1. Project Scope Statement

This project is initiated to implement an enterprise resource planning software for an organization in 71 days according to finalized schedule, bearing cost of $42000, and having 9/10/15 and 25/1/16 as start and finish dates respectively. 

The scope of this project is to propose such Efficient Enterprise Resource Planning (ERP) system for blackout Inc. that can reduce their inefficiencies and could enhance their effective backup systems. Enterprise resource planning system is an important project for business optimization that can be used in small, medium and big businesses. It integrates all aspects of business including customer relationship management, accounting, sales, human resource and supply chain management into a unified information system. As such, an Enterprise resource planning (ERP) software package will help link an organization’s business processes, enable information sharing and facilitate effective communication. Organizations at times face challenges of offering innovative products to meet the demands of the ever-growing population of tech-savvy and also affluent consumers and at the same time be profitable. 

1.1 Project Deliverables

Table 1: Project Deliverables

Project Management Plan	System Architecture Design
Project Blue Print	Project Quality Report
Successful Training Program	ERP working System

1.2 Exclusions and Limitations

• Enterprise system will not conduct customer relationship management 
• Enterprise resource system will be restricted to one geographical area 
• Implementation of ERP will not include managing internal change process of organization 
• Project will not use cloud storage and will be restricted to physical backup and storages  

1.3 Project Objectives

• To improve service experience of the company
• To enhance competitiveness of the business and also Modernize business processes and systems
• To Automate business solutions and Increase operating efficiency of the company
• To Provides access to standardized data

1.4 Milestones

Table 2: Project Milestones

Milestone Activity	Due Date
Project Management Plan	10/11/20
System Architecture Design	14/12/20
Project Blue Print	26/11/20
Project Quality Report	7/1/20
Successful Training Program	15/1/20
ERP working System	25/1/20

1.5 Technical Requirements

Enterprise Resource Planning system requires different technical expertise through which a company can achieve their desired results. Advanced information technology system is the basic need that aids the systems of Enterprise Resource Planning (ERP) for a company. Besides this, it also requires database software that contains all the detailed data regarding company profiles. It would enable company in managing and planning efficient resource system. 

1.6. Assessment of cost, time, and performance trade-off

Project of ERP system implementation has time constraints as there were limited time frames in which projects needed to be done and cannot be delayed. Performance of the project is also a critical factor where ERP should be installed flawlessly and employees trained to perfection. Project performance includes quality of the project. Efficient and most appropriate project form considered as qualitative project which is desired to be achieved by project sponsors. Besides this, reliability is another factor that contributes in project quality and performance. Last component that significantly contribute in completion of the project is cost. Cost will be accepted and time is considered as constraint. In the light of Table: 3 costs will be accepted to finish the project on time and meanwhile efforts will be made to enhance performance. Thou project stakeholders will be monitoring the process close by and would not address unjustified cost expenditures.

Figure 1: Work Breakdown Structure

2. WBS and OBS  

2.1 Work Breakdown Structure (WBS)

The major deliverables of the ERP implementation process provides a detailed project plan, System architecture, and ERP blue print. Using the information project will have to deliver full implementation of the system. Then conduct training and seek approval to successfully close the project. The project deliverables are designed in 3 levels of details for this project. All the essential of this project can be seen as a sub category of the major deliverables just mentioned. The duration of each activity is also stated

2.2 Organizational Breakdown Structure

2.3 Resource Allocation

Project resources are a critical aspect in the success of the project. The ERP project sponsors and management realize the fact. The arrangements for the project team are based on hiring from external labor pool. The project when in its inception phase will hire and engage human resource. The resource will remain part of the project and organization till project life and will then be engaged in other IT projects that organization plans to initiate. The resource allocation has been made according to the schedule and their hourly payment is explained.  

The resources are needed to execute the plan. Project manager is the principal of the project and is responsible for the overall success. Project coordinator and analyst are hired to assist him through the process of management. Every other resource is hired to perform their specific task of expertise and assist others to successfully complete their tasks. Training consultant is responsible for initiating all training related material. IT analyst will conduct all implementation process with System analyst and IT specialist. Hardware and software specialists will procure and install hardware and software. Visual trainer will assist training consultant in deliver lectures and managing all presentations and activities.

3. Cost Estimates

Cost estimation tool standout amongst the most basic parts while completion of the project. During the process of cost estimation of current project, project manager incorporates data from a similar past project and takes advice of the experts to calculate realistic cost estimates. However at the same time, requirements and constraints acknowledged can be dynamic in nature and particularly specific for a situation alone which is the reason project cost estimation cannot be totally rely upon past experience. Furthermore, a productive and proper expense estimation strategy will as project manager to better execute the project.

