British American Tobacco GP Upgrade

PeopleSoft/Oracle Cloud Day –
27th Feb 2015
British American Tobacco 9.2
Upgrade Project

British American Tobacco at a glance
We are one of the world’s most
international businesses
- 200+ brands
- Sold in around 180 markets
- Global market share 13%
- Market leader in 60+ countries
- More than 55,000 employees
- 44 cigarette factories in 39 countries
- Our companies buy more than
400,000 tonnes of leaf per year
- More than 100,000 farmers and
suppliers are directly contracted

Balanced brand portfolio
 Powerful brands are key to satisfying
consumer needs
 Global Drive Brands
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
 Other important international brands
- Rothmans
- Benson & Hedges
- State Express 555
- Viceroy
- Vogue
- Peter Stuyvesant
- Kool

 Provided PeopleSoft Consulting expertise for over 19 years
 Oracle Gold Partner in multiple countries, including UK
 Offices in UK, Switzerland, India and Australia
 45+ Clients in our last Financial Year (2013-14)
 15+ long-term Managed Service Clients
 60 Employees plus 15 Associates
 Oracle accredited PeopleSoft Specialisations
 Extensive latest version and technology experience
 UKOUG PeopleSoft Partner of Year for 2014 (Gold) winner
Background – Cedar Consulting

Cedar Consulting - Services
Cedar provides a full range of PeopleSoft services. Within the last 2 years
Cedar has completed the areas below for both PeopleSoft HCM and Financials:
 Full life-cycle new implementations
 Application Upgrades
 Tools Upgrades
 Technical Development Work
 Formal Support Services (with 13 current support clients)
 Training Services, including UPK consulting

Our Clients....
 Cedar’s current and/or recent client list includes:
 9 United Nations organisations, including UNHCR and WIPO, across
Switzerland, Germany, Italy and USA
 Audit Commission, NHS NSS, Oxfam and British Red Cross in the UK
Not for Profit sector
 Allen & Overy, DLA Piper, Baker & McKenzie, Clifford Chance, BDO,
Cameron McKenna, ING, Prudential and Willis in the UK Legal and
Financial Services sectors
 Reckitt Benckiser, Saint-Gobain, BAT, Spire Healthcare and Scottish
Water in other UK Commercial sectors
 Kerzner International, Rotary International, DFAT outside of Europe

Introduction and Background
• UK Payroll and Projects Manager – BAT Southampton. Worked at BAT for 18
years
• PeopleSoft was selected back in 2000 for BAT’s HR system solution, Payroll
during this transition was outsourced
• In 2003 BAT decided to bring Payroll back in-house and that is when the
journey began with Cedar Consulting
• Cedar implemented PeopleSoft Global Payroll with a go live in Nov 2004
• In 2007 BAT moved over to SAP for the business HR solution. PeopleSoft
was retained for UK Payroll which involved the build of interfaces from SAP
to PeopleSoft – this was a challenging time for BAT and Cedar!
• BAT’s PeopleSoft solution became hosted, maintained and supported by
Cedar as part of a managed service agreement – contract renewed in 2014
8

Rationale for Upgrade
9
• Why – Current version was out of normal support and into extended
support, additional costs could have been incurred and risk to the
business of non-compliance
• Payroll review – Prior to agreement to upgrade, the business wanted
to complete a review of Payroll and consider viability of outsourcing
payroll. Decision made to retain Payroll on PeopleSoft – major
decision factor around IA population complexity
• Upgrade Objectives – Ensure Payroll system is fully supported.
Review of new functionality available that the business may want to
adopt. Review of customisations/elements – are they still required?
• Interface Review – HR to Payroll interface was analysed and
streamlined to make it more industry standard architecture as a pre-
requisite to the upgrade

Payroll at BAT
 Approximately 2500 employees over 4 PAYE references
 7 paygroups all processed monthly
 Modified and Supp runs for subset of paygroups (run on demand)
 Payment Day is 11th of the month
 Significant percentage of populations are Expats (In and Outbound)
 Inbound interface from SAP HR
 Outbound interface to SAP GL and third-party providers

Project Timelines
 June 2013 – Building of customisation catalog and Initial Pass environment
 July 2013 – Functional Workshops
 August 2013 – Reapplying customisations and MTP 1
 September 2013 – Unit Testing
 October 2013 – System Testing / MTP2
 November 2013 – UAT / MTP3 + Parallels
 12th December 2013 – Production taken offline / final MTP begins
 16th December 2013 – Go Live!!

