TMO creates a tender response report, which is forwarded to the Head of Contracting who appoints a tender review board (TRB). This may or may not include the PM. The TRB meets every Thursday afternoon and picks the winning tenders.
The winning tender details are entered into the CMS. The winning tender becomes the draft contract. The CMO and the PM work together on the contract to hire the PSP resource. This includes some liaison and negotiation with the PSP Company. Draft contracts are sent to the Head Theorg and Head Contacting for approval. Once approved the Head Theorg and PSP Company meet to sign the contract. The CMO records the details into the CMS. The PM records the details of the signing and contract into the PMS and updates the PP with the details about the PSP resource(s) just hired.
The PM raises a Purchase Order in the FS for the Contract which is sent to Head Theorg and Head Finance for approval. Once approved the Finance Officer (FO) sends a copy of the PO to the PSP Company with instructions to use this as the reference for all future invoicing. The PM enters details about the PO into the PMS. This entry of the PO details activates the task for the PSP resource in the PMS, which includes a timesheet.
The PSP resource(s) commence work and record their efforts in the PMS Timesheet(s). Each Monday the PMS Timesheet is reviewed and approved by the PM. A copy is printed and passed back to the PSP resources as a record of their work. The PSP resource passes this document to the PSP Company who uses this as the basis for raising and sending invoices. Entries in the timesheets update the PP in the PMS.
Each Monday the PM reviews the PP and reconciles the status with the FS for budget forecasts and expenditure. This information is used to create the stop light reports that are sent to Head Theorg and reviewed by the PMB each Tuesday.
The PSP Company is expected to send invoices each week for payment of the work performed by the PSP resources. These invoices are received by the PM who checks them against the timesheets in the PMS. The approved invoices are then sent to the FO who checks that funds are available and approved (ie existing PO). The FO enters payment details into the FS and these are sent to Head Finance for approval. The approved payment causes the FS to generate a cheque and an actual expenditure to appear in the Budget records for Theorg. The FO sends the cheque to the PSP Company and a memo to the PM about the payment details. The PM enters the payment details into the PMS.
The-Ent provides a Correspondence Management System (CorrMan), which is used by Theorg to record and manage all correspondence, both internally and externally. This includes all types of documents ie email, letters, memo, records of conversation, spreadsheets, html, pdf etc. The CorrMan system can also store and manage voice and video records. All correspondence can be linked to multiple enterprise records such as project records in the PMS or finance records in the FS or tender/contract records in the CMS.
Business Rules
The following are some of the business rule used by The-ent and Theorg.
· Finance to be available before tenders are released
· The Head of a business unit, plus the Head of Finance plus one other from within the Business Unit to approve all Funds expenditure
· PO are to be authorise by the Head of a Business Unit and Head of Finance and funds to be available before approval can be given
· All Contractors are to record their efforts on a weekly basis and their companies are expected to invoiced accordingly.
· All PSP contracts to be linked to Invoice and payment records
· PSP contract payments to only be based on approved timesheets
· All correspondence is to be recorded in CorrMan and linked to the relevant project or other enterprise system.
OV1
See Annex A for a suggested OV1, a graphic representation of the Theorg PSP Support environment.
Organisational Units and Roles (OV-4)
For this scenario at least the following organisational units and roles have been identified:
Organisational Unit / Role / CommentTheorg / Head Theorg / Projects are sub units in Theorg structure and are headed by PM’s
Theorg Project Manager (PM)
PSP Resource / PSP resources will work for PMs in Theorg on approved projects.
PSP Company / PSP Staff / The PSP may have various staff, ie account manager, PSP Resource (contractor)
Finance Group (FG) / Head Finance / In the Finance Group (FG) finance officers are appointed in support of Business Units such as Theorg. They may be from anywhere within the FG, for the purposes of this scenario we don’t care about the organisation of the FG.
Finance Officer (FO)
Contract Management Group (CMG) / Head CMG / The Contracts Management Group has at least two sections. The CM Section and the Tenders Section
Contracts Management Officer (CMO) / From the CM Section
Tenders Management Officer (TMO) / From the Tenders Section
Tender Review Board / Chair TRB / The TRB is appointed by the Head CMG. There will be other members of the TRB but they are not significant for this scenario.
