High Level Business Process Definition - PPM - PS PDF

Business Process Definitions
Project Inception to Asset Acquisition to Project

Completion to Asset Retirement
Business Process
PPM/PS
Version – 1.0
Date 31/07/2018
Document Control
Change Record:
Version Date Author Reference
0.1 28/2/2018 Delia Conneely Initial Draft
0.2 14/06/2018 Delia Conneely Updated with feedback from SMEs
Updated with feedback from GPDO, master data &
1.0 29/06/2018 Delia Conneely
metrics processes & issue resolutions
Reviewed by:
Version Date Name Role Comments
0.1 13/06/2018 Phil Jones, Peter Husk SME
0.2 19/06/2018 Toby Garafillis GPDO
PI2AA2PC2AR
1.0 31/07/2018 Richard Hawley
Business Lead
Approved by:
Version Date Name Role Signature / Date
PI2AA2PC2AR
1.0 31/07/2018 Richard Hawley
Business Lead
Reference Documents
The following section describes relevant documentation:

Document Name Description Sharepoint Link
Business Definitions (Glossary)
Acronym / Term Definition

SAP Module - Project and Portfolio Management – for financial management of projects and
PPM
portfolios
PS SAP Module - Project Systems – for financial project management
Work Breakdown Structure – hierarchical project structure for managing and controlling
WBS
project costs.
WBSE WBS Element – a node in the hierarchical project structure
P!2AA2PC2AR 4S Pod - Project Inception to Asset Acquire to Project Close to Asset Retire
GPDO Global Process & Data Owner
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Acronym / Term Definition
Capex Capital Expenditure
Opex Operating Expenditure
DoA Delegation of Authority
FY Fiscal Year
EAC Estimate at Completion
Contents
1. Introduction ....................................................................................................................................................... 6
1.1 Purpose ......................................................................................................................................................... 6
1.2 Objectives ..................................................................................................................................................... 6
1.3 Scope ............................................................................................................................................................ 6
1.4 Variants ......................................................................................................................................................... 7
1.5 Intended Audience ....................................................................................................................................... 7
2. E2E Process Overview ................................................................................................................................... 8
3. Level 4 Processes............................................................................................................................................ 9
Project Investment Portfolio .................................................................................................................................... 9
3.1 4.08.01.01. Establish Portfolio Strategy ....................................................................................................... 9
3.2 4.08.01.02. Develop and Approve Capital Expenditure Plans and Budgets ...............................................11
3.3 4.08.01.03. Review and Approve Project Funding Requests ......................................................................14
3.4 4.08.01.04. Monitor & Control Portfolio ....................................................................................................17
3.5 4.08.02.01. Establish Initiative and Item Structure and Approach .............................................................21
3.6 4.08.02.02. Manage Initiative and Item Stakeholders and Partners ..........................................................26
3.7 4.08.02.03. Manage Initiative and Item Execution.....................................................................................27
3.8 4.08.02.04. Review and Report Initiative and Item Performance ..............................................................34
3.9 4.08.03.01. Manage Project Initiation ........................................................................................................35
3.10 4.08.03.02. Manage Project Planning and Scoping ....................................................................................41
3.11 4.08.03.04. Manage Project Execution and Reporting ...............................................................................44
3.12 4.08.03.05. Manage Project Closure and Asset Acquire ............................................................................49
3.13 4.08.03.06. Manage Post Implementation Review ....................................................................................51
Report and Analyse Finance Performance .............................................................................................................52
3.14 4.09.09.01. Perform Project Investment Portfolio Operational Enquiry and Analysis...............................52
3.15 4.09.09.02. Monitor and Action Project Investment Portfolio Metrics......................................................53
Finance Master Data...............................................................................................................................................55
3.16 4.10.05.03 Manage PPM Portfolio .............................................................................................................55
3.17 4.10.05.02 Manage PPM Buckets ...............................................................................................................55
3.18 4.10.05.04 Manage Project/WBS Template (Operative) ............................................................................55
Finance Enterprise Structure ..................................................................................................................................56
3.19 4.11.11.01 Manage Portfolio and Project Change .....................................................................................56
4. Business Rules ..............................................................................................................................................57
5. Integration with other E2E business processes....................................................................................57
6. Master Data......................................................................................................................................................57
1. Introduction
1.1 Purpose
The purpose of this document is to describe Orica’s Project and Portfolio Management Business Process, which
forms part of the overall Asset Lifecycle processes defined under Project Inception to Asset Acquire to Project
Close to Asset Retire (P!2AA2PC2AR).
1.2 Objectives
This deliverable provides an overview of the PI2AA2PC2AR Business Processes relating to Project and Portfolio
Management and its:
• key functions,
• variants,
• decision and integration points,
• business rules,
• master data objects
1.3 Scope
List of Level 4 processes contained within PI2AA2PC2AR Business Process relating to Project and Portfolio
Management:
• Project Investment Portfolio:

o 4.08.01.01. Establish Portfolio Strategy
o 4.08.01.02. Develop and Approve Capital Expenditure Plans and Budgets
o 4.08.01.03. Review and Approve Project Funding Requests
o 4.08.01.04. Monitor & Control Portfolio
o 4.08.02.01. Establish Initiative and Item Structure and Approach
o 4.08.02.02. Manage Initiative and Item Stakeholders and Partners
o 4.08.02.03. Manage Initiative and Item Execution
o 4.08.02.04. Review and Report Initiative and Item Performance
o 4.08.03.01. Manage Project Initiation
o 4.08.03.02. Manage Project Planning and Scoping
o 4.08.03.04. Manage Project Execution and Reporting
o 4.08.03.05. Manage Project Closure and Asset Acquire
o 4.08.03.06. Manage Post Implementation Review
• Report and Analyse Finance Performance
o 4.09.09.01. Perform Project Investment Portfolio Operational Enquiry and Analysis
o 4.09.09.02. Monitor and Action Project Investment Portfolio Metrics
• Finance Master Data
o 4.10.05.03 Manage PPM Portfolio
o 4.10.05.02 Manage PPM Buckets

o 4.10.05.04 Manage Project/WBS Template (Operative)
• Finance Enterprise Structure
o 4.11.11.01 Manage Portfolio and Project Change
1.4 Variants
This section to be finalised in Detailed Design Phase 2.
1.5 Intended Audience

This document is intended for use by the following individuals and groups:
• Global Process & Data Owner (GPDO)

• Business Subject Matter Experts for Project Portfolio Management
2. E2E Process Overview
4S will provide a global, integrated planning & execution capability to better manage Orica’s Projects and Portfolio
management processes.
Some of the benefits this business process brings:
• A global set of process for financial management of Orica’s projects portfolio, to enable consistency in
management and reporting
• Integrated system for financial planning and execution of projects, thereby minimising data redundancy,
improving data integrity, and reducing manual effort
• Real time data queries drive more timely and accurate planning and decision making.
3. Level 4 Processes
Project Investment Portfolio
3.1 4.08.01.01. Establish Portfolio Strategy

The Establish Portfolio Strategy process describes the maintenance of the PPM Portfolio structure and its attributes
which support Orica’s portfolio management processes.
Key elements of the process include:
• Identifying when the standard Portfolio hierarchy must be updated to keep alignment with budget
accountabilities. Note: Changes to the PPM Hierarchy and Bucket structure are governed by a master data
standard, and so the maintenance steps are covered in a separate processes (Refer to Sections
4.10.05.03 Manage PPM Portfolio and 4.10.05.02 Manage PPM Buckets).
• Reassignment of Initiatives and Items following a hierarchy change.
• Identifying where a change in the business rules or calculations for scoring capital projects must be
reflected in the system.
• Periodic updates to interest rates used in NPV-for-Scoring calculations.
All capex and expense Projects will be managed under a single PPM Portfolio.
The Portfolio hierarchy reflects the Region / Sub-Region areas of accountability for project budgeting purposes.
This hierarchy differs from the Orica management and organisational hierarchies in that Manufacturing and SM&T
are separated from the geographical Regions, since these functions are accountable for a large proportion of
Orica’s capital spend.
The Portfolio structure is defined with 3 levels as follows:
Changes to the PPM hierarchy are expected only in the case of significant reorganisation, new business and/or
change of accountabilities. The change could be triggered by a request from a Region / Functional or may result
from a review of Corporate or Regional strategic plans. The Portfolio Manager is responsible for assessing any
request to change the hierarchy and ensure the intent of a budget accountability structure is maintained.
Following a change to the hierarchy, the impacted Regions/Functions are notified as they are then responsible to
reassign Initiatives and/or Items to new Buckets as required. Closed Initiatives/Items can be left assigned to
inactive Buckets if they do not need to be reported under the new structure. Reassigned Initiatives and Items will
automatically be reported under the new structure, including historical information.
Review of Corporate or Regional strategic plans could alternatively identify a need to change or enhance the
capital project scoring methodologies. If Orica is planning to expand into a new country, it will be necessary to
initiate the entry of CPI, Corporate Tax and Interest rates for that country, in anticipation of scoring new projects in
that country.
Key decisions relating to this process include:
• PI2AA2PC2AR-DR-067: A single Investment Portfolio in PPM will be used to manage all Capex and
Expense projects. Projects will not be separated into different Portfolios based on financial treatment of
project costs.
• PI2AA2PC2AR-DR-028: Only the 'standard' languages required by 4S (English, French, Spanish) will be
implemented for Capital and Expense projects in PPM and PS; screens & configuration objects will be
available in these 3 languages.
English will be the master/default language for PPM master data. There is no requirement to manage PPM
Portfolio, Bucket, Initiative or Item descriptions/texts in multiple languages.
PS Project Definition & WBS Element descriptions & texts will be managed in a single language. There is
no requirement to manage an instance of these in multiple languages.
• PI2AA2PC2AR-DR-058: PPM hierarchy will be defined according to areas of budget responsibility ie. Level
1 = Orica Group, Level 2 = Region/Function, Level 3 = Sub-Region/Sub-Function. Manufacturing and
SM&T are separate nodes at Region level.
• PI2AA2PC2AR-DR-068: PPM Buckets will be managed in AUD to support Portfolio-level reporting.
Individual Items will be managed in their local currency to support the forecasting process.
Since PPM can only manage a single currency per Item, conversions to AUD will occur at run-time in
reporting using the forecasting exchange rates. The reporting design will seek to minimise such
conversions by sourcing data from PS in reporting currency where possible.
Key integration points relating to this process include:
• N/a
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3.2 4.08.01.02. Develop and Approve Capital Expenditure Plans and Budgets
This process describes the ranking and prioritisation of projects against the available capital. Projects are scored
based on the value they will deliver to Orica. Iterative evaluations are made as projects are moved in and out of the
prioritised list until an optimal allocation of the capital is made. The finalised submission is approved via workflow
by the VP Group Finance.
The process can be triggered by the annual budgeting cycle, or ad-hoc if the capital target is revised.
• The Prioritisation Dashboard is used to view, rank and prioritise projects. Project scoring, execution status,
and other attributes are displayed to support the decision-making process.
• Multiple Prioritisations can be evaluated for different scenarios, eg. different capital constraints.
• Automated workflow is triggered for approval of the overall prioritised allocations.
• On approval, Items are automatically updated with a ’Prioritised Baseline’ allocation, which will be available
as a key figure in the analytical PPM reports for tracking against Forecast
• Revisions to Orica’s capital target can result in a re-set of the Prioritised Baseline, via a full Prioritisation
process, or else the new target can be manually set using the ‘FY Target’ financial view.
• Forecast Guidance will be maintained by Region/Function to constrain forecasts beyond the budgeted
years.
Submitting Items for Prioritisation

