The Road to Enterprise Grade

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Agenda

• BAE Systems Company Background• Common Goal• Business Challenges• ES Sector AutoTime 7 Project Vision and Beyond• Approach• US Controls/US Defense Legacy• Anniston• ES and Anniston Current State• AutoTime 7 BAE Systems Roadmap• Lessons Learned• Enterprise Grade Scorecard

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BAE Systems plc• 88,200 employees• 2013 sales of £18.2bn ($28.4bn**) • 2013 order book of £42.7bn ($66.8bn**)• Third largest global defense company • Top 10 U.S. prime contractor• Five key markets• Presence in more than 100 nations

BAE Systems, Inc.• Approximately 35,400 employees

(approximately 31,300 in the U.S.)• 2013 sales of $11.8bn • Major operations in 38 states, the UK, Sweden,

Israel, and South Africa• A U.S. company chartered in Delaware• Three Sectors (Electronic Systems, Platforms &

Services and Intelligence & Security)** US$ equivalent calculated using the 2013 average exchange rate of $/£ = 1.564, denoting sales and orders throughout the year

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Lockheed Martin

Boeing BAE Systems

Raytheon General Dynamics

Northrop Grumman

EADS

Defense News Top 100Based on 2012 Revenues ($B)

£

BAE Systems Company Background

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Electronic Systems (ES) Sector Footprint

11,400 Employees$4B Revenue25 Locations

Milpitas, CAMilpitas, CA125125 employeesemployees

Los Angeles, CALos Angeles, CA16 16 employeesemployees

Austin, TXAustin, TX407407 employeesemployees

Ft. Worth, TXFt. Worth, TXTwo locations; Two locations; 260260 employeesemployees

Ft. Wayne, INFt. Wayne, IN11001100 employeesemployees

Endicott, NYEndicott, NY11911191 employeesemployees

Greenlawn, NYGreenlawn, NY611611 employeesemployees

Hudson, NHHudson, NH667667 employeesemployees

Merrimack, NHMerrimack, NH687687 employeesemployees

Nashua, NHNashua, NH2881 2881 employeesemployees

Lexington, MALexington, MA177177 employeesemployees

Burlington, MABurlington, MA281 281 employeesemployees

Wayne / Totowa, NJWayne / Totowa, NJ658658 employeesemployees

Arlington, VAArlington, VA72 72 employeesemployees

Manassas, VAManassas, VA276 276 employeesemployees

Rochester, UKRochester, UK1467 1467 employeesemployees

Honolulu, HI26 employees

Singapore

Rokar, Jerusalem, Israel117 employees

Guaymas, Mexico

Redmond, WARedmond, WA2828 employeesemployees

*Working at various locations *Working at various locations throughout the countrythroughout the country155155 employeesemployees

Columbia, MDColumbia, MD47 47 employeesemployees

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AutoTime for BAE Systems, Inc. - 2012

US Defense (OWL – 8k)US Controls (AT6 – 2.7k)UK Controls (AT6 – 1.5k)

Minneapolis (AT6 – 1k) York (AT6 – 3.3k)

Anniston (AT7 –.4k) Phoenix (AT6 – 1K )

BAE Systems, Inc. 88,000 total

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BAE Systems, Inc. Common Goal

• Harmonized domestic policies• Pay Practices, Work Schedules and Time Collection

• Shared Service PeopleSoft, HR, Financials and Travel• Center of Excellence for Critical Business Applications

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Business Challenges

• Bringing unique sectors, of legacy culture, policy and practice, together in collaboration for a single build that will serve the BAE Systems, Inc. enterprise• Change Management• Common Terminology• Team Building

• Governance• Decision trees will have more branches, and take longer• Lose some control for cost savings and better service

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Consolidation

Standardization

Ease of Use

Alignment

Enterprise Value

Business Value Optimization

Capability

Consolidation of three time/attendance and labor distribution systems

Process harmonization between the two businesses; provides real business value

Creating a “user-centric” experience where technology is simple and intuitive

Alignment to BAE Systems, Inc. strategy to standardize time and labor across the businesses and simplifies future policy flow-down process

Shared system infrastructure, interfaces, development requirements (pay rules/codes/events), license and administration at an enterprise level

New Manufacturing Execution System integrates with AutoTime resulting in significant reduction in manufacturing time/transactions

Off-the-shelf core product will be compliant with current ES business requirements (e.g. EWT/ETO, Total Time Accounting, subcontractors charging…..)

