enterprise resource planning ( erp ) and project management by sabita mishra

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Page 1: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Resource Planning and Project Management

Sabita [email protected]

Page 2: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

What is an Enterprise?

The term is often used in general businesssituations to describe as a corporate entity,anything form a sidewalk espresso cart to anEnterprise as large as Microsoft. It comprises of agroup of people with a common goal, which hascertain resources at its disposal to achieve thisgoal. It acts as a single entity. In the traditionalapproach, the Enterprise is considered as asystem and all the departments are itssubsystems. The information about all theaspects of the Enterprise is stored centrally and isavailable to all departments.

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Page 3: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

The Enterprise

Goals and ObjectivesResources

People

Page 4: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise

• The term enterprise is used because it is generally applicable inmany circumstances, including

– Public or private sector Enterprises– An entire business or corporation– A part of a larger enterprise (such as a business unit)– A conglomerate of several Enterprises, such as a joint venture or

partnership– A multiply outsourced business operation– Many collaborating public and/or private Enterprises in multiple

countries

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Page 5: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise

The term enterprise also includes the wholecomplex, socio-technical system, including:

• People• Information• Technology• Business (e.g. operations)

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Page 6: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise as an Open System

Transformation of Energy

(Throughput)

Output of Products, Ideas,

Services (Export)

Input of Information,

Energy, Materials (Import)

Environment

Environment

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Page 7: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise and its Internal EnvironmentEnterprise

Ethical

EconomicPolitical and Legal Human Relations

Management

Technological

Workforce

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Page 8: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise and its External Environment

Enterprise

Ethical

Economic

Political and Legal Social

Technological

Competitors

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Page 9: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Factors Affecting the Structure of an Enterprise• Environment1.

• Culture2.

• Task3.

• Technology4.

• Strategy5.

• Size6.

• Span of control7.

• Form8.

• Managerial characteristics9.

• Employee characteristics10.

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Page 10: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Environmental Key Factors

Legal Factors

Economic Factors

Social & Cultural Factors

Competitive

Political Factors

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While every Enterprise must define its own relevant environment, some key environment factors which should be addressed are :

Page 11: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Structure – Tall Enterprise

1.Decision Making Centre

(Authority Base)

2. Enterprise Levels

3. Enterprise Levels

4. Enterprise Levels

Tall Enterprise Implies:

a) Distance from top to bottomb) Extended communication linesc) Impersonalityd) Narrow span of controle) Centralization

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Page 12: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Structure – Flat Enterprise

1

2

3

Flat Enterprise Implies:a) High levels of decentralizationb) Extremely wide spans of control determined on the basis of each superior’s interpersonal skillsc) Less extended communication lines

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Page 13: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Management Combines Business’s Resources To Produce Goods and Services

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Management

Financial Resources Natural Resources Human Resources

Production Process

Product & Services

Page 14: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Business Functions and Business Process

• Managers and Enterprises have now started thinking interms of business processes instead of businessfunctions.

• A business process is a collection of activities that takesone or more kind of input and creates an output that isof value to the customer

• Thinking of business functions as business processeshelps managers to think of their Enterprises from acustomer’s perspective

• The difference between a business function and abusiness process is that a process cuts across morethan one business function to get a task done

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Page 15: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Business Functions and Business Process (cont’d)

• Sharing data effectively and efficiently between andwithin functional areas leads to more efficient businessprocesses

• Information systems can be designed so that accurateand timely data are shared between functional areas

• These systems are called integrated information system• Today an information system is an organized

combination of people, hardware, software, communications networks and data resources that collects, collates, transforms and disseminates in an Enterprise

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Page 16: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Real World and the Business Model

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Plant

Customer Order Contract Invoice

Material

Real World

Business Model

Processes Interrelationships & Interdependencies

Page 17: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Data Model and its Relationship with the Real World

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Plant

Customer Order Contract Invoice

Material

Real World

Business Model

Processes Interrelationships & Interdependencies

Data Model

- Tables- Fields

- Views- Domains etc.

Data & Program Model Program Model

- Program- Function

- Display Screens, etc.

Page 18: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Different Departments that comprise an Enterprise

Procurement

Production/Manufacturing

Engineering

Research and Development

Marketing

Sales

Finance

Accounting

Human Resources

Shipping

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Page 19: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Procurement

19

Purchase Contract

Requisitions

Warehouse Orders

Sourcing Information

Schedule Definitions Planning/ Sales/Shop floor

Request for Quotation/Schedule

Definitions

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Production/Manufacturing

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Receiving

Shipping Quality Control

Production/Process

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Engineering

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Problem?(Yield, Throughput,

Defects, Quality)

Report Troubleshooting

Root Cause Failure Analysis

Collect Data Analyze Data

Page 22: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Research and Development

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Define Problem/Background

Research

Internal/External Evaluation

Provide Solutions

Analyze Data

Bench Scale/Pilot Scale Testing Collect Data

Implementation

Report

Page 23: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Marketing

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Market Research and Evaluation

Advertising Communication

Lead Generation Events, Product Service Launch

Public Relations

Promotion

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Sales

24

Inquiry

Financial Accounting Picking and Delivery

Order

Quotation Contracts

Materials Management

Page 25: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Finance

25

Cash Management

Business Planning & Budgeting

Executive Information System

Enterprise Controlling

Treasury Management

Market Risk Management

Profit Center Accounting

Page 26: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Accounting

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Purchasing(Quantity & Volume)

Business Planning & Budgeting

Employees (Salary & Wages)

Customer Receivable

General Ledger Sales (Order & Bill)

Profit Center Accounting

Page 27: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Human Resources

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Enterprise Structure and Modeling

Benefits/Payroll Orientation

Placement

Manpower Planning Recruitment/Selection

Workforce Management

Page 28: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Shipping

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Order

Delivery NotePicking and Delivery

Scheduling

Warehouse

Shipping Point Shipping Document

Goods Issue and Transportation

Page 29: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Typology of Enterprises according to Blau and Scott

• Enterprises which benefit their owners. All business Enterprises fall under this category1.

• Enterprises which benefit their members. Wide class of unions, cooperatives and clubs2.

• Enterprises which benefit their clients. e.g., insurance companies, private schools etc.3.