Items are submitted for Prioritisation via an Item status change. At a Regional level, active Items will be reviewed,
and those which should be considered for prioritisation changed to ‘Regionally Approved’ status.
Preparing the ‘Interim Submission’ View

All Items with ‘Regionally Approved’ status will have their Forecast copied to an ‘Interim Submission’ Financial
View. This view is used as a working view during the Prioritisation process, enabling adjustment to be made to an
Item’s forecast value without impacting the ‘live’ forecast. This is required in cases where an Item will receive an
allocation for less than its full forecasted amount.
The PPM Excel Planning Tool can be used to select multiple Items for collective update. (Refer to Section
4.08.01.04. Monitor & Control Portfolio for further details on the tool).
Prioritisation
A Prioritisation is created at the Orica Group level. Key attributes such as the fiscal year, capital constraint and
scoring model are specified. The system then automatically includes the ‘Regionally Approved’ Items from the sub-
portfolios.
Within a Prioritisation scenario, the Portfolio Manager can use different 'levers' to adjust the prioritisation ranking;
flagging Items as 'Must Do' or forcing Items in/out by manually changing their Prioritisation status. A visual and
tabular representation of the selected Items vs Capital Constraint is dynamically displayed:

During the Prioritisation process, it may be necessary to go back to the Region/Function for clarification or an
adjustment to be made to an Item before continuing. Alternatively, more detailed evaluation may be necessary via
reporting in order to make an informed decision.
Several iterations of this process will most likely be performed before the Prioritisation can be finalised. It may be
necessary to create multiple Prioritisations to evaluate different scenarios, such as different capital limits.
Once finalised, the preferred Prioritisation scenario is submitted for approval via a workflow to the VP Group
Finance. When approved, Items are automatically updated with their approved Prioritised Baseline allocation and a
snapshot of the Portfolio is taken. For clarity, any redundant Prioritisation Scenarios must be set to ‘Rejected’.
Revised Capital Target

Occasionally, a revised capital target may be communicated for an already budgeted fiscal year.
This may result in:
• A full reprioritisation and reset of the ‘Prioritised Baseline’. In this case, the Prioritisation process is started
from the beginning and a subsequent approval will be required.
• The revised capital will be managed by setting an ‘FY Target’ view of the Portfolio. The FY Target View is
manually created, by copying the FY Budget or Prioritised Baseline and then:
o Adjusting values up or down
o Shifting values between different Items
o Performing a percentage revaluation of values across all selected Items.
FY Target will be available as a key figure in the analytical PPM reports so that it can be compared against
forecast. No approval is triggered for the update of FY Target.
Forecast Guidance
Forecast Guidance can be set as a 'soft' constraint for future, unbudgeted years. It is maintained as an annual
figure against the relevant Region/Function level Buckets in the ‘FY Guidance’ financial view.
24M rolling forecasts, can then be tracked against the ‘FY Budget’ or ‘FY Target’ views for budgeted years, and ‘FY
Guidance’ for future years.
‘FY Guidance’ will be a Financial View only available at Bucket level. Access will be restricted to the Portfolio
Manager role.

• PI2AA2PC2AR-DR-111: Forecast Guidance will be provided in PPM as a soft constraint of forecasts
beyond budgeted fiscal years. This will be entered at Regional/Functional level as a total per FY. The
Guidance financial view can be included in PPM reporting for tracking against Forecast.
• N/a

3.3 4.08.01.03. Review and Approve Project Funding Requests
This process describes the steps to request and approve funding for a Project/Asset, including:
• Capex and Expense budget approvals
• Pre-Sanction, Sanction and Supplementary approvals.
The approval of Pre-Sanction and Sanction funding coincides with progression though a phase-gate and so the two
actions are managed simultaneously. A request raised in the Implementation/Build phase of a project is always
considered Supplementary funding.
• Customised app for Project/Asset approvals to replace Sceptre

• Approver determination according to a standardised Approvals Matrix.
• Integration with SAP My Inbox to receive workflow items.
A custom ‘Project/Asset Approval’ App is provided to raise a Project/Asset approval request. The App will capture
and validate the data required to support the request, including any document attachments. On submission, a
workflow is initiated, and the documents are locked from further updates. Approvers are determined as per the
following Project Approvals Matrix, which has been simplified and standardised globally:
IF REQUESTED EXPENSE CAPEX VALUE >

CONDITION IF CAPEX VALUE > $0 CAPEX VALUE > $250K CAPEX VALUE > $2M CAPEX VALUE > $0
VALUE > $0 $0
Senior Manager –
Regional VP Finance on Capex Delegation of
Nominal Approver Project Owner Cost Centre Owner Accountant Capital Evaluation on
behalf of CRC Authority (DoA)
behalf of OIC
Starting with Project
Method for Position Position maintained for Owner, traverse HR Org
Position assigned to Position maintained for Single, maintained
determining assigned to Item L2 Bucket to which Structure upwards to find
Item as Project Owner Requesting Cost Centre Position
Position as Accountant Item is assigned Band holding sufficient DoA
for capex value
Endorse/ Approval
1 2 2 3 4 5
Step
Capex DoA Approval

The final Capex DoA step is driven by the HR Org Structure, with Bands mapping to delegation values. The actual
delegation values will be approved via the Position Paper 65 ‘Delegation of Authority R3’ and are therefore not
shown here. The total project value, rather than the amount requested for the phase, is used to determine the
approval level
The workflow item will be sent to each approver’s SAP My Inbox in turn. If the Work Item is rejected, the user must
enter a comment (mandatory); otherwise entering a comment is optional. All determined recipients are required to
‘approve’ the request for the request to be finally approved. Workflow progress can be tracked in the PPM Item;
approvers who have actioned the workflow so far, and the current approver. Standard workflow escalations and
substitutions will apply.
Seed Funding
The following additional rules will apply for the first ‘Idea; gate which initiates the project:
• If only Expense funding is requested, then this is assumed to be a ‘seed’ funding request. The approver
determination will only consider the requested amount and not the total project value / capex forecast. This
means CRC, OIC and Capex DoA approvals will not be required. In this case approval will go to the Project
Owner and Cost Centre Owner.
• If the funding amount being requested is zero, only Project Owner approval will be required.

Capitalised Interest
The following criteria will be checked to determine if Capitalised Interest applies to the Item:
• Project capex value > $25M
• Project duration > 12 months
If both conditions are true, the ‘Capitalised Interest’ indicator will be set. On submission of an approval request, the
system will validate that the relevant document exists in OpenText for this Item. A ‘relevant’ document will be
determined by meta-data ie. the document will be tagged with a certain ‘type’ of ‘Capitalised Interest’.
Notes:
1. The review and approval of individual documents and their content is not in scope for 4S. It is assumed that
this will be managed under a separate business initiative, utilising OpenText capability; 4S will only check
the existence of a specific document type.
2. OpenText design to be completed in Design Phase 2
Expert Panel Review

A questionnaire will be included in the approval request, to determine whether an Expert Panel Review is required.
The questions will be designed such that a ‘Yes’ answer to any question will result in a non-zero value, indicating a
review must be performed. The numeric result of the Questionnaire will be stored in the ‘Assessed Risk’ field, with
possible values ranging from 0-100, depending on the number of ‘Yes’ answers.
On submission of an approval request, the system will validate that the relevant document exists in OpenText for
this Item. A ‘relevant’ document will be determined by meta-data ie. the document will be tagged with a certain
‘type’ of ‘Expert Panel Review’.
Notes:
1. The review and approval of individual documents and their content is not in scope for 4S. It is assumed that
this will be managed under a separate business initiative, utilising OpenText capability; 4S will only check
the existence of a specific document type.
2. OpenText design to be completed in Design Phase 2
Post-Approval Actions
On final approval, the system will automate the following steps:
• The Item’s ‘Project Budget’ is supplemented with the amount approved in the request. This will be
determined as Pre-Sanction, Sanction or Supplementary, based on the current Decision Point (project
phase).
• The Actual Finish Date of the current Decision Point (DP) is populated, and the project is progressed to the
next phase/DP. Exception is when current phase is Implementation/Build or where ‘in-phase funding’ has
been specified, in which case the project remains in this phase and Actual Finish Date is not updated.
• ‘Approved Phase Finish Date’ of the new phase/DP is populated from its Plan Finish Date. This effectively
snapshots the Plan Finish Date for this phase/DP.
• If the new phase/DP is Implementation/Build, then ‘Approved RFO Date’ is also populated from the Plan
Finish Date of this DP. This effectively snapshots the completion/RFO date.
• If the Item is not already at ‘Regionally Approved’ status, this status is automatically set.
• A snapshot version of the Item is taken.
• Document attachments will be stored and locked in OpenText (Note: OpenText design to be completed in
Design Phase 2)
• If this is the first approval for the project, the PS Project/WBS is automatically created from a template.

