INTRODUCTION
ENTERPRISE RESOURCE PLANNING
Introduction to ERP Implementation
Business Needs and Scalability
Implementation Phases
TOPIC OUTLINE Processes and Phases Overview
Preliminary Project Estimate Considerations
Project Planning Essentials
Critical Success Factors
Identify the critical success factors for ERP implementation.
Explain the importance of a well-defined project
management process in ERP implementations.
OBJECTIVES Analyze the assumptions made during phase scheduling and
how they impact the project timeline.
Design a comprehensive unified project plan that includes
scope, quality, time, and cost management.
ERP Well-defined processes for effective project management.
IMPLEMENTATION Tools to plan, conduct, and control project steps.
METHODOLOGY Aimed at successful implementation of business systems.
OVERVIEW
Defines business needs at the project outset.
Maintains visibility of needs throughout execution.
BUSINESS NEEDS Scalable for all project sizes, from multinational to limited-
scope.
& SCALABILITY
Tailorable to match specific organizational needs.
Flexible and extensible methodology.
Implementation methodology is conducted in phases.
Phases serve as quality and control checkpoints.
IMPLEMENTATION
Project team executes tasks from multiple procedures
PHASES within each phase.
Phases ensure coordination towards a common goal.
Tasks organized into processes.
PROCESSES & Each process includes:
Objectives
PHASES Resource skill requirements
OVERVIEW Inputs and deliverable outputs
13 processes divided across 7 phases.
PROCESSES &
PHASES
OVERVIEW
Sufficient infrastructure
Clear understanding of business needs
CRITICAL Upper management support
SUCCESS Strong program/project management
FACTORS Team strength
Organizational readiness
Sufficient technical architecture
What is the business objective?
What is the project scope and its relation to the overall
objective?
Who will participate (employees, consultants, vendors)?
What are the project constraints (timing, budget,
PRELIMINARY organization changes)?
PROJECT ESTIMATE Which applications will be implemented?
CONSIDERATIONS Which sites will be involved?
Will a phased deployment be used? If so, what is the
sequence?
When will work commence?
What experience does the organization have with the
technology?
Develop project scope
PROJECT
PLANNING Suggest an approach
ESSENTIALS
Create a preliminary budget
Industry standard processes
ASSUMPTIONS Two to three sets of books
FOR PHASE
SCHEDULES • 5/6 segment Chart of Accounts (COA) structure
• Single calendar
No Multi-Currency (MRC) or Global
Consolidation System (GCS) requirements
Simple multiorganizational
structure
• One business group
ASSUMPTIONS • 2-3 Legal Entities (LE)
FOR PHASE • 2-3 Operating Units (OU)
SCHEDULES • Corresponding inventory organizations
No localization requirements
ASSUMPTIONS FOR PHASE SCHEDULES
Single geographical entity
Not a material-intensive business
Around 1,000 vendors and customers
Moderate transaction volumes (~500 invoices per month)
Dedicated business process owners’ time
Color codes in diagrams represent
different phases and processes.
PHASE
Consistent color coding is maintained
SCHEDULES & throughout phase schedules.
COLOR CODING
Helps in identifying processes and
activities in their corresponding phases.
Project Managers:
• Use the methodology for project planning and scheduling.
Team Members:
TARGET AUDIENCE
FOR ERP • Gain a broad understanding of ERP application
implementation.
IMPLEMENTATION
• Detailed information on processes and tasks in each phase.
METHODOLOGY
Purpose:
• High-level description to facilitate implementation projects.
• Comprehensive guide for end-to-end ERP implementation.
MULTIPLE DEPLOYMENT SITES/MULTIPHASE
CONSIDERATIONS
Single vs. Phased Implementation:
Decide if all organizations transition simultaneously or in phases.
Key Considerations:
Organizational changes from other sectors.
Cultural readiness to integrate a new system.
Project team’s capability to minimize risks in simultaneous deployments.
Server capacity to handle multiple organizations.
Experience with previous system implementations.
PILOT IMPLEMENTATION TECHNIQUE
Minimizing Risk:
Go live with a selected subset of well-trained users.
Initial success at a pilot site promotes overall project success.
Advantages:
Early identification and resolution of issues.
Establishes a positive attitude for subsequent deployments.
