ICL Pathway Programme Monthly Report y Ref PAVREP/O53
lersion:1
Date:13/09/2000
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Document Title: ICL Pathway Monthly Report — August 2000
Associated Documents:
Reference Vers Date Title Source
[1] PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
M. Stares Managing Director
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Managing Director's Summary
1 PROGRESS AND ISSUES
Generally good progress is still being made, although CSR+ migration has proved
problematic and we have had to manage the fuel crisis. Our systems and processes
are holding up well as we continue to increase the number of live Post Offices and
we are now entering a cost down phase which is critical to the business plan.
Rollout is on track. We have migrated over 12000 post offices (>60% of the estate)
and are still achieving in excess of 300 implementations per week. We are about a
week ahead of plan. We have trained in excess of 40000 Post Office staff. This
performance is recognised by PO. The fuel crisis posed a significant threat but we
managed through this with only a hand full of missed migrations, a magnificent result
and one which has further improved our developing relationship with PO.
Weekly service performance is a key issue and we are back on track and are
demonstrating consistent performance. There are signs that the PO wish to do a
deal on those SLA’s that we are missing.
Following the success of the PO User Confidence Trial (UCT), CSR+ Data Centre
upgrade has been successfully achieved and is supporting the live estate. There are
230 live CSR+ post offices and the software performance is looking acceptable. We
have struggled to demonstrate a migration strategy that will achieve the 600 per
night required for the roll out program but have now identified what we believe to be
an underlying NT instability. A work around has been successfully tested on a live
migration run of 20 post offices and we intend to further trial this on Thursday 21*
September. If this is successful we will start the formal CSR+ pilot and would intend
to migrate a further 600 post offices w/c 2"4 October. If successful we can then move
into full roll out and complete by Christmas. Post Office is being very supportive
although their confidence has been dented.
Headcount management remains a big issue and is getting considerable attention.
We have now entered a vulnerable phase where we are highly dependent on key
skills and motivation but at the same time need to manage the start of a heavy cost
down program, particularly amongst freelance staff. We are also in a rapidly
developing scenario regarding new business opportunities that will demand a large
variable profile of skills and resources.
1.1PIU REPORT
The long awaited PIU report on the future of the Post Office Network is directly
critical of PO for not moving quickly enough into new business streams and is
supportive of new initiatives such as Banking including the Social Bank and of using
the post offices as e-gateways into Government services. The report acknowledges
the investment in Horizon as a platform for developing PO business. We worked
with PO on their response to the PIU.
1.2 NEW BUSINESS
We are still engaged in joint working groups/discussions on Network Banking,
EFTPOS and ERA.
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ICL Pathway Development Report y Ref PAVREP/O53
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Date:13/09/2000
Progress on significant e-commerce initiatives proves difficult with lack of
momentum in the PO. They have lodged a European Journal enquiry for potential
e.commerce suppliers to which we are responding.
1.2.1. NETWORK BANKING
Pathway is the nominated contractor for the Counter and we are evaluating technical
options with PONU and PO Network Banking Unit. The £620K feasibility study
(Network Banking Proof of Concept) for the production and evaluation of an e-
enabled counter banking approach was delivered and demonstrated successfully.
The next phases need to be a requirements definition and design which will be
chargeable services.
1.2.2 RE-ENGINEERING/ERA
As with Network Banking, joint activities have been proceeding at a pace. Initial
scoping suggests a £20M plus opportunity for Pathway in a 2002 timeframe. This
would underpin Release 4 in the Business Plan. However, there are some difficult
decisions facing PO as they balance cost reduction requirements with the
investment needs of ERA. Their June Investment Board has authorised the next
phase of this project to March 2001. We are now delivering the £400K consultancy
contract that places us at the heart of this initiative, together with Sema and Deloitte
Touche and are discussing significant additional consultancy work for Q3 and Q4.
However, indications are that there will be a three month minimum delay to this
initiative as Post Office get their own plans aligned and priorities understood.
1.3 NATIONAL AUDIT REPORT
This has now gone quiet and hopefully is assigned to history.
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ICL Pathway Development Report y Ref PAVREP/O53
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Date:13/09/2000
Development Report
1 MONTHLY SUMMARY
. The live pilot regression tests and the targeted volume and performance tests
on the APS Host systems ran successfully. Only a small number of additional
incidents were raised.
. We successfully resolved all the major problems preventing the migration of
the Data Centres to CSR+. The release authority board and the checkpoint
review held on the 18" and 24" August respectively confirmed the Pathway
recommendation to proceed.
. The Data Centres were successfully migrated during the bank holiday
weekend 26" — 28' August. We have encountered a number of problems in
the overnight batch schedule since and these are being addressed, otherwise
the upgraded system is performing reasonably well.
. The migration of the counters for the CSR+ pilot commenced 4" September.
However, a known intermittent fault in the ‘teamcrypto’ software is occurring
at a much higher frequency than anticipated. This is having a serious impact
on the counter migration schedule. On a more positive note, the CSR+
software appears to be functioning well in the handful of newly rolled-out
outlets and those which have been successfully migrated.
. We are experiencing difficulties with the casing for the mobile unit in terms of
weight and delivery timescales. These will adversely impact the plans for
completing the ‘roll-out tail’ if they cannot be resolved quickly. The satellite
option is functioning well in the internal testing phase but we have run into a
build problem. The first satellite installation is due to take place 1$* November
2000.
. The ‘Maintenance Release (M1)’ has entered the build phase and the first of
the five test cycles is planned to start 18" September. Distribution to the live
estate is planned to occur in late January.
. The development department is actively involved in the preliminary analysis
stage for Network Banking and EFTPoS and in addition continues to support
the early work on the ERA Project.
. The Development Directorate is now entering a large planned downsizing
phase from approximately 290 to 170 personnel. This is being implemented
against a background of speculative development opportunities, which
presents a significant management challenge.
. Work on preparing for the ISO 9001 certification continues at a pace in all the
development departments. There are still a few issues outstanding but much
of the work has been completed.
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. We were left with a number major incidents that had to be cleared before we
could enter the live pilot with a high degree of confidence. These were
successfully resolved and the Data Centre migration was achieved during the
bank holiday weekend 26"- 28" August. A number of incidents have occurred
during the overnight batch schedule which are effecting the operability of the
system. These are being investigated as a matter of urgency.
. The pilot outlets were scheduled to begin operating the CSR+ software from
4 September and the migration of the existing estate to commence 25"
September. Unfortunately, a known intermittent fault in the ‘teamcrypo’
security software is occurring at a much higher frequency than expected. This
is seriously impacting the rate in which the counters can be migrated.
. Development of the Maintenance Release (M1) is progressing according to
plan. The first release has entered the build phase and the first of 5 test
cycles due to start 18 September. Several deliveries are scheduled
throughout September/October and testing is planned to complete 13"
January. The release will be committed to the live estate 28" January 2001.
. The interim solution for the OCMS system is currently undergoing B&TC
testing and no major issues have been identified to date. Development of the
full solution is progressing according to plan.
. The Data Warehouse change for the new invoice has been successfully
system tested and the Warehouse is now undergoing general regression
testing. Development has commenced on the use of ‘business objects’ to
report against service levels in the future and replace the current SLAM
processing suite.
. The proof of concept project for network banking is complete. The final report
has been distributed and a presentation of the findings given to senior
managers within the Post Office. The initial reaction has been very positive
and we have now begun work on the preliminary analysis stage to clarify the
requirements and resolve some of the issues raised in the report.
. Work continues on the set of management and corrective action plans in
preparation for the ISO9001 accreditation.
3 COST DOWN
. Several changes designed to reduce the maintenance and support costs and
reduce the traffic in the network have recently been approved. These include
the removal of inter-campus ATM and EMC link and the calling line
identification protocol (CLIP).
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ICL Pathway Development Report y Ref PAVREP/O53
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Date:13/09/2000
4 CURRENT CRITICAL PROBLEMS
. We must resolve the operational problems being experienced in the overnight
batch schedule in CSR+.
. We must find a way to migrate at least 300 outlets onto CSR+ within the next
few days. This will enable the new software to be properly exercised in the
live environment. In parallel we need to overcome the teamcrypto problem so
that we can migrate the remaining estate in a few weeks time.