In this project there were several elements that needed attention while estimating cost for enterprise resource planning system. The cost estimation overview of the project is as follows 

• Cost estimation was done using data from past projects and similar competitor projects 
• Expert Opinion was used to as a support information to develop cost estimates 
• Finally 3-point estimation method was used to calculate the cost of the project

3.1 Cost Estimates

4. Schedule Conflict

Analyzing the initial scheduled subsequently posted it was analyzed that there was a schedule conflict. Where we had sufficient resource to run the project activities like System Architectural Design and Designing ERP blue print. These two activities initially were not simultaneously run rather were with finish to start constraint. In the light of this the schedule conflict was removed in the final schedule design.

4.1 Final Schedule

4.2 Network Diagram

4.3 Assessment of Sensitivity of final network

The network is perfectly aligned for the available resources and optimally utilizes them to finish the project within time and delivering the requisite performance. The sensitive part for the schedule is resource constraint, as many activities can’t be run parallel so any delay would present significant threats. 

4.4 Cumulative Cash Flow

Table 4: Cash Flow

Year	Quarter	Cost	Cumulative Cost
2015	Q4	$35300.33	$35300
2015 Total		$35300.33	$35300
2016	Q1	$7099.66	$42400
2016 Total		$7099.66	$42400
Grand Total		$42399.99	$42400

 

5. Managing Project Quality

Project management is most critical step that needed to be done in order to ensure success of the project. It includes quality management, assurance and controlling processes that significantly contribute in performance of the project. Enterprise resource planning project will incorporate effective techniques and strategies for ensuring the management of quality, as it is most influential factors that impact on success of the project. The project manager will adopt total quality management system in order to ensure project quality. This strategy or approach refers toward complete monitoring and assurance of project quality. 

In ERP implementation process quality was managed via implementation of quality control, assurance and monitoring plans, project manager will build the culture of quality which is implemented through developing plans, setting targets and implementation. In ERP project effective monitoring process for quality assurance and control was very essential part of enterprise resource planning project to achieve success.

In ERP implementation process Total Quality Management (TQM) concepts like six-sigma and kaizen approach that refer towards continuous improvement are guiding principles to maintain the project quality. 

6. Risk assessment

Risk assessment is the process in which project manager address risks and takes initiative according to the type and probability of the risk. Through risk assessment process, project manager ensure the efficient and management of the project. Furthermore, project manager can take four types of initiative against risks which include risk mitigation, risk avoidance, risk transfer and risk acceptance. 

6.1 Risk mitigation

In ERP implementation plan includes risk mitigation as a critical process. Henceforth each activity’s risk is identified and mapped against cost to know its impact and is termed in qualitative terms as high medium low. The mitigation technique will reduce impact or probability to ensure the risk may not happen and if occurs then its magnitude is low.  

6.2 Risk avoidance

In present project of enterprise resource planning, risk avoidance strategy has not been adopted as it could create future troubles for the project. Risk avoidance is not much appropriate strategy in such execution projects as it raised the chances of omissions and flaws for the project. 

6.3 Transfer risk

In project of enterprise resource planning, whenever the risk transfer situation comes the management is willing to accept and mitigate risk rather then transfer it. This is a successful strategy to ensure time constraint is managed. 

6.4 Risk acceptance

The mentality of the management in the current project is to accept the risk but in this project risk is not accepted entirely rather first mitigation is employed to reduce the impact and accept the residual risk.

7. Managing Key Stakeholders 

In current project of Enterprise Resource Planning (ERP), project sponsor and project steering committee are the prime and direct stakeholders, which needed to be managed by the project manager. All of these direct stakeholders will remain informed regarding project progress and activities. 

The project stakeholders are the Sponsor, Project Steering committee and the end user. The project sponsor is the one who is financing the project and it is the C.E.O of the company who wants to take the organization to a new development phase to embark on the growth. C.E.O as project sponsor will be closely managed where he would be provided project updates and would be kept informed of the related details. End users are the organization employees and to manage them closely the project will employee change management practices and would educate them regarding project necessity and will also enlighten them that they will be trained to take on the responsibility. Employees and managers will be closely managed. Business units will be kept on board and their processes will be connected to the main ERP server to maintain a single point to manage complete scope of the project. The business units will be given lessons learnt form this project to allow them to execute similar implementation of ERP so that whole enterprise can be integrated.

Other stakeholders are: 

Employees	Project team
Suppliers	Retailers
·      Business Units

8. Key Performance Indicators

8.1 Stakeholder Satisfaction

The key performance indicator for this project is the stakeholder satisfaction where we intend to achieve the maximum satisfaction by delivering best quality. C.E.O as project sponsor is taking keen interest in implementation of the ERP within the organization and want to see the organization to grow leaps and bound. He is also very keen that change is well managed and the new system is embraced whole-heartedly and technical training is delivered. Hence satisfaction of project sponsor is very critical for project success. Similarly employee training and change management is equally important since both are interdependent on success. The employee training will be conducted and tested to ensure requisite skills are delivered. The business units will be observers of the implementation process and they will be guided through all the steps and processes to allow them to replicate similar pattern to allow integration of whole enterprise in a successful manner.

