ERP
ENTERPRISE RESOURCE PLANNING
Every Monday, 13:30 – 16:00
Last Updated: 31 March 2009
ERP – Ir. H. Noor Hidayat, MMT.
1
Syllabus
1.
2.
3.
ERP
Introduction
ERP Platform
ERP Component
4. ERP Development (Chevron Way)
5.
System Life Cycle
•
References:
–
CPDEP: Chevron Project Development and Execution Process,
© 2009 Chevron Corporation
Last Updated: 31 March 2009
ERP – Ir. H. Noor Hidayat, MMT.
2
CPDEP Overview - Outline
 What is a Project and What is Project Management?
 What is CPDEP?
 Why do we use CPDEP?
 How CPDEP is used?
 Where CPDEP is used?
 What value does CPDEP add?
ERP
Definition: What is a “Project”?
•
ERP
A “Project”:
1.
Has a definable beginning and end, and thus is "temporary" in
nature.
2.
Creates a unique, definable product or service.
3.
Should include all scope items that:

Are needed for the project’s product to stand alone (needs no
other improvements to make it work), and

Represent the true total cost of the opportunity.
Definition: “Project Management”
ERP
“Directing and coordinating human and material resources
throughout the life of a Project by using modern management
techniques to achieve predetermined objectives of scope,
cost, time, quality, and participant satisfaction ………
the application of knowledge, skills, tools and techniques to
project activities in order to meet or exceed stakeholder needs
and expectations from a project.”
ERP
Basic Concept of Project Management (PMI)
Closeout
Control
Execution
Planning
Initiation
Project Management - Key Knowledge Areas….
Support the processes and principles of project management
Project
Safety
Management
Total
Project
Management
Project
Risk
Management
Project
Quality
Management
Project
Integration
Management
Project Human
Resource
Management
Project
Scope
Management
Plus one
Project
Procurement
Management
Project
Communications
Management
Project
Time
Management
The building blocks of Project Management
Project
Cost
Management
ERP
The Project Life Cycle
• For every project, there is a life cycle that starts
with a concept that is developed into an
executable plan, and implemented to result in a
unique product or service.
• ChevronTexaco did not invent the life cycle, they
just called it “CPDEP”. CPDEP is the
ChevronTexaco Project Development and
Execution Process
ERP
What is CPDEP?
CPDEP is a process that improves
decision making and execution
by fostering better
planning, collaboration and communication
ERP
ERP
CPDEP Vision:
The right projects implemented with Excellence
High
Consistent Success
Random Success
Ability to
Make Right
Decisions
• Good Projects
• Good Execution
• Good Projects
• Average Execution
Mid
Success Unlikely
Random Success
• Poor Projects
• Poor Execution
• Poor Projects
• Good Execution
Low
Mid
Ability to Implement Decisions
in Best Way Possible
High
Why use CPDEP?
ERP
It’s a process that can “guide” Team efforts:
• Selecting the best opportunities through improved decision
•
making process.
Improving overall outcomes by excelling in the execution of
business driven decisions
ERP
CPDEP impact on Asset/Project Value
Value Identification
Value Realization
Good
Project
Execution
Good
Project
Definition
VALUE
A
B
Poor Project
Execution
C
Poor Project
Definition
Phase 1
Opportunity
Identified
D
Phase 2
Phase 3
Phase 4
Phase 5
Generate & Select
Alternatives
Develop Preferred
Alternative
Execute
Operate
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CPDEP Principles
1. Focus on key value drivers for the opportunity
2. Use of integrated multifunctional teams
3. Effective input, communication and alignment
between teams, decision makers and
stakeholders
4. Decision driven, not activity driven - do the
work necessary to support the next decision
5. Consistent use of best practices and tools (e.g.
Decision Analysis, Benchmarking, PEP, VIP,
etc.)
5
4
3
2
1
The five principles are the heart of CPDEP. By design, the process
and tools are flexible and scalable; the CPDEP roadmap is simply
pictorial representation of the project. You must apply the principles
to create and deliver value.
CPDEP Helps Drive Better Decisions
ERP
The Decision Quality Spider Diagram can be used to measure the
quality of a decision
3
Meaningful
Information
2
Creative
Alternatives
4
Clear Values
& Trade-off
Decision
Quality
1
Appropriate Frame
5
Logical
Reasoning
6
Commitment
to Action
•
•
The Six Components of the
Decision Quality Spider
provides a framework for
assessing Decision Quality
The “webbing” on the spider
indicates the status of each DQ
component. Low is toward
the center, high toward the
outside.
ERP
Outline of CPDEP Process
1.
WHERE
ARE WE
NOW?
3.
HOW DO WE GET
THERE ?
Phase 1
Identify and Assess
Opportunity
• Opportunity Statement
• Boundary Conditions
Phase 2
Select Alternative(s)
Phase 3
Develop Alternative(s)
Phase 4
Execute
• CPDEP Roadmap
• Contingency, Action &
Execution Plans
Phase 5
Operate and
Evaluate
2.
WHERE DO
WE WANT TO
BE?
• Definition of
Success
ERP
CPDEP Fundamentals
AR/AFE APPROVAL
Work Your Plan
Plan Your Work
Choose the
Right Project
Phase 1
Identify
Clearly
Frame the
Goal
•
DRB
Phase 2
Select
Generate
and Select
Preferred
Alternative
Define the
Right Project
DRB
Phase 3
Develop
Deliver the Project Right
DRB
Phase 4
Execute
Fully Define Implement
the Scope
the
Execution
Plan
Phase 5
Operate
Monitor
Performance
Evaluate and learn
Projects are divided into five phases, each with a key decision
point
Objectives and Key Activities of CPDEP
Phases
1
2
3
ERP
5
4
IDENTIFY AND
ASSESS
OPPORTUNITIES
GENERATE AND
SELECT
ALTERNATIVE(S)
DEVELOP
PREFERRED
ALTERNATIVE(S)
OBJECTIVES:
OBJECTIVES:
OBJECTIVES:
OBJECTIVES:
OBJECTIVES:
Develop Frame
Validate Business Case
Refine Business Case
Finalize Business Plan
Execute Business Plan
Fully Define and Freeze
Scope
Execute Consistent
with Execution and
Implementation Plans
Operate Asset
•Strategic
•Strategic
•Commercial
•Commercial
•Business Case
Conduct Preliminary
Assessment
Develop Preliminary
Overall Plan
Plan For Phase 2
Seek and Incorporate
Learning's
Generate Alternatives
Develop Final
Implementation and
Execution Plans
Define Preliminary
Scope for Each
Alternative
Confirm Value and
Commit to Business
Metrics
Develop Preliminary
Implementation and
Execution Plans
Capture, Share, and
Incorporate Learning's
•Frame
Assess Preliminary
Value
Narrow and Select
Alternatives
Plan for Phase 3
Capture, Share, and
Incorporate Learning's
EXECUTE
Finalize Operating Plan
Capture, Share, and
Incorporate Learning's
OPERATE AND
EVALUATE
Monitor and Evaluate
Performance
Identify New
Opportunities
Capture, Share, and
Incorporate Learnings
ERP
Elements of CPDEP
Project
Execution
Team
Alignment
Quality
Decisions
CPDEP is a balance of three key elements:
• Team Alignment
• Quality Decisions
• Project Execution
Key CPDEP Roles
•Endorser
•Decision Executive
•Decision Review Board Member
•Project Manager / Team Leader
•Project Team
ERP
Questions
???
ERP
ERP
End of ERP Development
Last Updated: 31 March 2009
ERP – Ir. H. Noor Hidayat, MMT.
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