cogniti

TM

UGL Pilot Case Study

The Ultimate Performance Management Software

UGL Limited is a broad-based infrastructure services provider that:

Designs and maintains critical transport, power, and water assets. Supplies facilities management services to our clients properties. Provides project delivery and asset management expertise in the resources sector.

QUICK FACTS
Industry Infrastructure Services Annual Revenue (FY 2010) A$4.2 billion Employees/Sub-Contractors 42,000 Headquarters North Sydney, Australia Performance Management Software Solution Cogniti ERP Provider SAP

Cogniti Enterprise Performance Management (EPM) software is being piloted to improve the strategic, operational, and financial performance of UGL Rail supply chain - one of UGL Limiteds four primary business divisions. UGL Rail is Australias largest and most experienced provider of rollingstock and infrastructure solutions to the passenger and freight rail sectors and a growing player in the Asian rail industry.

Initial Results:
Faster conversion of purchase requisitions into purchase orders (estimated benefit of A$670k/year). Faster identification of warehoused materials, improved production efficiency (estimated benefit of A$540k/year). 14% reduction in labor overhead (estimated benefit of A$250k/ year). Improved, integrated business processes. Realizing greater business impact from legacy SAP ERP data from deployment of Cogniti.

The vision of UGL Rail is to be recognized by customers as an agile, innovative, respected, and efficient provider of material solutions to the rail and infrastructure sectors. UGL Rail seeks to provide a fully integrated and seamless supply chain function delivering to the requirements of both internal and external customers. To succeed, UGL has identified three primary areas to improve: Better define customer requirements. On-time delivery, at the agreed cost, quality, and service level. Integrate supply chain across customers and suppliers. Cogniti Enterprise Performance Management (EPM) Software has been selected to help fulfill the mission and realize the vision.

cogniti

TM

UGL Pilot Case Study

The Ultimate Performance Management Software

UGL Rail incorporated the Hoshin methodology to confirm supply chain improvement strategies. The Hoshin process was leveraged to identify critical business issues, establish objectives and goals to address issues, and to develop performance measures. Cogniti is the first and only software product that aligns and integrates strategic, financial, and operational performance management across an enterprise. The Hoshin process drove key strategies that served as inputs within the Cogniti product. Once in Cogniti software, strategic plan elements were modeled to determine financial impact and then aligned to operational initiatives / business processes to ensure the best go-forward execution plan. Cogniti software drives a continuous, closed-loop performance improvement cycle - as the following diagram illustrates:

1. PLAN & ASSIGN VALUE

Strategic Financial Strategic Financial Operations Operations

2. ALIGN & MERGE

Processes

4. EXECUTE & ADJUST

Advise Corrective Action Project Forward Consequences Alert Off-Plan Performance

3. MEASURE
Extract Key Measurements

Added benefits that Cogniti is affording for UGL Rail: Reduced costs and time to finished divisional plan. Improved business processes (SCOR Model) driving greater supply chain effectiveness and efficiency. Increased business impact from existing data systems by better tying measurement data to performance drivers. Forward visibility into the performance of key company strategies. Closed-loop performance management - cause, consequence, and cure.

Cogniti Implementation
To support the UGL Rail Pilot, Cogniti software was implemented in 15 days. UGL installed the Cogniti Server as a Windows XP Virtual Machine on a production server within the UGL firewall. The environment was prepared in advance of the pilot commencement date and software was installed via remote collaboration of UGL and Cogniti technical specialists. Cogniti software is being leveraged by approximately 50 UGL Rail users to date.