Project Management Team

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  • Factors that can lead to project failure are corporate culture, user resistant to change commitment from top management etc. Nestle’s SAP project Best (Business Excellence through Systems Technology) spent $200 millions contact with SAP and an additional $80 million for consulting and maintenance, but at last the implementation was fail. Consequently, by having good project management can help to minimize risk for project to fail and may help to reduce the chance for delaying and over budget which are big problems in ERP project implementation.
  • Project Management Team

    1. 1. Presented by:<br />Group No. 6<br />Amrita school of business<br />Project Management, Team & Stakeholders in ERP Project<br />
    2. 2. What is a project?<br />Project – “a temporary endeavor undertaken to<br />create a unique product, service, or result.” PMBOK® Guide<br />A project requires an organized set of work efforts.<br />Projects require a level of detail that is progressively elaborated upon as more information is discovered.<br />Projects are subject to limitations of time and resources such as money and people. <br />Projects have a defined beginning and ending.<br />
    3. 3. Introduction <br />Project management – “The application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide<br />Why project management is so important in ERP implementation?<br />ERP project generally is a big and complex<br />Requires huge resource such as time, human resource, budget etc. <br />High Risk Factor: The Robbins-Giola Survey (2001) ”51% of surveyed companies viewed their implementation as unsuccessful.”<br />
    4. 4. Stakeholders<br />A project has a unique combination of stakeholders<br />stakeholders – “persons or organizations … that are actively involved in the project, or whose interests may be positively or negatively affected by …the project.” PMBOK® Guide<br />
    5. 5. Important stake holders<br />Internal<br />Board of Management<br />Managing Heads of Business units<br />IS head<br />ERP Project Team<br />External<br /> Consultants<br />Software Implementation Partners<br />
    6. 6. Board of Management<br />Initiate the implementation phase<br />Expectations<br />Improved management control<br />Less autonomy<br />More integration<br />Cost efficiency<br />
    7. 7. Managing Heads<br />Maintain and strengthen the position of the<br /> business unit<br />Protect BU for initiatives with threaten interest of business unit<br />Expectations<br />To solve problems<br />To improve their position<br />To increase efficiency<br />
    8. 8. IS Head<br />Important role of internal IS department to regain the position of ‘centre of IS expertise’<br />Expectations<br />A technical system, centrally managed<br />Implement one integrated system in ‘vanilla’ mode<br />
    9. 9. Consultants<br />Involved <br />Situation Analysis<br />Need/ Requirement analysis<br />Expectations<br />Estimating the requirement appropriately<br />realizing the predetermined objectives<br />
    10. 10. Software Implementation Partner<br />Involved in all the phases <br /> Project beginning <br /> Implementation <br />Support & Maintenance<br />Training<br />Implementation within time/money constraints<br /> Performance - Highly dependent on internal support from firm<br />
    11. 11. Changing roles during the project<br />
    12. 12. Project management team<br />
    13. 13. 7 keys for success of ERP<br />Scope is realistic and managed<br />Work and schedule are predictable<br />Team is high-performing<br />Stakeholders are committed<br />Business benefits are realized<br />Risks are mitigated<br />Delivery organization benefits are realized<br />
    14. 14. Project Team – 9 Knowledge Areas<br />
    15. 15. Project Team<br />The establishment of a project team with the proper combination of<br /><ul><li>Experienced users
    16. 16. Decision-makers
    17. 17. Data processing resources
    18. 18. Competent consultants </li></li></ul><li>Team structure<br />Implementation Partner<br />Client<br />APEX Representative<br />APEX Team<br />Steering Team<br />Project manager<br />Project Manager<br />Core Team members & IT Team<br />Functional/Technical consultants<br />
    19. 19. Project Management team<br />Project management team can be categorized into three<br />Project team<br />Associate level<br />Managerial level<br />Executive level<br />
    20. 20. Executive level<br />Executive level<br />Chief projects officer<br />Sponsor<br />Steering team<br />
    21. 21. Executive level<br /> Steering Team<br /> Collectively represent all of the major functions of the organization.<br /><ul><li> Major functions:
    22. 22. Overall priority setting
    23. 23. Project selection and prioritization
    24. 24. Sponsor selection
