PM - ERP Implementation

1. ERP Implementation for
Kurose Systems Inc.
EZ Solutions
Prepared By:
Ahmad Moumneh
Babatunde Olasubulumi
Harkirat Singh
Houri Alinejad
Kirthana Palaniswamy
Project Supervisor:
Dr. Amin Hammad
Fall 2014

2. OUTLINE
• INTRODUCTION
• INITIATION
• CONCEPT
• EXECUTION
• CLOSING

3. INTRODUCTION
• Kurose Systems Inc. is a leading company in designing and
manufacturing networking equipment. The company’s revenue
and popularity amongst the competitors stands tall making it
one of the most sought after company in the networking world.
• Recently, the management noticed they were running out of
capacity to handle the load, to keep a track of the inventory
and the attempts made to improve the applications only
crashed the systems.
• Therefore, they want a system that could maintain the
centralized structure of the company by integrating the supply
chain, finance and human resources department in a unified
platform.

4. • The objective of this project is to implement ERP for Kurose
Systems Inc. to automate its business processes and tasks in
order to optimize its resources and make it easily available and
accessible.
• Integrating business functions and process of various
departments of the organization in one platform forms a
critical aspect resulting in improved decision-making
capabilities.
Objective

5.  Management Skills
 Past Experience of ERP
Projects
 Updated Infrastructure
 Sufficient Funds
Strengths
 Need more
Experienced Staff
 Outdated Hardware
Weaknesses
 Big Budget Project
 High ROI
 Success will develop
company profile
Opportunities
• Meeting time deadlines
• Quality of the deliverables
Threats
SWOT
Analysis
SWOT ANALYSIS

6. Weighted Scoring Model for ERP Solution Platform
Criteria Weight SAP Microsoft Dynamics Oracle
Robustness 25% 90 70 90
Operational Disruptions 15% 50 70 90
Learning curve for internal IT support staff 15% 50 80 90
Uses future-proof technology 10% 90 60 90
In-service support 10% 80 80 90
Existing hardware re-usability 5% 80 90 80
Post-implementation success rates (Historical) 10% 70 50 90
Has low risk in meeting scope, time and cost goals 10% 70 80 70
Weighted Platform Scores 100% 72.5 71.5 87.5
0 10 20 30 40 50 60 70 80 90 100
SAP
Microsoft Dynamics
Oracle
SAP
Microsoft Dynamics
Oracle
Weighted
Score by ERP
Solution
Platform
INITIATION PHASE

7. PROJECT CHARTER
Project Title IMPLEMENTING ENTERPRISE RESOURCE PLANNING FOR KUROSE
SYSTEMS INC.
Company Kurose Systems Inc.
Project Unit The TQPM Team
Project Consultant Andhika Cantona
Project Sponsor The Vice President, Operations
Business Unit Operations Division
Project Start Date September 26,2014
Project Duration 20 months
Project Location Montreal, Quebec
Project Objectives The main objective of the project is to install, integrate and commission an ERP using the Oracle E-Business suite.
The following modules shall be deployed in this project:
The Supply chain Module
The Finance Module
The Human Resource Module
Success Criteria • Meeting specified Budget, Time, Cost, Scope, and Quality constraints.
• To enhance the communications between the project team members and stakeholders.
• To meet the expectations of the sponsor and that of all internal and external stakeholders
• Manage the project risk effectively
Approach 1. The need and expectations of the customers shall be continuously tracked throughout the project phases
2. The heads of relevant functional departments shall act as subject matter experts and shall be consultants
throughout the project life cycle.
3. Any contract within this project shall be awarded through a bidding process, according to the organizational
practice
4. The internal employees of the company shall be deployed, whenever possible, to accomplish project tasks
5. Electronic mail shall be primary means of communication to the business management
6. In accordance with the company’s confidentiality policy, all e-mail correspondence on this project shall be
done through the official e-mail of the company and its partners
7. Determine the success factors for the project.
8. The various risks associated with different levels of the project shall be continuously tracked

8. Concept Phase
Work Break Down Structure

9. Tracking Gantt
Chart
(During Execution phase)

10. Network Diagram (PDM)

11. Schedule Network Diagram (AOA)
Note: Duration in weeks
17
5
6
9
10
13
11
14
16
19
21
23
24
26
27
28
29 30
D=10
E=2d
F=3d
I=1
J=1
K=2
G = 3
N=2
O=12 P=2
W = 4
X = 4
Y = 2
Z = 8
A’ = 12
B’ = 2
C’ = 2
E’ = 4
I’=4
J’=4
1
3
4
A = 1
B = 2
C = 1
2