• The approved ‘Project Budget’ is pushed down from PPM, firstly to the L1 WBS Element, and then further
distributed to the L2 WBS Element relevant to the current phase of the project. (Refer to Section
4.08.03.01. Manage Project Initiation for WBS structure).
• A notification is sent to the workflow initiator.

• PI2AA2PC2AR-DR-109: A standardised and simplified capex approvals process will be implemented as
per Approvals Matrix V3. Approvals by SHES, Expert Panel, Property & IT are removed from Approvals
Matrix, however Accountant remains.
• PI2AA2PC2AR-DR-114: Use the Capex DOA as the standard DOA template for Planned Shutdowns.
• PI2AA2PC2AR-DR-006: OpenText provides the replacement for the equivalent SCEPTRE document
storage capability. Documents required to support funding approvals in PPM will be held in OpenText and
linked to Item in PPM. Documents will not be up-loaded directly into SAP.
• PI2AA2PC2AR-DR-045: All capital and expense project budgets will be approved via PPM and pushed
down to PS.
• PI2AA2PC2AR-DR-052: All Asset purchases must obtain individual Capex DoA approval and will therefore
require a separate Item to be raised and approved.

• OpenText for storage of approval documents
• HR Org Structure (Positions & Bands) to drive DoA approvers and workflows
• SAP My Inbox, including substitutions to receive workflow notifications

3.4 4.08.01.04. Monitor & Control Portfolio
This process covers the steps to monitor the Portfolio at Group and Regional/Functional levels. 6 key reports are
available to support these processes and present to OIC and CRC.
At a Regional/Functional level, the sub-portfolio manager will be responsible for monitoring the rolling 24M forecast
against FY Budget allocations and/or a revised FY Target.
At the end of each period, the 24M forecasts will be extracted into BPC and rolled up for EXCO reporting.

• Portfolio-level reporting via 6 key reports
• Tracking of 24M rolling Forecasts at Regional and Group levels against Prioritised Baseline/FY Budget
allocations, revised FY Target and/or FY Guidance (for periods beyond the budgeted years).
• Regional Allocation view available for Regions to manage adjustments of projects in/out of plan.
Project Portfolio Reports

The following customised reports are available for evaluations at the Portfolio or Sub-Portfolio (Region/Function)
levels:
Report Name Purpose
• Support for active Portfolio Management to manage current year financials.

• Indicates where budget has been allocated and how projects are tracking against
the allocations.
Project FY Spend • Highlights which project(s) might need to be stopped/delayed or where available
Report funds can be redirected.
• Run by Site, Region and Portfolio
• This is an analytical report, which can be dynamically sliced & diced with
additional dimensions and measures.
• Presented at monthly Orica Investment Committee (OIC) meeting to review

project performance (for projects >$2M).
• Presented at regional Capital Review Committee (CRC) meetings (for
Investment Tracking projects >$250K)
Report
• Tracks active projects; actual spend vs approved (phase-gate) budgets, forecast
vs agreed completion date, EAC (Estimate at Completion), Overall Health
additional dimensions and measures.

Report Name Purpose
• Presented at monthly Orica Investment Committee (OIC) meeting to review

project performance (for projects >$2M).
• Presented at regional Capital Review Committee (CRC) meetings (for
projects >$250K)
Portfolio KPI Report
• Graphical and tabular view of portfolio performance; Forecast, Actuals, Burn Rate
EAC, Budget, Variance
• Performance by Business Driver, Spend Category, Top 10 Projects (by value)
• This is a fixed format report
• Supports the approval of overall Capital Budget Allocations. (Link to this report is
included in the approval workflow)
Budget Allocation • Presents a summary of the budget allocations for which approval is requested;
Summary Current FY vs Previous FY by Region.
additional dimensions and measures
• Local review of project health by Program/Site managers
Project Dashboard • Tracks projects within a Regional Portfolio; Cost, Schedule, Scope and Resource
Report Health
• ‘Project on a Page’ status report; overview of project health, financials,

commentary, major milestones
Project Flash Report • Monthly reporting of individual project progress (Regionally specified requirement)
for projects >$250K
• This is a fixed format report
• Supports the tracking of Forecast against Budget at a Regional/Functional level.

Initial view is at Region/Function and Sub-Region/Sub-Function level.
Forecast Tracking • Presents a summary of the Forecasts vs FY Target (current year and following
Report years) and Forecast vs FY Guidance in following, unbudgeted year.
Orica Portfolio Review

The overall Orica Projects Portfolio can be evaluated either via the Portfolio Item Dashboard or via the Project
Portfolio reports detailed above. In the dashboard, Items can be filtered and/or sorted on the various criteria to
focus the review. The review may result in a further action to:
• Flag an Initiative as ‘Endorsed’, as an outcome of the OIC meeting
• Make a request to the Project Owner/Manager to cancel a project
• Make a request to Project Owner/Manager to reforecast or make some other update to an Item

Specific group level reports to be presented at OIC are produced in this process; Investment Tracking Report and
Portfolio KPI Report.
Regional/Functional Portfolio Review

A Sub-Portfolio (at Region/Function or Sub-Region/Sub-Function level) can be reviewed via the Portfolio Structure
dashboard by selecting the relevant Bucket. Alternatively, the Item Dashboard can be accessed directly, if the user
has their current Bucket set appropriately. Items can be filtered and/or sorted on the various criteria to focus the
review. Further evaluations are available via the Project Portfolio reports detailed above.
The purpose of the Regional review is to ensure projects with the most value are in the Regional/Functional plan
(24M Forecast) and that the Forecast is tracking to Budget. The review may result in a further action to:
• Change the Regional Allocation at an Item/Project level, by updating the corresponding Financial View
• Regionally Approve or Reject an Item by changing the Item status:
- To 'Regionally Approved' to indicate the Item is to be included in the overall Regional forecast.
- To 'Proposed' if the Item may go ahead in future but should be excluded from the Regional
forecast for the interim.
- To 'Rejected' if the Item will not go ahead.
• Make a request to the Project Owner/Manager to cancel a project
• Make a request to Project Owner/Manager to reforecast or make some other update to an Item
Specific Regional/Functional level reports to be presented at CRC are produced in this process; Investment
Tracking Report and Portfolio KPI Report.
As an outcome of the OIC, an Initiative can be manually set to ‘Endorsed’. This will be visible in the PPM reports to
indicate the overall status of the program.
Regional Allocations
Regional Allocations can be adjusted for an Item by increasing or decreasing the allocation and/or moving the
allocation over the time horizon. The total of Regional Allocations on all Items must not exceed the Region's FY
Budget/FY Target.
The Regional Allocations can be maintained via the PPM Excel Planning tool or via the Item Financial Planning
screen.
The Excel Planning tool provides:
• Update of multiple Items at the same time
• Comparison of the Regional Allocation against FY Budget Allocations & Actuals, by Item and in total.
• A copy function to update the Regional Allocation from a different Financial View, for example, the FY
Budget
• Revaluation of all values (up or down) by a specified percentage
• Excel functions, such as formulas, drag & drop, copy/paste.
Integration with Overall Financial Planning

There are several integration points between PPM and BPC, where financial forecasts and budgets are prepared at
a Profit Centre level:
• Each month, the rolling 24M forecasts (capex only) are extracted from PPM, aggregated by Profit Centre,
to provide the capex component in the overall financial plans.
• Each month, the rolling 24M forecasts are used as a basis for the calculation of the Depreciation Forecast.

• When the annual budgeting process is triggered in BPC, the Item Forecasts will be copied to the FY
Budget financial view, to ensure the capex Forecast and Budgets are aligned between the 2 modules. To
avoid timing differences, the copy will be from the Forecast snapshot of the relevant month.
Monthly Snapshots
At the end of each financial period (month), a snapshot is taken of all the active Items. This includes all the data
attributes and financial values of each Item. The snapshot data can be viewed in reporting, or by navigating to the
Miscellaneous > Versions tab of a specific Item.
The snapshot data is used in:
• The calculation of the Project Portfolio Metrics. Refer to Section 4.09.09.02. Monitor and Action Project
Investment Portfolio Metrics for further details on the Metrics.
• The source of Capex Forecasts extracted to BPC
• The source of Forecast Depreciation calculations extracted to BPC
• The source of Forecasts in the annual copy to FY Budget.
• PI2AA2PC2AR-DR-074: No additional or project-level data will be loaded into 4S for TBO entities. Portfolio
KPI Report to be enhanced to include TBO forecast/budget/actuals from BPC. Note: this decision is under
review, since there will be a program-wide approach established for TBO reporting under CR1100.
• PI2AA2PC2AR-DR-116: Project data will be visible across Regions; there will be no access restrictions,
except for projects flagged as 'Sensitive'.
• Rolling 24M Capex and Depreciation Forecasts are extracted from PPM into BPC to provide the capex
forecast at Profit Centre level.
• The annual copy of PPM Forecast to FY Budget is triggered by the ‘copy forecast to budget’ action in BPC.

3.5 4.08.02.01. Establish Initiative and Item Structure and Approach
This process covers the creation of PPM Initiatives and Items.
The PPM Items provide a strategic & planning view of Capex and Expense projects within the context of the
Portfolio. Initiatives can be optionally created to group related or dependent Items for collective selection and
reporting.
The following diagram depicts the overall Portfolio structure in PPM:

• Customised app for Project/Asset Proposal to replace the CPP (Capital Project Proposal) in EPM-Live.
• Financial and/or Risk information captured for each new Item to calculate a score according to Orica’s
Project Scoring methodology.
• Decision Points, reflecting the phases/gates relevant to the type of project (Capital, Turnaround, Product
Development etc.) automatically determined.
Item Creation
On proposal of a new project/asset acquisition, the following key information must be provided:
• Project type; Capital, Turnaround, Product Development, General Expense etc.). For Capital projects, the
complexity is determined from a number of risk factors, in line with the draft Group Procedure for Project
Management
• Overview information; Project Name, Purpose, Start/Finish Dates, Bucket assignment (Region/Sub-
Region)
• Organisational data; Profit Centre, Location (Plant/Site - required for Manufacturing)
• Classification attributes; business driver (Category/Sub-Category), Implementation Group
• Financial information; Forecast, Estimate Accuracy
• Benefits; scoring inputs dependent on the business driver
On ‘Save’ a new Item is created under the node (Bucket) of the Portfolio. Alternatively, it will be possible to save
the Item in a ‘Draft’ status if all required details are not available at the time. In this case an Item will not be created
in PPM, but the details saved in an interim table, from where they can be called up at a later stage to complete the
creation process. The Item will not be available for any further processing or reporting in PPM while it is in a ‘Draft’
status.