• Enterprises which benefit the whole society such as governmental Enterprises, commonwealth, etc4.

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Page 30: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Key attributes of a virtual Enterprise

1.• Technology

2.• Opportun-

ism

3.• No borders

4.• Trust

5.• Excellence

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Page 31: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Virtual Enterprise – Primary Benefits

• Its ability to save on lease rentals of office space and employee commuting costs

1.

• Its ability to focus on core competence as a result of outsourcing of all non-essential activities

2.

• Its use of synchronous technologies such as audio and video conferencing which allow members to interact t the same time or in real time

3.

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Page 32: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Virtual Enterprise – Drawbacks

• There is a phenomenal increase in the daily number of e-mails if its executives.

1.

• Its employees miss the opportunity of meeting their coworkers. They also fear that their lack of interaction with superiors may not bode well for their careers

2.

• It is common for some employees to have conference calls during off hours spanning mid-day in Bangalore, early morning in Norway and close to mid-night in California.

3.

• Some customers do not like to deal with the Enterprise through web site which lacks emotional pitch and body language associated with verbal communication

4.

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Page 33: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture - Definition

• Enterprise architecture is an ongoing business function that helps an'enterprise' figure out how to execute best the strategies that drive itsdevelopment. The MIT Center for Information Systems Research (MITCISR) defines enterprise architecture as the specific aspects of a businessthat are under examination:

• Enterprise architecture is the organizing logic for business processes and ITinfrastructure reflecting the integration and standardization requirementsof the company's operating model. The operating model is the desiredstate of business process integration and business process standardizationfor delivering goods and services to customers.[3] The United StatesGovernment classifies enterprise architecture as an InformationTechnology function, and defines the term not as the process of examiningthe enterprise, but rather the documented results of that examination.Specifically, US Code Title 44, Chapter 36, defines it as a 'strategicinformation base' that defines the mission of an agency and describes thetechnology and information needed to perform that mission, along withdescriptions of how the architecture of the Enterprise should be changedin order to respond to changes in the mission

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Page 34: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• An enterprise architecture framework bundles tools,techniques, artifact descriptions, process models,reference models and guidance used by architects inthe production of enterprise-specific architecturaldescription. Several enterprise architectureframeworks break down the practice of enterprisearchitecture into a number of practice areas ordomains.

• See the related articles on enterprise architectureframeworks and domains for further information.

• In 1992, Steven Spewak described a process forcreating an enterprise architecture that is widely usedin educational courses.

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Page 35: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Developing an Enterprise Level Architectural Description• Paramount to the enterprise architecture is the identification of the

sponsor, his/her mission, vision and strategy and the governanceframework to define all roles, responsibilities and relationshipsinvolved in the anticipated transition.

• As the purpose of architecture is: "INSIGHT, TO DECIDE, FOR ALLSTAKEHOLDERS", enterprise architects work very closely with theenterprise sponsor and key stakeholders, internal and external tothe enterprise. The architect understands the enterprise mission,vision and strategy and the sponsor's ideas about the approach. Thearchitect articulates the existing enterprise infrastructure value-chain: market, business, systems and technology. Architects presentand discuss the technology, systems, business and market optionsto fulfill the enterprise mission.

.

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Page 36: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Insight is improved by using the 'solution architecture' which is,relative to the decisions ahead, a specific blend of technology,systems, business and market options. Together with the sponsorand the main stakeholders, they make informed choices about theoptions. For large transitions, architectural decisions are supportedby proofs-of-concept and/or business pilots.

• Enterprise architects use various methods and tools to capture thestructure and dynamics of an enterprise. In doing so, they producetaxonomies, diagrams, documents and models, together calledartifacts. These artifacts describe the logical Enterprise of businessfunctions, business capabilities, business processes, people,information resources, business systems, software applications,computing capabilities, information exchange and communicationsinfrastructure within the enterprise

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Page 37: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• A collection of these artifacts, sufficiently complete to describe theenterprise in useful ways, is considered by EA practitioners an'enterprise' level architectural description, or enterprisearchitecture, for short. The UK National Computing Centre EA bestpractice guidance[7] states

• Normally an EA takes the form of a comprehensive set of cohesivemodels that describe the structure and functions of an enterprise.

• The individual models in an EA are arranged in a logical manner thatprovides an ever-increasing level of detail about the enterprise: itsobjectives and goals; its processes and Enterprise; its systems anddata; the technology used and any other relevant spheres ofinterest.

• This is the definition of enterprise architecture implicit in several EAframeworks including the popular TOGAF architectural framework.

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Page 38: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Using an enterprise architecture• Describing the architecture of an enterprise aims primarily to

improve the effectiveness or efficiency of the business itself. Thisincludes innovations in the structure of an Enterprise, thecentralization or federation of business processes, the quality andtimeliness of business information, or ensuring that money spenton information technology (IT) can be justified.[2]

• One method of using this information to improve the functioning ofa business, as described in the TOGAF architectural framework,involves developing an "architectural vision": a description of thebusiness that represents a "target" or "future state" goal. Once thisvision is well understood, a set of intermediate steps are createdthat illustrate the process of changing from the present situation tothe target. These intermediate steps are called "transitionalarchitectures" by TOGAF.[9] Similar methods have been described inother enterprise architecture frameworks.

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Page 39: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture - Benefits

• Benefits of enterprise architecture• As new technologies arise and are implemented, the benefits of

enterprise architecture continue to grow. Enterprise architecturedefines what an Enterprise does; who performs individual functionswithin the Enterprise; how the Organizational functions areperformed; and how data is used and stored. IT costs are reducedand responsiveness with IT systems is improved. However, to besuccessful, continual development and periodic maintenance of theenterprise architecture is essential. Building an enterprisearchitecture could take considerable time and proper planningessential, including phasing the Program in slowly, prior toimplementation. If the enterprise architecture is not kept up todate, the aforementioned benefits will become useless.

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Page 40: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• The growing use of enterprise architecture• Documenting the architecture of enterprises is done

within the U.S. Federal Government[10] in the contextof the Capital Planning and Investment Control (CPIC)process. The Federal Enterprise Architecture (FEA)reference models guides federal agencies in thedevelopment of their architectures.[11] Companies suchas Independence Blue Cross, Intel, Volkswagen AG[12]

and InterContinental Hotels Group[13] also useenterprise architecture to improve their businessarchitectures as well as to improve businessperformance and productivity.