12. Critical Path Analysis
Path 1: A-B-C-D-G-H-N-O-P-W-X-Y-Z-A’-B’-C’= 69 Weeks
Path 2: A-B-C-D-G-H-M-P-W-X-Y-Z-A’-B’-C’= 54 Weeks
Path 3: A-B-C-D-E-F-I-J-K-H-N-O-P-W-X-Y-Z-A’-B’-C’ = 70weeks & 5days
Path 4: A-B-C-D-E-F-I-I’-J’-P-W-X-Y-Z-A’-B’-C’= 54 Weeks & 5 Days
Path 5: A-B-C-D-G-H-N-O-P-W-E’-A’-B’-C’= 59 Weeks
Path 6: A-B-C-D-G-H-M-P-W-E’-A’-B’-C’= 44 Weeks
Path 7: A-B-C-D-E-F-I-J-K-H-N-O-P-W-E’-A’-B’-C’= 60 Weeks & 5 Days
Path 8: A-B-C-D-E-F-I-I’-J’-P-W-E’-A’-B’-C’= = 44 Weeks & 5 Days
Path 3 is the critical path for this project
More resources will be deployed for the critical activities on this critical path. As well,
the reservation of a management buffer is recommended.

13. Organizational Chart
Sponsor Kurose System Inc.
Oracle Senior IT
Consultant
HR ManagerFinancial Manager
Engineer 10
Project Manager
SCM Manager
Quality Engineer 1 Quality Engineer 2
Engineer 3 Engineer 6
Engineer 2 Engineer 5
Engineer 1 Engineer 4
Quality Engineer 5 Quality Engineer 6
Engineer 15 Engineer 18
Engineer 14 Engineer 17
Engineer 13 Engineer 16
Quality Engineer 4
Engineer 9
Engineer 8
Engineer 7
Quality Engineer 3
Team Leader 3Team Leader 2Team Leader 1
Project Co-
ordinator
Engineer 11
Engineer 12

14. Project Stakeholders
 Project Sponsor.
 Administrative staff
 Engineers
 Team Leaders
 Project Team
 Customers
Name Position
Andhika Cantona Sponsor
Kirthana Palaniswamy Project Manager
Babatunde Olasubulumi Project Co-ordinator
Harkirat Singh Finance Manager
Houri Alinejad Supply Chain Manager
Ahmad Moumneh HR Manager
Roles and Responsibilities

15. Risk Register
Category of
risks
Risk ID Risk factors Effects Mitigation Risk Owner Probability Impact
Organizational
R1 Lack of management commitment and support
Failure in delivering
business benefits , poor
business performance
• Early Involvement of top
management
• Hold regular meetings and
communicate key project
information throughout the
project life-cycle
Sponsor , Project
Management team
High High
R2 Inadequate ERP selection Medium High
R3 Ineffective strategic planning Low High
R4 Cultural environmental issues High Medium
Project
Managerial,
Operational)
R5 Unclear goals and objectives Low degree of
integration and
flexibility , failure in
meeting design
objectives, possibility of
scope creep, poor
conflict management.
• Hold regular stakeholder
meetings
• Ensure participation of all
stakeholders at every phase
• All changes to be vetted by
the Steering committee
Project Management
team
Low High
Medium HighR6 Changing scope and objective
R7 Lack of strong leadership Low Medium
R8 Ineffective communication Medium Medium
R9 Lack of vendor(oracle) support and partnership Medium High
R 10 Inadequate training Medium High
R 11 Failure to redesign business processes Low High
Technological
R 12 Underestimating the Architecture & Design
Inadequate system
reliability and stability,
technical complexity ,
poor performance of
ERP if went live , loss of
valuable data and
disruption to the
business operations of
the company.
• External ERP consultant to
be used to certify all
technical decisions
Implementation team,
Senior Oracle IT
consultant, Quality team
Low High
R 13 Failure in integration of the three modules Low High
R 14
Design and implementation of system disrupts
the normal business operations
Medium Medium
R 15 Inadequate legacy system management Low High
R 16 Poor software troubleshooting Medium High
R 17 Failure to operate in user’s environment Medium High
Human
R 18 Lack of business and technical knowledge
Low user friendliness ,
Low stakeholder
satisfaction
• Training of all users Stakeholders
(Key-users ,
administrative staff)
High Low
R 19 Users resistant to change Medium Medium
R 20 Lack of user involvement High High
R 21
Inadequate stakeholder relationship
management
Medium Medium
Financial
R 22 Low return on investment Budget overrun ,
potential bankruptcy
• Management buffers to be
reserved
Sponsor Low High
R 23 Cost overruns Medium High
R 24
Insufficiency in pre-implementation cost
analysis
Low High