ES Sector AutoTime 7 Project Vision and Beyond

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Approach

• ES will leverage Pay rules, Pay codes, Events and Infrastructure already Architected by the Anniston Team

• BAE Systems established Strategic Partnership with Kaba• Enterprise Agreement• Make BAE Systems a referenceable AutoTime 7 A&D Customer

• Kaba to develop 6 new capabilities (EWT/ETO, Total Time Accounting, Subcontractor/Temp Worker Management etc.)

• Monthly Management Reviews• ES experiences will be shared with all other Sectors through an

AutoTime Center of Excellence

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US Defense w/ AutoTime 7

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Many Custom Functions can take place in AutoTime 7

AutoTime

US Controls w/ AutoTime 7

AutoTime

Eliminate Custom Modifications

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Austin Data Center

Anniston (2012 May)

Payroll

HR

PeopleSoft

Web User Interface Reconciled labor & payroll hours by pay type

Employee master records

Actual hoursContract / rental laborMove transactionsWIP cost transactionsG/L transactions

Released Work orders

XML Terminal Interface

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Nashua Data Center

ES and Anniston Current State

Endicott

accounts payable

projectswork orders

Oracle ERP US Defense

accounts payable

general ledger

projects

work orders

AutoTimePayroll

HR

PeopleSoft

Reconciled labor & payroll hours by pay type

Employee master records

Actual hoursContract laborMove transactionsWIP cost transactionsG/L transactions

Released Work orders & projects

Web User Interface

Web User Interface& XML Interface

Web User Interface

accounts payable

general ledger

projects

work orders

Oracle ERP US Controls

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AutoTime 7 BAE Systems RoadmapJan ‘14

Feb‘14

Mar ‘14

Apr‘14

May ’14

Jun ‘14

Jul ‘14

Aug ‘14

Sep‘14

Oct ‘14

Nov ‘14

Dec‘14

Jan‘15

Feb ‘15

Mar‘15

Apr ‘15

May‘15

Jun‘15

Jul‘15

Aug‘15

Sep ‘15

Oct ‘15

Nov ‘15

Dec ’15

Minneapolis AT7 OnBoard/Upgrade

US Controls Go-live

07/15 Build

US Defense Go-live

4/10 Patch5/12 Patch 12/31 Build -

for Minn.

3/1 build – New ES features and Minn. Gaps (Enhanced Mobility)

Scheduled/Unscheduled Patch/Build ReleaseMajor Projects

York AT7 OnBoard/Upgrade – 12 months

Stabilize and Optimize Phase

Anniston Shop 9/80 Schedules

Minor Projects (Configuration Only)

Soluminia MES Go-live

Cross CAS Segment Charging

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Lessons Learned

• Change Management is essential• Building Harmonized Requirements is an enabler for driving out costs

while standardizing the configuration• Undocumented Requirements caused significant re-work

• Develop repeatable testing plans for each major build• Targeted re-testing for patches

• Architect with scalability and business continuity in mind• Support for greater than 20,000 users

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Enterprise Grade Scorecard• Foundation for Shared Services

• Time Collection• Center of Excellence• Scalable Single Instance with High Availability and Disaster Recovery

• Standardized/Simplified User Experience and Business rules across multiple roles and Cost Accounting Segments• Supervisor• Employee• Administration

• Kaba Strategic Partnership yielded tremendous results• A&D Compliant Enterprise Grade Time and Labor System• DCAA Compliant System

• AutoTime 7 is glue between disparate MES and ERP Systems• Enables Cross Cost Accounting Segment Charging

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