8.2 Performance Assurance

The performance is a key factor and will be assured via quality management.

8.3 Quality Training

This is vital part of the project that training to the employees to use the ERP effectively be imparted.

8.4 Protecting Cost of Failure

In ERP project it is a key indicator of success that quality assurance and control are integrated and HR is learned to control any situation leading to cost of failure. 

Part 2: Project Update

9. Status Report

9.1 Schedule and Cost Variance

Project Status date: 8/1/16

The project has completed project till execution and going in training phase. It can be seen that the project has suffered from slight delays and cost overrun. Monitoring Figure: 7, it can be clearly seen that project in its middle part suffered from delays that have later contributed towards cost overrun. Through Figure: 7 it can be seen that activity with ID: 7 Designing the system architectural design has taken extra time to complete and since was on the critical path has disrupted the over all project finish date. To gain momentum and bring project back on schedule activities then required crashing or fast tracking. In implementation phase install hardware and software were fast tracked. Quality testing was crashed by 4 days to achieve the project schedule without affecting the training of the employees that is very important or the project success. Here onwards the project will take immense care and will ensure that further delays are not experienced and training is conducted according to the planned value.

Narration of the Key Events

The project manager in project plan ignored the value and implication of the change process that impacts the labor force when a new technology is implemented. Deliverable Designing system architecture, the project was affected by resistance due to change, hence tackling resistance slowed down the process. The resistance and obstructions that were faced affected every sub activity of summary task ID: 7 “system architectural design”. The implementation of the program started 7 days later and was threatening success of the project. The project manager used concepts like crashing and fast tracking to manage the schedule.

10. Problem Solving

It was a missed assessment how change would impact the project; moreover the factor was entirely missed. The project team half way through planning phase of in architectural design process where it started to face resistance from employees who feared change would negatively impact the process. The resistance died off quickly but left its impression little diversion for the main scope of work architectural team committed some mistakes that they had to redo and took extra time; hence this delayed the project by 7 days.

10.1 Resource Constraints

The resource was limited on the project and to maintain strong fit among resource and project schedule activities were planned with finish to start relationship. Moreover, two major deliverable were run in parallel to effectively manage the process. The resource was effectively allocated at every activity.

10.2 Time Constraint

ERP implementation process needs to be implemented in time, as it directly contributes to the competitive advantage of the organization. Hence organization management was keen to implement. Delays due to rework and impact of resistance from employees the time became a critical factor. 

10.3 Response

To manage the resource constraint the activities were planned majorly using finish to start constraint and were not executed parallel to each other. To manage the time there was an opportunity to install hardware and software simultaneously and fast track the process. The activities with ID: 21 and 22 (Install hardware and software) were run parallel that saved the project 3 days and to cover further delay of 4 days (out of total 7 days) the activity ID: 23 was scheduled to crash by 4 days hence the project effectively directed back on track before training was initiated. The crashing cost of activity ID: 23 equaled $1320 and saved 4 days. The training is the most critical and employees need to be trained fully according to the schedule. The project now will conduct training and will incorporate all quality assurance practices to manage project without experiencing further details. 

11. Management Issue

11.1 Change Management

The basic issue during project implementation till status date 8/1/16 was managing change. The ERP implementation era initiated a new paradigm for the organization hence many of the employees resisted the change since they feared the change would negatively impact their job prospect. The project manager failed to make them understand that they will be trained to fit new roles with in the new system. The resistance caused in work delays and negatively affected the project.  The project manager had to undergo negotiation to reassure the employees that their jobs are secure rather this will enrich their job prospect and will embark them to achieve greater career success. The project manager had to communicate that this project was in benefit for organization and for the employees equally since both can reap its fruits.

11.2 Quality Management

Processes designed to ensure the product remains defect free but some issues surfaced like current situation analysis was not conducted and threat of employee resistance was ignored. Since standard operating procedures to gather complete assessment and follow effective stakeholder management were not followed. The quality assurance demands that these processes are taken care of.  

12. Summary

The project was a success since it finished at the desired quality standards and within time and with a minor cost over run. The key to success was strong monitoring and control system backed by robust quality control procedure that ensured that there is no defect that goes forward without being identified. Change management and quality assurance process suffered. Initially change management was not identified as a part of the project scope but even then it impacted the process to achieve efficiency. Crashing, fast tracking, and strong monitoring and control processes were assurance to finish the project with in time and according to the scope.