Project Challenges
 First UK payroll implementation live on 9.2
 Several payruns throughout the month
 Availability of hardware resources
 RTI solution not available in 9.2 until start of System Test
 Changes to other BAT systems (e.g. SAP HR and SAP GL)

9.2 – New Features Discussed and Reviewed at BAT
 Payroll:
 Processing Monitor
 Add End Dates to Recurring Assignments
 Court Orders
 Positive Input Templates
 Employee Loans
 General Features
 WorkCenters, Activity Guides, Pivots, etc.
 Secure Enterprise Search

Processing Monitor
 Graphical "at a glance" overview of payroll processing status
 Configure alert icons to appear at specific thresholds
 Comparison of Gross and Net values to previous pay run
 Display list of element values for Absence Calendars
 Configured on a per country basis
 Data is automatically generated during payroll run
 Additional process provided to generate data for earlier payrolls

Add End Dates to Element Assignments
 Automatically set End Dates on Element Assignments during calc
 It is possible to set or unset (blank) an End Date
 But it is NOT possible to set or unset an End Date in retro periods

Court Orders
 Complete re-write of Court Order page and calculation rules
 Now uses just two deductions (COURT ORDER and COURT FEE)
 Similar rationalising of accumulators
 Custom reports may need to be re-written
 Multiple instances of each deduction as needed
 Consistent User Keys across all accumulators
 Able to retain full history of Court Order assignments
 Possible to pay Court Orders via BACS without customisation
 Data conversion process provided as part of upgrade process
 Need to run Update Court Order End Dates process after finalising

Court Orders
 User fields on results table contain the following data items:
 Court Order reference number
 Court Order Type
 Legislative Region

"New" features that had not been implemented
 New features added from 8.9 onwards, but never fully implemented:
 Positive Input Templates (9.1)
 Employee Loans (8.9)

Positive Input Templates
 Pre-populate element names for one-time entry
 Enter values for multiple elements on one row
 Simplify and speed up data entry
 Also used for Supporting Elements and Currency Codes
 Entries show up as standard one-time (Positive Input)
 Exactly the same as one-time, just simpler entry

Employee Loans
 Options to calculate repayments based on repayment amount or time
 Can factor in interest to repayment calculation
 Repayment holidays and recovery of outstanding amount for leavers
 Option to flag loans as being P11D reportable
 Option to pay loan money direct to third-party beneficiary
 Useful for any reducing balance calculation (e.g. Season Tickets)

Project Approach
• Project Initiation – Prince 2 Methodology followed within BAT - Creation of
PID – agreement of Project Board/Team – Project Plan – Risk/Issue Log
• Fit/Gap workshops - Review of existing customisations to agree what would
be carried forward and what would be retired. Review of new functionality
available
• Payroll Config Rationalization – Review of existing elements, nothing deleted
but removed from process list. Purge of payroll results for performance
improvement
• UAT – Deferred parallel testing
• Development freeze put in place during project, any critical business activity
to be managed via change control process
• Review of any changes in progress to ensure moved to production
26

Upgrade Stages
 Overall upgrade process was very smooth, not too many few issues
 Main problems were with Court Orders
 Plan:
 Review customisations – re-apply or drop? Are they still needed?
 Changes to COBOL array sizing will normally need to be reapplied
 Review new functionality with Cumulative Feature Overview Tool – is it
useful? How can it be adopted? Is there any value in using it?
 Rationalise elements – if not used for 2 or more years is it really needed?