16. Risk 8 Risk 4
Risk1
Risk 20
Risk 8
Risk 14
Risk 19
Risk 21
Risk 2
Risk 6
Risk 9
Risk 10
Risk 16
Risk 17
Risk 23
Risk 7
Risk 3
Risk 5
Risk 11
Risk 12
Risk 13
Risk 15
Risk 22
Risk 24
High
Medium
Low
MediumLow High
Probability
Impact
PROBABILITY/IMPACT MATRIX

17. Procurement Management
Procurement Process Initiation
o Procurement Process Initiation
o Arrange Project Budget
o Float Request for Proposal - RFP
o Formation of Technical Evaluation Committee - TEC
o Technical Evaluations - Demos , discussions, queries
o Financial Evaluations - Negotiations
o Finalize the Vendor
o Issue LOI - Letter of Intent
o Issue Purchase Order
o Prepare Detail Project Plan along with vendor
o Approval from Steering Committee
Procurement Plan
• Create and circulate Project Procurement Plan as per Purchase Order
• Review Procurement Plan
• Update Procurement Plan
• Deliverable: Sign-off Procurement Plan
Procurement Implementation
o Purchase license
o Purchase the approved Modules
o Purchase or Update the hardware
Procurement Closure
o Close all Contracts

18. Cost Management
This document formally appoints the following personnel responsible for the
following areas.
Managing Costs Project Manager, Finance Manager
Reviewing Changes Finance Manager
Approving Changes Project Manager
Cost Management Approach
•Direct Costs: incurred directly due to undertaking of this project
•Indirect Costs: Costs which are incurred indirectly towards this project.
•Note: The sunk costs are separately covered in the company’s annual budget
Measuring Project Costs
The management has set the following threshold values which must be reported
in each quarterly meeting by the Project Manager.
Performance Measure Green Yellow Red
Schedule Performance Index (SPI) 0.95-1.05 From 0.8-.95 or 1.05-1.2 <0.8 or >1.2
Cost Performance Index (CPI) 0.95-1.05 From 0.8-.95 or 1.05-1.2 <0.8 or >1.2

19. Phases Involved Timeline Task Cost/Unit/Hour
No. of
Units
Hours
Spent
Total Cost
WBS Level 1
Costs
Percentage
Share
Direct
Costs
Initiation-Closing 0 - 20 months Project Management Team $561,600.00 20.68%
Project Manager $40.00 1 2880 $115,200.00
Project Co-Ordinator $40.00 1 2880 $115,200.00
Finance Manager $35.00 1 2880 $100,800.00
Supply chain Manager $40.00 1 2880 $115,200.00
Human Resource manager $40.00 1 2880 $115,200.00
Implementation-
Closing 6- 20 months
Software Procurement
$300,000.00 11.05%
License Cost $300,000.00 1 - $300,000.00
Hardware Procurement $170,000.00 4.42%
Project Management Teams' Workstations
$4,000.00 5 - $20,000.00
Engineer Workstations $5,000.00 24 - $120,000.00
Server upgrade $10,000.00 1 - $10,000.00
Server Station $5,000.00 1 - $5,000.00
Team Leaders Workstation $5,000.00 3 $15,000.00
Implementation-
Closing 6- 20 months
Implementation Staff
$1,435,200.00 55.15%
Team Leaders $30.00 3 2080 $187,200.00
Engineers $25.00 18 2080 $936,000.00
Quality Staff $25.00 6 2080 $312,000.00
Indire
ct
Costs
Initiation-Closing 0 - 20 months Fixed Costs $6,480.00 0.24%
Electricity (Estimated cost per hour) $2.00 2880 $5,760.00
Internet (Estimated cost per hour) $0.25 2880 $720.00
Initiation-Closing 0 - 20 months Auxillary Costs $229,590.00 8.46%
Administration $16.00 4 2880 $184,320.00
Store/Stationary (Estimated cost per hour) $0.25 2880 $720.00
Transportation costs $75.00 33 18 $44,550.00
Total Cost for the Project 0 - 20 months $2,702,870.00 100%
Cost Estimate