Notes:
1. A ‘collective’ Item can be created for each entity, to group projects <$250K for planning and capital
allocation purposes. However, for budget approvals, individual Items must be created.
2. For projects in newly established countries/entities, the required organisational data (Profit Centre, Plant)
may not have been set up in SAP at the time the project is proposed. In this case, the most relevant (eg.
Regional Head Office) organisational units will be temporarily assigned. These can be updated any time up
to the first funding approval. Area (Co Code) defaults from the Profit Centre, so this will also need to be
updated. The Organisation Units appear on the Project Funding Approval app for validation.
Leased Assets
From October 2019, leased assets will be recorded in the asset register as Right of Use (ROU) assets. A capex
project must be raised for approval of the capital.
It is not necessary to finalise the decision whether to buy or lease prior to proposing a project, since the process is
the same, up to the point of generating the PS Project/WBS (Refer to Sections 4.08.03.01. Manage Project
Initiation and 4.08.03.02. Manage Project Planning and Scoping). A ‘Leased Asset’ Indicator is available on the
PPM Item to enable to system to select the appropriate WBS template and for reporting.
Item Types
The following Item Types, Decision Points and coding conventions for Item Identifiers will be configured:
Item Type Decision Points Coding Mask
Capital – High Complexity Idea C.000000

Concept
Pre-Feasibility
Feasibility
Implementation
Capital – Medium Complexity Idea C.000000

Pre-Feasibility
Feasibility
Implementation
Capital – Low Complexity Idea C.000000

Feasibility
Implementation
Capital - Small Idea C.000000

Implementation
Intercompany Asset Purchase Idea C.000000

Implementation
Product Development Idea C.000000

CDP1
CDP2
CDP3
CDP4
CDP5

Item Type Decision Points Coding Mask
Turnaround Idea C.000000

Business Strategy
Planning
Execution
Expense – General Idea E.000000

Implementation
Expense - Environmental Provision Idea E.000000

Implementation
Note that IT projects will use the ‘Capital’ Item Types.
Cross-Company/Region Projects
For projects that are centrally managed, but result in assets in multiple legal entities, it will be necessary to create
an Item in each entity. This will ensure:
• Forecast depreciation and therefore forecast EBIT is accurate at the legal entity level
• Accountability and visibility of capex spend in the owning entity
• Disputes over capex spend/value on completion of the work is minimised.
The multiple Items will be grouped under an Initiative for aggregated reporting (refer section below).
Management costs will be split across the multiple projects by time-recording directly to the owning entity WBS.
Where possible, other costs, such as purchases, will be incurred directly in the owning entity against the relevant
WBS. Otherwise, the intercompany recharge process must be followed to transfer costs from one project to
another. (This process is defined in the Position Paper ‘Intercompany Non-Trade).
For example, a possible structure for Product Development projects could include a ‘master’ project in the OIPL
(Singapore) or Corporate entity. This Item would be created up-front, in the initial ‘Define’ phase. Separate Capital
Items could be created in the Regions at a later stage once the capital components are known.
This structure enables centralised cost collection for shared costs, while ensuring the capex DoA approvals are
executed in the Region/Entity which will own the final assets.

Intercompany Purchases
The process for transferring an asset (eg. MMU) between legal entities requires a disposal and sale in the sending
company and a purchase and acquisition in the receiving company. The purchase will follow the standard process
in the receiving company of raising and approving a PPM Item. A specific Item Type for intercompany purchases
will be used to identify the purchase as intercompany, so that it can be excluded from PPM reporting as required,
from the PPM Metrics and from the BPC extract of Capex & Depreciation forecasts.
Initiatives
An Initiative will be created by the Regional/Functional portfolio manager in the following cases:
• To group related projects for prioritisation. The Initiative can be displayed on the Prioritisation Dashboard to
indicate which project are related, since this might be a factor in the budget allocations.
• To group Cross-Company or Cross-Regional projects. An Item will be raised in each entity which will own
the resulting assets. The Initiative will provide an aggregated view of the overall program of work.
• To group <$250K projects with a ‘collective’ Item which holds the budget allocation (as described above).
This will enable the <$250K projects to be reported against the budget allocation.
Initiatives will be created with a single Decision Point (the minimum possible) since there will be no phases or
decision points defined at this level.
• PI2AA2PC2AR-DR-027: In order to have a single, consistent process for managing projects (as per 4S
guidelines), Expense projects will be created in PPM as an Item as per Capital projects. Similarly, the
Expense PS project will be generated, and budget assigned via PPM.
A single PPM Portfolio will be created to manage both Capex and Expense projects. Differences in
approvals & governance will be managed through different Item Types.
• PI2AA2PC2AR-DR-011: Capital and Expense projects generated from PPM will be prefixed with 'C.' and
'E.' respectively. Following the initial letter, all projects will then take the next 6-digit sequential number
available.
• PI2AA2PC2AR-DR-030: For projects that are centrally managed, but result in assets in multiple legal
entities, it will be necessary to create an Item in each entity. This will ensure:
o Forecast depreciation and therefore forecast EBIT is accurate at the legal entity level
o Accountability and visibility of capex spend in the owning entity
o Disputes over capex spend/value on completion of the work is minimised.
• PI2AA2PC2AR-DR-004: A Portfolio Item will represent each Project in PPM. The capital prioritisation
process will be managed at the Item level. The financial and risk information required for scoring will
therefore be captured against each Item. Initiatives will used only to group related or dependant Items;
assignment of an Item to an Initiative is optional.
• PI2AA2PC2AR-DR-088: A separate Item Type will be used for the purchase of an asset from another Orica
legal entity (inter-company asset transfer). This Item Type will be excluded from the prioritisation &
budgeting process, PPM reporting as required, from the PPM Metrics and from the BPC extract of Capex &
Depreciation forecasts.
• PI2AA2PC2AR-DR-075: Expenditure relating to Expense activity is to be managed through a Project (PPM
Item and PS Project/WBS) if, and only if, all the following conditions are met:
1. The project costs cannot be capitalised
2. There is a defined start and finish date to the activity
3. A Project Manager and Project Owner can be assigned
4. Spend is to be managed against an approved Budget

5. The activity relates to one of the following:
(a) Site Demobilisation
(b) Minor (non-capital) Turnaround
(c) Environmental Remediation
(d) Trade Show
(e) Asset disposal
(f) There is a legal, statutory or compliance requirement to collect and disclose cost information
on a specific activity
(g) Other, is not a routine operation, where duration is greater than two months
6. The owner of the incurring Cost Centre is in agreement for the expenditure to be planned and
incurred against a Project.
• PI2AA2PC2AR-DR-012: A reporting solution will capture the costs of MMU maintenance; neither a WBS or
Internal Order will be used to track the MMU maintenance costs.
• For Turnarounds, a Work Order may be required for planning the future production downtime. The Work
Order is raised when the Item is first proposed and will include a reference back to the Item ID.

3.6 4.08.02.02. Manage Initiative and Item Stakeholders and Partners
This process manages the stakeholders assigned directly to the PPM Items:
• Project Owner
• Project Manager
• Accountant

• Stakeholders are all assigned via their HR Position, in line with 4S direction for identifying DoA approvers.
Item Stakeholders
The Item stakeholders are required for:
• Determining approvers for phase-gate and supplementary funding requests
• Searching, filtering and reporting of Items
• Project Manager is pushed down to PS WBS Elements for determining approver of Purchase Requisitions
The Project Owner must be assigned when the Item is first proposed. The Project Manager and Accountant can be
assigned later but are required for the first approval request.
All 3 roles are identified by a HR Position, to minimise maintenance due to personnel movements.
Initiative Stakeholders
No stakeholders are assigned directly at the Initiative level
• N/A
• HR Positions held on Items to identify stakeholders

3.7 4.08.02.03. Manage Initiative and Item Execution
This process describes the steps for ongoing maintenance of Items throughout their life-cycle, including the
following types of information:
• Phase Dates
• Status
• Cost Forecasts
• Commentary
• Financial & Risk information
• Documents
Initiative updates are also covered in this process.