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Page 41: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Relationship to other disciplines• Enterprise architecture is a key component of the information technology

governance process in many Enterprises, which have implemented aformal enterprise architecture process as part of their IT managementstrategy. While this may imply that enterprise architecture is closely tiedto IT, it should be viewed in the broader context of business optimizationin that it addresses business architecture, performance management andprocess architecture as well as more technical subjects. Depending on theEnterprise, enterprise architecture teams may also be responsible forsome aspects of performance engineering, IT portfolio management andmetadata management. Recently, protagonists like Gartner and Forresterhave stressed the important relationship of Enterprise Architecture withemerging holistic design practices such as Design Thinking and UserExperience Design.[14]

• The following image from the 2006 FEA Practice Guidance of US OMBsheds light on the relationship between enterprise architecture andsegment (BPR) or Solution architectures. (This figure demonstrates thatsoftware architecture is truly a solution architecture discipline, forexample.)

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Page 42: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Defining the boundary or scope of the enterprise to bedescribed is an important first step in creating theenterprise architecture. Enterprise as used in enterprisearchitecture generally means more than the informationsystems employed by an Enterprise.[6] A pragmaticenterprise architecture provides a context and a scope. Thecontext encompasses the (people), Enterprises, systemsand technology out of scope that have relationships withthe Enterprise(s), systems and technology in the scope. Inpractice, the architect is responsible for the articulation ofthe scope in the context, engineers are responsible for thedetails of the scope (just as in the building practice). Thearchitect remains responsible for the work of theengineers, and the implementing contractors thereafter.

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Page 43: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• NIST Enterprise Architecture Model (NIST EA Model) is areference model for Enterprise Architecture, that illustratesthe interrelationship of enterprise business, information,and technology environments.[1]

• This model developed by the National Institute ofStandards and Technology (NIST) in 1989, became in the1990s widely accepted and promoted within the U.S.federal government as an Enterprise Architecturemanagement tool.[1]

• This NIST Enterprise Architecture Model is the foundationof several U.S. federal Enterprise Architecture frameworks,for example the Federal Enterprise ArchitectureFramework.[1]

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Page 44: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• The NIST Enterprise Architecture Model is a five-layeredmodel allows for organizing, planning, and building anintegrated set of information and information technologyarchitectures. The five layers are defined separately but areinterrelated and interwoven.[1] This interrelation betweenthe architecture layers is defined in the model:[2]

• Business Architecture drives the information architecture• Information architecture prescribes the information

systems architecture• Information systems architecture identifies the data

architecture

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Page 45: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Data Architecture suggests specific data deliverysystems, and

• Data Delivery Systems (Software, Hardware, Communications) support the data architecture.

• The hierarchy in the model is based on the notionthat an Enterprise operates a number of businessfunctions, each function requires informationfrom a number of source, and each of thesesources may operation one or more operationsystems, which in turn contain data organizedand stored in any number of data systems.[3]

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Enterprise Architecture

• The U.S. National Institute of Standards and Technology (NIST) isresponsible for developing technical, management, physical andadministrative standards and guidelines; providing technical assistance;and conducting research for computer systems technology within theFederal government. Two NIST efforts in particular have provided directionto Federal agencies in the development of an open systems environment(OSE) to promote interoperability, portability, scalability, andstandardization of agency information architectures and systems.[5]

• Information Management Directions: The Integration Challenge, NISTSpecial Publication 500-167, September 1989.

• Application Portability Profile (APP) - The U.S. Government’s Open SystemEnvironment Profile Version 3.0, NIST Special Publication 500-230,February 1996.

• Information Management Directions• DoE Information Architecture View.[5]

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Page 47: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• The NIST report entitled "Information ManagementDirections: The Integration Challenge" defines theEnterprise Architecture, levels within the Architecture, andthe standards required to implement and enforce such anArchitecture. The NIST Enterprise Architecture has provideda framework for service and agency architecture modeldefinitions. It consists of a five-tiered framework toillustrate business, information, and technologyinterconnectivity. Although the tiers are separatelyidentified, they are interrelated. An integrated set ofinformation and information technology architectures canbe derived from the Enterprise Architecture. In the 1990sthe Department of Energy (DOE) has adopted NIST’sEnterprise Architecture model to define its InformationArchitecture, see image.[5]

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Page 48: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Application Portability Profile

• The "Application Portability Profile (APP) - The U.S. Government’sOpen System Environment Profile Version 3.0" providesrecommendations on a set of industry, Federal, national,international and other specifications that define interfaces,services, protocols, and data formats to support an Open SystemEnvironment (OSE). The APP addresses the lowest architecture inthe NIST Enterprise Architecture Model, i.e., the Delivery SystemArchitecture. Based on these specification recommendations,various services and agencies have defined detailed technicalreference models. In the 1990s both the U.S. Patent and TrademarkOffice (PTO) of the Department of Commerce (DoC) and theDepartment of Defense (DoD) in its Technical ArchitectureFramework for Information Management (TAFIM) have definedtheir Technical Reference Models based on NIST’s APP.[5]

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Page 49: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprise Architecture

• Enterprise architecture (EA) is the process of translatingbusiness vision and strategy into effective enterprisechange by creating, communicating and improving the keyrequirements, principles and models that describe theenterprise's future state and enable its evolution.[1]

• Practitioners of EA call themselves enterprise architects. Anenterprise architect is a person responsible for performingthis complex analysis of business structure and processesand is often called upon to draw conclusions from theinformation collected. By producing this understanding,architects are attempting to address the goals of EnterpriseArchitecture: Effectiveness, Efficiency, Agility, andDurability.[2

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Page 50: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

The following image from the 2006 FEA Practice Guidance of US OMB sheds light on the relationship between enterprise architecture and segment (BPR) or Solution architectures. (This figure demonstrates that

software architecture is truly a solution architecture discipline, for example.)

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Page 52: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

5252

What is ERP?

• ERP is acronym for Enterprise Resource Planning and is asoftware that helps an Enterprise optimize its resources(money, manpower and material) by integrating informationand making it easily accessible and available.