5 ISSUES
. The Operational Change Management System (OCMS) supports Customer
Services in responding to changes in the Post Office Network (e.g. temporary
closures, permanent closures & new outlets). An interim solution will be
delivered late November 2000 and this will substantially reduce the manual
effort involved in handling these changes and consequently reduce the risk of
human error. The final solution will be available towards the end of February
2001 and will totally automate the process.
. The new enhanced invoice functionality in the MIS programme suite was to
be included in the Maintenance Release planned for January 2001.
Unfortunately, this is part way through a financial quarter (defined as Dec —
Feb in the contract) and therefore unsuitable. Plans are now in place which
will enable the functionality to be exercised from the beginning of the final
quarter i.e. December.
. We believe that our supplier (Celestica) is encountering difficulties with their
sub-contractor regarding delivery of the casings for the mobile units. This
could adversely impact the 8 January 2001 roll-out date if it is not addressed
urgently.
The automatic build process for the satellite configuration cannot be implemented.
This means that each of the 500 units must be built manually before being shipped
for installation at the outlets. This may have cost and/or timescale implications.
6 COSTS
The development activities continue to progress in accordance with the forecasts
and remain under tight control and subject to regular financial reviews.
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ICL Pathway Commercial & Financial Report Ref:PA/REP/053
Version: 1.0
Date:13/09/2000
Commercial & Financial Report
1 MONTHLY SUMMARY
. The fuel crisis dominates current thinking. The most direct impact is on roll out.
The forecast to be submitted tomorrow will show a significant shortfall in revenue
(around £6.7m) and profit (£0.7m) this month (and half year end). The current
assumption is that recovery will be possible by year end, albeit at a cost. That
may be optimistic.
. The fuel crisis will also impact the migration related work and work generally. We
have registered ‘force majeure’ with POCL and they with us. That means we
should have relief on SLA remedies where we can show fuel dependency.
. The other major hot spot is CSR+ counter migration and HAPS reporting. The
resolution of both is key to entering and exiting from CSR+ pilot. As time goes
by, the risk of migration slipping into next year grows, with knock on implications
for the M1 release and therefore resourcing and costs. The good news is that
once migrated, CSR+ appears to work well.
. Costs have continued to run at below Budget rates. The underspend to date will
be used to fund extended CSR+ and M1 work between next month and year end.
The forecast is that we will get back to Budget spend rates by year end and stay
within cost Budget for the year as a whole (taking into account the risks and
issues identified below).
. Total revenue is £2m above Budget to date. This is thanks to roll out being
ahead of plan and infrastructure invoicing also ahead. New Business revenue is
on Budget to date but the forecast for rest of year now looks soft based on latest
POCL input. Basically, they are running slow and are unlikely to commit all the
work we had anticipated for Q3. Of the £3m full year Budget, over half remains
‘book and ship’. We will need to continue to balance the speculative retention of
key staff against this emerging requirement very carefully. We will also propose
a ‘committed funnel’ approach, offering assistance (unpaid) with getting business
requirements signed off in return for amounts of guaranteed work and timing
flexibility for delivery.
. Cash performance continues to better Budget by a significant margin (revenue
up, costs down, creditors up). However, this will unwind to a large extent as the
year goes on and revenue and costs go the other way. We have negotiated
forward the third milestone payment to 30 September from 1 December in return
for interest on the advance. The chances of pulling forward the final milestone
payment into this year are, however, slim.
. We are about to go breach of contract on SLA performance. Three successive
quarters of SLA shortfalls are about to be declared at the Service Review Forum
next week. We should expect a formal ‘breach letter’ and pressure to apply
additional effort to do better. The scope ranges from help desk to time to fix and
file transfer. This was always expected, but the extent of the work and cost
impacts remains to be sized. The mindset should be akin to Acceptance.
. Training remains an issue, specifically the lower than planned course occupancy
rates and the attribution of responsibility for that shortfall. The consequence is a
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ICL Pathway Commercial & Financial Report Ref:PA/REP/053
Version: 1.0
Date:13/09/2000
£1m plus hit in terms of the cost of additional courses required to train all the
counter staff. Allocation of responsibility is multivarious. POCL are required to
get their people to the courses (arguably they fell short of this obligation), we
and KPL are required to send out invites in good time (KPL failed to do that for a
number of months, but the Pathway RODB on which they depend was also
deficient for a while), rescheduling of roll out wastes course places (probably
more down to Pathway than POCL). We will run out of paid for courses in
November, so need to reach agreement on an equitable sharing of the over-run
with POCL and KPL by mid-October.
. Issues remain on a number of contractual matters. Each will require negotiation
with POCL. These include:
e the need for more training courses (as above),
e definition of which software related incidents are subject to time to fix
remedies (significant cost implications),
e Help Desk SLAs — with and without IVR, and moving to single point of
contact (NBSC)
e transaction time SLAs — ball is in POCL’s court to propose changes to the
way we do this,
e TIP reporting (file management and Stock reporting detail),
e Resetting the Part A roll out target to take account of reducing outlet
quantities - mechanism agreed in principle but still subject to CCN,
e Terms and conditions for new business work packages — e.g. the extent to
which we are prepared to give warranties — need to be agreed for new work,
e Operational Business Change pricing — close to resolution
e Consumables — POCL want to use generic consumables which may damage
the counter printers — we have withheld approval
e Resolution of Al 199 and associated A2A (formally about internal service
measures and now about the wider application of the generic
acknowledgement utility).
. There are some supplier issues also:
e Flat screen quality - Optoma have produced a firmware mod but site visits
are required — there is bound to be a fight over costs (estimated at circa
£1m)
e —Ntl final payment - £800k claim of which we judge perhaps 25% to be fair
e KPL -— our claim in respect of wasted course places (as above — their share
could amount to £400k)
e Celestica - mobiles cost - £130k disputed cost hike
. Departmental Budgets for 2001/02 are in process. The objective is to have these
agreed in outline before submission to Group in November. They will include
organisational/ resource based cost down actions and other identified cost down
tasks. Most difficult to assess is the new business component, the latest
assessment of which is a lower number than the £12m revenue scoped a month
or so ago. If confirmed, that will require a pairing back of costs and crystallise
margin contingency already built into the Business Plan.
. Finance shared services as a centralised function is dead, but the Propel
systems which we need for time recording and invoicing are going ahead as
planned and should now be easier to fit to our business needs. The target
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nN
4
5
remains unchanged: to implement the new Oracle ledger environment and
Project Accounting this calendar year, with time recording to a consistent WBS
structure (AMS/RTR) being rolled out in parallel under Programme Office
control.
DTI have now formally requested an audit of the £8m interim government funding
of April/May last year.
PROGRESS
Continuing excellent progress on roll out — up to the point where the fuel crisis
hit.
CSR+ product quality appears from early life experience to be good (exception
the HAPS file delivery)
Customer attitude — generally more supportive despite the problems.
RISKS
Fuel crisis — impact on roll out in particular
CSR+ migration issues — cost and customer confidence — possible knock on to
new business
New business funnel — PIU and Market Facing Unit dependencies cause delay in
POCL decision making and commitment
Breach over failure to meet SLAs.
ISSUES
As risks above.
FINANCIAL PERFORMANCE
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ICL Pathway Commercial & Financial Report Ref:PA/REP/053
Version:1.0
Date:13/09/2000
ém Actua Forecas
1 t
Current Month YTD Ist Half Current Half
Year Year
Actua I Budge I B/(W) II Actua I Budge I B/(W) Foreca I Budget I B/(W
1 t Budge 1 t Budget st )
t
Total Orders 0.0 02[ O11 07 04 0.3)
Total Revenue 20.8 20.6 0.3) }} 119.3 I 117.4 1.9 134.3 132.2 21
Revenue Growth 4071. I 4020. 7429. I 7309. 88.2% I 85.3%
1% 2% 8% 2%
Total Gross Margin 2.2 2.2 0.0 12.6 12.5 0.2 14.3 14.0 0.2
Gross Margin % 10.7% I 10.7% 10.6% I 10.6% 10.6% I 10.6%
Net Marketing Opex (0.0) -I (0.0) }} (0.0) I (0.0) (0.0) (0.0) (0.0) I (0.0)
Net Marketing Opex % (0.0) - (0.0) I (0.0) (0.0)% I (0.0)%
% % %
Development Opex - - - - - - - - -
Other (Costs)/Income : - - - - - - - -
Operating Profit on Associates - - - - - - - - -
(Contingency)/Task #VALU I #VALU I #VALU I #VALU I #VALU I #VALUE #VALU I #VALUE I #VAL
EL E! E! EL E! ! E! ! UE!
