ERP Project Management

1. Seminar (2730001)
Semerstr-3
Presented by
MIHIR SOLANKI
(140110746005)
SEMINAR-04 1
G.H.Patel college of
Engineering & Technology
Mechanical Engineering
Department
Enterprise Resource Planning

2. OUTLINE
1) Organization Structure of ERP implementation Team
2) Project schedule creation
3) Project Management
4) Post implementation activities and maintenance
5) Measure Performance of ERP system
6) Different Metrics for Performance measure
SEMINAR (ERP) - MIS- 140110746005 2

3. 3
CEO
EXECUTIVE COMMITTEE
CFO
DEPARTMENT
HEADS
CTO
CIO
VENDORS
REPRESENTATIVES
EXTERNAL CONSULTANT
TECHNICAL
SUPPORT TEAM
PROJECT MANAGER
PROJECT MGMT.
TEAM
TEAM LEADERS
TECHNICAL SUPPORT
ADMINISTRATIVE
SUPPORT TEAMWORK TEAMS

4. 4
PROJECT SCHEDULE CREATION
Project schedule MUST be
 Aggressive but attainable
 Expressed in terms of weeks or days (quantify)
 It should cover all tasks of supply chain management
 Specific in assigning accountability
VISION STATEMENTERP PEOJECT MANAGER
FUNCTIONAL MANAGERS
ERP PROJECT TEAM LEADERS
EXTERNAL CONSULTANTS
VENDOR REPRESENTATIVES
PROCESS DEFINITION
DETAILED PROJECT SCHEDULE
NAMES & DATES
TASKS & TIME FRAMESEXECUTIVE COMMITTEE

5. SEMINAR (ERP) - MIS- 140110746005
5
ERP PROJECT
MANAGEMENT
SCOPE
MANAGEMENT TIME
MANAGEMENT
COST
MANAGEMENT
INTEGRATION
MANAGEMENT
PROCUREMENT
MANAGEMENT
COMMUNICATION
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT
QUALITY
MANAGEMENT
RISK
MANAGEMENT
ERP PROJECT MANAGEMENT

6. SEMINAR (ERP) - MIS- 140110746005
6
1) INTEGRATION MANAGEMENT
 Integration Of Vendors, External Consultants ,Executive Committee Members, Top Level
Management, Work Teams
2) SCOPE MANAGEMENT
 90% of ERP project implantations end up over time & over budget due to change in project
scope
 Reconcile the technological necessities of system
 Key to management is identify areas require workarounds and understand their
implications
3) TIME MANAGEMENT
 DEPENDING upon organization , scope of project ; time require may take one year
because need to be rolled out across multiple sites , lines of business and across countries.
 Length of implementation is highly related with scope i.e. more activities regarding
modules require more time
 Large time is consumed by selection of modules and its customization

7. SEMINAR (ERP) - MIS- 140110746005 7
4) COST MANAGEMENT
 Lot of hidden costs are associated with project including loss due to initial reduce in
productivity
 Includes cost of licensing , training , implementation , maintenance , customization ,
hardware requirements, consultant’s fees
 ERPs are priced on functionality of system and number of users will access
 Investment in migrating data, modifying existing system , network infrastructure
 20% of total cost is training cost
5) QUALITY MANAGEMENT
 ERP is not just adds-on , it is Transformation process that requires fundamental
change in ways of changing business
 Precautions should be taken that right package with correct customization
implemented in a proper manner and objectives are met

8. SEMINAR (ERP) - MIS- 140110746005 8
6) HUMAN RESOURCE MANAGEMENT
 Assigning Responsibilities for implementation
 Roll of individuals
 Formation of right team from executives committees to work team formation
 Adopting concept of Change management
7) COMMUNICATION MANAGEMENT
 Very difficult to communicate internally
 Each department viewing its information as its own and being reluctant to share it
 Even it is noticed that it is easier to communicate outer environment than intra-
organizational
 Consultants aids here ,they add value to project by facilitating meetings as open
discussion of requirements, preparing agendas , prioritizing issues , providing
objectivity, avoiding bias , conflicts