• This in turn leads to superior decision making capabilities andexecution of business processes within the Enterprise therebygiving the Enterprise a competitive edge in the marketplace

Page 53: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Fundamental Characteristics of Information

RELEVANCY

TIMILINESS

ACCURACY

Page 54: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Enterprises with No or Little Communication Between the Departments

FinanceR&D

Production PlanningProduction

Marketing

Sales & Distribution

Page 55: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

An Enterprise where all departments know what others are doing

FinanceR&D

Production PlanningProduction

Marketing

Sales & Distribution

Central Database

Page 56: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Information Integration Through ERP Systems

Supply Chain Management Customer

Relationship Management

Supply Chain Execution

Supplier Relationship ManagementExtended Financial

Management

Business Intelligence

Business Analytics

Project Management

Service Management

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Page 57: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

ERP System – Business Environment

HR Management

Prouction Planning

Plant Maintenance

Sales and DistributionMaterialsl

Management

Quality Management

Manufacturing

Financial Management

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Page 58: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Supply Chain Integration

Finance

Human Resources

Logistics Management

Maintenance Management

Sales & Distribution

Quality Management

Business Analytics

Manufacturing

Strategic & Operational Planning

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Page 59: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Technology Motivations for ERP Program

Obsolete systems 7%

System not Y2K compliant 27%

Poor quality/visibility of information 17%

Business Processes/Systems not integrated 12%

Difficult to integrate acquisitions 8%

Unable to support growth 5%

Disparate systems 24%

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Page 60: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Operational Motivations for ERP Program

Poor uncompetitive business performance

22%

Cost structure too high18%Not responsive enough

to customers16%

Complex ineffective business processes

15%

Unable to support new business

strategies11%

Business becoming global

11%

Inconsistent business processes

7%

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Common ERP Myths• ERP means more work and procedures1.

• ERP will make many employees redundant and jobless2.

• ERP is just for manufacturing Enterprise5.

• ERP is just for the ERP implementation team6.

• ERP slows down the Enterprise7.

• ERP is just to impress customers8.

• ERP package will take care of everything9.

• One ERP package will suit everybody10.

• ERP is the sole responsibility of the management3.

• ERP is just for manager/decision makers4.

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• ERP is very expensive11.

• Enterprises can succeed without ERP12.

Page 62: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

ERP Market Share in 2006

SAP42%

Oracle19%

SageGroup6%

Microsoft business solutions

4%

SSA Global3%

Geac2%

Intentia2%

Infor Global solutions

2%

Lawson1%

Others19%

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Reasons for ERP growth

•Enable improved business performance (Cycle time reduction, increased business agility, inventory reduction, order fulfillment improvement)1.

• Support business growth requirements ( New products/product lines, new customers, global requirements including multiple languages and currencies)2.

•Take advantage of the untapped mid-market (medium size Enterprises) (Increased functionality at a reasonable cost, client server/open systems technology, vertical market solutions)5.

•Provide flexible, integrated, real time decision support (Improve responsiveness across the Enterprise)3.

•Eliminate limitation in legacy systems( Century dating issues, fragmentation of data and processing, inflexibility to change, insupportable technologies)4.

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Page 64: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Why is ERP Important to a Company

• ERP affects almost all Enterprises1.

• ERP forces competition to change2.

• ERP is he most important tool for business process reengineering5.

• ERP enforces “Best Practice Business Processes” in Enterprises6.• ERP fully utilizes the true potential of client server computing to

deliver an enterprise product7.

• ERP has changed the nature of IS function and IT professionals8.

• ERP has changed the nature of jobs in all functional business areas9.

• ERP implementation is very costly10.

• ERP forces business partner to become more competitive3.

• ERP improves the profits of the consulting firms4.

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Page 65: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

How does ERP create value

• Integrates Enterprises activities1.

• Forces the use of “Best Practices”2.

• Provides on line and real time information5.

• Allows simultaneous access to data for planning and control6.

• Facilitates intra Enterprise communication7.

• Facilitates inter Enterprise collaboration8.

9.

10.

• Enables Organizational standardization3.

• Eliminates information asymmetries4.

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Tangible Benefits of ERP

On time delivery improvements

Manitenance reductions

Transpotation/Logistics cost reduction

Revenue/Profit increases

Cash management improvements

Procurement cost reduction

IT cost reduction

Financial close cycle reduction

Other management improvements

Productivity improvements

Personnel reduction

Inventory reduction

6%

7%

9%

11%

11%

12%

14%

19%

20%

26%

27%

32%

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Page 67: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Intangible Benefits of ERP

Supply demand chain

Business performance

Technology

Globilazition

Flexibility

Standardization

Integration

Cost reduction

Customer responsiveness

New improved process

Information visibillity

5%

7%

8%

9%

9%

12%

13%

14%

22%

24%

55%

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Risks of ERP

68

People69%

Process 18%

Technology13%

Page 69: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Risks of ERP – People Issues

• Change management1.

• Internal staff inadequacy2.

• Employee relocation and re training5.

• Staffing (Includes turnover)6.

• Top management support7.

• Consultants8.

• Discipline9.

• Resistance to change10.

• Program team3.

• Training4.

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Risks of ERP – Process Risks

• Program management1.

• Business process reengineering2.

5.

6.

7.

8.

9.

10.

• Stage transition3.

• Benefit realization4.

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Risks of ERP – Technological Risks

• Software functionality1.

• Technological obsolescence2.

• Application portfolio management3.

• Enhancement and upgrades4.71

Page 72: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

Risks of ERP – Implementation Issues

• Program size1.

• Lengthy implementation size2.

• Insufficient funding5.

• Interface6.

• Organizational politics7.

• Scope creep8.

• Unexpected gaps9.

• Configuration difficulties10.

• High initial investment3.

• Unreasonable deadlines4.

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Managing Risks on ERP Programs

• Find potential failure point or risks1.• Analyze the potential failure points to determine the damage they might do2.

• Mitigate risks through whatever action is necessary5.

• Assess the probability of the failure occurring3.• Based on the first three factors, prioritize the risks4.

73

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Three Pillars of ERP Implementation

74

PEOPLEPROCESS

TECHNOLOGY

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“Not Best“ Implementation Practices

75

• Not willing to change current business practices1.