Ongoing Operating Profit 2.2 2.2 0.0 12.6 12.4 0.2 14.2 14.0 0.2
Ongoing Operating Profit % 10.7% I 10.7% 10.6% I 10.6% 10.6% I 10.6%
Rationalisation : : : : : : : - -
Operating Profit 2.2 2.2 0.0 12.6 12.4 0.2 14.2 14.0 0.2
P.O.D.D.O. : - - - - - - - -
Total Interest - : - - - - - - -
Investment Income/(Expense) - - - - - - - - .
PBT 2.2 2.2 0.0 12.6 12.4 0.2 14.2 14.0 0.2
Net Borrowings/(Cash) 95.1 I 107.7 12.5 95.1 I 107.7 12.5 115.4 I 123.6 8.2
Net Inventories 2.9 12.1 9.2 2.9 12.1 9.2 5.9 13.4 75
Net Receivables 0.2 0.5 0.3 0.2 0.5 0.3 0.6 0.6 0.0
Total Trade Creditors 10.3 2.1] (8.2) 103 2.1 (8.2) 10.4 2.1] (8.3)
Employees 198 218 20 198 218 20 198 219 21
Non-Permanent Staff 12 10 @ 12 10 Q) a 10 qd)
Total Headcount 210 228 18 210 228 18 209 229 20
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Version: 1.0
Date:13/09/2000
Comments on Current Month Actual
Total Orders: There were no significant new orders in the month, although the Post Office
committed to further paid-for initial design work for process re-engineering. This should result
in a further small order in September towards the new business targets.
Revenue: Revenue was marginally ahead of both budget and forecast in August. This was
due mainly to earlier than forecast invoicing for implementation related activities. The main
rollout continued in line with forecast during the month.
Gross Margin: Profit recognition on the project was accrued at the forecast level of 10.75% of
revenue. This percentage will increase each quarter, in order to yield an overall 11% profit on
revenue for the year as a whole - subject to the overall project lifetime profitability projections.
Operating Expenses: Staff costs were lower than budget and marginally lower than forecast,
but the higher use of freelance resources saw their costs record an adverse variance of £0.2m
in the month. This was more than offset by favourable variances on communications costs,
legal expenses, and maintenance. There were also exchange gains of £0.2m in the month.
PBT: Marginally ahead of budget and forecast, with profit recognition tied into revenue
performance.
Borrowings: Month end net borrowings were slightly better than forecast and £12.5m better
than budget. Project cost savings of £5.7m and lower working capital levels are the cause of
the majority of the budget variance.
Comments on Forecast
Revenue: The August forecast revenue again is unchanged from both budget and previous
forecast for the year as a whole. The rollout of counters to post offices is forecast to continue
smoothly in the short term, leading to a favourable revenue position at the end of the 1st half
year, £2.1m ahead of Budget.
Gross Margin: There is no change to the % level of profit recognition, leading to an unchanged
PBT forecast.
Operating Expenses: No significant changes. Weighted risk costs have been included
totalling £3.7m, covering the potential of expenditure necessary to support the timely and
proficient release of new software, upon which the longer-term post office counter applications
will be based.
PBT: No change - see above
Increase / Decrease in Employees: Employee numbers are still forecast to fall, in line with the
run-down of implementation related activities and the completed of core system software
released. The August Forecast sees March 2001 permanent heads of 183, which is 11 lower
than budget and a half year favourable variance against budget of 21 heads. However, this
masks the higher than budget total resources used on the project when ICL eApplications
contract staff and Freelancers are taken into account. Total resource numbers of all
categories of staff are forecast at 582 for the end of the half year — and we are below that
already in total — falling further to 425 at the year end. This compares with budgeted levels of
549 and 408 respectively for those two dates.
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Customer Requirements Report
1. SUMMARY
Very positive progress has occurred this month on all principal new business
streams.
Within Network Banking we have moved into the next phase of work, which is to
identify and resolve major issues in the end-to-end design.
The work on ERA progressed well. A report covering the implications on Horizon
will serve as the foundation of the next stage of ERA work.
The Pathway analysis of the PIU Report was followed up with proposals for specific
work packages and partnering. As a result we have been invited to enter into a
formal partnership selection process, as one of three contenders, for a POCL e-
Government services partner / supplier.
1.1 DETAILED PLAN ACTIVITIES
1.1.1 NEW BUSINESS REQUIREMENTS
Network Banking
CCN669 was submitted as a draft. This authorises Pathway to supply about
60 man-days of consultancy in the Preliminary Analysis Phase of the Network
Banking project. The CCN provides a link to a future CCN for further supply
should the 60 man-days be insufficient.
Comments have been received on the CCN’s terms and conditions but not yet
on the work objectives. Work is continuing under a side letter agreement and
an RTR time recording code has been assigned to this stage of the project.
However, there remains an element of risk within this arrangement until the
CCN is formally approved.
The purpose of the Preliminary Analysis Phase is to define business
requirements, investigating those points within the end-to-end design at
which options exist, with a view to deciding which options the project should
follow. This approach is intended to prepare the project for the next phase,
the Detailed Analysis Phase, by eliminating options at as early a stage as
possible.
Pathway will review technical options where these are relevant, but will
exclude any further discussions on the old Option 2 / Option 3 issue, for
which Pathway has delivered the final study report.
The current stage of work is under POCL program management (Mike
Woolley, with Bob Booth deputising during his current absence) and is in the
form of a series of joint POCL / Pathway workshops, each reviewing the major
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options and issues in a particular area of the overall end-to-end design.
These will output recommended solutions where options or choices exist.
Where such resolution is not possible within the Preliminary Analysis Phase
the issue will be flagged for urgent follow-up as a priority activity in the
following Detailed Requirements Analysis Phase.
A draft document identifying a set of Product Descriptions using Prince 2
methodology was produced as the initial deliverable. This defines workshops
and documented conclusions for:
¢ Service Definition
e Reconciliation
e End-to-end design options, Interfaces and SLAs
e Reference Data (workshop held 8/9/00)
¢ Horizon Infrastructure extensions
e Security
Further deliverables cover documentation on future options, where further
work is required, and on deliverables to be produced in the next stage.
This work is not affected by the various delays in the Banking Engine
procurement.
ERA
Alan Paterson and Mike Chawner are fully engaged in the ERA activity.
Following a number of workshops with user-type representation during July,
the ERA team has documented over 400 requirements, ranging from the
trivial to the significant. These are documented under four classifications
(Accounting, Sales, Stock and MIS). The ICL team is being asked to look at
each requirement, rate its impact on Horizon (H, M, L) and assess the cost of
moving to the next stage. However, the business rationale and contribution
of each to the main business drivers for the Post Office has not yet been
made.
Mike and Alan have produced a report covering the impact of Project ERA on
Horizon that will assist in setting the strategy for the ERA project’s next stage
— the Migration Strategy. The document highlights the key proposals for
Project ERA in both technical and business requirement areas with a focus on
the impact on the current (CSR+) version. The document's main audience
will be members of ICL Pathway who will have a full view basis on which to
take forward the migration and implementation of the Project ERA proposals.
The overall project's objective is to produce a Business Blueprint by the start
of September, and this will cover both business and overall technical
perspectives, although with insufficient emphasis on the former, particularly in
relation to the part played by Clients themselves
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In fact it is currently the SEMA members of the ERA project that are
influencing the technical strategy and in effect seeking to confine Pathway to
the counter area.
PIU/GGP
Dave H worked on this in conjunction with John Bell and Mike Jenkins. The
response to POCL covering suggested work bundles was completed, along
with a formal Pathway report covering our analysis and comment on the
Performance & Innovation Unit (PIU) report. These formed the principal input
to POCL’s Government Strategy unit via Catherine McCrohan.
Subsequently we received a request from Dave Waltho, Post Office
Government Strategy Director, for initial input to a partnering selection
process for Government General Practitioner (GGP) and responded at short
notice with a document drawing on ICL’s strengths in Horizon, the
Government marketplace and electronic business skills.
