Managing an ERP Project

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MIS 261 Team 2

Devin Crosby, Ali Davutoglu, Sheau-wen Jou

Nov. 17, 2009

Topics

 ERP Project Management Methodologies

 Basic Methodology

 Waterfall Methodology

 Prototyping Modeling

 Critical Factors to an ERP Project Success

 Tools for Project Management Success

 Project Management Software Attributes

 Software Available On The Market

2

Basic Methodology

Specification of critical business goals: assumptions and limitations

Description of business processes that take into account specific of project management in the company

Determination of most important data sets

Specification of measurement factors

Selection of ERP system supplier and preparation of ERP project: Scope, Schedule, Budget

Procedures implementation

Data acquisition

Results evaluation

3

Waterfall Methodology

Definition

Construction

Change

Implementation

Change

Operation

Change &

Enhancements

4

Prototype Modeling

Identification

Basic requirements

Development

Initial prototype

Implementatio n & operation

Problems 

Next prototype version 

Performing change

(change management)

5

ERP Project Success = ?

Cost

Schedule

Quality

Stakeholders’ expectations

Scope

6

Critical Factors to an ERP Project’s

Success

No clearly defined strategic goals or business plans

• Develop a business plan with proposed strategic and measurable benefits, resources, costs, risks, and timeline

Lack of top management commitment

• Have project charter approved by top management

• Invite the executives to participate in the project in order to get full support

7

Critical Factors to an ERP Project’s

Success (con’t)

Poor project management

- Unrealistic schedules and budgets

- Scope creep

• Define, manage and control scope

• Develop vendor selection process

• Develop the project plan with stakeholders

• Use the critical path analysis to determine the available resources and realistic timeframes

• Continue to monitor and control the progress through the project horizon

8

Critical Factors to an ERP Project’s

Success (con’t)

Resistance to change

• Develop a change management plan

• Invite users to collaborate in the design and implementation of the new business process

• Provide formal education and training to users

• Communicate sufficiently with employees

No appropriate implementation team

• Select the best people from each department, including both technology and business experts

• Develop recognition programs to retain good employees

• Ensure knowledge is transferred from outsourcing consultants

9

Interview with HP employee

 Senior Financial Analyst

HP’s Global Business Systems Division

 Member of the Mergers, Acquisitions,

Divestitures and Outsourcing (MADO) team

 Project Lead on major acquisitions

12

How is HP doing (2008)

 8% Growth

 Increase in EPS from $2.68 to $3.25

 GAAP operating profit of $10.5 billion

 Major Acquisitions

 EDS

 3Com

13

What she had to say

“It’s extremely important when taking on new SAP integration projects that the decision makers talk to the people in the trenches! Otherwise you end up with unrealistic deadlines and shifting objectives. On this new 3Com acquisition upper management wants to see immediate savings on the books so we were given only ten days to complete our due diligence research and develop an integration strategy, timeline and budget. It’s like shooting in the dark which ultimately means the project manger has to inflate the expected budget and pad the expected timelines to ensure we’re able to meet senior management expectations.”

14

Key Points of Interview

Need to involve staff at all levels throughout the entire process

Review the processes before making decisions

Proper planning will save money and increase efficiency – even if you seem like you’re getting nothing accomplished for longer.

Change management tools are critical and even though HP is a large company not everybody gets the tools they need

15

What to look for in PM Software

 Ability to plan projects

 Task management

 Sharing and collaboration

 Document management

 Sharing calendars and contact

 Issue management

 Tracking time and resources

 Project Portfolio

Management (PPM)

16

Project Management Software

Software Project

Management

Task

Management

Collaborative software

Document Issue

Management tracking system

Resource Project

Management Portfolio

Management

Webbase d

Aras Corp

AtTask

Basecamp

Central Desktop

Clarizen

Compuware

Changepoint dotProject

Yes

Yes

Easy Projects .NET

Yes eGroupWare

Genius Inside

Launchpad

MyWorkPLAN

Yes

Yes

Yes

Yes

LiquidPlanner Yes

MicroPlanner X-Pert Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

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Yes

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17

Project Management Software

Software Project

Management

Task

Management

Collaborative software

Document

Management

Issue tracking system

Resource

Management

Project

Portfolio

Management

Webbase d

Microsoft Office

Project Server

Microsoft Project

Yes

Yes

OpenProj Yes

Oracle Project

Portfolio Management Yes

P2ware Planner Yes

P2ware Planner

Server Yes

Planisware

OPX2/Planisware 5 Yes

Primavera Project

Planner (Oracle) Yes

Project.net

Redmine

Yes

Yes

Smartsheet

Teamcenter

Teamwork

TrackerSuite.Net

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

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Yes

Yes

18

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