• Not learning from mistakes2.

• Ignoring sound change control practices3.

• Lack of sound Program management4.

• Relying too heavily on third party consultants5.

• Lack of documentation6.

• Lack of executive level and functional level buy in7.

• Failing to test adequately8.

• Challenging processes 9.

• Cost and time overruns 10.

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Challenges to Successful ERP Implementations

Other

Poor ERP Package Selection

Poor Project Design and Management

Software Business Process Incompatibility

Poor Communications

Miscalculation of Time and Effort

Unrealistic Expectations f Benefits and ROI

Lack of top Management support

Inadequate Training and Education

Inadequate Resources

Resistance to Change (Lackof buy in)

Inadequate Definition of Requirements

4%

6.40%

16.80%

23.10%

27.40%

27.70%

30.60%

32.40%

36.20%

43.10%

43.90%

46.50%

76

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7777

Challenges to ERP Implementation

Business

Technology

ProcessPeople

ROI

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Challenges to ERP Implementation(cont’d)

• Business Challenges:• Resource hungry• Inflexibility• Overly hierarchal• Difficult to implement: easier to adapt business

processes to the ERP software than other way around• Business challenge in terms of Enabling

Partners, Customers and Suppliers• System wide change resulting in personnel related

problems• Maintenance and support challenges

78

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Challenges to ERP Implementation(cont’d)

• Technology:• Hardware• Software• Integrated Systems• Matching capabilities and needs• Compatibility and standards• Data Integrity• High availability• Disaster recovery• Scalability and Performance• Security and manageability and other operations area

79

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Challenges to ERP Implementation(cont’d)

• Process:• How to implement?• Implementation Process itself (outlined in detail)• Adapting processes to those of the ERP• Program Structure• Alignment to processes• Top management support• User involvement• Phased approach

80

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Challenges to ERP Implementation(cont’d)

• People:• Redefines the process• Jobs affected because of new way of doing

business as a result of ERP re-engineering• Resistance to change• Results in changes in required skill sets at the

workplace• Involves making changes in measurement and

reward systems by the management

81

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Challenges to ERP Implementation(cont’d)

• Return On Investment: (Whetherto invest? )

• One time acquisition costs• Product installation costs• Training costs in support of installation• Recurring costs in terms of maintenance and

management• Process costs• People costs• Technology costs

82

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Challenges to ERP Implementation(cont’d)

• Return On Investment: (Whetherto invest? )

• Business benefits vs. technical benefits• Operations and management cost analysis• Business cost of downtime• Analyzing costs and benefits

83

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Implementation Success Rate

Time and cost overrun

55%

Cancelled35%

On time, within budget and as

planned10%

84

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Implementation Details – Planned vs Actual

-50

50

150

250

350

Cost Schedule Planned functionality

100 10041

178230

59

85

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Advantages of ERP Implementation

• ERP software provides an integrated and process orientedenvironment leading to enhanced alignment of businessvalues and technology goals of the Enterprise

• Leads to optimization of resources (material, money andmanpower) within an Enterprise by making information easilyaccessible and available

• Results in improved decision making capabilities• Results in enhanced resource planning• Provides improved customer service• Leads to increased competitiveness• Results in reduced costs

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Advantages of ERP Implementation (cont’d)

• Results in improvement in the execution of different businessprocesses within the Enterprise

• Provides an opportunity to re-examine business processesand revise them to reflect industry standards and bestpractices

• Results in better Program management and productionplanning efforts

• Reduces lead times in production• Reduces cycle time• Reduces idle time

• Enhances other supply chain functional areas

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Advantages of ERP Implementation (cont’d)

• Results in improved product quality or availability bybetter managing or reporting on assembly line defects

• Reduced costs through reduced overall productinventories across warehouses and distribution centers

• Improved information about distribution channels• Reduced customer billing time• Management of better insight into company wide cash

flow leading to better cash management• Creates well defined and short line of accountability in an

Enterprise leading to better decision making process

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Advantages of ERP Implementation (cont’d)

• Addresses shift in customer demands by analyzingbuying trends across various geographies

• Provides analyses of buying trends across differentcustomer demographics

• Leads to increased knowledge of customer orders andtrends

• Better response to changing market conditions byrapidly analyzing customer and product trends

• Increased knowledge of better turnarounds on returns• Addresses rapid changes in business processes as these

are demand important• Increases efficiency in an Enterprise along with

compliance with safety and quality standards

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Advantages of ERP Implementation (cont’d)

• It folds all company units into one system of records• Provides one system or portal by which to manage activities in

a number of other systems ”behind the scenes”• Addresses changing government regulations through

integration with standard tax and other systems

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Solution to ERP Implementation Challenge

Effective Program Management for successful execution and implementation of the Program

91

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What is Program Management?

Program Management is the discipline of planning, organizing, securing and managing resources to bring about successful execution and implementation of specific business and technology goals by a group of people comprising of managers and functional representatives within an Enterprise

92

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Advantages of Effective Program Management

• Provides a structured approach towards identification, strategizing, planning, design, execution, imple-mentation and re-engineering of the strategic goals of the Program to meet business and technology requirements

• Program Management helps to reduce and manage risks• Results in better team coordination leading to enhanced team

productivity and smooth operation of the Program• Creates an organized approach towards managing

material, money and manpower in the Program leading toenhanced resource planning and allocation of resources

• It puts in place a methodology where lines of accountabilityare short and the responsibilities of individuals are clearlydefined

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Advantages of Effective Program Management (cont’d)

• Results in advanced and coordinated development activities due to superior Organizational, communication, analytical, problem solving and interpersonal skills as a result of effective Program management

• Effective Program management helps to standardize andsystemize it as an engineering discipline since as mentionedbefore, ERP implementation is a very resource hungryProgram

• When all the above mentioned factors are carefully taken intoconsideration, it leads to better management andimplementation of the Program

Page 95: Enterprise Resource Planning ( ERP ) and Project Management by Sabita Mishra

ERP Implementation - Traditional Approach

95Going Live/Support

Business EvaluationVendor & Package

EvaluationInitial Screening

Reengineering

Gap Analysis

Realization

Execution and Implementation

Business Blueprinting

Training

Phase 1- Pre Selection Screening Phase

Phase 2- Execution and Implementation Phase

Phase 3-Post Implementation Phase

Going Live/Support

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ERP Implementation – New Approach