We have just been advised that POCL will now enter into a formal partnership
selection process for an e-Government services partner/supplier, the
contenders being ICL, IBM and Andersen Consulting
A management summary document of our PIU analysis and comment was
also produced for the Pathway management team.
Service Development Plan
Two areas are under broad discussion, but neither has reached the point of
CCN for enhancement work:
Dave Cooke is assisting Liam to explore how to enhance OBCS to prevent
books stolen in transit from being encashed, and/or adding information to the
barcode to prevent a cover from being re-used with counterfeit foils. Dave C
has produced a note principally describing a scheme to check that
encashments come from duly issued books.
We are considering how the flexibility of APS could be applied to unrelated
business areas, e.g. recording parcel receipt and issue to support a Home
Shopping scheme.
EFTPOS
EFTPOS discussions have started again. John Coakes and Dave Cooke met
POCL (Andy Radka) and re-stated the approach and issues that must be
addressed to get the enhancement programme started. Indications are that
this information is being only slowly circulated for further comment around
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various parts of POCL and hence there is the risk of missing deadlines for
development to commence. TDA are getting geared up for this project.
ACCEPTANCE LOOSE ENDS
Acceptance Incidents (Als)
We continue to whittle down the few remaining “Low” priority Als. Ten in the
POCL Infrastructure area were dealt with during the month. Six are
recommended for closure, two are scheduled for M1, one is expected to be
ready for the M1 release, and one might require a site visit to OSD Belfast.
CSR/CSR+
AP Client Migration
Production of Client Specifications has slowed, partly because a new pattern
of Application Interface Specification, based on legacy magnetic tape file
formats, was required for SWALEC and Northern Ireland Electricity. This is
now available and these two specifications will be prepared for review.
We are awaiting formal POCL approval of the Welsh Water specification.
CCNs for the interim and final solutions for flexible days-per-week File
Delivery are with POCL for approval. A commercial-type rejection on the final
solution CCN has been received.
POCL expects to be able to advise the results of the POCL HAPS sizing
study in the next week or so. This is now looking more positive, and might
well mean we can move some of the Client migration dates to after the M1
Release, and therefore not use the interim file delivery solution at all.
The CCN to start work on the Application and Technical Interface
specifications for British Telecom is with POCL. POCL is very concerned
about the final cost of this and is looking at other ways of linking into the BT
site. This might involve retaining their legacy interface based on their
Document Processing Centre system, and possibly using this for other
Clients in the future.
Other APS
POCL has put on hold our proposal for supporting Girobank if it moves to a
Disaster Recovery site. POCL is looking at a much simpler facility with
Pathway producing transaction files on exchangeable media, probably CD.
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This could also be used for many of the smaller Clients who could not afford a
second site interface.
Quantum - This is currently disabled in initial CSR+ and planned to be
introduced in November / December, because of a delay in the availability
Siemens back-end systems. However, recent information suggests that
Siemens may not be able to make even this date. POCL is to advise on the
situation this week.
Installation of live equipment on site at British Gas for SPM smart card
operation has been delayed. This is due to British Gas Trading and POCL
not being aware that the original kit we installed was for development testing
only and had to be replaced.
The CCN for the HAPS Data Cleansing Service definition was approved and
Dave Cooke has prepared the outline Service Scope document. An internal
review to define how we do this service is planned for the week of 11/9.
OBCS
POCL has now advised that their delayed introduction of support for the IR
order books is to go ahead. This is being managed by CS and will take place
on 18/9.
TIP Interface
John Pope continues to monitor operation of the TIP Interface. A significant
problem was resolved last week, in conjunction with CS, following a failure to
harvest transaction details properly for some 300 outlets. Several hundred
thousand records were recovered and transmitted in time to meet our SLA
“Day D" deadline.
Legalistic exchanges continue with POCL Commercial about the fact that we
do not accept any obligation to send Non-value Stock declaration data to TIP.
SADD
What could well be the version of the SADD that forms the CSR+ deliverable
was output.
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1.1.4
PROPEL ACTIVITIES
Training on Macroscope has continued with John Pope, Alan Paterson and
Joan Tan now having completed the current programme. This gives us
coverage on ERA and partial coverage on Network Banking. A decision will
need to be taken on whether GGP should be considered as a Macroscope
Pathfinder project, possibly as an alternative to Network Banking.
We are responding to a request for advice on DOORS usage as other
projects consider its deployment elsewhere in ICL.
OTHER ACTIVITIES
PINICLs
This month has seen substantial levels of effort given over to PinICL
resolution, with priority being given to those which could result in Desktop
instability or SLA failures if unresolved. There are no significant PinlICLs for
Requirements team resolution.
Outlet Monitoring
The team continues to provide support to the CS initiatives on this, covering
monitoring of ISDN and node operation within the outlet, a procedure for
collecting transactions marooned at an outlet and updating an outlet’s
Reference Data and OBCS stop lists. Contributions to CPs were generated.
Workflow Standards
Dave H chaired the recent Workflow Management Standardisation meeting in
Boston and co-presented a tutorial at the XML World conference on XML-
based Standards for B2B Process Integration.
Presentation to POCL IS/IT Procurement Director
Dave H contributed to this event providing a presentation on current Horizon
capabilities and options for exploitation in GGP / ILAP and e-Commerce
areas.
POCL SPICE project
Dave H (with John Bell) had some exploratory informal discussions with the
POCL SPICE project over options for capturing customer contact data within
Horizon and feeding it to the intended SPICE back-end environment. The
implementation contract was awarded to Deloittes and is expected to use
Siebel.
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2 CURRENT CRITICAL PROBLEMS
None.
3 ISSUES
We have to gain some greater influence over the technical direction of ERA. We
should also maintain a contingency view that when the ERA Client and other re-
engineering costs are assessed in Q1 2001 there will be a pragmatic retrenchment
that could be made to work in our favour.
Dave Hollingsworth and John Dicks 11/9
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Customer Service Report
SUMMARY
The stability of the Correspondence Servers continues to cause concern and
in the week preceding the Cl_4 upgrade they suffered major problems. The
overall effect was a large percentage of failures of transactions on DAY B for
2 consecutive days resulting in penalties of approximately £15,000.
A manual process failed on Monday 4'" September and the harvesting of the
APS transactions did not take place. The transactions were re-harvested and
the files re-created but missed the SLA for transmission to APS.
There has been limited progress on AP Client Migration and there is concern
that the Girobank host changes will not be ready in time for M1 testing. POCL
have indicated that the capacity of HAPS may be insufficient to handle the
increasing data volume if Girobank were not migrated until Q1 2001. POCL
have confirmed that DVLA has been taken on as a new client with a direct
interface from HAPS and a CR is needed to add DVLA to the end of the
current AP Client Migration programme. The AP Client Migration Programme
needs to be replanned and it is now almost certain that not all activities will be
completed by the end of March 2001.
Although there are a few issues that still need to be resolved, the Data Centre
is considered to have been successfully migrated to Cl_4 over the Bank
Holiday weekend. A full systems and operations audit of the datacentres has
been commissioned and will report by the end of September.
CI_4 Counter migration commenced on Sunday 3% September but failed. A
revised Tivoli package was tried on Monday 4" September at 5 Outlets. Only
1 out of the 5 successfully migrated. A number of migration issues highlighted
by the 4 failures are being addressed.
Rollout of new Cl_4 Outlets started on Monday 4" September and apart from
a few teething problems seems to be progressing well.
Settlement has now been agreed for April, May and June 2000 BIMS reports
between Pathway and PON with an invoice adjustment being requested from
Pathway finance. The value is £45,900.
Revised System service remedies calculations were submitted to PON on 25"
August for their approval and subsequent agreement. They equate to
£227,709 of which £189,720 is recoverable from OSD.
The issue of joint Manager Care visits needs to be escalated within PON, as
it is clear that we have two different agendas for doing these.
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Ref:PA/REP/053.
