System for calculation of flights profitability. Paris 2002

Transcription

1 System for calculation of flights profitability Paris 2002

2 LOT Mission! LOT is the Polish flag carrier meeting quality expectations of its customers, combining tradition with modern technology, desiring to maintain the leading position in providing air travel service to, from and through Poland.! LOT is operating in one of the largest and fastest developing markets in Europe, offering a convenient flight network, understanding of the region, its needs, demands, and dynamics of change.! LOT is striving to achieve a profitable growth and appropriate return on capital while offering stable employment and professional development to its employees. DC 8 stycznia 2001 r. 1

3 LOT Goals! To create value.! To maintain a strong position in the air travel market to, from, and through Poland.! To be an attractive employer! To offer quality services according to the STAR Alliance standards DC 8 stycznia 2001 r. 2

4 Due to realization of this project we would like to: Calculate of flights and aircrafts profitability with 250 types of costs and incomes Monitor over 800 types of costs and incomes for more than 300 profit/cost centers Distribute data from operating systems Prepare own reports based on the financial warehouse Implement data store for financial users according to users needs. DC 8 stycznia 2001 r. 3

5 Profitability system is based on 6 dimentions: ACCOUNTING TIME: YEAR QUARTER MONTH REALIZATION TIME: YEAR QUARTER MONTH ACCOUNT: Management accounts for profitability reports Profit & lost account: Management accounts for profit&lost reports FLIGHT: ZASIĘG RANGE STATE CONNECTION LINIA LINE FLIGHT REJS AIRCRAFT: AIRCRAFT TYPE AIRCRAFT SUBTYPE DC 8 stycznia 2001 r. 4

6 This is a basic structure of the report: ACCOUNTING CZAS TIME HEADLINES REALIZATION TIME ACCOUNT FLIGHT ROWHEADS Account Estimated quantity of data for this structure exceeds 200 MM positions for 1 year DC 8 stycznia 2001 r. 5

7 How does the system look like? DC 8 stycznia 2001 r. 6

8 DC 8 stycznia 2001 r. 7

9 DC 8 stycznia 2001 r. 8

10 DC 8 stycznia 2001 r. 9

11 DC 8 stycznia 2001 r. 10

12 DC 8 stycznia 2001 r. 11

13 DC 8 stycznia 2001 r. 12

14 DC 8 stycznia 2001 r. 13

15 DC 8 stycznia 2001 r. 14

16 BASED PROBLEM: PREPARATION OF ALGORITHMS FOR ALLOCATION KEYS THERE ARE OVER 80 ALLOCATION KEYS MOSTLY BASED ON ACTIVITIES DC 8 stycznia 2001 r. 15

17 ypical example f allocation key for salaries Data base Indirect allocation key Data cleaning Effects of indirect allocation key Drill down process Effects of indirect allocation key Reports & controll of indirect results Comparative reports DC 8 stycznia 2001 r. 16

18 DC 8 stycznia 2001 r. 17

19 Due to deeper process recognition we achieved significant change of results: roportions before modification of key Cost of meal in Y class Proportions after modification of key Cost of meal in Y class DC 8 stycznia 2001 r. 18

20 Recapitulation of processes: Data analysis of financial information from 11 sources Settlement and verification of data between database-systems Correction (automatic or manual) of cost documents descriptions Split 320 K agregated documents on about 7 millions detailed items from operational systems Elaboration (on today) 77 different allocation keys DC 8 stycznia 2001 r. 19

21 Recapitulation of processes : System methodology that obtain: + branch terms dictionary, + rules of source data verification, + rules of source data correction, + maintenance services procedures for dictionaries used by system including: cost centers identification, codes of costs list, dictionary of foreign transport agents etc. + rules of allocation keys builder, + rules of integration between accounting system and others operating systems DC 8 stycznia 2001 r. 20

22 Projects schedule: Advance a question by LOT April Specification of business April Start of project May Importing data from operating systems - August First report, testing and corrections of keys - August Report with functionality of cost centers allocation - November Full functionality of system December Implementation of CFO full functionality and Training January 2002 Final corrections and detailed modifications of functionality February End of project March DC 8 stycznia 2001 r. 21

23 Plans for systems development Building of new aplication for budgeting and results monitoring Preparing of financial planning for the next year including Profit / Loss reporting, Balance sheet and Cash Flow Preparing longterm forecatsting System for automation registration of hadgling costs in all branches. System to analysing commercial contracts profitability. Management reports in new standards for STAR ALLIANCE reporting. Etc... DC 8 stycznia 2001 r. 22

24 Recapitulation solutions Advantages Improving knowledge about costs/profits centers Improving and introducing technical automation Permits on better controlling of revenue and costs allocations Makes possible for data analisys on a high and detailed level Gives possibility to developing and changing of reporting system Decreasing IT administration for reports preapering DC 8 stycznia 2001 r. 23

25 Recapitulation solutions Defects DC 8 stycznia 2001 r. 24

26 Recapitulation of implementation Duration of project 5 months. Works ware realized with allowance of specificity. More than 100 workers of LOT Group participated in project, including about 20 financial officers full time. DC 8 stycznia 2001 r. 25

27 QUESTIONS? DC 8 stycznia 2001 r. 26