96

Going Live

Program Report/Sign Off

Business Process Study(Business Evaluation) Program Scope Management

(Technical Evaluation)

Organizational Planning

Program Plan Management

Execution & Implementation

Risk Management

Phase 1 – Pre Selection Screening Phase

Phase 2 – Execution and Implementation Phase

Phase 3 – Go Live

Phase 4 – Post Implementation Phase

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9797

Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology

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9898

Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Business Process Study

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Business Process Study

Objective : Establish a Business case for ERPinvestment by making a case for business alignmentof the objectives and values of the Enterprise that canbe highlighted and realized through ERP investment

• Define strategic business goals of the Enterprise• Identify business strategy in place• Detailed business analysis including Organizational and

historical information, operational information, financialinformation, market study, ROI investigation, productmetrics to support the objectives of the Program

• An overall identification and study of existing processesand conceived processes and mapping of businessprocesses that needs to be resolved

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Business Process Study (cont’d)

• Comparison to industry standards• Create clear linkages with business strategy along with

creating a strategic map to define cause and effect linkages• Determine program management, its impact on the business

being run differently, employees and their jobs, training andimplementation issues

• Identify business requirements and high level businessproblems that ERP implementation will resolve

• Assess corporate change readiness• Create realistic goals and expectations for the management• Design an overall future state for making a case for ERP

implementation

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Business Process Study

Program Scope Management

Program Plan Management

Program Enterprise Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Scope Management

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Program Scope Management

Objective : Establish a Technical case for ERPinvestment by identifying business processes that canbe re-engineered and mapped into ERP softwarefunctionalities

• Set up a steering committee and appoint a Program sponsor• Baseline scope identification by redefining Program goals and

objectives along with Program deliverable and timeframes• Scope major business processes the business will transform

through ERP implementation

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Program Scope Management (cont’d)

• Study the relationship of the Program with the legacyinformation systems, e-commerce applications, high leveltechnical architecture, timeframes of application release andmeasures of the success of the Program

• Identify changes in business structure and its impact onbusiness and software usage to create a cohesive businessoperation model using the future IT infrastructure as theoperation backbone

• Detailed evaluation and selection of ERP package involving(cont’d)

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Program Scope Management (cont’d)

• Detailed evaluation and selection of ERP package involving• Benefits• Flexibility• Maintenance and support challenges• Risks involved• ERP functional capabilities• ERP expansion potential• ERP technology deliverables• Value enhancements• ERP vendor credibility in the marketplace etc.• ERP product quality

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Program Scope Management (cont’d)

• Identify which modules will be used for the Program and thefunctionalities that are going to be used for each module

• Identify proper hardware that will be required to supportdevelopment work on ERP software as a critical deliverableand physical space requirements for the Program

• Conduct a general study to have an overall view of theresource allocation that will be required for the selectedpackage

• Conduct a feasibility study along with ROI investigation of theselected ERP package

• Develop an overall Program plan and program managementmethodology along with an overall implementation strategyfor the ERP Program

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Plan Management

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Program Plan Management

Objective : Detailed breakdown of the strategicbusiness requirements into technical and functionalrequirements by conducting a feasibility study andmapping the Program deliverables from all angles forthe successful implementation of the Program(Process mapping and gap analysis – Technologyimplementation plan)• Translate business requirements into technical requirements

by first identifying key business process flows that thebusiness will transform

• Detailed analysis and study of the identified business processflows to customize it to individual customer requirements tomeet business and technical requirements

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108108

Program Plan Management (cont’d)• Develop Program plan and detailed methodology for

delivering defined goals for each process flow• Detailed implementation strategy and proper sequencing and

scheduling of each step in the implementation process forsuccessful execution and implementation of the Program

• The details of the implementation process should includethoroughly defined scheduling to include realistic goals, costsand timeframes to minimize system downtime

• Carefully analyze and resolve each factors affecting theimplementation plan ranging from businessfactors, technology factors, budgetary factors and humanfactors such that they are broken down in different phases ofthe Program for effective execution and implementation

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Program Plan Management (cont’d)

• Program plan should include a complete inventory andanalysis of application customization, interfaces, output anddata conversion requirements should be performed as a basisfor developing a detailed implementation plan and determineeffort levels and resource requirements

• Detailed analysis of design and sizing of the SAP componentsto be implemented including accessibility options like SAPweb application server (WebAs) internet transaction server asrequired

• Detailed analysis and evaluation of the implementationstrategy adopted for the Program ex. Big bangimplementation, phased implementation etc.

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Program Plan Management (cont’d)

• Explore process map from every angle and provide solutionsalong with configuration for the worst case scenarios

• Stress on automation as opposed to manual intervention• Optimizing the creation of new objects during configuration• Prepare realistic goals and milestones with simple and

straightforward solution

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111111

Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Signing Off

ERP Program Management Methodology –Program Organizational Planning

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Program Organizational Planning Management

Objective : Establish a structured approach for teamformation and effective communication between theteam members in the Program to achieve strategicgoals and deliverables for the successful executionand implementation of the Program• ERP Programs being very resource hungry and heavy demands it

puts on personnel working on these Programs, it becomes Programmanagers and steering committees job of careful staff acquisitionfor the Program for their intended roles and responsibilities asprime movers of the Program

• Careful team development which includes representatives fromdifferent functional groups from all departments that will beaffected by ERP re-engineering along with technology partners andexternal and internal customers as applicable

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Program Organizational Planning Management (cont’d)

• Delegating responsibilities to each and every member of theProgram along with their intended role and involvement inthe Program

• Establish Program communication activity and milestonedeliverables

• Develop a plan for Program time management involving• Activity definition• Activity sequencing• Activity duration estimation• Schedule development• Schedule control

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Program Organizational Planning Management (cont’d)

• Establish a detailed communication management andinformation and distribution system including

• Administrative• Reporting• Daily deliverables• Weekly targets• Weekly progress reports• Establishing a frequency of reviews with team

members, supervisors and management• Establish a detailed plan and format for the meetings to utilize

the time efficiently and to get the most of the Programmeetings

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Program Organizational Planning Management (cont’d)