Version:1.0
Date:13/09/2000
1.1 VITAL STATISTICS
Live Base as at 31% August 2000: 11,181 Post Offices, 24,674 Counters
Cumulative Data is from 1% December 1999 to 26"" August 2000
inclusive
Monthly Data is from 30" July to 26" August inclusive
OBCS
Total number of transactions to date
Total number of transactions in August
Total value of payments to date
Total value of payments in August
131,534,342
31,010,315
£10,079,420,482
£2,425,469,687
EPOSS
Total number of receipts to date
Total number of payments to date
Total number of zero value transactions to date
Total number of receipts in August
Total number of in payments August
Total number of zero value transactions in August
Total value of receipts to date
Total value of payments to date
Total value of receipts in August
Total value of payments in August
201,136,161
59,775,027
15,523,329
38,362,366
7,465,089
3,154,291
£11,252,204,884
£5,442,705,444
£2,268,103,317
£703,379,281
APS
Total number of transactions to date
Total number of transactions in August
Total value of receipts to date
Total value of receipts in August
62,893,177
12,469,209
£1,736,982,015
£327,515,075
NOTES:
OBCS transactions include non-monetary transactions - issue of books,
change of address etc.
Cumulative Data from May 1999 will be published once analysis of
archived Data Warehouse data is complete.
Weekly data is now available on the Customer Service web site.
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2 PROGRESS
2.1 OPERATIONS
2.1.1 AVAILABILITY MANAGEMENT
The stability of the Correspondence Servers continues to cause concern
and in the week preceding the Cl_4 upgrade they suffered major
problems. The overall effect was a large percentage of failures of
transactions on DAY B for 2 consecutive days resulting in penalties of
approximately £15,000.
Due to Cl_4 issues with the APS Harvester, OSD are currently operating
several manual workarounds to ensure that the harvesting is kept on
schedule. There appears to have been errors with the workarounds and
therefore the harvesting of the APS transactions did not take place. 4th
Line Support units are attempting to resolve the problems.
There were no major network incidents during August.
2.1.2 REFERENCE DATA
There is concern over the performance of the Data Centre with large
volumes of non-core Reference Data remains, even with 64 Agents at
Cl_4. Changes may need to be made to the processing mechanisms.
This is being monitored.
PON have been requested to provide a statement of their requirements for
AP Smart Cards.
PON data quality is still a cause of concern. PON have appointed David
Anders as interim problem manager.
2.1.3 POCL INTERFACES
.
The number of daily APS files is regularly approaching 19, and the POCL
HAPS limit is 22. POCL are investigating what action they can take at
HAPS.
2.1.4 AP CLIENT MIGRATION
Since the last report, the focus has been on Cl_4 with limited progress on
AP Client Migration. Furthermore, there is concern that the Girobank host
changes will not be ready in time for M1 testing.
Girobank is causing further concerns to the APCM programme. The
required functionality to deliver files 5 days per week instead of daily will
not be available before Q1 2001. Furthermore, POCL has indicated that
the capacity of HAPS may be insufficient to handle the increasing data
volume if Girobank were not migrated until Q1 2001.
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Development has commenced on Mid Kent Water, Hampshire County
Council, Southampton City Council, Knowsley, and Yorkshire Electricity
and is progressing according to plan.
POCL have confirmed that DVLA has been taken on as a new client with a
direct interface from HAPS and a CR is needed to add DVLA to the
current AP Client Migration programme.
The AP Client Migration Programme needs to be replanned to incorporate
these changes and it is almost certain that not all activities will be
completed by the end of March 2001.
2.1.5 PERFORMANCE MANAGEMENT
Work has been proceeding on the confirmation of the short-term and the
long-term designs. The design document for Phase 1 has been issued for
comment in advance of the CP and the Phase 2 document is in
preparation.
A meeting to map the various parts of the PMS to specific releases e.g.
CI_4RA has been scheduled for Monday 4" September. The target is to
get Phase 1 into the Data Centre by the end of September.
2.2 SUPPORT SERVICES
2.2.1 GENERAL
The SSC have been heavily involved in dealing with Correspondence
Server - related issues, the stability of which has been causing concern.
The Wigan Bootserver is now more stable; following a significant
reduction by Energis of incorrectly routed "rogue" calls from live Outlets.
A proposal for the support of TeamWARE Crypto has been provided by
OSD. Support will be handled along similar lines to that for OBCS and
OAS - i.e. supported by e-Applications staff.
2.2.2 MAJOR RELEASE IMPLEMENTATION
Although there are a few issues that still need to be resolved, the Data
Centre is considered to have been successfully migrated to Cl_4 over the
Bank Holiday weekend. This was achieved through very high levels of
effort, and with considerable expertise, by some very dedicated people
from CS and across Pathway.
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¢ Counter migration commenced on Sunday 3% September but failed. A
revised Tivoli package was tried on Monday 4" September at 5 Outlets.
Only 1 out of the 5 was successfully migrated. A number of migration
issues were highlighted by the 4 failures. 1 will be circumvented by
additional pre-migration checks at every Outlet, 1 will be resolved by a
change to the migration script and the final one is considered to be an
extremely rare event and will not be addressed in the short term.
e Rollout of new Cl_4 Outlets started on Monday 4" September and apart
from a few teething problems seems to be progressing well.
2.2.3. RELEASE MANAGEMENT
e 7 Release Notes for CI_3R have been raised over the reporting period
and 4 have been authorised for live.
e 92 Release Notes for Cl_4 at the Data Centres have been raised from the
latest system baseline document. 34 of these went live over the weekend
of 26"/27" August.
e 10 Counter Release Notes to deliver the Cl_4 Counter upgrade to CI_3R
Counters were distributed to 25 Live Pilot Counters on 29/30" August.
2.2.4 METRICS
For the month of August 2000.
Release Notes cleared by OTT 29
Total Calls raised through SSC 721
Total Calls closed through SSC * 853
* Of the total calls closed, 413 were in categories (e.g. Advice and
Guidance, Published Known Error) which should have been closed by
SMC.
2.3 INFRASTRUCTURE SERVICES
2.3.1 MANAGEMENT SUPPORT UNIT
2.3.1.1 BUSINESS INCIDENT MANAGEMENT
« Settlement has now been agreed for April, May and June 2000 BIMS reports
between Pathway and PON with an invoice adjustment being requested from
Pathway finance. The value is £45,900.
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2.3.1.2 MIS
e Service Review for August completed successfully with PON on 23 August. No
issues were raised with any sections within the Service Review Book and all
calculations were deemed acceptable for service level conformance.
« Revised System service remedies calculations were submitted to PON on 25"
August for their approval and subsequent agreement. They equate to £227,709
of which £189,720 is recoverable from OSD. A value for those software calls that
had hardware fixes has been passed to Tony Oppenheim. It equates to an
additional £118,000.
2.3.1.3 IT SUPPORT (FELTHAM)
« Liaison with OSD re Guardian Recovery at Theale is progressing. The final kit
and telecom links were installed during the reporting period allowing testing to
commence.
2.3.2 BUSINESS EFFECTIVENESS
e Preparations for the BSI audit are ongoing. Issues relating to “process
standards and modelling” have been resolved.
e Also underway is a process project to define the process thread that starts
with the RMF and finishes when a software-change is distributed to the
live environment. Joint work with Development highlighted that the
interactions between CS, Development and OSD needed clarification and
validation.
2.3.3. STRATEGIC SERVICES UNIT
2.3.3.1 OCMS
¢ The first release of OCMS will now be delivered at the end of November and the
final release, which introduces the capability to update Tivoli configuration
changes automatically, will be delivered at the end of March 2001. Before this
the Tivoli configuration will have to be completed in a semi-automated manner
but this is not critical to the success of the change business.
2.3.3.2 OPERATIONAL BUSINESS CHANGE
e The following tables show actual deliveries for August and firm orders for
changes up to the end of November.
Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliverie I Allowed Within I Additional to Contract
s Contract
August 39 14.05 22.95
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Month Total Forecast Forecast Deliveries
Orders Deliveries Additional to Contract
Allowed Within
Contract
Septembe 48 15.64 32.36
r
October 33 17.48 15.52
November 8 19.31 Not yet exceeded
contract
Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliverie I Allowed Within Additional to Contract
s Contract
August 9 8.78 0.22
Month Total Forecast Forecast Deliveries
Orders Deliveries Additional to Contract
Allowed Within
Contract
Septembe 2 9.78 Not yet exceeded
r contract
October 1 10.92 Not yet exceeded
contract
November 0 12.07 Not yet exceeded
contract
2.3.4 FIELD SERVICE MANAGEMENT
2.3.4.1 PROBLEM MANAGEMENT
The team is working with the customer, the MSU, SS and BET to ensure all the
relevant processes and procedures are in place for their element of problem
management at an Outlet. This is not a huge task as much of it exists within the
current problem management documentation.
