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ERP Implementation

Methodology

Columbia Technical Consulting, Inc.

Presented by John Paulson, ERP Consultant & Project ManagerEmail: [email protected]

Phone: 503-819-0190

How to succeed with your ERP implementation

Columbia Technical Consulting Services, Inc.

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John Paulson ERP Consultant and Project Manager

Since 1997, John has consulted on over 27 ERP engagements for some of the nations leading

companies. Founder of Columbia Technical Consulting, Inc., and JDE Resources Services,

John has provided ERP solution services, consulting, project management, supply chain

consulting, operational assessments, and process and systems alignment and optimization

services to organizations throughout the nation.

.John’s expertise in ERP systems, supply chain consulting, and project management have been

requested by, and provided to, national consulting firms as; Accenture, Ernst and Young, Cap

Gemini, Delta Cubed, Panex Consulting, Premier Consulting, AMX International, Foothills

Consulting, Rapidigm Consulting, The Hunter Group, Jagwire Group, PCM Solutions,

Systems Management Inc., Versa Tech, PCI, Jibe Consulting, and many more


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Introduction

Why Do Projects Fail?

Implementation Methodology

Project organization roles and responsibilities

Project management

Change Management

Stage 1 – Setup

Stage 2 - Piloting

Stage 3 – Integration

Stage 4 – Cutover

Stage 5 - Post Implementation Support

Stage 6 – Continuous Improvement Process

Phase 2?

Implementation project deliverables

Case studies

Pit falls

What worked

The Common Theme for ERP Success

Q&A

AGENDA


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Why do Projects Fail?


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Reasons Why Projects Fail

13.1% Incomplete requirements

12.4% Lack of user involvement

10.6% Lack of resources

9.9% Unrealistic expectations

9.3% Lack of executive support

8.7% Changing requirements or specifications

8.1% Lack of planning

7.5% Didn’t need the software any longer

6.2% Lack of IT management

4.3% Technology illiteracy


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Reasons for Late/Over Budget

12.8% Lack of user input

12.3% Incomplete requirements or specifications

11.8% Changing requirements or specifications

7.5% Lack of executive support

7.0% Technology incompetence

6.4% Lack of resources

5.9% Unrealistic expectations

5.3% Unclear objectives

4.3% Unrealistic time frames

3.7% New technology


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Implementation

Methodology


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Methodology

Approach & Objectives

• Simplification of traditional implementation process

• Streamlined methodology for efficient implementation

• Knowledge transfer throughout the project


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ERP Implementation Approach

6 Steps

Project

Planning

System

Install

Business

Process

Workshops

Application

Analysis and

Design

Application

Setup

Project Team

Training

Functional

CRP Testing

Data Migration

Customization

Design and

Development

Procedures

and

Documentation

Integration/

customization

testing

Integrated CRP

Stress Testing

Data Migration

System

Performance

Assessment

End User

Training

System

Cutover

User

Acceptance

Testing

Post

Implementation

Support

Follow Continuous

Improvement

Methodology for ERP

Improvements

Setup Piloting Integration Cutover Post Support Cont. Improvement


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Project

Planning

Project Team

Training

Application

Setup

Application Analysis

and Design

Data

Migration

Procedures

and Documentation

Integrated

Conference Room

Pilots

Customization Design

and Development

User

Acceptance

Post Implementation

Support

End User

Training

System

Cutover

System

Install

Project Management / Change Management

High Level Project View

Business Process

Workshops

Knowledge Transfer

Functional

Test

Improvement

Process

Setup Piloting Integration Cutover Post SupportContinuous

Improvement


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Steering Committee:

Set project direction and maintain project oversight

Communicates expectations

Assess impact of proposed opportunities and recommendations and make final decisions

Provide leadership and ongoing support

Own project

Action Teams:

Analyze issues, activities and processes

Develop and test creative ideas and solutions

Take ownership of ideas and solutions

Develop specific action steps and commit to action plans

Perform day-to-day project tasks

Assume accountability for design changes

Own project

Functional Teams

Steering Committee

Project Managemen

Team

Project Management Team:

Provide day-to-day project management

Ensure that project objectives are achieved

Provide process & systems advice to action teams

Provide leadership

Coordinate resources and action team participants

Serve as liaison between action teams and steering committee

Provide necessary resources

Monitor and track project status and budget

Own Project

Project Organization

Roles & Responsibilities


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Sustained

Sponsorship

Project Manager as

Coach/Facilitator/

Coordinator

Workplan

• Individuals given responsibility/accountability

•Set milestones

•Time boxed

Effective, Synergistic Team

•Team building

•Appropriate skill sets

•Well understood objectives

•Change management

•Buy in

SUCCESS!!