• Establish a consistent method and format for informationdistribution among team members from electronic mailsystem to in person information and data distribution toproviding status reports to supervisors and management

• Create a Program issues database to allow Program teammembers an opportunity to record problems relating to theProgram for effective communication and resolution of theissues along with proper monitoring of the issues that comesup during the implementation process

• Evaluation and monitoring of the Program progress on aregular basis to keep track of the competency of the team andthe Program for the timely execution of the Program

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Resource Allocation

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Program Resource Allocation

Objective : Proper allocation and delegation of theProgram resources to the Program deliverables tocomply with time and budget constraints along withProgram metrics for the successful implementation ofthe Program

• Since ERP is a resource hungry Program, identify majorresources namely money, manpower and material that isrequired for the Program

• Analyze and evaluate the importance of each of theseresources and its importance for the strategic goals of theProgram for effective resource allocation

• Prioritize these strategic goals of the Program

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Program Resource Allocation (cont’d)

• Develop simulations or create scenarios to allow flexibilityand tolerances on the Program deliverables to preventscope creep during the implementation process of theProgram

• Develop contingency plans to avoid budgetary issues• Develop a detailed methodology for complying with the

above requirements where ever possible or applicable

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119119

Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Risk Management

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Program Risk Management

Objective : To identify and analyze quantitative andqualitative risk factors and tolerances of the Programmetrics for successful risk management• Program risk identification• Detailed identification and analysis of the constraints of the

Program including budgeting, time and performance criteriaetc.

• Quantitative and qualitative risk analysis• Identify and include roles and responsibilities of different

groups and individuals in the risk management, defineOrganizational and stakeholder risk tolerances and high levelplans for risk management

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Program Risk Management (cont’d)

• Identify factors presumed to be real that may affect theProgram, its effect on daily operation, employees andprocesses. (These are slightly different than constraints thatand can include stakeholder participation, expected fundingsystem etc.)

• Identify effective contingency plans for each scenario forsuccessful risk management

• Identify and assess change controls in the Program foreffective management and implementation of the Program.Any change control made to the Program in theimplementation stage is likely to pose a threat to progress insome way

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Program Risk Management (cont’d)

• Assess and identify the vendors and technology partnersinvolvement in the Program and its effect in effectiveimplementation of the Program such that company secretsand business practices are handled properly

• Understanding systems thinking involving qualitymanagement since any improvement in quality is directimprovement in productivity

• Assess quality control issues and develop a quality plan andcarry out quality assurances and control activities

• Develop a high level quality management implementationteam that can run the test plan against high levelrequirements to validate the scope of the Program

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Program Risk Management (cont’d)

• Assess time and cost schedule by creating a Programschedule, resource and budget plan

• Assess the current methodology for monitoring andcontrolling Program progress such that factors affectingProgram requirements, unexpected technical challenges andcharges in resources availability can managed to controlchange management and scope creep

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Program Risk Management (cont’d)

Objective : To develop solutions and methodology forsuccessful risk management of the Program leadingto successful execution and implementation of theProgram

• Develop a detailed quantitative and qualitative riskmanagement plan

• Develop a system for monitoring, identifying and trackingprogress for effective risk management and control

• Develop a methodology for risk response along withappointing a risk response committee

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Program Risk Management

• Roles and responsibilities should be clearly delegated anddefined to each member of the cross functional team toeffectively manage risks and minimize downtime and changecontrol

• Develop alternative plans and contingency plans for eachscenarios as identified constraints of the Program namelybudgeting, time and performance criteria in a cost effectiveway and without sacrificing quality

• Develop a methodology for managing change controls in theProgram for effective implementation and minimizeddowntime

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Program Risk Management

• Develop a methodology and implementation plan forresolving quality issues for effective quality management andcontrol

• Develop a methodology for monitoring and controllingProgram progress such that factors affecting Programrequirements, unexpected technical challenges and changesin the resource availability can be managed to control changemanagement and scope creep

• Develop a shared understanding of the Program and the besttool for identifying all of the attributes of the Programobjective and deliverables to quantify and manage riskseffectively

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Planning

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/ Sign off

ERP Program Management Methodology –Program Execution and Implementation

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Program Execution and Implementation

Objective : To execute the implementation strategymethodology and the module rollout plan that wasdeveloped involving prioritizing and sequencing ofthe different phases of implementation such that itresults in minimized downtime and effectiveexecution and implementation of the Program

• The implementation team should be knowledgeableabout:

• Data and data recovery• Information about standard ERP updates• Knowledgeable about system debugging

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Program Execution and Implementation

• The implementation team should be knowledgeable about(cont’d):

• Ability to excel at cross modular dependenciesusing ERP correction Transport system (CTS)

• Effect of ERP systems upgrade configuration andcustom programs

• Baseline configuration• Final configuration• Cycle tests• Integration tests

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Program Execution and Implementation

• ERP team should also be knowledgeable about ERP technicalarchitecture which consists of :

• The database server• The application server• The presentation server• Two or three tier architecture• System sizing• SAP instance for example• SAP clients for example• Nature of SAP clients

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Program Execution and Implementation

• Detailed consideration given to developed methodology ofpre installations tasks comprising of :

• Implementation strategy• Global system topology• Organizational change management• Global business process standardization• Development of global elements such as

documentation templates, standard IMGs, structureand settings, master data format and documents and soon

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Program Execution and Implementation

• Detailed planning and execution of ERP data centeroperations with detailed considerations given to :

• Standardization• Physical requirements from power to cooling and other

environmental controls• Cabling and cable management• Physical storage requirements for ERP infrastructure• Network infrastructure for ERP network fault tolerances• Control systems and optimal network configuration• Optimum server configuration

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Program Execution and Implementation

• Operating systems best practices for given ERP• General storage conditions• Special considerations to storage area networks• General best practices and observations when

developing ERP infrastructure• Leveraging storage virtualization• Planning for ERP data center operations• Special considerations when deploying the technical

sandbox• Special considerations when deploying the

development system

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Program Execution and Implementation

• Performance improvement through :• Changes in standard ERP code• Performance improvement criteria through

configuration settings• Performance improvement through master data• Performance improvement through development of

custom ABAP/4 coding• Performance improvement with buffered tables• By keeping track of response time• Through database reEnterprise and archiving• Through ERPP information system versus ABAP/4