• Periodic and ad-hoc updates to Items
• Ad-hoc update to Initiatives
• Closure or cancellation of Items and Initiatives
Locating Items
Items can be accessed via the ‘Portfolio Item’ Dashboard for periodic and ad-hoc updates. Alternatively, the ‘My
Portfolio Items’ Dashboard can be used to limit the Items presented to those to which the user is directly assigned.
A third option is to use the ‘Search’ function to locate the Item according to defined search criteria.
Entry into either dashboard will be at the Region / Sub-Region level, depending on the default Bucket assigned to
the user. A user can change the default setting or navigate to other Buckets, as there are no access restrictions
across Regions or Functions. If no default Bucket is set for a user, entry will be at the Portfolio level.
The dashboard displays Items in a table which can be filtered, sorted and searched to locate the required Item.
Additional attributes can be displayed/hidden, and columns moved around in this view. User-defined layouts can be
created and saved as the default view.
The following diagram shows an example of the Item Dashboard:
Item Data
Once an Item is located and selected, the following information can be updated in the Item detail screen:
Type of Information Fields Reason for Update

General information Project Name, Description Scope of project has changed.
Status Values are: Proposed (initial As project undergoes prioritisation and capital
value), For Regional Approval, allocation process (process 4.08.01.02) and closure
Regionally Approved, Rejected, (4.08.02.03)
Closed

Type of Information Fields Reason for Update
Classification Category (Investment Reason) Project score does not accurately reflect the benefits
attributes Sub-Category (Business Driver) and should be reclassified to initiate a new scoring
calculation.
Implementation Group Change in the group executing the project
Program Change in the project delivery structure
Spend Category Project forecast value has changed such that project
now fits in a different Spend Category
Sensitive Project Project has become commercially sensitive, or
previously sensitive projects has been declassified.
Organisational data Profit Centre, Area (Legal Entity), Project was assigned to temporary organisational
Location (Site/Plant) units as it relates to a new entity for which data had
not been set up at time of creation.
Complexity Rating Updates to this field will have no impact on the Item
Type which was determined at the time of Item
creation.
Cannot be updated directly but assigned to a
Questionnaire which calculates the rating.
Scoring inputs Asset Life, Financial Benefits, Project scope and benefits have been refined, so that
Pre- & Post-Project Risks and score can be more accurately calculated.
Consequences, Estimate
Accuracy etc.
Financial Integration Cost Centre Change in Cost Centre receiving depreciation and
expense settlements
Leased Asset Indicator Lease decision has been made; resulting WBS
template should only include a single, statistical WBS
Element for Leased Asset.
Tangible/Intangible Indicator Change in nature of assets being created by project
Health Indicators Resource health Change to project resource assignments

Scope health Change to project scope
Long Texts Problem Description, Monthly project review (4.08.02.04)

Assumptions, Issues, Actions,
Progress, Commentary etc
The following information can be displayed, but not directly updated in the same detail screen:
• Scoring results; NPV on EAC, NPV on ETC, RONA, RRPV on EAC, RRPV on ETC, Project Score
• Country (derived from Area / Legal Entity), for reporting only
• Approved RFO Date - copied from Plan Finish Date on entry to Implementation/Build phase
• Legacy ID - relevant to conversion only
• Integrated Forecast Indicator - indicates whether the forecast in PPM has been overwritten by a WBS
Forecast
• Approval Status – set by each funding approval
Decision Points
The Phases and Decision Points (gates) for a project are determined from the Item Type selected when the project
was created and are displayed in the header of the Item Detail screen, for example:

The Decision Points (DPs) appear with an icon, which reflects their status:
Not Started
In Progress
For Approval
Complete
A DP can be manually completed, if there is no associated funding approval required, by manually changing its
status. Note: it is not possible to manually trigger an approval by this method since the ‘For Approval’ status will not
be available here. Approval requests must be triggered from the ‘Project Approval’ app to ensure the necessary
data validations are performed.
The following dates can be maintained for the DP:

• Plan Start/Finish Dates – Plan Finish date is latest completion date agreed with the Project Owner
• Forecast Start/Finish Dates – Forecast Finish date is the current estimated completion date
• Actual Start/Finish Dates (Actual Finish Date is automatically populated on completion of the DP)
The following information can be displayed, but not updated in the same DP detail screen:
• Approved Phase Finish Date
Health Indicators
The following Health Indicators are displayed in the header of the Item Detail screen:
• Cost Health – determined from difference between Forecast and Budget up to current DP
• Project Schedule – determined from difference between Approved Phase Finish Date and Forecast Finish
Date of current DP
• Resource – manual input
• Scope – manual input
• Investment Schedule – determined from difference between Approved RFO Date and Forecast Finish Date
of Implementation/Build DP
• Overall - determined from combination of Budget and Investment Schedule Indicators
SHES Statistics
SHES Statistics must be updated each month on the Item and appear on the Flash Report.
For example:

Custom Milestones
For large projects which require more granular milestones during the Implementation/Build phase, up to 6 further
‘custom’ milestones can be defined. These will be manually maintained and will appear on the Flash Report:
For example:
Document Attachments
The design for OpenText integration will be completed in Design Phase 2.
OpenText will be integrated with PPM Items to automatically create a project-specific workspace to store related
documents. The default folder structure will be determined from the Item Type.
The folders and documents can be accessed via the ‘Business Workspace’ tab on the Item.
• Approval documents will be automatically retrieved/stored here via the Project Approval app in dedicated
folders.
• General folders will be available for users to manually store and retrieve other projects documents.
• Access to the documents will be controlled via OpenText.
Sample screen-shot:

Item Versions
Snapshot versions will be taken automatically:
• All open Items monthly AND
• For individual Item on approval of a funding request
• On approval of Capital Budget Allocations, for all open Items.
Versions of an Item can be accessed directly from the Item Detail screen. For example:
A selected version is displayed in full via the Item Detail screen. All fields are read-only. Versions can also be
included in reporting for comparison to current data.
Financial Planning
The Item Financial Planning screen will display the different Financial Views associated with the Item:
Financial View Purpose Source

Forecast Costs Rolling 24M forecast for project Manual entry while Item is in planning stage
Extracted to BPC for EXCO & Once forecast has been entered at WBS
Management reporting of capital forecast level, is overwritten by WBS Forecast (see
below) and becomes non-modifiable.
Extracted monthly to BPC as Capex
Forecast.
Interim Submission Used as a working view during the Manual create & update
Prioritisation process: Restricted to Portfolio Manager role
- Manually copied from Forecast before
start of Prioritisation
- Displayed in the Prioritisation
Dashboard for comparison to constraint
- Manually updated where allocation will
vary from Forecast
- Copied to Prioritised Baseline view on
approval of capital budget allocations
Prioritised Baseline Holds the capital allocations resulting from Updated automatically on approval of capital
the Prioritisation process. budget allocations
Used to track forecasts for coming FY Manual updates possible, but restricted to
until the FY Budget Allocations are made Portfolio Manager role
FY Budget Holds FY Budget Allocation Updated automatically, in synch with the BPC
copy of Forecast to Budget. ie. copied from
Forecast snapshot in the same fiscal period.
Manual updates possible, but restricted to
Portfolio Manager role
FY Target Holds revised FY Target Manual create & update, but restricted to
Portfolio Manager role

Financial View Purpose Source
Regional Allocation Holds Regional view of allocated capital Manual create & update, but restricted to
Sub-Portfolio Manager role
Project Budget Records total of approved funding Updated automatically, on approval of a
requests funding request
Not modifiable
WBS Forecast Shows where forecasts exist at WBS level Automatically aggregated from WBS
Not modifiable on the Item
Actual Costs Shows actual spend at WBS level Automatically aggregated from WBS
Not modifiable on the Item
Depreciation Holds the result of the depreciation Automatically calculated on a monthly basis,
Forecast forecast from Forecast and Asset Life assuming
straight-line depreciation method.
Extracted to BPC for Depreciation Forecast.
Note:
• All modifiable Financial Views can be updated directly in the Item Detail > Financial Planning window
(individual Item only) or via the PPM Excel Planning tool (individual or collective processing). Refer to
Section 4.08.01.04. Monitor & Control Portfolio for further details on the tool.
• All Financial Views are further split by Capex and Expense. For example:
• The Project Budget View is first split by Pre-Sanctioned, Sanctioned and Supplementary. For example:
Item Closure or Cancellation

An Item is closed or cancelled via a status change.

Item closure can be done once all post-implementation activities are complete, including final closure of the linked
PS Project/WBS.
An Item cancellation could be triggered from a portfolio review at Group or Regional/Functional level. Any special
treatment of costs incurred to date will be dealt with at the PS Project/WBS level. (Refer to Section 4.08.03.05.
Manage Project Closure and Asset Acquire)
Initiative Attributes
Minimal data is maintained on the Initiative. The following attributes can be updated on an ad-hoc basis:
• Name
• Assigned Items (Refer to Section 4.08.02.01. Establish Initiative and Item Structure and Approach)
Initiative Closure
An Initiative is closed once all assigned Items are closed or cancelled.
• PI2AA2PC2AR-DR-041: Monthly project re-forecasting will be performed and extracted from PPM at the
Item level for EXCO and Management reporting.
• OpenText will be integrated with PPM to provide project-specific workspaces.

3.8 4.08.02.04. Review and Report Initiative and Item Performance
This process describes the steps for evaluating the performance of individual Items and Initiatives.

• Reviewing multiple Items within an Initiative
• Reviewing individual Items
Initiative Performance
Performance of the Items assigned to an Initiative can be reviewed by:

• Executing the Timeline Monitor, which displays the Item schedules (Plan, Forecast & Actual dates) in a
chart
• Displaying the Items in a dashboard, to review performance indicators
• Displaying aggregated financials at the Initiative level
• Executing the Project Dashboard report for the Initiative, which will list the assigned Items.
Item Performance
Performance of individual Items can be reviewed by:

• Executing the Timeline Monitor, which shows the Item Decision Point schedules (Plan, Forecast & Actual
dates) in a chart
• Displaying the Item financials (Budget, Forecast & Actuals)
• Displaying the Item Health Indicators (Cost, Resource Scope, Project Schedule, Investment Schedule,
Overall Health)
• Executing the Flash Report or the Project Dashboard Report.
Refer to Section 4.08.01.04. Monitor & Control Portfolio for further details on the Project Dashboard and Flash
reports.

• PI2AA2PC2AR-DR-116: Project data will be visible across Regions; there will be no access restrictions,
except for projects flagged as 'Sensitive'.
• N/a.

3.9 4.08.03.01. Manage Project Initiation
This process describes the creation of a PS Project and Work Breakdown Structure (WBS), initiated from approval
of a PPM Item.