SINGLE-PHASE VS. MULTIPLE-PHASE
DEPLOYMENT
Organizational changes and absorption of new factors
Organizational culture and system integration
Project team’s capability to execute with minimal risk
Server capacity for multiple organizations
Experience with previous implementations (company and team)Production vs.
beta release of the application
PILOT IMPLEMENTATION TECHNIQUE
Minimize risk by starting with a subset of users
Choose users who are well trained and can handle initial issues
Pilot site success can influence the attitude towards the remaining sites
OBJECTIVE OF PROJECT INITIATION
Goal:
Frame a standard approach to project management
Achieve successful ERP application implementation
Purpose:
Prepare a unified project plan
Ensure consistency across various ERP projects
PROJECT MANAGEMENT FRAMEWORK
Provide a framework for planning, estimating, controlling, and
completing projects
Approach:
Process-based methodology
Tailored to specific project needs
FIVE MANAGEMENT PROCESSES
1. Control and Reporting:
Confirm scope and approach
Manage change and control risks
Guide project plans and status reporting
2. Work Management:
Define, monitor, and direct work
Maintain financial oversight
3. Resource Management:
Achieve appropriate staffing and skills
Implement supporting infrastructure
FIVE MANAGEMENT PROCESSES
4. Quality Management:
Implement quality measures
Ensure client expectations are met
5. Configuration Management:
Store, organize, track, and control project items
Manage release of project deliverables
TASK CATEGORIES
Planning Tasks:
Scope, quality, time, cost
Controlling Tasks:
Measure performance
Take corrective action
Completing Tasks:
Formalize acceptance
Obtain sign-off of deliverables
TASK CATEGORIES
The project initiation is the kickoff or the start of a new
project with the project manager, and a few key
resources that basically form the project management
team are required to carry out this phase.
OVERVIEW OF
THE
IMPORTANCE OF
A WELL-
CRAFTED
PROJECT PLAN.
BRIEF INTRODUCTION TO THE
GOLDEN RULES
THE GOLDEN RULES ARE AS FOLLOWS:
Start Right – Starting the project on the right foot is crucial.
A poor start can lead to challenges that are difficult to overcome later. Ensure initial planning and
preparation are thorough.
Know your client - Understand both the project stakeholders and funders.
Identify their roles, expectations, and how they will support the project. Clarify their spheres of
influence and communication protocols.
Define the Project Scope - Clearly outline what the project will deliver.
Review the contract, agree on the scope of work with the client, and align it with business objectives
and expected benefits.
THE GOLDEN RULES ARE AS FOLLOWS:
Manage the Risks - Proactively identify and manage potential
risks.
Determine key risks, analyze their impact, create containment
strategies, and establish contingency plans to address them.
Field a Winning Team - Build a strong, adaptable team.
Select team members based on merit, adaptability, and personality fit.
Set clear expectations for communication and conflict resolution.
THE GOLDEN RULES ARE AS FOLLOWS:
Produce Formal Documentation - Document everything related to the
project.
Ensure all deliveries, agreements, decisions, issues, and actions are formally
documented and filed with correspondence and meeting minutes.
Plan for Completion - Prepare for the project's final phase early.
Project completion is crucial for leaving a lasting positive impression. Plan for it as
an integral part of the project lifecycle.
Communicate with Honesty and Conviction
Maintain transparent and effective communication.
Set communication standards with stakeholders and the team, adhere to them, and
ensure honesty and frequency in reporting progress.
THE MAJOR
ACTIVITIES DURING
A PROJECT
INITIATION PHASE
ARE AS FOLLOWS
THE MAJOR ACTIVITIES DURING A PROJECT
INITIATION PHASE ARE AS FOLLOWS
PREPARE A UNIFIED PROJECT PLAN
Goal of Project Planning:
Define project objectives and approach in terms of scope, quality,
time, and cost.
Purpose of the Unified Project Plan:
Provide a structured approach to executing and managing a project
effectively.
OBJECTIVES OF PROJECT PLANNING
Establish Project Scope: Define technical and business objectives,
resources, and schedules.
Develop Baseline Work Plan: Determine resource requirements
and schedules.
Prepare Resource Profile: Monitor and control project
performance.
Obtain Approvals: Secure client and consulting management
approval.
Maintain Quality: Determine measures for quality assurance
throughout the project.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Detailed Project Execution and Management
Establish Scope, Objectives, and Approach: Define what the
project will achieve and how it will be executed.
Control and Reporting Strategies: Set standards and
procedures for project control and reporting.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Detailed Project Execution and Management
Work Plan and Activity Schedule: Outline a detailed work
plan with timelines.
Resource Management Strategies: Define strategies,
standards, and procedures for managing resources.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Staffing and Organization Plan: Establish how the project
team will be structured.
Project Orientation Guide: Provide guidelines for team
orientation and project understanding.
Infrastructure Plan: Define the technological and physical
resources required.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Quality Management Strategies: Set strategies, standards, and
procedures for ensuring project quality.
Configuration Management: Define how project deliverables
and documentation will be managed.
Risk Management Strategy: Identify potential risks and
develop mitigation plans.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Work Planning: Develop a detailed work plan to guide the
project.
Estimating: Accurately estimate time, costs, and resources
needed.
Risk Mitigation Planning: Identify risks and develop strategies
to minimize their impact.
Resource/Effort Loading Profile: Create a profile to monitor
and allocate resources efficiently.
KEY CONTENTS OF THE UNIFIED PROJECT
PLAN
Unified Approach: How work planning, estimating, risk
mitigation, and resource loading support the project.
Development of Initial Work Plan: How these techniques
contribute to a solid project foundation.
REUSE OF DELIVERABLES IS AN IMPORTANT ASSET TO THE
PROJECT SINCE IT WILL REDUCE THEOVERALL
PREPARATION DURATION OF THE DOCUMENTS.
REUSE OF DELIVERABLES IS AN IMPORTANT ASSET TO THE PROJECT SINCE IT
WILL REDUCE THEOVERALL PREPARATION DURATION OF THE DOCUMENTS.
Project planning must also incorporate the planning for reuse of
deliverables by incorporating the time required to prepare the
deliverables and inclusion in the knowledge repository
IMPLEMENTING A PROJECT TEAM
EFFECTIVE RESOURCE MANAGEMENT AND TEAM INTEGRATION
IMPLEMENTING A PROJECT TEAM
Importance of resource management during project initiation.
Highlight the unique aspects of planning and overseeing human and
physical resources at the start of a project.
RESOURCE MANAGEMENT DURING INITIATION
Unique challenges of managing resources during project initiation.
The need for both long-term planning and immediate resource allocation
for the first project phase.
Techniques: Organizational design, recruiting, and negotiating.
PLAN A STRONG PROJECT TEAM
Collaborate with the client project manager to develop a unified project
team.
Negotiation: Secure commitments from both client and consulting staff.
Core Team: Ensure the formation of a strong core team to support the
project’s initial phase.
CREATING A PROJECT ORIENTATION GUIDE
Establish clear expectations for team members from the start.
Team Expectations: Define roles, responsibilities, and communication protocols.
Time Collection: Emphasize the importance of accurate time reporting and its
impact on project success.
PREPARING A WORKING ENVIRONMENT
Ensure that the project staff has a designated, well-equipped work area
at the client site.
Workstations: Provide suitable workstations, phones, and office supplies for all full-time
project members.
Accommodation for New Staff: Plan for the seamless integration of new team members,
avoiding disruptions and maintaining productivity.
KEY TECHNIQUES IN TEAM IMPLEMENTATION
Organizational Design: Structure the team for optimal performance.
Recruiting: Select team members with the right skills and cultural fit.
Negotiating: Secure necessary resources and commitments from both
the client and consulting management.
INTEGRATION AND EXECUTION
Unified Approach: How planning, orientation, and environment
preparation contribute to a cohesive and effective project team.
Execution: Implementing these strategies to ensure a successful project
initiation.
INSTALL ERP APPLICATION
The prerequisites for installing the software are:
ERP application servers are available.
Server specifications are according to the requirement of the project
system architecture.
Software is available.
INSTALL ERP APPLICATION
The prerequisites for installing the software are:
The software version is according to the requirement.
Proper networking arrangements are done.
System administrator is available to the project team to carry out the
installation.
INSTALL ERP APPLICATION
The key activities include:
Preparing for installation—check the above prerequisites and plan for
installation like creating privileges, access, storage space, partitioning, etc.
Installing ERP application software
DECISION
MATRIX/CHEC
KLIST
Agreement on Scope,
Objectives, and Approach
CRITICAL • All parties must agree on and clearly
SUCCESS understand the project’s scope,
FACTORS
objectives, and approach.
• Ensures alignment between the
project team, client, and stakeholders.
• Prevents misunderstandings and scope
creep during project execution.
Establishing Project Culture and
Climate
CRITICAL • Create a project culture that fosters
collaboration and a win-win philosophy.
SUCCESS
FACTORS • Promote a positive working environment
that encourages teamwork, open
communication, and shared success.
• Set the tone for how the team will work
together to achieve project goals.
Risk Identification and
Containment Measures
CRITICAL • Proactively identify potential risks and
SUCCESS establish containment strategies.
FACTORS • Assess risks early to mitigate their
impact on the project.
• Implement contingency plans to
ensure the project stays on track
despite challenges.
Client Acceptance of the Project
Work Plan
• Secure the client’s acceptance of the work
CRITICAL plan, considering the project’s scope and
SUCCESS risk assessment.
FACTORS • Ensure the work plan is realistic and
aligns with the client’s expectations and
resources.
• Obtain formal approval to proceed with
project execution.
Client Resource Commitment
• Ensure the client understands and
commits to providing the necessary
CRITICAL resources.
SUCCESS • Clarify the client’s obligations to
FACTORS support the project with adequate
resources.
• Monitor resource allocation to prevent
delays and ensure smooth project
execution.