The ERP Project Project Management Team

The ERP Project

Project Management TeamEnterprise Resource Planning Project

King Fahd University of Petroleum & Minerals

Dhahran 31261, Saudi Arabia

April 2005

A Presentation to Business Process Owners

April 8, 20232

Agenda• Introduction of the Team• A Presentation on the ERP Project• Role of Business Process Owners• Project Charter• Project Plan• Establishing Goals & Objectives• Schedule of Meetings• Project Team Directory• Communication Plan• Project Office• Name the ERP Project• Next Meeting

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Outline

• ERP systems and their Benefits• Mission and Vision• Goals and Objectives• Statement of Work• Organization Structure• Assumptions and Constraints • Schedule• Estimated Cost• Quality Audit

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What’s an ERP System?

Set of application software that brings financial, distribution, manufacturing, and other business functions into balance. It extends horizontally across the company’s business functions and vertically throughout the company’s supply chain.

Source: Gartner

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Policies, Standards, Regulations, Laws, Knowledge, Triggering Events

Information Materials

Results Information Deliverables

Products

Human Resources, Tools, Equipment, ERP Systems, Facilities

GuidesProcess Step

Sub-Process Step

Inp

uts

Ou

tpu

ts

Enablers

Components of a Business Process (IGOE)

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• Key enabler of “best practice”• Catalyst to improve operational and process effectiveness• Framework for organizational transformation• Tool for extended integration• Facilitator for Information Systems’ governance• Helps in human capital advancement

ERP … Driving Economic Value

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Benefits of an ERP System

Benefits must go beyond repairing the current state to address the Benefits must go beyond repairing the current state to address the future needs of the organization across several dimensions.future needs of the organization across several dimensions.

Strategic

Operational

Technical

Financial

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• Alignment with business strategy

• Improved responsiveness

• Enhanced organizational flexibility

• Improved decision-making capabilities

• Support for “IS Governance”

Strategic Benefits

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• Leveraging of global leading practices• Increase in capacity / utilization• Improved cycle time / accuracy • Integration• Visibility of process

Operational Benefits

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• Leverage international “leading practices” instead of “reinventing the wheel”

• Integrated package forces a process focus approach to implementation

• Globally maintained “integrated package” reduces cost, effort and skills required to maintain/enhance systems.

• Centralised application security• Less ‘programming’ – more ‘customisation’

Technical Benefits

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Financial Benefits

• Savings in inventories, personnel, total logistics costs, procurement costs, etc

• Reduced assets deployed• Reduced staff costs• Improved cash flow • Increased stakeholders value

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ERP Solutions for Higher Education & Research

• Oracle

• PeopleSoft

• SAP

• SunGard SCT

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ERP Users in the Middle East • Gulf University of Science & Technology, Kuwait• American University of Kuwait• American University of Beirut• Lebanese American University (LAU)• American University Cairo• Effat College, Jeddah• American University of Sharjah• Higher Colleges of Technology, Dubai• UAE University• Zayed University, Dubai• King Faisal University has started the implementationKing Faisal University has started the implementation

Mission of the ERP Project

To improve, enable, and integrate academic and administrative processes of the University

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Vision of the ERP Project

To adopt and sustain the best information technology enabled business processes in order to support the most productive environment for learning, innovation, and research

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Goals of the ERP Project

1. Improve effectiveness and efficiency of academic and administrative processes

2. Improve support for decision making

3. Enhance availability and access to timely and reliable information

4. Enhance professional capabilities of human resources

5. Improve quality of services for all stakeholders

6. Enhance accountability of personnel, and integrity of processes and information

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Goal: Improve effectiveness and efficiency of academic and administrative processes

Select, enhance and implement an ERP system that meets all documented functional requirements to complete all transactions

Integrate functional systems Provide easy to use interfaces in both Arabic and English Provide training to end users Reduce transactional cost Reduce cycle time of transactions

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Goal: Improve support for decision making

Develop user-defined reports Implement a performance management system

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Goal: Enhance availability and access to timely and reliable information

Provide access to all users from anywhere at any time Maintain a single source of data Implement ISO 17799 standard for information security

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Goal: Enhance professional capabilities of human resources

Adopt ERP-enabled business processes Identify and conduct training programs

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Goal: Improve quality of service for all stakeholders

Deploy online self-services Deploy user support system

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Goal: Enhance accountability of personnel, and integrity of processes and information

Automate controls and reconciliation points Improve transparency and traceability of

transactions

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Critical Success Factors

Ownership, commitment and involvement of the top management

Awareness, capability and motivation at all levels among all stakeholders

An effective change management strategy and plan Necessary infrastructure for effective implementation

of the systems Minimum customization of the selected ERP system Good planning, and then rapid implementation, to

keep up the momentum Motivation and training of end-users

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Functional Scope of Work

Academics Modules1. Admission & registration

2. Student affairs

3. Research management

IT Modules1. Document management system

2. University portal

3. Business intelligence

Administrative Modules1. General ledger2. Accounts payables3. Accounts receivables4. Cash management5. Fixed assets6. Costing & budgeting

7. Inventory management8. Warehouse management9. Purchasing

10.Project accounting11.Maintenance management

12.Personnel administration13.Payroll14.Training

15.Support services– Office and Housing Services– Medical Services– Food Services– Safety and Security Services– Transportation Services– Book Store

