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ERP Project Management

ERP Project Management. ELIE MAROUN. Characteristics of ERP Installation projects. ERP systems involve a large collection of complex hardware and software ERP project management has been found to benefit most due to the following: Clear definition of objectives

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ERP Project Management

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  1. ERP Project Management ELIE MAROUN

  2. Characteristics of ERP Installation projects • ERP systems involve a large collection of complex hardware and software • ERP project management has been found to benefit most due to the following: • Clear definition of objectives • Development of a work plan and a resource plan • Careful tracking of progress

  3. Characteristics of ERP Installation projects • Project plans need to be more aggressive because ERP systems are very critical to organizational efficiency. • Scope creep? • How can it be avoided • What is it

  4. Characteristics of ERP Installation projects • What’s more important? • Implementing an ERP system on time and budget • Implementing the right ERP system

  5. Critical Path Method • Provides an easy way to identify how fast a project can be completed. Input of the CPM include: • A list of each activity • Expected duration • Activities that immediately precede the activity

  6. Critical Path Method Two Graphical outcomes of the Critical Path Method are: 1. Network diagram 2. Gantt Chart

  7. Critical Path Method • Steps in CPM project planning: • Specify individual activities • Determine sequence of those activities • Draw a network diagram • Estimate completion time for each activity • Identify Critical Path (longest path through network) • Update the CPM diagram as the project progresses

  8. Critical Path Method • Network Diagram

  9. Critical Path Method • Gantt Chart

  10. Critical Path Method Definitions to be familiar with: • Early Start Schedule- Schedule designed to accomplish each task as early as possible. • Late Start Schedule- Schedule designed to accomplish each task as late as possible while maintaining expected project completion time. • Slack- Extra time available to accomplish a task beyond the time scheduled, while still allowing the project to be completed as scheduled. • Shared slack- Slack that is common to two tasks.

  11. Buffers • Means to ensure that critical activities are completed on time • A time that is included in the schedule to protect against unanticipated delays and to allow early starts

  12. Buffers • Different types: • Project Buffers- Added to the end of a project to ensure against general delays. • Feeding Buffers- Buffers preceding the juncture of non critical activities leading into critical activities. (this ensures that the NC will not delay the C activities) • Resource Buffers- Placed before resources scheduled to work on critical activities to ensure that resources shortage will not delay critical activities. • Strategic Resource Buffers- Used to ensure that key resources are available for critical activities.

  13. Resource Leveling • Involves extending schedules so that particular resources are not over scheduled. • Leveling requires delaying tasks until resources are available, allowing the project to be finished, though often resulting in a later project finish date. • Ex. Limited resource availability or difficult to manage changes in resource levels.

  14. Critical Path Criticisms The Critical Path is very useful in identifying the fastest one can expect to complete a project, but very often things may not proceed as planned in ERP projects. The original Critical Path Plan, always requires some kind of adjusting especially as the project moves forward through each phase. • There is usually significant variance in possible durations of activities. • One way to help in dealing with high uncertainty in activity progress is scheduling milestones.

  15. Critical Path Criticisms • Ways to help in analyzing projects and their time and resources requirements are: • Crashing – trade-off between time and resource • PERT – Project Evaluation and Review Technique (uncertainty in duration estimates) • Simulation- to better deal with uncertainty in duration estiamtes

  16. Critical Path Criticisms • Resource smoothing – an extension of resource leveling • Tends to make projects longer, not shorter.

  17. Works Cited • http://www.netmba.com/operations/project/cpm/ • http://www.smartdraw.com/resources/examples/business/gantt1.htm • http://www.pmforum.org/library/glossary/PMG_R03.htm • http://pubs.logicalexpressions.com/Pub0009/LPMArticle.asp?ID=213 • http://www.comp.glam.ac.uk/Teaching/projectmanagement/planning3f.htm • Managerial issues of Enterprise Resource Planning systems

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