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GroupProject and Eric Ofori and Nurudeen


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GroupProject and Eric Ofori and Nurudeen

  1. 1. The Herb Store Implementation of ERP Summer 2016 Group Project Eric Ofori and Nurudeen Ceasar
  2. 2. Background The Herb Store sells fresh herbs and herbal based products. The filing and ordering system is a manual system and is outdated and cannot handle the increasing data flow of the growing business. The Herb Store has not transitioned to digital information storage. Customers can place their order by phone, fax, email, or by coming into the store and directly placing an order. Information on customers is kept in a filing cabinet. Orders that are made are put on an index card. Receipts for payment are put on post it notes and/or napkins.
  3. 3. Issues with current system • Issues • Current orders are sometimes lost or misplaced • Orders are packaged incorrectly • Customer information is misfiled or lost • Customer information is not updated • Customers are not given proper receipts • Organization of data is nonexistent.
  4. 4. Recommendation • Consulting team recommends the implementation of Enterprise Resource Planning software. • Enterprise Resource Planning or ERP is perfect for a solution that integrates all the computing needs of a business into one package while supporting cooperation with suppliers and customers. • Implementation of ERP will commence in 4 phases: Initiation/Planning, Installation, Testing, and Training and Support. (Marchewka, 2012) (PMBOK guide, 2014)
  5. 5. Flow of ERP throughout an organization (Wilson, 2002)
  6. 6. Initiation / Planning ∙The Initiation/ Planning phase is the first phase of the process and will detail all activities that precede the implantation program. This stage is also considered the preliminary phase that will generate the foundation for the establishment of ERP. ∙During this phase, the team will gather and document requirements. These will include the functional and non-functional requirements. Among the requirements that will be documented at this phase include defining risks assessment and the project budget. (Marchewka, 2014)
  7. 7. Installation -This phase is scheduled to be the second stage of the implementation process. During the installation phase, the current hardware systems will be upgraded and Enterprise Resource Planning (ERP) software installed. (PMBOK guide, 2014)
  8. 8. Testing -The testing process will be implemented once the installation processes are complete. The steps of activities that will be conducted during this stage include establishing a robust form of testing that will be conducted through a sequence of the unit, integration, performance, system, and acceptance testing. (Marchewka, 2014)
  9. 9. Training and Support -The training process will expose the users to the elements, methods and navigation ways for using the newly installed system. During the training phase, the users will be trained to use the implemented system. (Marchewka, 2014)
  10. 10. Budget Proposal (Marchewka, 2014) Expenses Salaries Activity Quantity cost per unit (USD) Payment period Total (USD) Consultants Consultant fee (hourly) 2 1,000/hour 10 $20,000 Sub - total Salaries $20,000 Travel Description Quantity Cost Total Lodging cost per person/ room 2 200 1 week $2,800 Airfare/Train cost per person/ fare 2 200 2 days $800 Per Diem Meals per person 2 200 1 week $2,800 Other (i.e. taxi, subway, light rail fare) 2 50 1 week $700 Sub-total Travel $7,100 Supplies Description Quantity Cost Total Hardware Information system 1 2,000 Once $2,000 Software ERP 1 1,500 Once $1,500 Sub-total Total $3,000 $30,100
  11. 11. The benefits of implementing ERP applications into an organization’s structure are extensive. The benefits of ERP applications include the ability for the company to execute direct payments and bank reconciliation processes and lowering operational costs. ERP also enhances customer service functions and centralizes critical information and operations. Basically, ERP software and applications produce enhanced and streamlined processes, improved productivity and customer service, and effective communication solutions. Benefits of ERP
  12. 12. References A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK guide) Fifth Edition. Newtown Square: Project Management Institude, Inc., 2013. Marchewka, Jack T. Information Technology Project Management: Providing measurable organizational value, 4th edition. John Wiley & Sons, Inc., 2012. Wilson, D. A. (2002). Managing Information: IT for Business Processes. Burlington, MA: Butterworth-Heinernann