Project Management Board (PMB) / The PMB is appointed by the Head The-Ent. It is usually made up of Heads of BU and subject matter experts. It is headed by Head The-Ent. PM may be invited to participate.
Advertising Agency / A newspaper or website where requests for tender can be published.
Though an advertising agency may have many staff for this scenario they are not significant.
Functions/Operational Activities (OV-5)
The PSP Support process is made up of the following functional decomposition:
Level 1 / Level 2 / Level 3 / Inputs / OutputsTask Requirements / Task Identification / Draft NPD / Draft PID
Tasking Approval / Draft PID / · PID
· Budget Forecast
· PMB Minutes
Task Monitoring / Stop Light Report / PMB Minutes
Contracting / Request for Tender / · PID
· PP
· Tender Submission / · Tender Advert
· Tender Acknowledgment
· Tender Report
Tender Assessment / Tender Report / Winning Tender
Contract Management / Winning Tender / Contract
Task Management / Project Management / · PID
· Contract
· Timesheet
· Budget Forecast / · Stop Light Report
· PP
· PO Request
· Budget
Task Work Management / · PP
· PSP Resource work effort (NB: Tunnelled)
· Invoice / · Timesheet
· Verified Invoice
· PO
Financial Management / Budgeting / · Budget Forecast
· Budget
· Budget Update / Budget Status Report
Accounts Management / Purchasing / PO Request / Budget Update
Invoicing / Verified Invoice / Authority to Pay
Payments / Authority to Pay / Payment (Cheque)
NB: Functions will be modelled using Op Activities in the DAF. In System Architect Operational Activity records include an attribute for ‘Acronyms’. There are many acronyms used in this scenario, it is recommended you record these as you go. Acronyms can be recorded in a spreadsheet (ready for import into System Architect) or directly in to System Architect.
System Entities and Functions (SV-1, SV-2, SV-4)
The System Functions used by Theorg include:
System Entity / System Modules/Functions / System Data Info ExchangesCMS / Approve Tender / The function receives tender drafts and sends out Tender Ready Advice.
Tender Requests / This send out Tender Advertise Orders
Tender Response / Receives tender responses from PSPs and sends out Tender received acknowledgments.
Tender Assessment / This function creates a tender register, it records the tender assessment scores and creates a tender score report. It creates a winning tender advice notice.
Contracts / This function accepts and records a request for a contract to be raised and creates the necessary contract documents. Proposed contracts are assessed and may be approved changing their status to authorised contract. Authorised contract documents are published for signature with details of the signing being recorded back in the system and the contract document changing status to active.
Contract Management / Active contracts appear in the Contract Management module. When there are variations to an active contract they are input to the system, recorded accordingly and a variation notice is issued. Progress reports on the contract are input and monthly progress reports are created.
FS / Budget Module / The budget module shows approved budgets for business units such as Theorg. As PO’s are raised the costs are deducted from the budget commitment balance. As invoices are paid the actual costs are deducted from the actual balance. PO’s can not be raised if the budget allocation is exceeded.
Invoice Module / Received invoices are recorded in the invoice module. They are checked against existing approved PO and with approved Timesheets for PSP resources. Valid PO are approved by Heads of BU and passed to Payments for payment. Details of payments are recorded in the General Ledger.
General Ledger / Records and reports on all purchases and subsequent payments.
Purchasing / Receives approved invoices, raises and sends a payment, updates the GL and budget module.
PMS / PID / Can be used to create NPD’s as draft PID proposals. Can record PMB feedback on NPDs. The PID module includes an estimated costs development and recording function which includes a record of funds available status.
Project Plan / Accepts approved PIDs as the basis for new Project Plans. Records resource allocation to project plan. Produces project plan documents including Gantt and Pert charts. Accepts project plan updates as the project progresses.
Resource Management / Presents timesheets for use by resources to record effort on project tasks.
CorrMan / Records all forms of correspondence which are marked with references to projects from the PMS, or records from the CMS or FS. NB the minutes of meetings, such as the PMB would be recorded in CorrMan.
Data Objects (OV-7)
Some of the key data objects (these are logical entities, ie modelled with the OV7) and some typical key attributes are: