Chapter 7: Nine areas of PIMBOK Project Management

Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resource Management
Communication Management
Risk Management
Procurement Management

Chapter 7: Nine Levers Of ERP Project Scope

Location Scope
Business Scope
Process Scope
Application Scope ( Initial stage , the package is not selected ,
the exact module names of the package are not known and it
can include things like ( Finance and accounts, procurement,
inventory management etc). At a later stage it would br much
more detailed e.g.
Functional area : Production planning
In scope: Demand management , material requirement and
planning
Out of scope : Product cost planning

Chapter 7: Nine Levers Of ERP Project Scope

Interface Scope
Report Scope
Data Migration Scope
User Scope
Technology Scope ( development , quality assuarance,
trainingetc) , system administration including back up and
recovery, sizing the servers, perfoamnce montoring )

Chapter 7: Common ERP Interfaces

Interface with Design Systems

Interface with Shop Floor Control Systems
Interface with Point Of Sale Systems
Interface with Weigh Bridge Application
Interface with Laboratory Management Information Systems
Interface with Industry Application

Chapter 7: Common ERP Master Data Migration Objects

Material Master
Customer Master
Vendor Master
Asset Master
Chart of Accounts
Cost Centres / Profit Centres / Cost Elements
Pricing Condition Master
Bill of Material, Routing, Work Centres etc
Plant Maintenance Masters
Quality management Masters
Warehouse Master

Chapter 7: Common ERP Transaction Data Migration Objects

General Ledger (GL) Balances & Open Items

Customer Open Items
Vendor Open Items
Budget Values
Loans and Advances
Open Internal Orders
Stock Balances
Material in Transit - High Seas, On Port
Open Service Contracts & Orders
Open Contracts & Purchase Orders
Open Sales Contracts & Orders

Chapter 7: ERP Project Plan

Project plan depends on implementation strategy of the company

Granularity of a project plan depends at which point it is created and for which audience

A project plan is typically prepared in a spreadsheet (like Excel) or with project management software
like MS Project

An ERP project plan is composed of several plans like:

Activity, Deliverables and Milestone plan
Resource plan
Training Plan
Testing Plan
Data Migration Plan
Change Management Plan

Project Resource Plan shows in which month how many resources are needed, whether resources
need to be at client site or at offshore location, how many resources needed from consulting company
side and how many from the core team.

Resource Plan is derived from Project Plan

There can be different roles introduced during different phases of project

Chapter 7: Sample High Level ERP Project Plan and Milestones

Milestone

Jan
Feb
Mar
Apr
May
June
July
Aug
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Project Preparation
Blueprinting
Realization
Realization Final
Go Live Preparation
Go Live
Hyper care & Support

Preparation work completed,

Project team training starts

Standard configuration
Completed, Testing started

To be design completed
Development objects specified

Development of objects
completed, Testing completed,
Go live preparation started

Go Live, Sustain starts

Sustain Ends

Chapter 7: Project Standards and Procedures

Change request management standards

Issue management standards
Project communication management standards
Project monitoring and status reporting standards
Testing standards
System configuration standards
Development strategy and standards
Authorization standards
Project documentation standards

Chapter 7: Project Charter

Project Charter contains details like
Project scope
Project goals and objectives
Project deliverables
Business case summary
Total estimated project cost
Implementation strategy
Project stakeholders
Assumptions and constraints
Risk assessment

Chapter 7: Project Kickoff

Project kickoff is a formal meeting to announce the start of the project to
the whole organization and other organization.
The goal of project kickoff is to:
Introduce project team members to the organization and explain their
roles, responsibilities in the project
Explain high level project plan, implementation strategy, timeline, project
goals and deliverables at different project stages
Outline Key Organizational Change Management goals and objectives
Create excitement about the project among the project team and the
entire organization

Chapter 7: Reasons for ERP project risk

No Prototyping

New
Technology

Inexperienced
Core Team

Aggressive
Computer Literacy

Time Frame

of Employees
Frequent change
in scope

Connectivity in remote
location

Organizational
Politics
Lack of Top Mgmt
Support

Chapter 7: Five Step Project Risk Mgmt Approach

Find potential risk elements of the project

Analyze impact of each of these elements

Assess the probability of occurrence of these risk elements

Prioritize the risk

Develop a risk mitigation plan for top risk elements