• Overview of Queensland Health system.
Queensland Health is a department of the Government of Queensland that which manage the public health system in state. Dr.Steven Miles he is the minister for the Health and Ambulance services. In addition, Dr.Steven responsible for department and the department is consist of : Department of Health, also 16 hospitals and Health services.
In fact, There are 83,700 employees they work in Queensland Health, and the Queensland Health budget of $18.3 billion. Queensland in mid 1940s was the first state in Australia that provide free treatment to the public hospital.
The worst accomplishment of Queensland Health payroll system it will be saved in memory because it’s the disastrous information technology project in Australia history. The Queensland Health payroll system face many problems in implementation of payroll system in March 2010.
Also the Queensland project it means payroll system will be late approximately eighteen months from the schedule and approximately more than 300 % over the budget. In the initial of the project may be expected the project will be finished in six months but because the some issues and the complexity of the architecture, also procurement issues, technical failure, and also the testing of system and the quality of data, so because the issues the project deadline was extended to another year.
In addition, the new liberal national party has make an appropriate accomplished review of the Queensland Health payroll system to determine the cause behind the failure of the system and the common problems associated with the present software system. In fact, KPMG was entered for analyze and evaluating the system, and the strategies of system, and decide the proposed system.
In march 2006 The Queensland Health Payroll System it’s joined, because there is Lattice it’s like computerized payroll system, it is not going to make updates or other maintenance.
There is report for Mr. Chesterman’s that talks about Queensland Health that transfer all responsibilities to new system (CropTech). Report for Mr. Chesterman’s found that CropTeck had made slow progress.
Also that report found that payroll system is approve high difficult and also one department was bough, and the payroll solution it is not good to success.
In addition, private sector will be called from the state government to make the development for payroll system. Send invitations to tender for work and there are three firms submitted bids that firms: IBM, Logical and Accenture in Sebtember 12, 2007. But there is firm that decided to graciously withdraw the firm is named: SAP.
In fact, on December 5, 2007 IBM was contracted worth 98$ million, but there problem with that awarded for IBM because IBM was did not achieved any contracted performance criteria”.
So that $32 million was paid of it’s $98 million. In addition the state government told it’s need for $181 million to make plan for public service. In October 2008, and after 12 months cancel the idea of construct payroll system in all Queensland public service areas. The decision was taken in payroll system Queensland Health.
The work was started in march 2010 after 10 failure attempts but there is despite very real doubts. It was not good choice , so the Commission of Inquiry said ” it was a catastrophic failure” . So the replacement of the Queensland Health payroll system is the biggest failure in public administration in country.
• Valuable analysis of Health Payroll.
The implementation of Queensland Health Payroll System will be the most failure IT project In Australia. That make contract between state of Queensland and IBM firm that contract much $6.19 million to make replace QLD Health Payroll System that cause 35,000 payroll losses and this losses will cost the taxpayers $1.25 billion. But while the project did not finished yet, the project has faced a lot of reviews and investigation at the state level, the IMB and QLD state government they took the stand.
There are signs on insufficient internal management and poor management before being the QLD Health payroll project to IBM in December of 2007.
Over two years the Queensland Treasury was spent for trying to implement a standard system for Human Resource and document funding based into SAP system across the entire government operations, this is same as platforms was chosen for Queensland Heath Payroll System. The Queensland Treasury hired many contractors form many external firms for help in software development and implementation.
During the expand system based on SAP there are delays caused by departments within the state , including Queensland Health, because not ready for modular system headed by external contractor that requires the government more details with a great deal of precision for it’s specifications. Darrin Bond she is the former program manager of CropTech, she said that before granting the role of the main contractor to IBM the department inside state, debate and discussion are still going on what get or not, also there is acceptance or not.
So because the internal requirements agreed to this system at the government level was not found, prepare the scene for main contractor to come in variable scope environment that cause project explosion in terms of time and cost.
• The Learned Lessons:
1. The system was failed in user acceptance testing(UAT), but instead of addressing the issues the test bar has been reduced and the guidelines are less stringent.
2. The state government should have acted to solve the main issues instead of ignoring the risks, thousands of Queensland Health employees underpaid or not paid at all.
3. When it comes to IT project the Queensland government was not alone to run ICT project explosion.
4. These are a failure systems it was floated prematurely that cause a big explosion at the expense of taxpayers.
5. Highlight on systemic deficiencies in internal governance and contract management on overall budgets, testing and implementation system.
• Queensland health payroll System was not fully tested
Damnig report found that Queensland had a backup plan but it’s failed when the payroll system and human resources in March. This failure cause many problem like thousand of workers with low or without pay. IBM, SAP did several warnings to test the system if the system work good or not, but these warnings have not been heeded because it’s big challenge. The report for Queensland Auditor-General Glenn Poole that taking about the health it’s was not maintained as the main thing or reason for new payroll system.
The system for health was confused there are 24,000 ways through which they can pay their workforce, number of them 78,000 workers that based on 13 structures. SAP human resources and Infor Workbrain software was chosen to replace Lattice platform HR, in June 2008 the project management structure was approved in the month that the provider was scheduled to end support of Lattice. The original run date is set after eight months that get IBM systems integration contract In august 2008.
So began the system after 20 months from the stating date was about 300% over budget. There are many opportunities to determine the scope of project but the refined tension between the heath and common services got the way. In February 2008 Mr Poole found when it started running the new system in March, CropTech was agreed 47 change request provided by IBM.
And these are original requirements because heath was not agree on the scope of project and which continues to changing.
Heath had strategy to circumvent after the reduction process but the performance of system is weak and especially Workbrain that cause resulting in the payroll processing window that created an additional accumulation of wage adjustments. SAP recommendation denied to make full comparison of the balance of the payment between Lattice and HR system by the project board. This reasons and more including poor administrative and communications and deadlines that cause the breakdown of payroll system. CropTech shared services in Queensland was the owner of project, also it’s responsible for IBM that it’s leading firm in systems integration.
• Problems that make the project failure
1. Payroll system are inaccurate.
• The system make automatic additions.
• This automatic additions the output in double payment in limited number.
• Cases of overtime payments to staff while on their vacation.
2. Missing jobs or may be defective.
• Salary payments are not allowed retroactively for WorkBrain.
• In WorkBrain do not allowed to divide staff costs into many cost centers
• Problem in calculate the bargaining for the project and pay retirement.
• Incorrect count for corporate annual vacation for QH firm.
3. Data Errors
• SAP used unique time code identifier for processing the files, but these files created exactly the same second and given same code. This means one file can be process with given time code.
4. Transfer incoming data from LATTICE to SAP it’s not fully transfer
• 20,000 form are not processed and the associated transaction are not transferred over SAP, 5700 staff member are required adjustments to leave balances related to leaving transactions.
5. Failure integration between Workbrain and SAP
• To send payroll data from SAP to Workbrain that take long processing, and vice versa and that could be the reason for the sheer volume of incoming transactions to SAP