• Automatic creation of the Project/WBS
• Templates define the minimum WBS per project type
WBS Templates
The PS Project/WBS will be created from a template, dependent on the Item Type. In all cases, the template will
define the minimum structure required. Except for Small Capital and Expense, the template will comprise the
following WBS levels:
• Level 1 = Project
• Level 2 = Phase
• Level 3 = Cost Category
The following diagram shows an example of a template for ‘High-Complexity Capital’ project:
Further notes regarding the Capital project templates:

• Only the ‘High Complexity’ template will include a ‘Capitalised Interest’ WBS Element at level 4
• The L3 WBS Elements under ‘Concept’ will default to Expense type (denoted with (E) in the diagram)
• High, Medium and Low Complexity templates will include a separate ‘Expense’ WBS Element under
Implementation.
For Small Projects, the WBS template will be structured as follows:

• Level 2 = Phase (Implementation only)
ie. The Cost Category level is not reflected at L3 and a so a Cost Category value of ‘Not Assigned’ will be applied
to the costs booked to these projects

For Turnarounds, the WBS template will be structured as follows:
• Level 2 = Phase
• Level 3 = Cost Category
For Product Development, the WBS to L2 (Phase) will be provided via the template. Due to the diverse nature of
these projects, no further levels can be pre-determined.
For Expense-type projects, a single L2 WBS Element will be provided in the template. Due to the diverse nature of
these projects, no further levels can be pre-determined. This minimum structure is required to simplify the PPM-PS
integration, which will always assume a relationship between the PPM Decision Point and a L2 WBS Element for
budget distribution and phase-based reporting.

In summary, the following distinct WBS templates will be defined:
WBS Template L2 WBS Elements L3 WBS Elements
Capital – High Complexity Concept

Pre-Feasibility
Per Cost Category
Feasibility
Implementation
Capital – Medium Complexity Pre-Feasibility

Feasibility Per Cost Category
Implementation
Capital – Low Complexity Feasibility

Per Cost Category
Implementation
Small Project Implementation N/a
Product Development Define

Develop N/a
Deliver
Turnaround Business Strategy

Planning Per Cost Category
Execution
Intercompany Asset Purchase Implementation Single Cost Category (Direct Capital)
Expense - General Implementation N/a
Expense - Environmental Provision Implementation N/a
Cost Category WBS Elements

For capex projects, excluding Product Development and Small Capital, the L3 WBS Elements will identify the type
of costs being booked at L3 and subordinate levels. The following table describes the Cost Categories.
Cost Types include, but are not limited to:
L3 WBS Element Cost Type Coverage
Direct Costs • Construction contractor establishment, fees and overhead costs

• Materials that will make up the final asset
• Labour to assemble/install the materials
• Cranes and other equipment costs to assemble/install the materials
• Freight costs for materials

L3 WBS Element Cost Type Coverage
Orica Indirect • Orica Project Team (Orica staff and contingent labour)
o Project Management
o Engineering
o Procurement
o Construction management
o Commissioning
• Travel costs for Orica Project Team
• Temporary site services and facilities for Orica Project Team
• Site investigations
• Insurance
• Legal fees
• Permitting and permits (incl permitting consultants)
• Taxes
• Escalation
External EPCM • 3rd party engineering design services

• 3rd party project management services
• 3rd party procurement services
• 3rd party construction management services
Capitalised Interest Capitalised Interest only
Expense Expense costs captured in the Implementation phase, such as demobilisation

costs
Contingency No direct cost postings
PPM Item to PS Project Relationships

A link is created between the PPM Item and the PS Project Definition. This enables the subsequent financials on
the PS Project to be rolled up to the PPM Item.
Additionally, a link is created between each of the key Decision Points on the PPM Item and the corresponding L2
WBS Element. This provides a link between the active DP in PPM and the forecast & actual costs on
corresponding WBS Elements, to enable:
• Budget distribution to the relevant WBS Element, based on the current DP in PPM
• Phase-based cost reporting.
The following diagram shows an example of the DP-WBSE relationships:

Generally, each Decision Point will map to a L2 WBS Element in PS, except for the ‘Idea’ DP which is not mapped
for any Item Type.
A variation exists for Product Development, where ‘interim’ DPs will not map to a L2 WBS Element. This occurs
when the DPs are more granular than the level of cost capture required.
The Product Development projects will be mapped as follows:
Data Synchronisation
The following data is inherited from the PPM Item to the PS Project on creation, and synchronised when
subsequent changes are made in PPM:
• Project Identifier
• Company Code (from PPM Item Area)

• Plant (from PPM Item Location)
• Profit Centre
• Requesting Cost Centre (becomes settlement receiver for Expense WBSE)
• Person Responsible (from PPM Item Project Manager)
• Tangible/Intangible Indicator (used to derive the Investment Profile / AuC Class)
WBS Validations
The following validation rules will apply to the WBS Elements:
• Account-assigned WBS Elements (ie. those to which costs can be assigned) must be tagged as either
‘Capex’ or ‘Expense’; this ensures the forecast/actual costs on WBS Elements rollup correctly to the
relevant PPM Item Financial Views
• Level 3 WBS Elements must have a Cost Category assigned; Direct Capital, Orica Indirect, External
EPCM. This field enables reporting by these Cost Categories across projects.
• Capex WBS Elements must have an Investment Profile
• WBS Elements from the template cannot be deleted (ie. L1, L2 & L3 WBSE)
• No costs can be booked directly to the Contingency WBS Element; this forces the contingency budget to
be moved to the relevant Phase & Cost Category WBS Element for it to be consumed, enabling reporting
of complete costs by Cost Category
• Person Responsible can be changed manually on a WBS Element, but not removed; required for
Purchasing approvals
• PI2AA2PC2AR-DR-039: A minimum Work-Breakdown Structure is defined for capital (high, medium, low
complexity and small) projects and turnaround projects with the following levels:
- Level 1 = Project
- Level 2 = Phase
- Level 3 = Cost Category; Direct Capital, Orica Indirect, External EPCM, Contingency
• PI2AA2PC2AR-DR-018: There is an EXCO Reporting requirement for capex to be split by Sustenance and
Growth. This split does not need to be reflected in the GL and so does not required separate AuC classes.
It will instead be achieved by a reporting solution - by reference to the 'Category' of the PPM Item from
which the AuC was initiated.
• PI2AA2PC2AR-DR-059: To support capex projects incurring both capex and expense costs, each WBS
Element will be tagged as either 'Capex' or ‘Expense’. This will enable separation of capex vs expense in
reporting, and drive validation of settlement receivers.
• All costs subsequently posted to the WBS Elements will flow through to finance through the assignment of
Company Code & Profit Centre

3.10 4.08.03.02. Manage Project Planning and Scoping
This process is performed at the start of each phase of a project, or when supplementary Budget is approved. It
covers the ongoing updates to project budget, WBS Elements and cost forecasts.
Projects and/or WBS elements ready for execution are released.

• Approved Budget automatically distributed to WBS Elements
• Collaboration meeting to agree on and align master data across projects, assets and maintenance
• Forecasting at WBS level
Budget Transfer
Following each funding request approval in PPM, the approved amount is automatically transferred to the L1 WBS
Element as Overall Budget. Subsequent approvals add to the previously approved amounts.
The Budget will be further distributed, automatically, to the L2 WBS Element linked to the current Decision Point of
the PPM Item.
Master Data Collaboration

Once the design is complete, the Project Manager will initiate a meeting with the relevant Maintenance Manager
and Asset Accountant to discuss and agree on the required master data for the project. This will include:
• WBS elements required to:
o Adequately manage cost against budget
o Capture costs at the required level of granularity for eventual capitalisation. A WBS Element can
be created per asset, but this is not necessary, as long as the costs can be apportioned accurately
across the final assets.
• Financial asset master records:
o Created at the correct level of granularity to enable linking of the physical assets
o Separate asset records for capitalised interest where relevant.
• Maintenance objects, including Work Centres, Maintenance BOMs, Maintenance Plans, Functional
Locations, Equipment, Measuring Points and Maintenance Task Lists
Following the meeting, the relevant Master Data Governance processes will be initiated to create the financial asset
and maintenance master data.
The Project Manager will manually create any additional WBS Elements. For capex projects, new WBS Elements
can only be created at level 4 and below. The financial data on any new WBS Elements must be validated:
• Profit Centre
• Requesting Cost Centre
• Account Assignment Indicator (allows cost posting)
• Capex/Expense Indicator
• Investment Profile (Tangible vs Intangible)
Further Budget Distribution

The Project Manager determines whether to manually distribute budget to lower-level WBS Elements, based on the
level of budget control required.
Availability Control
The assignment of Budget against the WBS Elements activates the ‘Availability Control’ function, which actively
manages the project spend against Budget.
‘Project Spend’ in this case includes:
• Commitments from Purchase Requisitions and Purchase Orders assigned to the WBS Elements
• All actual costs posted to the WBS Elements
• Planning, commitments and actual costs on assigned Work Orders. Note: ‘Planning’ includes only planned
costs which have not yet been realised by a commitment or actual cost.
The following tolerances are configured for Availability Control:

• Warning when spend is at 100% of Budget
• Error when spend reaches 110% of Budget. This will block actual cost postings, raising of Purchase
Requisitions and assignment of Work Orders
The system will monitor the budget at the level to which it has been distributed. Refer to the diagram below for
examples on how the budget can be managed at different levels.
In this example:
• $20,000 is available to spend on Feasibility, ie. against any of the WBS Elements subordinate to
‘Feasibility’
• $50,000, and no more, is available to spend on ‘Implementation – Direct Capital’. This budget is reserved
specifically for this WBS Element or any subordinate WBS Elements but is not available to the other L3
Implementation WBS Elements.
• The remaining $30,000 which has not been distributed from ‘Implementation’ ($80,000 - $50,000) is
available to spend on the other L3 ‘Implementation’ WBS Elements, ‘Implementation – Orica Direct’ and
‘Implementation – External EPCM’ or any WBS Elements subordinate to those.
Project / WBS Release

The Release status enables costs to be booked to a WBS Element and can be set at any level of the project
structure:
• If set at the Project level, all WBS Elements will be released

• If set at a WBS Element level, all subordinate WBS Elements will also be released
• Any WBS Elements subsequently created under a Released WBS Element, will be automatically released.
An Asset under Construction is automatically created on Release of a Capex WBS Element.
WBS Forecasts
All projects >$250K must be forecast at the WBS Element level. A PS Excel Planning tool is available, providing
three levels of planning granularity:
• Annually
• By Period
• By Period and Account.
This WBS forecast will be automatically rolled up to the PPM Item and override the forecast previously maintained.
The ‘Integrated Forecast’ indicator will be set on the PPM Item to indicate this is the case and prevent further entry
of forecasts directly against the Item.
• PI2AA2PC2AR-DR-107: Availability Control will issue messages on screen only - no email notifications will
be generated.
• PI2AA2PC2AR-DR-117: Forecast by L3 WBS Element is required if there's a budget, except for <250k
projects (where forecast is at 'bucket' Item)
• Master Data Governance processes for financial and maintenance asset data

3.11 4.08.03.04. Manage Project Execution and Reporting
This process details the ongoing management of a PS Project through its execution phase. Actual costs are
incurred from various integrated processes, such as time-recording, purchasing, and goods movements.