PON BSM is working with us to ensure the Territories buy-in to this process.
They believe their processes will be in place by 18" September. In the meantime
PW has gained agreement from BSM to move speedily with any urgent requests
for site visits we have now. To this end we have supplied BSM with a number of
sites that require more in-depth attention due to the high number of hardware
and/or software faults.
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2.3.4.2 MANAGER CARE
« PON BSM is insisting that the programme be executed with joint visits. PW
expressed disappointment at the lack of visits coming through and suggested
that ICL Pathway put together its own visit schedule - this was declined. BSM
responded that they would put more energy into the programme but it was clear
that the number of visits they wish to do is nowhere near the number we
envisage. The issue of joint visits needs to be escalated within PON as clearly
we have two different agendas for doing these.
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1. MONTHLY SUMMARY
. Security. Virtually all effort is still focused on implementation of KMS. Issues
are being addressed daily to maintain progress, and KMS is now processing
keys for Live Pilot.
. Risk Management. Overall Business Case risk exposure has changed little;
additional risk associated with SLA remedial actions and flat screen issues is
offset by reducing risk associated with CSR+ migration and training
occupancy (now in the budget . Business Continuity plans continue to make
good progress.
. Quality. IS09001. There has been some slippage in the process update
plans. The establishment of the BMS site continues — target for version 1 is
end September, although it will not be complete.
. Audit. The audit programme continues to plan. Significant ISO09001 non-
conformances have emerged and there is an increasing backlog of corrective
actions. These issues are being addresses at ISO Board and Process Review
Forums.
2 PROGRESS
2.1 RISK MANAGEMENT
The Business Case Risk Register. The weighted total now stands at
£23mn, little change from July. The main changes are associated with:
e The training occupancy risk has occurred - £1.3mn is now in the
Implementation budget.
e Migration to CSR+ risk reduces as the plan is implemented and
achieved.
e A firmware upgrade required for the flat screens which will involve site
visits.
e Potential additional costs to alleviate SLA’s to meet an Acceptance
Incident and requirement.
A risk analysis workshop involving the main Implementation team was
held to surface and analyse the variance in terms of cost and schedule
risks to the “tail” pre- and post-March 2001. The major risks identified
included availability of outlets due to the infrastructure programme, PON
release of outlets, suspends and readiness of mobile outlets. The main
mitigations are renegotiation of total number of outlets and contingency. A
number of lower risks were also identified. These will be analysed for total
impact and reviewed in september.
Consolidated risk register. Reviews have been held with the TDA,
Configuration Management and 4 if the Delivery Unit Managers.
Business Continuity plans. Considerable progress has been made to
rework plans and Business Recovery team structures. Implementation of
the plans will begin when the DR site moves to Theale. An awareness
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programme has been started and plans are being drawn up for staff
briefings.
2.2 SYSTEM SECURITY
2.2.1. GENERAL
CP2292 et al (Anti-Virus software on the Live-Estate). A strategy paper is
nearly complete, which will give recommendations for the delivery of anti-
virus software to all platforms or indicate where technical resolution is
required.
DPA. Responsibilities under the DPA for ownership of data have been
agreed and Pathway's DPA registration is being amended accordingly. A
draft contract and Subject Access Request form has been prepared.
Security documentation continues to be reviewed as part of the ISO 9001
plan.
Work is underway to obtain ListX status for Pathway.
2.2.2 CSR+
The KMS User Guide and associated key process documentation have
been baselined. Event handling procedures have been finalised with SMC
and will be baselined following any outputs/issues during Live Pilot. Work
continues on a small number of hangouts from the Plan including event
handling and the preparation of KELs.
A great deal of effort this month has been focussed on getting KMS
operational. The KMS and Certification Authority workstations have been
configured and the KMS Confidence Test was successful. KMS is now
processing keys for Live Pilot.
Frank Fallon joined QRM to undertake the Key Manager role for KMS.
A secure test was undertaken on the live Siemens Metering code. This
proved that APS will produce transactions when using the live keys.
Network Security tools. A number of network vulnerability tools are being
evaluated following approval of the associated CP. Work is underway to
undertake a similar exercise in respect of policy compliance software.
2.3 QUALITY
1SO9001 Programme.
e Process Development update:
e Some slippage in process development plans has occurred, mainly due
to CSR+ priorities.
¢ Completion of C&F processes is still proving difficult.
e Development. The maintenance process DE/PRO/003 has slipped by 2
weeks. Interfaces, primarily to CS are being discussed. The interface
with CR still needs to be defined.
e Customer Services; target end September.
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e Programme Office; Document Management Process update is under
review, due early September.
e Business Development and Customer Requirements will use the CSLC
processes as relevant for new business. There are potential issues
regarding maintenance and change management which are being
addressed.
e Implementation processes are in final stages of review, due early
September.
Business Management System (BMS). The target is to issue version 1 of
the site by the end of September. A considerable amount of information is
still needed from Directorates, including document listings, introductory
paragraphs, process usage. The site will only reflect what has been made
available, but will encourage awareness.
e Propel implementation.
e Stages 2 — 6 outputs are being reviewed in order to formalise a
Pathway relevant version of CSLC.
e Other Propel programmes are being reviewed, discussed to
understand the relevance to Pathway and timing of rollout.
2.4 AUDIT
¢ Internal audits:
e Commercial/Financial Audit has been partially completed and
preliminary findings reviewed with Tony Oppenheim & Graham
Wingrove. The report will be completed in September.
e Supplier Management — Training Audit has been completed, the report
approved and actions agreed.
« Data Centres Audit is being followed up to ensure that OSD / Group
Audit are dealing with the recommendations from the audit report.
Internal Audit Committee. The inaugural meeting is 28" September. It will
cover a summary of audits conducted year to date, key findings and
emerging trends, and recommendations for coverage by the next section of
the audit programme.
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3. ISSUES
. Issues concerning the performance of CAWs under volume conditions are
being addressed by KMS Development.
. A number of residual build issues remain on the KMS workstations. These are
being resolved during Live Pilot.
. There are increasing demands by PON demands for message store
information to support investigations. The situation is being monitored.
. Significant IS09001 non-conformances are emerging. There is difficulty with
determining compliance (or otherwise) in areas where there is little
documentation.
. Greater co-ordination is needed between Quality / process and Internal Audit.
. Increasing backlog of corrective actions. This is not being helped by the
delay to the BSi visit. The sooner a date is agreed and communicated, the
better.
. There needs to be end-to-end Configuration Management rather than a
fragmented process that separates Document Management from Software
Configuration Management (SCM). Tracing original requirements to released
code is rendered problematic by the current approach and leads to
considerable risk.
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1 SUMMARY
. Overall, a slow month with most people on holidays at some stage. However,
progress is being made albeit at a snail’s pace. This is influenced by external
(to Post Office) issues such as the PIU report and their need to urgently
respond. Incremental new business revenue to date is £1.3million.
Network Banking:
e The Proof of Concept exercise completed with the issuing of a
comprehensive report to Post Office detailing all activities undertaken and
conclusions arising. We had a very successful presentation and
demonstration to Post Office staff on 23 Aug. The only downside was the
obvious disconnect between the Network Banking staff and the Post
Office network staff. One side wants a web approach while the other does
not see any benefit to such an approach. Post Office have now called in
an external consultant to advise them. My belief is that this issue will be
sorted more by the economic and commercial reality in dealing with the
banks. No banks have yet signed up to Network Banking.
e The ITTs for the Network Banking engine are being evaluated. ICL’s
response was not favourably commented on. The decision on the engine
supplier has been delayed until end September. This is partially caused
by having no bank signed up. However, the other outstanding issue is
whether or not they will need a banking engine at all.
e There has been increasing pressure on Post Office to come up with a
solution to the Universal Bank. The banks have responded negatively to
any suggesting that they fund it. If government do so, there may a claim
that it will be anti competition rules within the EU. Post Office have
responded to the PIU report giving their picture of the business case
which at present does not stand up. Discussions continue.