20. Cost Change Control Process
The changes, if any, in the cost of the project will only be asked on the change
request document (presented later in this report) duly signed by the head of the
department concerned. The change request must be reviewed by the Project
Manager before accepting/denying such a request.
It is further required that the changes will be presented in the quarterly progress
meetings and the changes must be depicted in the cost measurement sheets.
Potential Causes of Increases in Cost
Following is the for each cost category, of the factors that could lead to an
increase in costs.
•Labor costs
•Equipment Acquisition Costs (Hardware/Software Prices)
•Other Costs
•Special Consulting costs are higher than planned;
•Additional experienced staff effort is required; or
•More on-site travel than planned is required

21. Execution Phase
Quality Assurance
 Quality assurance plan includes the process of evaluating the overall project
performance for better quality and great performance. It ensures that the ERP for
Kurose Company to integrate the business functions and processes of the finance
department, the Supply chain, finance and the HR department of the organization
is implemented in one platform.
 ERP for specified modules should comply with the specified time, cost, and
scope
 Change requests should be carried out effectively.
 The outputs of the quality assurance plan will include quality metrics , process
improvement plan , quality checklists Outputs: Quality management plan,
process improvement plan, quality metrics, quality checklists, and project
documents updates
 There are 3 quality teams that will be in charge to test the quality of the ERP
system with specific tools headed by a Team Leader for each team for each
module.

22. Project Manager: Kirthana Palaniswamy
Project Sponsor: Andhika Cantona
Distribution: Houri Alinejad, Supply Chain Manager Harkirat Singh, Finance Manager
Babatunde O., Project Co-ordinator Ahmad Moumneh, HR Manager
Date: 1 December, 2014 Report: Final
Ref Task / Deliverable
Plan Start
Date
Plan End
Date
Actual Start
Date
Actual End
Date
Status Owner
Assigned
to
Issues/Co
mments
Project
Changes
1 Project Setup
1.1 Select Project Manager 3-Jun-13 7-Jun-13 3-Jun-13 7-Jun-13 Completed PS
1.2 Select Project management team 10-Jun-13 21-Jun-13 10-Jun-13 21-Jun-13 Completed PM
1.3 Develop a project Charter 24-Jun-13 28-Jun-13 24-Jun-13 28-Jun-13 Completed PS
2 Concept
2.1 Project kick-off meeting 01-Jul-13 01-Jul-13 01-Jul-13 01-Jul-13 Completed PM
.
.
.
.
.
.
3.4 Testing
3.4.1 Create test instance for production migration 10-Jan-14 23-Jan-14 10-Feb-14 In Progress QT IT, O
3.4.2 Data conversion (test) 23-Jan-14 19-Feb-14 24-Feb-14 In Progress QT IT, O
3.4.3 Module Design & build (test) 19-Feb-14 18-Mar-14 Delayed QT IT, O
3.4.4 Testing the system 21-Apr-14 2-May-14 Not Started QT IT, O
3.5 Migration/Setup
3.5.1 Migrate the system to the production environment 5-May-14 27-Jun-14 Not Started IT, O IT, O
3.5.2 Data Conversion 5-May-14 30-May-14 Not Started IT, O IT, O
3.5.3 Complete Migration 30-Jun-14 19-Sep-14 Not Started IT IT, O
4 Closing
4.1 Closure of the project 22-Sep-14 17-Oct-14 Not Started PM PM
4.2 Lessons Learned Report 22-Sep-14 17-Oct-14 Not Started PM PMT
Project Status Report for ERP for Kurose Systems Inc.

23. Milestones
Milestone
Date
completed
Responsible person Status Comments/Issues
Project Management team
assembled
21-Jun-13 Project Manager Completed Went well
Project Charter signed 29-Jun-13 Sponsor Completed Went well
WBS completed 6-Sep-13
Project Manager +
Project Imp. Team
Completed Went well
Procurement plan finalized 13-Sep-13
Project Manager +
Project Imp. Team
Completed Went well
Project Team Acquired 27-Sep-13
Project Manager +
Project Imp. Team
Completed Went well
ERP Software and H/W
purchased
18-Oct-13
Project Management
team
Completed Went well
Design completed 2-Jul-14 Implementation team
Delayed but
completed
Went well
Training completed 2-Jul-14
Implementation team +
Oracle Senior IT
consultant
Delayed but
completed
Went well
Testing completed 2-May-14 Quality Engineers
Delayed but
completed
Went well
Migration completed 19-Sep-14
Implementation team +
Oracle Senior IT
consultant
Completed
ahead of
time
Went well
Project acceptance document
signed
17-Oct-14 Sponsor Completed Went well