• Monitoring project spend against budget
• Actions triggered by scope, schedule or cost variations
• Reporting at PS Project level for detailed cost analysis
• Periodic batch jobs for automated processing
Actual Costs and Commitments

A Cost Commitment is generated on a Capex or Expense WBS Element at the point in time a Purchase Requisition
is assigned. Subsequent conversion of the Purchase Requisition to a Purchase Order does not change the
committed value.
Actual costs are incurred on a Capex or Expense WBS Element from the following transactions:
• Receipt of purchased goods (ie. materials, including returnable packaging) or services
• Issue of a material from the warehouse
• Transfer of approved time record for an employee
• Approval of time record for a contingent worker
• Capitalised Interest
Note:
1. When actual costs are posted from a goods receipt, the corresponding commitment is reduced by the
same value.
2. Capitalised Interest will only be incurred for projects is > $25M and longer than 12 months. The Interest
will be posted to a separate WBS Element, identified by a unique Cost Category and will settle to a new
‘Capitalised Interest’ asset.
3. Leased Asset costs will be posted to a separate, statistical WBS Element which does not require
settlement.
Time-Recording
The SAP module CATS (Cross-Application Time Sheets) will be implemented in 4S for project-related time-
recording, with the following functions:
• Hours will be assigned to WBS Elements
• Standard validations will be applied regarding WBS Element status
• All project-related time must be recorded and approved via CATS, rather than via manual intercompany
invoice. Approval of intercompany time-recording will be required by the Project Owner of the receiving
WBS Element.
• Time will be valuated based on the Activity Type rate maintained in the employee’s HR Cost Centre.
Note: The CATS design will be completed following approval of CR736 and is outside the scope of this BPD. In
parallel, the standard and automated SAP solution for intercompany time-recording is being assessed under
CR1070.

Availability Control
Project spend is actively monitored by the system against the Project Budget. Refer to previous process for details
on the Availability Control settings and capability.
A warning or error message will be issued once spend reaches the defined tolerance.
Resolving Budget Overruns

One of the following courses of action will need to be taken in the case of a budget overrun, or when a potential
overrun has been identified:
• Transfer of Contingency Budget
• Redistribution of budget from one WBS Element to another. Note that budget must only be redistributed
between 2 capex WBS Elements or between 2 expense WBS Elements
• Raise an approval request for supplementary budget.
Managing Variations
A variation can occur during the execution of a Project, which impacts cost, scope and/or schedule. In this case,
one or more of the following actions may be required:
• Cost Variation: Transfer of Contingency Budget to the WBS Element incurring additional costs
• Scope Variation:
o New WBS Elements to be created
o Additional financial or maintenance master data required. Alternatively, a descoping may result in
master data no longer being required. Either way, the relevant master data governance process
must be initiated.
o Scope Health indicator to be updated
• Schedule: Update Decision Point Plan or Forecast dates.
PS Project Reporting
The following reports are available for detailed cost analysis at the PS Project / WBS level:
Report Purpose
Hierarchical Reports
Projects – Budget/Forecast/Actual An analytical Fiori app showing Budget, Plan (WBS Forecast), Actual,
Commitments and Variance by Project / WBS Element
Provides ‘slice & dice’ by various attributes of the financial transactions
and master data.
Selection criteria (Filter Bar) to include:
- Project
- Fiscal Year (multiple years possible)
- Fiscal Period (multiple periods possible)
- Plan Version
- Region, Sub-Region, Implementation Group, Program, Item Type
(from PPM Item)
- Profit Centre/Group (Budgeted Region)
- Person Responsible

Report Purpose
- Plant
Functions within the report enable:
- Drill-down to financial document level (GL document, GR, GI etc.)
- Ability to jump to original documents
- Export to Excel
Projects - Month, YTD, FY A pre-defined view of the ‘Projects – Budget/Forecast/Actual’ report will
be available
(Pre-Defined View)
The following key figures will be displayed as columns:
- Month Forecast, Actuals & Variance
- YTD Forecast, Actuals & Variance
- Full Year Forecast (Actuals to Date, Forecast for remaining
periods)
The following attributes will be displayed as rows:
- Project/WBS
- Cost element / Cost Element Group
Selection criteria and other functions described above will be available.
Project Structure Overview Report Displays a combination of master data and financial key figures against
the Work Breakdown structure
Shows assigned Work Orders, Confirmations*
Layout can be modified to include or exclude columns and saved as a
user-defined variant.
Line Item Reports
Actual Cost Line Items (Design Studio) Display individual transactions posted against the selected Project /
WBS Elements
Allows drill-down to original transactions.
List can be filtered, sorted and/or exported to Excel.
Commitment Line Items Display individual Purchase Requisition and Purchase Order line items
assigned to the selected Project / WBS Elements
Allows drill-down to original transactions
Budget Line Items Display individual budgeting transactions, including automated transfer
and distribution from PPM, as well as manual distributions and transfers.
Master Data Reports
Provides a master data listing of Project Definitions.

Project Definition Overview
Provides a master data listing of WBS Elements

WBS Elements Overview

Report Purpose
Housekeeping Reports
A pre-defined view of the ‘Projects – Budget/Forecast/Actual’ report will

be available.
The following key figures will be displayed as columns:
- Number of days since uncapitalised costs were incurred
Projects - Closing Exceptions
- Number of days project has been left open with no actuals costs
(Pre-Defined View)
The following attributes will be displayed as rows:
- Project/WBS
A filter will be specified on the above columns to effectively provide an
exception report.
* Note that document attachments for Projects and Work Orders will be held in OpenText and will not be visible
here.
Periodic Batch Jobs

The following batch jobs will be scheduled to perform automated processes during a project’s life:
Job Details Frequency
Create Settlement Rules Settlement Rules are created against each ‘Expense’ WBS Weekly
element, to the Requesting Cost Centre
Project Settlement WBS Element cost are settled to the receiver specified in their Weekly
settlement rule. In general:
Month-End
• Capex WBS Elements in Release status are settled to AuC
(Asset under Construction)
• Capex WBS Elements in Technically Complete (TECO)
status are settled to final Assets
• Expense WBS Elements are settled to Requesting Cost
Centre.
• Exception is ‘Environmental Remediation’ projects which
will settle to a GL Account.
PPM Financial Rollup Aggregate financials (actuals and WBS forecast) from the PS Daily
Project to the PPM Item
PPM Item Snapshot A snapshot of all in-progress Items to be taken monthly for Monthly
comparison reporting.
Re-Opening a Project
In exceptional circumstances, it may be necessary to re-open a project which was previously closed, to allow
additional costs to be posted. In this case, the WBS Element status must be reset from TECO to Released.
Once the costs have been posted, settlement must be run before the WBS Element can be closed again.

• PI2AA2PC2AR-DR-040: There will be no integration with external Project Management systems. Tools to
manage execution of projects are out of scope of 4S.
• PI2AA2PC2AR-DR-043: Cost settlement of capex projects will be from lowest level WBS Elements to
enable accurate and granular cost allocations. For consistency, Expense projects will follow the same
approach
• PI2AA2PC2AR-DR-070: Periodic Settlements will be performed weekly. This will provide time for errors to
be resolved prior to month end. Daily settlements would produce an unnecessary volume of transactions
which clutter reports.
• PI2AA2PC2AR-DR-170: To be confirmed by CR736: All time-recording to Project/WBS elements will be
done via CATS.
• PI2AA2PC2AR-DR-171: To be confirmed by CR1070: All project-related time must be booked and
approved via CATS, including cross-company. There will be no process to support manual intercompany
invoicing of project-related time.
• Costs are incurred on WBS Elements through postings such as goods receipts, goods issues, invoices,
time-recording, assessments etc.
• All projects costs are settled to either a Cost Centre, Assets or GL Account.

3.12 4.08.03.05. Manage Project Closure and Asset Acquire
This process describes the steps which need to be performed to close or cancel a Project.

• Project technical completion
• Pre-closure checks and final completion
• Final cost settlements
Closure Statuses
Each project undergoes a 2-step closure:
• On physical completion of the work, the Project or WBS Element is set to a technically completed (TECO)
status. This prevents further planning and commitments being raised but allows actual costs to be posted.
• On financial completion, the Project or WBS Element is set to a Closed status. This status prevents any
further cost postings or master data changes.
Note that partial closure of a Project is achieved by setting the relevant status at a WBS Element level instead of at
the Project Definition. All subordinate WBS Elements will inherit the status.
Final Settlement Rules

Final settlement rules must be in place prior to a WBS Element (WBSE) being set to TECO status. A settlement
error will be issued if the settlement rule is missing.
The following rules apply to the settlement distribution of capex:
• A WBS Element (WBSE) can settle to one or more assets ie. WBSE costs are apportioned over multiple
assets.
• An asset can be settled from one or more WBS Elements. For example, management costs may be
apportioned across all assets.
• Costs can be apportioned via percentage split, for example management and engineering costs
• Costs can be apportioned via absolute value, for example purchases
• Costs can be apportioned from the same WBSE by a combination of percentage split and absolute value,
in which case the absolute value is settled first, and the remainder is split be percentage.
A system validation will ensure only WBS Element flagged as ‘Capex’ can only settle to an asset and conversely,
WBS Elements flagged as ‘Expense’ cannot settle to an asset.
Pre-Closure Checks
Before a WBS Element can be finally closed, the following conditions must be met as they will prevent closure:
• Purchase Requisition or Purchase Order commitments – must be cancelled or receipted
• Material Reservations – must be cancelled or issued
• Assigned Work Orders – must be Closed
• Allocation Cycles – none pending
• CATS Time Records - must be approved and transferred
• FieldGlass Time Records – must be approved and transferred