Upgrade Stages
 Preparation (can be completed prior to upgrade):
 Set completed Court Order's status to "Inactive"
 Archive history data
 Allow plenty of time for testing Court Orders
 Where possible, code freeze should also apply to payroll configuration

Upgrade Stages
 Execute:
 Key points for payroll:
 Ensure all Calendar Groups are finalised or cancelled
 Do not delete elements, just remove from sections / process list
 Ensure key functional resources know when they will be needed
 Build changes and re-apply customisations to delivered elements in 9.2
DEV environment, copy changes using Rule and Non-Rule Packages
 Task 6-9 and running Country Extension delete process can be skipped
 Quickest and easiest test at end of upgrade is to simply run a payroll

Court Order Issues
 Main issues during upgrade were with Court Orders
 Data conversion process is improving but still not perfect
 Main function of data conversion process is to move balances from the "old"
Court Order accumulators to the "new" Court Order accumulators
 Varied results:
 Generally if employee only had one Court Order per Court Order Type
(e.g. DEO, CTA, etc.) then process worked correctly
 Employees with multiple Court Orders of the same type were problematic
 For complex employees, simplest option may be to stop all Court Orders
prior to upgrade and manually re-key them once the upgrade has completed

Court Order Issues
 Ensure completed Court Orders have been set to "Inactive" prior to upgrade
 Old Court Order processing reads Court Orders where the End Date was
greater than current period End Date (or was blank)
 New Court Order processing reads any Court Orders with an "Active" status
 Due to validations on page, some Court Order entries may need to be
corrected via SQL due to changes in which fields are now mandatory
 Old Court entries cannot be edited so impossible to complete missing fields

Court Order Issues
 Court Orders can still be processed with the pre-9.2 logic
 Not recommended as a long term solution but could be useful if you have a
lot of Court Orders and want to handle it separately from go-live
 Do not run conversion until ready to move to new calculation process
 NOTE: Using old Court Order logic not supported by Oracle

Testing Process
 Main focus was on parallel testing
 Unit testing of re-applied customisations and interfaces
 Run basic checks to ensure integrity of payroll
 Do all earnings that contribute to Gross Pay add up to total Gross Pay?
 Does Net Pay equal Gross Pay less any Deductions?
 Spot checks on employees (high earners, low earners, middle earners)
to ensure Tax, NI and other calculations are correct
 Standard page functionality validated during keying of parallel test data
 Recommend minimum of two parallel runs
 Parallel testing using "deferred" methodology

Deferred Parallel Testing
 Run parallel testing off main production payroll cycle
 Decide which payroll runs will be used for parallel testing
 After finalising each payroll run, take two copies of production
 Unfinalise (using scripts) and cancel the payroll run on both copies
 Upgrade one copy and leave the other on the original version
 Identify and Calculate payroll in both copies
 Compare and verify results match across both environments
 Finalise and check post-payroll processes (RTI / banking / GL)
 NOTE: Do NOT unfinalise any Calendar Groups after upgrading as this may
interfere with the Court Order data conversion and lose employee balances

Benefits
35
• Improved Performance - Payroll run time significantly reduced
• Better look and feel on system - menu navigation much easier
• Move to official RTI solution – although this was deferred due to
timing of upgrade
• New functionality around loan processing/court orders
• Retirement of unnecessary customisations/elements – reduces
support requirements and complexity
• Reassurance that Payroll system was future proofed

Future Plans
36
• PeopleTools upgrade is required – currently on 8.53.03 – after PUM
Image 8 requires a minimum of 8.53.10
• Review of approach to applying PUM Images – recently installed up
to image 8 – UAT for this was intense with over 130 bugs to test
• Automation of Shared Parental Leave/ Pay based on company
enhanced policy
• Explore options around implementation of SES (Secure Enterprise
Search) for improved user experience
• Consider use of activity guides which will take the user through a
complex process in an ordered fashion

Lunch
1300 - 1400
LUNCH - will be held in the Pimlico Lounge & the Piccadilly Lounge.
Knightsbridge Room - From 13:30
 Absence Management Calendar plug-in
 Our pre-configured home page with improved UI
 New hire Activity Guide plug-in
 Our pre-configured HR Admin WorkCentre
Bring your lunch and feel free to quiz our experts!

British American Tobacco GP Upgrade

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British American Tobacco GP Upgrade