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Work Breakdown Structure

ERP Implementor

Software

Support

Business Process

ERP SystemImplementation

The ERP Project

Develop RFP

Review Systems

Select ERP System

Sign Contract

Receive Software

Renew Support

Identify Processes

Document Processes

Renew Processes

Develop RFP

Review Proposals

Select Implementer

Sign Contract

Hardware

Setup Project Office

Upgrade Hardware

Operation & Maintenace

Setup Procedures

Upgrade HelpDesk

Provide Support

Development

Data Migration

Configuration

Testing

Training

Documentation

Document Processes Prepare End-User Documentation

Conduct Level I Training Conduct Level II Training Conduct Level III Training Conduct End-User Training

Conduct Business Process Training

Configure system

Prepare prototype

Determine Requirements

Prepare Design

Build Prototype

Determine Data Requirements

Prepare Data

Upload/Enter Data

Perform Unit Tests Perform Integration Tests Perform Stress Test

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Organization of the ERP Project

Executive Steering Committee

Project Management Team

Implementation Group 1

Implementation Group 2

Implementation Group n

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Executive Steering Committee1. H.E. the Rector (Chair)2. Vice Rector, Graduate Studies & Scientific Research3. Vice Rector for Academic Affairs4. Supervisor, Information & Communication Technology5. Supervisor, Technical Affairs6. Supervisor, Financial & Administrative Affairs7. Dean, Faculty & Personnel Affairs8. Dean, Student Affairs9. Dean, Admissions & Registration10. Dean, College of Computer Sciences & Engineering11. Director, Information Technology Center

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Project Management Team

1. Supervisor, Financial & Administrative Affairs (Chair)2. Director, Information Technology Center (Deputy Chair)3. Advisor, Information Strategy (Member)4. Manager, Computing Services, ITC (Member)

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Implementation Groups

1. Business Process Owner (Chair)

2. Key User(s)

3. Application Developer (sharing)

4. Functional Consultant

5. Technical Consultant (sharing)

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Assumptions & Constraints Availability of all business process owners and users for

completing assigned project tasks Solicit technical resources from within the University as and

when possible No new major hardware will be required to install the

selected ERP system Training and other incentives will be provided to project

teams and users to enhance their capabilities and level of motivation

Quality is first priority though project should be completed in 2 years with minimum cost

ERP system offering best value for users will be selected, though it could be costly and may require technical compromises

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Tentative ScheduleMajor Tasks123456789101112131415161718192021222324

Document processes

Issue RFP for ERP system

Select ERP system(s)

Prepare infrastructure

Issue RFP for ERP implementer

Select ERP implementer

Setup project environment

Prepare business blueprint

Configure & customize

Prepare & migrate data

Train and test

Perform quality assurance

Cut-over and go-live

Support users

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Proposed Milestone Chart

Project Start Date: 12 March 2005

Project Go-Live: 01 January 2007

Project End Date: 30 April 2007

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Appointment of External Quality Auditor

Objective:To have an independent review of quality of project management as well as implementation of the ERP system

Scope of Work:To prepare and implement a quality management plan that includes quality audits at predetermined stages/points in the project life cycle. The auditor shall plan an audit and submit a report at the end of the audit.

Duration:The work will be carried out throughout the project life cycle. However, on site audits will comprise of 10-12 days

Any Questions?

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Agenda• Introduction of the Team• A Presentation on the ERP Project• Role of Business Process Owners• Project Charter• Project Plan• Establishing Goals & Objectives• Schedule of Meetings• Project Team Directory• Communication Plan• Project Office• Name the ERP Project• Next Meeting

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Business Process Owner

Leads team of users, developers and consultants Coordinates with the Project Management Team Recommends relevant module of ERP system to be

selected after evaluation of all short-listed systems Responsible for documentation, renewals and signing-off

the business processes in his domain Tests and validates the system prior to its acceptance Assumes responsibility of achieving goals and objectives

of the ERP project in his domain

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Project Charter Mission Vision Goals and Objectives Project Organization Statement of Work Quality Assumptions and Constraints Duration Cost Performance Reporting

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Project Plan

– Scope Management Plan– Schedule Management Plant – Budget– Human Resources Plan– Communication Management Plan– Quality Management Plan– Procurement Plan– Risk Management Plan – Integrated Project Plan– Measuring & Controlling Project Performance

April 8, 202343

Establishing Goals & Objectives for the Project in your Functional Area

– What is a Goal?– SMART Goals

S: Specific

M: Measurable

A: Action-Oriented / Attainable

R: Realistic

T: Timely– Number of Goals (5-7)– What is an Objective?

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Schedule of Meetings

– Weekly meetings for 1-2 hours– Structured Meetings will be held– Minutes of the Meetings will be prepared– Copy to all relevant members of the Project Team

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Project Team Directory

– Name– Position– Department– Telephone– Fax – Mobile– E-Mail

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Communication Plan

– Organization of the Project– Meetings– Awareness sessions– E-Mail– Project Newsletter– Project web site– Publications of the Public Relations Dept.

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Project Office

Moving tothis locationBy the end ofOctober 2005

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Name the ERP Project

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Next Meeting

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Thank You