• Excess Project Stock – must be moved to unrestricted stock
Where relevant, a Commissioning and Handover procedure (Procedure Number: MFG-GBL-PRO-PRJ-010) must
be completed.
Final Settlements
Manual settlement is performed immediately after setting TECO status, so that costs are capitalised at the earliest
opportunity. In TECO status, the system will expect a final settlement rule to be in place; a settlement error will
occur if not.
A final settlement must be run once all cost have been received before the Closed status can be set.
Late Decision to Capitalise

If the decision is made on completion of the work, that costs expensed to date must be capitalised, the following
actions are required:
• Project Owner/Project Manager to request Capex DoA approval through the ‘Project Request/Approval’
app. This must include reversal of the previous Expense approval, to ensure the total Project Budget is not
doubled up.
• Once the capex budget has been approved, request the Project Accountant to journal the costs to one or
more capex WBS Elements on the same Project. A system validation will prevent settlement from an
Expense WBS Element to an asset.
• Request the Asset Accountant to coordinate creation of any new Asset Master records and update the
WBS Settlement Rules accordingly
The next settlement run (either scheduled job, or manual) will reverse settlements from the Cost Centre and
perform settlement to the Assets.
Project Cancellation
A project is cancelled, if it is to be closed with the planned work being completed. A User Status is set on the
Project Definition to indicate the project is to be cancelled.
Then one or more of the following actions may be required:
• If costs on an Expense WBS Element have already settled to the Requesting Cost Centre, and those costs
should be on a different Cost Centre, then a journal must be raised to transfer them between Cost Centres.
• If costs on a Capex WBS Element have settled to AuC, then a settlement rule can be manually created on
the WBS Element to settle the costs to a Cost Centre. In this case, the 'Capex' indicator on the WBS
element must be changed to 'Expense'.
Once the cost treatment is finalised, the Project must be closed.
• PI2AA2PC2AR-DR-119: When a decision for late capitalisation is made, ie. on completion of the work,
there must be a retrospective capex approval; this will ensure accurate reporting of capex and create a
record of who asked for the retrospective capex.
• All projects costs are settled to either a Cost Centre, Assets or GL Account.

3.13 4.08.03.06. Manage Post Implementation Review
This process describes the steps to complete the Post Implementation Review.
Note: OpenText design to be completed in Design Phase 2

• Storing PIR documents in OpenText.
The Post Implementation Review is performed off-system. Any resulting documents can be stored in OpenText
against the PPM Item. (Design for OpenText integration to be completed in Design Phase 2).
• OpenText will be available for storing PIR documents.
• OpenText will be PIR document storage.

Report and Analyse Finance Performance
3.14 4.09.09.01. Perform Project Investment Portfolio Operational Enquiry and Analysis
This process covers the ad-hoc execution of Project Portfolio reporting.

• 6 key Project Portfolio reports delivered via BI
• ‘Collections’ define particular groupings of Items for reporting
Project Portfolio Reports

The following reports will be available via BI:
• Project FY Spend Report
• Investment Tracking Report
• Portfolio KPI Report
• Budget Allocation summary
• Project Dashboard Report
• Project Flash Report
Refer to Section 4.08.01.04. Monitor & Control Portfolio for further details on each of the reports.
Collections
A ‘Collection’ can be created to manage a set of related Items, which can then be used as the selection criteria
across any of the reports. A Collection can be shared between users, to provide a simple and consistent selection
criterion.
• N/a
• N/a.

3.15 4.09.09.02. Monitor and Action Project Investment Portfolio Metrics
5 Key Metrics have been defined for Project Portfolio Management as described in the following table:
Metric Description Dimensions Key Figures
Project Spend Comparison of Budget, • Item FY Budget

Forecast and Actuals • Version Prioritisation Baseline
• Region/Function (L2 Forecast
Bucket) Project Budget
• Sub-Region/Sub-Function Actual Cost
(L3 Bucket) EPCM Cost
• Program By Financial Year / Period
• Implementation Group
• Profit Centre
• Category
• Sub-Category (Business
Driver)
• Spend Category
Project % Projects meeting As above For completed Projects:

Overspend Budget vs Actual Spend
(KPI) benchmarks • Actual Spend < 90% Project
Budget
• Actual Spend > 90% and < 110%
Project Budget
• Actual Spend > 90% and < 110%
Project Budget
Project Out of % Total spend which As above For Projects > $250K:
Plan (KPI) relates to In-Plan
Projects % FY Actual Cost relating to Projects
which are In-Plan as per FY Budget
vs Total FY Actual Cost from Projects
% FY Actual Cost relating to Projects
which are In-Plan as per
Prioritisation Baseline vs Total FY
Actual Cost from Projects
Project Comparison of Plan, As above Plan Finish Date

Schedule Approved and Actual RFO Date
Completion dates. Actual Finish Date
Projects On- % Projects meeting As above For completed Projects:

Time (KPI) Approved vs Actual
Finish date benchmarks • On-Time (<= Approved RFO)
• < 3 months late
• > 3 months, < 6months late
• > 6 months late
Project Portfolio
Metrics v4.xlsx
Refer to attachment for further details of Metrics:

The Metrics are available for inclusion in EXCO or Management reporting outside PPM and will be consolidated in
the new Portfolio Health report.

Finance Master Data
3.16 4.10.05.03 Manage PPM Portfolio
This process will be performed once the Master Data Governance process is complete, and a request to create or
change the Portfolio has been approved.
Orica will have a single Projects Portfolio. Unless there is to be a major change to the way Capex/Expense Projects
are managed in Orica there will be no other PPM hierarchies created, and/or the existing hierarchy set to ‘Inactive’.
3.17 4.10.05.02 Manage PPM Buckets
change a Bucket has been approved.
Bucket maintenance may be required in case of a reorganisation, a newly acquired company, or a change in the
capex budget accountability structure. A minor update may be required if, for example, a Region or Sub-Region
becomes known under a different name eg. ‘Corporate’ changes to ‘Global Support’.
3.18 4.10.05.04 Manage Project/WBS Template (Operative)
change a Project/WBS Template has been approved.
A new Project/WBS Template will only be required if a new Item Type is defined and will be synchronised with an
IT (SNOW) request for the configuration.
Changes to the existing templates may be required to add/remove WBS Elements or update WBS attributes and
could be performed without an IT request.
Deletion of a Template or of a L2 WBS Element must only be done if there is no link to a PPM Item Type or
Decision Point respectively.

Finance Enterprise Structure
3.19 4.11.11.01 Manage Portfolio and Project Change

This process covers governance of the Enterprise Structure data relevant to Project & Portfolio Management.

• Area and Location maintenance
Area
The Area field in PPM has a 1:1 correspondence with Co Code (legal entity). It is a required field on PPM Items to
enable forecast, budgeted and actual costs to be reported against the correct legal entity.
The process is triggered when a potential impact on PPM Area has been identified, based on creation or change of
a Company Code. An assessment is made as to whether there is a corresponding impact to the PPM Areas ie.
• For a new Co Code, whether projects will be managed in the entity and therefore a corresponding Area is
required
• For a divested Co Code or merger, the Area in PPM should be retained to preserve integrity of historical
data. The Area should only be removed once it is no longer required for historical reporting. Note: There is
no validity period defined for an Area in PPM.
Location
The Location field in PPM has a 1:1 correspondence with Plant. It is a required field on PPM Items relating to
Manufacturing projects, and otherwise optional. It enables the relevant Site to be identified in reporting.
The process is triggered when a potential impact on PPM Location has been identified, based on creation or
change of a Plant. An assessment is made as to whether there is a corresponding impact to the PPM Locations ie.
• For a new Plant, whether projects will be managed at the site and therefore a corresponding Location is
required.

4. Business Rules
The business rules are captured in the PI2AA2PC2AR Decisions Register: PI2AA2PC2AR
5. Integration with other E2E business processes
Integration points are described in each of the L4 processes above.
6. Master Data
Master Data details are captured in Master Data Design documents: PI2AA2PC2AR
All MDS links are provided in the accompanying sign-off document.

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Business Process Definitions

Project Inception to Asset Acquisition to Project

The following section describes relevant documentation:

Business Definitions (Glossary)

Acronym / Term Definition

GPDO Global Process & Data Owner

Capex Capital Expenditure

Opex Operating Expenditure

DoA Delegation of Authority

EAC Estimate at Completion

• Project Investment Portfolio:

o 4.10.05.02 Manage PPM Buckets

1.5 Intended Audience

• Global Process & Data Owner (GPDO)

Some of the benefits this business process brings:

Project Investment Portfolio

3.1 4.08.01.01. Establish Portfolio Strategy

Key elements of the process include:

The Portfolio structure is defined with 3 levels as follows:

Key decisions relating to this process include:

Key integration points relating to this process include:

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 10

Key elements of the process include:

Submitting Items for Prioritisation

Preparing the ‘Interim Submission’ View

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 11

Revised Capital Target

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 12

Key integration points relating to this process include:

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 13

Key elements of the process include:

• Customised app for Project/Asset approvals to replace Sceptre

IF REQUESTED EXPENSE CAPEX VALUE >

Capex DoA Approval

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 14

Expert Panel Review

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 15

Key decisions relating to this process include:

Key integration points relating to this process include:

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 16

Key elements of the process include:

Project Portfolio Reports

Report Name Purpose

• Support for active Portfolio Management to manage current year financials.

• Presented at monthly Orica Investment Committee (OIC) meeting to review

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 17

• Presented at monthly Orica Investment Committee (OIC) meeting to review

• Local review of project health by Program/Site managers

• ‘Project on a Page’ status report; overview of project health, financials,

• Supports the tracking of Forecast against Budget at a Regional/Functional level.

Orica Portfolio Review

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 18

Regional/Functional Portfolio Review

Integration with Overall Financial Planning

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 19

Key decisions relating to this process include:

Key integration points relating to this process include:

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 20

This process covers the creation of PPM Initiatives and Items.

The following diagram depicts the overall Portfolio structure in PPM:

Key elements of the process include:

DD-FUN-340 - PI2AA2PC2AR High Level Business Process Definition (R3) PPM_PS P a g e | 21