24. Monitoring and Controlling Phase
Change Request
Project Name: Project ID:
Date Requested: Date Required
Change Requestor: Dept:
Designation: Change No:
Change Category (Check all that apply):
□ Scope □ Schedule □ Cost
□ Requirements/Deliverables □ Execution
Priority:
□ Critical(Immediate action Required) □ High(Attention required)
□ Normal(Doesn’t Hinder work progress) □ Low(May not have any major effect)
Brief Description of the change requested:
Reason for the change:
Alternatives Considered before submitting the change request:
Technical Changes required (if any)
Financial Impact (Estimated in USD): Schedule Impact (Estimated in days):
Project Manager Review:
Comments:
□ Approve □ Reject □ Hold
Justification of :
Change Board Approval
Name Signature Date

25. Contingency reserve
Cash flow
Total Cost as estimated in the Cost Estimate $2,702,870.00
Total payment amount agreed with the client $4,000,000.00
Profit $1,297,130.00
Profit margin 32.4%
Cash flow after approved cost change
Total Cost plus the change in cost $3,108,300.50
Total payment amount agreed with the client $4,000,000.00
Profit $891,699.50
Profit Margin 22.3%

26. Process Improvement Plan
POTENTIALAREAS FOR IMPROVEMENT:
System Design
1. Task Distribution:
Risk: The team leaders may not assess the work quantity correctly and may assign varying workloads to each team
member
Improvement Suggestion: The team Leaders should assess the data and consult with each other before distribution of
the data. They should do this work when Engineers are in phase of initiating the system. The work distribution should
be uniform to each engineer.
2. Inter-team Data Transfer and collaboration:
Risk: The data may not merge correctly
Improvement Suggestion: Better inter-communication between the teams and team leaders. Ensure both team work at
same pace so that both should finish the parallel tasks on same time.
3. Sudden Increase/decrease in Workforce:
Risk: Due to sudden increase or decrease in workforce, the schedule may get affected.
Improvement Suggestion: The team Leaders should immediately redistribute the work and simultaneously make a
change request to hire new replacement engineers. The whole process should not exceed 15 days.
Testing
1. Selection of mock Data:
Risk: Data Selected for test runs doesn’t replicate the actual data to be processed.
Improvement Suggestion: Select Data based on past experience of similar projects EZ solutions did for the ERP
implementation. The Project Manager should be consulted for this.

27. Closing
Administrative and contact closure procedures are to check that the goals are met.
Project management plan:
• Project execution directed and well implemented
• Document project planning decisions regarding alternatives chosen
• baseline for progress measurement and project control provided
• project planning assumptions documented
Deliverables:
• Work performance information processed
• Quality assurance plan fulfilled
• Contract management plan fulfilled

28. Lesson Learned
For an organization, successful ERP implementation means faster, more reliable reporting,
improved workflow and efficiency, and scalable systems to facilitate organizational growth.
So many factors contributed to the success of this project.
The checklist below aims to identify the success factors of this project in order to help the
organization minimize risk and maximize success in future projects:
Executive Support: implementations have linked significant incentive compensation of the
key project sponsor and leaders to project success.
Defining the Project: Far too many companies look at an ERP implementation as an “IT”
project instead of a business transformation event. Involving key operational, financial and IT

29. staff will help make certain the project will deliver the required process value to ensure
success.
Planning: ERP events in large part will succeed or fail at the project outset. A detailed
understanding of the current business process, condition of the legacy system database, and
vision of the future state of the business process are key elements that must be captured in
the project plan.
Human Capital:
•Identification of people experienced with the selected ERP system is important for project
success.
•Selecting the ERP business partner (vendor).
Documenting: Documentation allows you to retain that valuable knowledge as well as to
educate future employees.

30. Pre-Initiation
Introduction
SWOT Analysis
Weighted Decision Matrices
Initiation
Project Charter
Project kick-off
Concept
WBS
Gantt chart
Network Diagram
Critical Path Analysis (Activity-on-Arrow Diagram)
Schedule baseline
Project Organization chart
Stakeholders Register
Risk register
Procurement Management Plan
Cost Estimates
Quality Metrics
Implementation
Finance , HR, Supply chain management Modules
Quality Assurance checklist
Milestones list
Monitoring and Control
Change Requests
Project performance/Process improvement plan
Closing
Lessons learned report
Project report
Organizational process asset updates
Project Deliverables