    25. 25. General guidance
    26. 26. Encouragement</li></li></ul><li>Executive level<br /> Sponsor<br />The person or group that provides financial resources for the <br /> project.<br /> Has a major stake in the project outcome.<br /> Has an active role in chartering the project.<br /> Acts as an interface between the project core team and the <br /> executive team.<br />
    27. 27. Executive level<br />Chief projects officer<br />Responsible for all the people working in projects<br />Role varies with company size and complexity<br />Has to ensure that the company’s steering team functions in the best way<br />Assigns and manages roles of each individual serving on a project<br />
    28. 28. Managerial level<br /> Functional manager<br /> Decision making power in the organization is divided between project managers and functional managers<br /> Assigned for each department<br /> Has a large role in deciding how the project work in their functional area gets done<br />
    29. 29. Managerial level<br /> Project manager<br />Focal point of the project<br />Leads the planning, execution, and closing of the project<br />Responsible for the project schedule<br />Serve as the prime communication channel within and outside the company<br />Responsible for delivering the project results<br />
    30. 30. Managerial level<br /> Facilitator<br />Comes into play when the situation is complex<br />Facilitate the meeting<br />Can be an outside consultant <br />
    31. 31. Associate level<br /> Core team member<br />Small group of people who are on the project from start to <br /> finish<br />Assist the project manager in decision making<br />Supervise the work of subject matter experts<br />
    32. 32. Associate level<br />Subject matter experts <br />Helps in decision making<br /> Acts as an extra helper when there is a need for specific expertise.<br /> Brought in as and when required<br /> Term of service may vary .<br />
    33. 33. Expectations falls short<br />
    34. 34. 5 Levers of change in organization<br />
    35. 35. ERP Implementation Life Cycle<br />Solution Enquiry<br />ERP Approach & Package selection<br />Implementation Plan<br />Sand Box<br />ERP Infrastructure, Deployment & Integration<br />Operations<br />Extending the Enterprise<br />
    36. 36. Stage 1-Solution Inquiry<br />Are we ready for ERP?<br />How will an ERP help our business?<br />Have we considered other solution areas beyond ERP?<br />Who will lead our implementation effort?<br />
    37. 37.
    38. 38. Stage 2- ERP Approach and Package Selection<br />Do we have the in house resources, skills and experience to implement ERP?<br />Do the features and functions meet our needs?<br />Is the ERP package compatible with our business?<br />Should we buy an integrated package from a single vendor or best-of-breed solutions from several vendors?<br />
    39. 39. Stage 3-Implementation Plan<br />How do we get started with the implementation?<br />The Big Bang<br />Modular Implementation<br />Process Oriented Implementation<br />
    40. 40. Implementation Time<br />
    41. 41. Stage 4- Sand Box<br />What steps do we take to ensure that the implementation is on track?<br />Create a separate dedicated work environment specifically for the project team<br />Constantly evaluate risks, constraints & assumptions<br />Develop training plan for all users<br />
    42. 42. Stage 5- ERP Infrastructure Deployment and Integration<br />How do we ensure that the project team and the end users are in sync?<br />How do we ensure that our people are accepting change?<br />How do we integrate the ERP with our other legacy systems?<br />Is our IT infrastructure ready for ERP?<br />
    43. 43. Stage 6- Operations<br />How will we recover from a major outage?<br />Execute a onsite maintenance SLA with partners<br />Implement a Disaster Recovery Plan<br />Review Business Impact & Associated Risk<br />Off site backups<br />Provide disaster recovery training to key personnel<br />
    44. 44. Stage 7- Extending the Enterprise<br />Consider expanding ERP to other solution areas<br />Supply Chain Management<br />Customer Relationship Management<br />E-commerce Solutions<br />
    45. 45. Stage 7- Extending the Enterprise<br />
    46. 46. Risk Management<br />Managing risk on an ERP project is crucial to its success<br /> There are thousands, maybe even millions of potential failure points on an ERP <br />There are generally 5 steps to managing risk: <br />Find potential failure points or risks<br />Analyze the potential failure points to determine the damage they might do<br />Assess the probability of the failure occurring<br />Based on the first three factors, prioritize the risks<br />Mitigate the risks through whatever action is necessary<br />
    47. 47. THANK YOU…<br />

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