ERA:
e The ERA blueprint due for end August has been produced and presented
to the stakeholders within Post Office. The team have now been asked to
ensure that the blueprint is PIU conformant and also conforms with the
Post Office IS/IT strategy. This will certainly spell delay in getting approval
to the next piece of consultancy work. We are currently planning a
resource uplift on ERA of up to 10 people.
e ERA will now be reviewed on a fortnightly basis through the newly set up
ERA project board.
Government Gateway:
e Responses were submitted to Post Office to help them respond to the PIU
report. Several options were proposed and there is still an aim to
implement government gateway pilots in Spring next year.
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Marketing Communications:
No approval forthcoming from Post Office for positive communications.
They are concerned that any positives may be negated by any problems
with CSR+. We must continue to press for clearance to be more positive
but it runs contrary to their natural way.
NAO Report:
The NAO report has finally seen the light of day. It was published on 18"
August, received lots of media coverage on the 18", was covered in more
detail in Computing and Computer Weekly and has not been heard of
since. Hopefully, this status will remain.
2 PROGRESS
Business Development:
EFTPOS: Andy Radka has now been given responsibility for EFTPOS. He
is continuing to look at the business case. This is covering old ground for
the umpteenth time, as they know they will have great difficulty in coming
up with a positive business case. However customer demand says that
they must do it. We have met with Radka and proposed ways forward.
Mails: Escher have demonstrated their Mails product to a set of Post
Office staff. This was received well and work continues to evaluate
implementation and integration options.
Service Improvements: Post Office have identified a number of potential
improvements to the existing system. We have now proposed a workshop
to work these through and ensure that we can respond with estimates of
necessary work.
Marketing Communications
We are providing systems for the three upcoming party conferences.
These will be in ‘live’ post offices at the conferences.
We did achieve some level of communication for the 10,000" post office.
Work continues with a number of our subcontractors to build case studies
around the Pathway project. Each of these needs approval from the Post
Office.
There was quite a lot of media interest in the NAO report. Positive
messages were communicated to all parties with firm updates on the
current status of the project.
International
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Approval for another tranche of work has been received from Deutsche
Post. This will take place between now and Christmas. Low value but
could lead to more later.
Namibia system is now rolled out and working successfully. We are
discussing with our colleagues in South Africa the possibility of a
marketing deal covering SADC, the Southern Africa Developing Countries.
This could be based on the Namibian system.
3 ISSUES
None
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Implementation Report
1 MONTHLY SUMMARY
A total of 11,289 Post Office outlets have had the Horizon system installed, as of
close of business 1% September 2000. This represents 62% of the current agreed
number of open outlets. The third contract rollout milestone (10,680 outlets by 1‘
November 2000) was achieved ahead of schedule on 18" August 2000. In general,
achievements in the installation programme continue to exceed the planned levels
of activity on a weekly and cumulative basis although we fell below plan for two
weeks in the last period (see section4).
The overall number of open Post Office outlets (installed or to be installed) has
increased from 18,147 to 18,164. This is the net result from a combination of the
continuing trend of Post Office outlet closures and 40 outlets which have been
“returned” to the programme. The numbers of open outlets are expected to reduce
by a further 124 following discussions with Post Office and subject to confirmation.
The number of outlets yet to enter the programme is now 13, not including mobiles.
There are 88 outlets that have been released by PONU but have not been entered
into the programme. These are outlets designated for the mobile solution.
2 PROGRESS
Activity in the Infrastructure programme continues to make good progress and the
programme will be completed during September, with the exception of mobile outlets
where preparation activity will continue until the end of the year. Outlets are only
being accepted into the Infrastructure programme now if they are fully compliant,
can be accommodated within a planned installation unit and are made available
prior to 15"" September.
Outlets that are non-compliant or space-only compliant must be introduced into the
programme through Operational Business Change (OBC) and charged accordingly.
It is anticipated that the existing infrastructure team will be used to manage the OBC
infrastructure activity, on behalf of Pathway Customer Services. An outline proposal
for managing OBC infrastructure activity has been discussed with the Post Office
and will be reviewed with during October. It is anticipated that the earliest any
outlets will be released for OBC infrastructure activity will be mid-October.
Surveys of sites designated for the satellite solution commenced from 24" July. The
trend of satellite sites surveyed being re-assessed as ISDN solution sites has not
continued and the quantities of anticipated satellite solution sites remains in
accordance with the previous estimates, circa 500.
Pre-Survey calls for mobile outlets are due to start from week commencing 11"
September. This call sets the appointment for the outlet survey. Mobile installations
are currently scheduled, following surveys and preparations, to begin in late January
2001.
[ACTIVITY CHANGE CUMULATIVE
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Number of Open Post Office Outlets +17 18,164}
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme +7 18,057/
Sites Remaining to be Surveyed -266 408}
Sites Remaining to be Prepared -846 645)
INSTALLATION PROGRAMME
Sites Migrated and Live 11,289)
Percentage of Open Sites Live 62%I
Counters Live 26,887
The re-scheduling of the 20 new installation CSR+ outlets for live pilot will result in a
higher than normal number of outlets being planned for installation in the week
commencing 4" September (336 planned). Live pilot installations have commenced
and have so far been successful. These will be completed by 12" September. The
quantity has been reduced to 19 following the abort of one of the designated sites.
No further aborts of live pilot sites are anticipated.
Rollout of the CSR+ release will be intercepted into the main rollout programme to
all new outlets from 23 October 2000.
Towards the end of October 2000, the installation programme will begin its second
sweep of the RNM clusters, performing installations at sites which were unavailable
in the first pass or whose installations were aborted. Detailed planning is also
underway for the latter stages of rollout where the volume of outlets is considerably
smaller and the weekly profile consequently tails off.
Given that the rollout is due to be 95% complete by mid-March and all but a few
Post Office outlets will have been installed by June 2001, planning has started for
the closedown of Implementation. This includes the release of staff, managing the
closure of sub-contracts, ensuring the correct quantities of equipment are available
to support the tail and handing over responsibility for remaining installations to
Customer Services. A draft strategy is due for review during early October 2000.
3 CURRENT CRITICAL PROBLEMS
As previously reported, there is a serious risk to the programme that course
occupancy levels are such that PONU will require to purchase more than the
contracted total number of training courses. It is likely that they will claim ICL are
responsible for a proportion of this deficit due to failures in scheduling and aborted
installations. A number of measures to improve course occupancy have been jointly
agreed with PONU and introduced in order to reduce the size of the predicted
deficit. These include:
e Increasing the maximum potential course occupancy
e Trading the value of other training courses where there is a forecast surplus for
additional training courses of the type required
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e Relaxing scheduling constraints to offer increased options to postmasters,
thereby improving potential occupancy
Currently, forecasting predictions indicate the total value of additional courses
required will be just over £1M, although this is based on simulations of scheduling
efficiency and may increase or decrease by a considerable percentage.
Improvements in scenario modelling are progressing.
Preparation for the inevitable commercial debate with PONU over responsibility is
underway. It is considered that Pathway can contain the appropriate level of
responsibility within the current financial forecast.
The deficit is forecast to begin in November 2000 and therefore, until responsibility
has been agreed there is a need to ensure courses are delivered beyond the point
at which the deficit will commence. Activity is underway to determine a mechanism
which will ensure training courses continue to be delivered whilst the commercial
debate takes place over responsibility.
The programme for mobile solution outlets is continuing to gather pace and tooled
variants of the mobile system are currently in manufacture. Delays in the
commencement of the manufacturing programme, caused by delays in approving the
solution design, have impacted the commencement of mobile installations. There
are also concerns over the unit weight of the mobile casing and one aspect of the
mobile system operation. These may create further delays to the commencement of
mobile installations. The current planned start date is the end of January 2001
although this is likely to move into February.
4 ISSUES
The installation programme fell below the planned level of 306 installations in two
consecutive weeks (302 outlets in week commencing 14° August and 301 outlets in
week commencing 21* August). In the first of these weeks this was as the result of
a high level of ISDN failures on installation day. This is unacceptable to Pathway
and we are in dialogue with the Energis to ensure this is not repeated. This low
level of ISDN performance has not been repeated since, although Pathway has yet
to conclude rectification action with the supplier. In the second week, performance
below planned levels was expected following the re-planning of the CSR¢+ live pilot.