Clearly Defined Goals/

Objectives/Deliverables

•Measurable objectives

Project Management Process

1. Structure the project

2. Plan the project

3. Control the project

4. Assess change

5. Report progress status

6. Conclude the project

Project ManagementA process that continues throughout the project, ensuring that the project is completed on time, within

budget and within scope, making the best use of the resources available


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Detail Project Startup

Identify and deploy project team – clarify and assign project roles and responsibilities

Identify risks and mitigation plan

Detailed project plans prepared

Establish project team workspace

Establish project team ground rules

Establish project infrastructure:Milestones

Meeting schedules and process

Identify project deliverables

Establish document templates, repository and version control


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Project Plan


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Change ManagementA structured approach to shifting/transitioning individuals, teams, and organizations from a

current state to a desired future state. It is an organizational process aimed at helping

employees to accept and embrace changes in their current business environment. In project

management, change management refers to a project management process where changes

to a project are formally introduced and approved

•


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ProjectPlanning

Project TeamTraining

ApplicationSetup

Application Analysisand Design

SystemInstall

Stage 1 - Set-Up

WHAT

Preparation for the first configuration of the application & high level process definition

GOAL

To establish the road map for subsequent phase

DELIVER

Extended team kickoff

Install hardware and software

Project team application training

High level process design

Review completed analysis

Configuration entered and validated

Business Process

Workshops


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Stage 1 – Set-UpProject Planning

TASKS

Detail Project Planning

PARTICIPANTS

Project manager, process owners,

team leads, IT

DELIVERABLES

Training Plan

Issues database

Installed software

Project tracking and reporting

methods

Documentation standards

Initial end user training strategy

ProjectPlanning


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Stage 1 – Set-UpApplication Analysis and Design

TASK Review all sales cycle

documentation.

Schedule and attend design meetings

Develop design review presentation document, including scope, phases, major issues/gaps

Signoff Project Design

Complete initial setup Documentation

Signoff setup documentation

Incorporate any changes to scope into the project plan, budgets etc.

Application Analysisand Design


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Application Analysis and Design

Stage 1 – Set-UpApplication Analysis and Design (cont.)

PARTICIPANTS

CTCI consultants, client

functional leads, XXX

Consulting Services PM, Client

PM

DELIVERABLES

Preliminary design

documentation

Setup documentation

Finalized Scope documentation


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SystemInstall

Stage 1 – Set-UpSystem Install

TASK

Plan for prototype environment

installation

Install Software

PARTICIPANTS

Install consultants, IT

DELIVERABLES

Plan to prepare for the facility,

hardware, software and

resources.

An environment to utilize during

prototype


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Network tuning

Server Acquisition

PC Client Acquisition

Software Installation

Deployment server

installation

Installation Planner

Installation Workbench

Server installation

Workstation installation

SummarySystem Install


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Application setup

Stage 1 – Set-UpApplication Setup

TASK Create an empty Pilot environment

(1st pass)

Enter ERP software application setups

Validate setup in pilot

Update setup documentation to reflect actual setup

PARTICIPANTS Client MIS personnel

CTCI consultants (Client will assist to increase clients familiarity with setup steps)

DELIVERABLES Completed setup documentation


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Project Team Training

Stage 1 – Set-UpProject Team Training

TASK

Identify training requirements for client implementation project team

Obtain / develop ERP functional/technical training schedule and schedule the classes documenting the dates on the project schedule

RESPONSIBILITY

Client project manager, CTCI project manager

DELIVERABLES

Project team training plan

Project team training


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Stage 2 - Piloting

WHAT

Testing discrete transactions, inquiries, reports within each module

GOAL

90% of the business requirements configured, detailed processes defined

DELIVER

Pilot test plan

Desktop procedures

Conversion, interface plan

Application gap analysis

Report development matrix

Detailed design

Proof of concept

Knowledge transfer to client

Customization Designand Development

Proceduresand Documentation

Functional Testing

DataMigration


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Stage 2 – PilotingProcedures and Documentation

TASK

Deliver “Top Ten” template

procedures

Complete desktop procedures

RESPONSIBILITIES

CTCI consultants

Client Functional Leads

DELIVERABLES

Desktop procedures

Quick Reference Cards

Proceduresand Documentation


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Stage 2 – PilotingFunctional Testing

TASK

Create scripts for each function

Collect non-converted business data

Configure & test

Create versions, menus, etc.

Conduct preliminary test to validate

system setup

RESPONSIBILITIES

Consultants

Client Functional Leads

DELIVERABLES

Pilot Plan

Test scripts

Functional Testing


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Stage 2 – PilotingData Migration

TASK Create migration plan

transfer business data, control

tables, central objects

Create selected master tables

Run conversions

Run integrities and reconciliation

RESPONSIBILITY

Client MIS personnel

CTCI consultants

Client functional leads

DELIVERABLES

Migration Plan

Conversion plan

DataMigration


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Stage 2 – PilotingCustomization Design and Development

TASKGather requirements from client

functional leads

Write functional specification

Write program specification

Develop customization

Install customization

Test

Signoff

RESPONSIBILITY Consultants, Client

DELIVERABLES Functional specifications

Program specifications

Completed customization

Customization Designand Development


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Stress Testing

Integration / Conversion Testing

Conference RoomPilot

System Performance and Assessment

Stage 3 - Integration

WHAT Building on base design

Validating integrated business processes

Stress testing

GOAL Verify that the processes and system

will support the business across interfaces

DELIVER Integrated conference room pilot

Conversion testing & validation

Stress test/performance tuning

System performance assessment

Integration testing

Report and interface development and validation


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Integration / Conversion Testing