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Program Execution and Implementation

• Detailed planning and execution of:• Hardware management tools and utilities• OS management utilities• Database management tools• Proper leveraging of SAP solution manager• ERPs solution servers• ERP net assistant• Specialty utilities (microsoft management control-

MMC)• Cluster administration and CCmon• Remote management tools

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Program Execution and Implementation

• Addressing in general ERP post installation tasks• Setting up a client or transport strategy• Addressing security, access and authorization• Setting up printing or faxing• Implementing a desktop restore solution• Addressing archiving

• Addressing change control and managing end userperceptions

• Testing high availability and disaster recovery along withtesting data conversion and ERP monitoring

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Program Execution and Implementation

• Functional regression and integration testing along with ERPsystem and system test databases

• Develop and follow the methodology conducting businessprocess testing

• Preparing for production stress testing with the objective ofachieving system levels stress testing and for trainingpurposes

• Disk subsystem and database testing and networkinfrastructure testing in the real world, ERP component andDS testing tools and best practices

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General New Product Testing “Inside Out” - Example

SAP GUI and Web GUI

SAP Client Strategy

Web Access LayerCentral

Instance and applications

Servers

Database Server

138

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Program Execution and Implementation

• Key ERP stress testing considerations are:• Creating an ERP stress test Program plan• Analyzing online users and batch processes• Its all about the data• Updating the Program plan• Real versus the virtual users• ERP users versus freeware and inexpensive testing tools• Developing business process scripts• Planning “what if”• Verify system redundancy and failover perform as

expected• Ramp up to excessive loads

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Program Execution and Implementation

• Script development and preparation in the real world bycreating administrative and other utility scripts

• Core script development• Stress testing client infrastructure• Creating administrative and other utility scripts• Login and establishing a virtual user session• Ramping up users and processes• Collecting statistics

• Ensure that disaster recovery plan is effective and backrestore criteria is verified and meets requirements

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Program Execution and Implementation

• Rounding off ERP system landscape along with speeding upOS installation process and preparation for an ERP databaseinstallation process

• Using SAP solutions manager for ERP standard methodologyand implementation along with founding off ERP systemlandscape

• Leveraging system landscape installation manager like SAPinstalong with installation documents, tools and approachesalong with installing the ERP enabling foundationsnetweaver, SAP exchange infrastructure enterpriseinformation portal and installation details for mySAPcomponents for example

• Special considerations should be given when deploying ERPdevelopment system and the technical sandbox

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Program Execution and Implementation

• Developing system management techniques for ERP• Leveraging CCMS (computer center management systems) for

manual processes and checklists along with automating CCMSdata collection processes

• Piloting systems management application for ERP along withevaluating enterprise systems management applications forERP

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Training

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Program Training Management

Objective : To transfer knowledge and train andfamiliarize the employees and the management withthe newly implemented process for effective executionof the business processes within the Enterprise

• Formal classes and courseware for ERP end users as wellas system developers and technical support staff

• Onsite training workshops• Determining the personnel that need to be trained from

management to end users and customizing and deliveringtraining curriculum accordingly

• Create and provide access to ERP knowledge warehouse

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Program Training Management (cont’d)

• Designing and using enterprise portal for knowledgemanagement along with designing ongoing knowledgemanagement and transfer process

• Creating computer based and online training productdocuments and user manuals

• Creating customized training manuals along with productdocuments and user manuals

• Design or provide certification programs along withdocumenting training of the personals

• Create a feed back loop to improve the value of the training

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going live

Program Report/Sign Off

ERP Program Management Methodology –Going Live

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Going Live (Cont’d)

Objective : The final signing off of the Program wherethe ERP Program transitions from developmenttraining and testing stages to a full blown productionenvironment

• Preparing the go live strategy and the cutover plan alongwith simulating go live scenarios

• Readying the production system and preparing fortechnical go live

• ERP going live, check and other review process• ERPGUI rollout mechanism• Final system updates and review and locking down the

system

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Going Live (Cont’d)

• Preparing for the first change management package• Updating responsibilities and roles of each member involved

in the Program• Preparing ERP operations and help desk along with updating

“as-is” documentation• Providing future support and service information along with

support agreements and leveraging joint escalation centers• Monitoring during go live week and in the real work and

planning for continuous improvement• Post implementation evaluation and support

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Going Live (Cont’d)

• Signing off of on the ERP Program and contract closeout• Knowledge transfer to the client and the final Program report• Provide ERP operations and helpdesk information along with

additional information regarding ERP support specialists, toolsand techniques

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology –Program Report

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Program Report ManagementObjective : To create a document that contains allpertinent details about the Program includingbusiness requirements, process flow charts, processmaps, configuration settings along with the logic ofcustom developed programs and issues for futureconsideration to serve as a reference for futuresupport and maintenance

• Create a format for the Program which basically coverseach step of the Program management plan from businessprocess study to go live according to client and Programrequirements

• The format of the report should basically have thestructure of all the steps of the Program management planwith an objective, methodology, data (qualitative andquantitative) followed with conclusion

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Program Report Management (cont’d)

• The data for the final report should come from all theinformation that that was collected during the course ofthe Program in the form of actual reports (namely weeklyor management reports), e-mail transactions ofinformation and or the database system that was set up forProgram communication

• The report should also include all the Programs businessrequirements, all the system settings that were made tosatisfy the requirements in ERP and all the businessdecisions that were taken to overcome issues that weretaken to overcome issues during the implementation of theProgram

• The Program report should serve as a future referencematerial or a guide for the client as they maintain thesystem after the Program has been completed

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Business Process Study

Program Scope Management

Program Plan Management

Program Organizational Planning

Program Resource Allocation

Program Risk Management

Program Execution and Implementation

Program Training

Going Live

Program Report/Sign Off

ERP Program Management Methodology

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Conclusion

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Different Departments that comprise an Enterprise

Procurement

Production/Manufacturing

Engineering

Research and Development

Marketing

Sales

Finance

Accounting

Human Resources

Shipping

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Different Departments that comprise an Enterprise

Procurement

Production/Manufacturing

Engineering

Research and Development

Marketing

Sales

Finance

Accounting

Human Resources

Shipping

156