An additional 5 outlets were lost on the Friday of that week as a result of a data
centre server issue. An investigation of the issue is anticipated to be completed
shortly. With the exception of the two weeks mentioned above, achievements in the
installation programme continue to exceed the planned levels on a weekly and
cumulative basis.
Training invitation timeliness continues to be monitored jointly by Pathway and
PONU through telephone sampling to ensure the improved level of achievement
continues. All mainstream training events are still consistently exceeding the target
94% of invites arriving on time. The less critical UAE and Preview Events still
continue to exhibit some low levels of appointment timeliness although it is believed
PONU and Pathway both have issues, which are contributing to this. Efforts on both
sides are continuing to address and the issues in order to achieve the necessary
improvement. Further enhancements of the KPL TPAS system are due to be
introduced from 11" September and it is expected this will assist in performance
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improvements. Timeliness of invitations to UAE and Preview events have been
deteriorating in recent weeks and KnowledgePool are being targeted to reverse this
trend.
Processes for the survey, preparation and installation of sites designated for
satellite installation have been established and the surveys are underway. Surveys
conducted to date have identified some areas of work where additional installation
costs will be incurred. These include additional preparation activity for the siting of
office components of the satellite solution and the costs of an unexpectedly high
percentage of sites requiring non-standard dish installations.
5 COSTS
Additional satellite installation costs are being factored into the Implementation
forecast to completion with the aim of containing them within the current forecast,
although this has yet to be confirmed.
The costs associated with providing the predicted number of training courses
beyond the contracted requirement are included within the Implementation forecast.
This ensures that the forecast contains the worst case situation until the commercial
debate with PONU over responsibility for the cause of extra courses being required
has been concluded. It is considered that this will result in a reduction in the
forecast
Despite the forecast including costs for all of the predicted courses, the
Implementation August forecast remains within budget.
Implementation has a task recovery target of £1.2M and has to date achieved
£500K. Including recovery of additional training costs from PONU and KPL and
negating a significant claim for weekly shortfall charges from ntl: there is adequate
opportunity to achieve the remaining cost down target.
The weighted impact value of Implementation business case risks continues to fall,
as expected.
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Organisation & Personnel Report
1 MONTHLY SUMMARY
Work progressed on the transition plan for the Pathway Implementation team. There
is now an agreed destination for all members of the team when their roles in
Pathway are at an end. Recruitment activity to fill outstanding vacancies continued
and work was undertaken to help ensure the headcount budget (numbers and mix)
is met.
2 PROGRESS
. Appointments in August:
External Recruits
Transfers In
E-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
preONONOO
°o
. Known Joiners
External Recruits
Transfers In
e-Apps 0
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
oo
eoo000
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. August Leavers:
Permanent Staff 2
Freelance 11
Transfers Out 0
Linkwise assignee ie)
e-Apps 10
Fixed term Contracts 1
Adecco Temps 4
TOTAL: 28
Known Leavers
Permanent Staff 4
Freelance 2
Transfers Out 0
Linkwise assignee ie)
e-Apps 1
Fixed term Contracts 2
Adecco Temps 3
TOTAL: 12
. Draft PVP objectives were received for 96% of Pathway employees by the
deadline. These were reviewed by the Pathway Managing Director and are
now being signed off by managers and employees. The current percentage
of signed objectives which have now been received is 59% and those
outstanding are being vigorously persued.
. ICL issued a clarification to the operation of the EIP scheme for this year.
This was communicated by letter to all eligible employees in Pathway.
. Work associated with the transition of the Pathway Implementation Team to e-
Apps continued. A transition plan and a communications plan were produced
and reviewed. It was proposed to transfer the whole of the Pathway team
except for administration staff to e-Applications who will then provide people
on assignment as required. This is, however , dependent on acceptable
financial and operational arrangements being agreed between Pathway, e-
Applications and Large Projects. These have to cover not only the
arrangements for work associated with the roll-out into the Post Office estate
but also the method of dealing with Operational Business Change in the Post
Office estate and also the roll-out programmes associated with the PFl’s in
Large Projects.
Until such time as these arrangements have been agreed employees who
have finished their work on the Pathway Roll-Out will be transferred on an
individual basis to e-Applications or other appropriate destinations,
depending on their individual circumstances. All employees were reviewed
with e-Applications and agreement reached on who possessed the necessary
skill sets to be suitable for assignment working.
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. 10 appointments were made in August. The number of live vacant
requirements has increased from 19 at the end of July to 20 at the end of
July. Customer Service require key Technical Support resource to replace
employees who have resigned. External recruitment is being undertaken but
there is proving to be a shortage of suitable candidates. Therefore the
requirement has also been referred to ITCS.
. The deputy to the Implementation Project Director has resigned from the
company and replacing him is a priority recruitment task.
. A Health and Safety incident occurred earlier in the Roll-Out programme at
the Partrington Post Office. A thorough investigation was carried out at the
time and appropriate measures were taken as a result. A solicitor’s letter has
now been received in respect of a potential claim for damages on behalf of
the sub-postmistress. This has been passed to ICL’s insurers who will deal
with the claim.
. A follow up to the Health and Safety audit of the Pathway laboratories in
BRAO1 was undertaken. The audit went very well and showed that substantial
progress had been made with the rectification programme which has been
undertaken as a result of the audit.
. OMR’s were undertaken in the month in respect of the Quality and Risk
Management Department and also a follow up to check on progress following
the recent OMR for the Programme Office. In addition, preliminary
discussions took place on the best way to organise the delivery streams
within the Development unit. This is to ensure the organisation structure
meets the organisations business requirements, taking into account the need
to consume work arising from Network Banking and ERA.
. The headcount plan for Development was reviewed. The aim was to
understand the risks associated with the plan and to put in place actions to
address the risks identified. It was agreed to identify 20 roles currently filled
by freelancers who could be replaced by ICL employees and to undertake an
aggressive campaign to identify suitable replacements and bring them in to
replace the existing contractors.
It was also agreed to identify the key people required to allow us to consume
the new work which is currently in the pipeline or is anticipated. If they are
contractors due to be released in the near future a decision will be taken as to
whether it is desirable/financially possible to retain them on contract so they
are available when they are needed to undertake the new work. The financial
costs have to be balanced against the rarity of each individuals skills and
hence the difficulty of finding a replacement within the necessary time frame.
It was agreed to maintain close communications with Large Projects so that
people Pathway is releasing who may be of value are highlighted to Large
Projects as becoming available.
. Review meetings took place with e-Applications and with ITCS to deal with
various operational issues and to ensure that procedures and relationships
were functioning effectively. Both meetings were extremely positive.
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The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
The OneStopShop contract (MC) is back on track.
Post Office have issued the long awaited ITT for eBusiness Services.
OneStopShop
Following PO's cancellation in July of new orders owing to ICL MC
warehousing/delivery issues, MC have now been restored by PO for receipt of new
orders. We still expect PO to start the selection process for a single supplier under
OneStopShop soon..
SMPP
The client team has facilitated meetings between OSD and relevant PO managers to
encourage the agreement of a trial/interim Peregrine-based asset management
service
WDM
This ParcelForce Worldwide Despatch Manager contract was a spinoff of
OneStopShop, which has caused problems in OSD and MC for over 12 months.
With MC and OSD failing to meet SLAs the customer is despairing of ICL. New OSD
Account Manager Tom Lane has promised to get a grip.
EGovernment
Following our input to PO, in support of their response to the PIU report, PO have
now asked IBM, ICL and Andersens Consulting if they wish to partner in some/all of
the PO eGovt initiatives. We await to hear the process PO intend to select
partner(s). The key (hard) part will be to establish exactly what ICL is expected to do,
and to evaluate the associated risk/reward.
EBusiness
The ITT for a "management of change and eServices partner" was issued 7"
September with a response date of 29" September. PO are seeking to select a
panel of suppliers covering SI, technologies, software development et al. Work
Packages will then be competed amongst the suppliers. We are working with
elnnovation to qualify this opportunity.
Network Banking
The ICL response to the ITT, based on Lifestyle, was submitted on time and a host
of follow-up questions are being dealt with. Bids were received from IBM, ICL,
UNISYS and Brokat-Sanchez. Until PO sign up the banks, it is unlikely this ITT will
progress rapidly.
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