9. SEMINAR (ERP) - MIS- 140110746005 9
8) RISK MANAGEMENT
 ERP project are radical
 Radical means risks associated with costs and time
 ERP systems are also complex and require reliance upon many different types of
expertise, which also need to sourced from outside
 Also , good and experienced consultant are hard to fine and even it does not give
guarantee of success
9) PROCUREMENT MANAGEMENT
 Different packages have different strength on different areas and for customer it is
important to recognize this and select correct package
 Also critical to get vendors state the extend to which their product will meet
requirements

10. SEMINAR (ERP) - MIS- 140110746005 10
POSTIMPLEMENTATIONACTIVITIES
PROBLEM
RESOLUTION
MECHANISM
 When a problem is identified , it should be
reported to person assigned with
responsibility
 Investigation that readily solve or require
further investigation & analysis
 Keep track of progress
IN HOUSE
HELP
DESK
Help desk includes detecting and responding to
system bugs
 Ensuring consistent production v/s software
availability
 Maintaining and updating documents and
training materials
 Maintaining and upgrading software
 Making change in system parameters as the
organizational changes

11. SEMINAR (ERP) - MIS- 140110746005 11
POSTIMPLEMENTATIONACTIVITIES
AUDIT AND
REVIEW
 It is another source about what still need to
done
 It is comparison between plans and reality
1) System design and its implementation
2) Planned and actual usage
3) Expected v/s actual system capabilities
INTERFACE ,
UPGRADE
AND
EXTENSIONS
UPGRADES-Upgrades of system version to avail
additional features
INTERFACE-interfacing of ERP system with other
modules, so taking maximum advantage
EXTENSION-Extension of supply chain
integration and automation support

12. SEMINAR (ERP) - MIS- 140110746005 12
POSTIMPLEMENTATIONACTIVITIES
EVALUATING
SUCEES
BALANCED SCORECARD ( Atkinson)
- Measure success rate on multiple measures
 financial benefits
 customer satisfaction
 Growth of business
POST
IMPLEMENTA
TION
CHECK LIST
 Does the software do what it expected to ?
 What are the outstanding issues ?
 What can be learnt from implementation?
 What could have been done better?
 How can extension should be in future?
 Has the project been a success ?

13. SEMINAR (ERP) - MIS- 140110746005 13
PERFORMANCE MEASURE OF ERP SYSTEM
 Measurement of Performance of ERP system is very essential as major
investment,committement , cost and time involved in it
 When you measure performance of system it is necessary to quantify it.
 Essential to measure various parameters of the system, if you do not measure current
level of performance and estimates future ,than those estimated will be only guesses
 Use of METRICS is common to measure ERP performance , as it correlates GOALS
TARGET , and measuring ROI, COST BENEFIT analysis would not enough
METRICS
DIAGNOSTIC
BAROMETRIC
 FOR EVERY BUSINESS
 WARN YOU ABOUT
PROBLEMS BUT NOT ROOT
CAUSE
 MAINLY USE FOR AUDIT
PURPOSE
BUSINESS SPECIFIC
FOCUS ON ROOT CAUSE, WEAK
AREA
THESE MEASURES CORRESPOND
TO ERP AND ALSO COVERS
QUALITY AND SAFETY

14. SEMINAR (ERP) - MIS- 140110746005 14
BUSINESS PLAN – Accuracy of monthly profit , accuracy f budget plan
DEMAND PLAN – Accuracy of monthly demand forecast
OPERATIONAL PLAN- Accuracy of monthly capacity plan
MASTER SCHEDULE-Accuracy of the weekly detailed schedule line
MATERIAL PLAN- Percentage of orders that are released with complete lead time
SCHEDULE STABILITY- Percentage of orders that have completion dates revised
PROCUREMENT PROCESS ACCURACY- Percentage of complete orders received from
suppliers on time
SHOP FLOOR CONTROL ACCURACY-Percentage of completion of internal orders on time
FIRST TIME QUALITY- Percentage of units that make it through a process without rework
CUSTOMER SERVICE- Percentage orders that ship to the customer on the promise dates

15. References
• ERP Demystified , Second addition by Alexis Leon
• Enterprise Resource Planning by Ravi Shankar and
S. Jaiswal
15