Stage 3 – IntegrationIntegration/Conversion Testing

Task Develop acceptance criteria at Project

Kickoff

Final validation of application setup

Validate converted data

Review pilot – Functional

Review pilot – Integration

Signoff pilot

Responsibilities Client project manager

CTCI Project Manager


CTCI consultants

Client project team

Deliverables Acceptance Criteria

Client acceptance of the system

Completed integrated pilot


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Conference RoomPilot

Stage 3 – IntegrationConference Room Pilot

Task Deliver pilot plan templates and pilot

concepts to client functional leads

Approve pilot plan

Run functional pilot scripts

Modify desktop procedures as needed

Responsibilities CTCI consultants


Deliverables

Approved pilot plan


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Stress Testing

Stage 3 – IntegrationStress Testing

Task Hardware response time

Database throughput

Network traffic and performance

Application response time

Responsibilities


Client functional lead

CTCI consultants

Deliverables

Completed stress tests


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Stage 3 – IntegrationData Migration

TASK Confirm migration plan

Final test to transfer business

data, control tables, central objects

Create selected master tables

Run conversions

Run integrities and reconciliation

RESPONSIBILITY


CTCI consultants


DELIVERABLES

Migration Plan

Conversion plan

Preliminary Production DB

Final Gap Analysis

DataMigration


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System Performance and Assessment

Stage 3 – IntegrationSystem Performance and Assessment

TASK Review stress test results

Analyze breaking points

Re-test

RESPONSIBILITIES

Client MIS

CTCI Consultants

DELIVERABLES

System analysis report

System design


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UserAcceptance

End UserTraining

SystemCutover

GoLive

Stage 4 - Cutover

WHAT

Full business simulation

Training

GOAL

To fine-tune cutover procedures

and verify potential impacts

DELIVER

User system acceptance

End user training

Validate cutover/fall back plan

Process optimization


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End UserTraining

GoLive

Stage 4 – CutoverEnd User Training

TASK

Develop “Go Live” plan

Identify end user training needs

Setup client site training facilities

Develop and publish schedule

Complete training prior to going live

RESPONSIBILITY

Client project manager, Client functional leads

Deliverables

End user training plan

End user training


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UserAcceptance

GoLive

Stage 4 – CutoverUser Acceptance

TASK Final validation of application

Validate converted data

Review pilot – functional

Review pilot – Integration desktop procedures, end user training, integration testing

Signoff/User Acceptance Testing (UAT)

RESPONSIBILITY

Client functional lead

Client project manager

Client project team

CTCI consultant

DELIVERABLES

Acceptance criteria

Client acceptance of the system


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Cutover

Stage 4 – CutoverCutover

TASK Develop schedule

Develop a contingency plan

Process final conversions

RESPONSIBILITY Client Project Manager, CTCI

Project Manager

DELIVERABLES Go Live cutover schedule

GoLive


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Cutover

Stage 4 – CutoverCutover/Go Live

Going Live is a Process, Not a Milestone

TASK

Complete end user menus, responsibilities

Deliver final setup documentation, issues logs.

Begin live processing

RESPONSIBILITY

Client system administrator, CTCI consultants

DELIVERABLES

Go Live

Final documentation

GoLive


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Stage 5Post ImplementationSupport

Post ImplementationSupport

GoLive

Stage 5 - Post Implementation

Support TASK

To support the client team and infrastructure during initial use of the system back up support during first days

First „month end‟ support

Identify remaining issues

RESPONSIBILITIES

Client project team, CTCI consultants, CTCI Project Manager

DELIVERABLES

Onsite support

Next phase recommendations

Project review

Celebration!


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• Phase 2 Improvements Identified

• Upgrade to latest version

– Upgrade planning

– Analyze new features

– Train & Implement new features

• Perform periodic systems audit

– Analyze new business requirements

– Review system performance & manual operations

– Develop audit report and action plan

Continual Improvement


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Implementation Project Deliverables

Project Plan

Scope Documentation

Status Reports

Process descriptions and process flows

Setups

Training materials

Customizations detail, both design and

implementation

System Designs

Interface specifications

Conversion documentation

Desktop Procedures

Issue Log and Issue Resolution

Conference Pilot - All test scripts / Signoffs

User Acceptance Testing Signoffs

Columbia Tech Consulting, Inc.

John Paulson presents this ERP methodology presentation offering his

experiences, and insight, in what it takes to succeed in your organizations ERP

initiative. Using real world case studies of ERP implementations; what worked,

what didn’t, and the red flags to watch for, he’ll discuss how to prepare, manage,

and steer the course of your ERP initiative through the Finish Line.

John provides ERP consulting assistance in planning, software selection, project

planning and management, training, process consulting, and facilitating your

organizations ERP initiative

John Paulson, ERP Consultant

Cell: 503-819-0190

Email: [email protected]

For more information regarding this presentation, methodology, and tools used,

or to schedule this presentation at your organization contact John Paulson;

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