Best Practices for ERP Implementation Projects - Presentation

Using Project Management Best Practices to Manage

Oracle Enterprise Resource Planning (ERP) Projects

Session ID# 12048

Edward Charity, Jr., PMP

Project Management Systems Consultants

(PMSC) LLC

Agenda • Introduction

• Overview of The Project Management Institute (PMI) and

The Project Management Body of Knowledge (PMBOK)

• Overview of ERP Implementation Projects

• Application of PMBOK Concepts to ERP Implementation

Projects

• Conclusion

• Questions and Answers

Introduction • Edward Charity, Jr, Project Management Professional (PMP)

• Certified Public Accountant (CPA)

• Close to 20 years experience with ERP Implementation Projects

• Worked for Oracle Consulting and Big-6/4 Consulting

• Oracle Projects (Project Accounting) Suite SME/Oracle R12

Projects Certified Implementation Specialist

• Project Management Systems Consultants (PMSC), LLC

• Founded in 2001

• Exclusively focused on ERP Implementation Projects

PMI and PMBOK • The Project Management Institute (PMI)

• One of the world’s largest professional membership

organizations

• ½ Million Members and Credential Holders in 185 Countries

• Non-Profit Organization That Advances the Project

Management Profession through:

• Globally Recognized Standards and Certifications

• Collaborative Communities

• Extensive Research Programs

• Professional Development Opportunities

PMI and PMBOK • The Project Management Body of Knowledge (PMBOK)

• One of the globally recognized standards established by PMI

• Contains the fundamental practices that Project Managers

(PMs) need to attain high standards and project excellence

• Gives PMs the essential tools to practice project management

and deliver organizational results

• The formal title for the PMBOK is “A Guide to the Project

Management Body of Knowledge (PMBOK ® Guide) – Fourth

or Fifth Edition”

• Fifth Edition – Published in 2013 – is the latest guidance and

is the source of information contained in this presentation

• Future Project Management Professional (PMP) Exams

based on the Fifth Edition

PMI and PMBOK • PMBOK Project Management Process Groups

• Initiating Process Group – Those processes performed to define

a new project or a new phase of an existing project by obtaining

authorization to start the project or phase.

• Project Manager Assigned; Project Charter and Stakeholder

Register Initiated

• Planning Process Group – Those processes required to

establish the scope of the project, define and refine the objectives,

and define the course of action required to attain the objectives

that the project was undertaken to achieve

• Project Management Plan, including all sub-plans will be

initiated

PMI and PMBOK • PMBOK Project Management Process Groups (Continued)

• Executing Process Group – Those processes performed to

complete the work defined in the project management plan to

satisfy the project specifications.

• People and Non-Human Resource Coordination

• Majority of Project Budget Expended performing these

processes

• Monitoring and Controlling Process Group – Those processes

required to track, review and regulate the progress and

performance of the project.

• Most interaction with other Process Groups

PMI and PMBOK • PMBOK Project Management Process Groups (Continued)

• Closing Process Group – Those processes performed to finalize

all activities across all Process Groups to formally close the project

or phase.

PMI and PMBOK • PMBOK Project Management Knowledge Areas

• Represent a complete set of concepts, terms, and

activities that make up a professional field, project

management field, or area of specialization.

• There are detailed processes unique to that knowledge

area (47 in total across all 10 knowledge areas)

• The PMBOK ® Guide defines the important aspects of

each Knowledge Area and how it integrates with the five

Process Groups (See Chart)

• Defined by 1) Process Inputs; 2) Process Outputs; and 3)

Tools and Techniques

PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)

• Project Integration Management

• Outputs: Project Charter and Project Management Plan

• Tool: Project Management Information System (PMIS)

• Project Scope Management

• Inputs: Project Charter and Project Management Plan

• Outputs: Scope Management Plan; Requirements

Documentation/Traceability Matrix; and Scope Baseline (aka

Work Breakdown Structure (WBS)

• Tools: Facilitated Meetings; Interviews; and Questionnaires


• Project Time Management


• Outputs: Activity Resource Requirements/Resource Breakdown

Structure (RBS); Schedule Baseline; and Project Schedule

• Tools: Critical Path Method or Critical Chain Method and

Scheduling software/tools

• Project Cost Management


• Outputs: Cost Baseline and Cost Forecasts

• Tools: Estimating Tools such as: Analogous; Parametric;

Bottom-up; and Three-Point Estimating


• Project Quality Management

• Inputs: Stakeholder Register and Requirements

Documentation/Traceability Matrix

• Outputs: Change Requests and Validated Deliverables

• Tools: Quality Audits and Inspection

• Project Human Resource Management

• Inputs: Project Management Plan and Activity Resource

Requirements

• Outputs: Change Requests and Project Staff Assignments

• Tools: Observation & Conversation and Negotiation


• Project Communication Management

• Inputs: Project Management Plan and Stakeholder Register

• Outputs: Project Communications and Change Requests

• Tools: Communications Technology; Communications Models

and Methods; and Performance Reporting

• Project Risk Management

• Inputs: Project Management Plan; Project Charter; and

Stakeholder Register

• Outputs: Risk Register and Change Requests

• Tools: SWOT Analysis and Risk Probability & Impact

Assessment


• Project Procurement Management

• Inputs: Project Management Plan and Requirements

Documentation (for Make or Buy Decisions)

• Outputs: Selected Sellers and Change Requests

• Tools: Bidder Conferences and Proposal Evaluation

Techniques

• Project Stakeholder Management

• Inputs: Project Management Plan and Project Charter

• Outputs: Project Communications and Change Requests

• Tools: Stakeholder Analysis and Meetings

PMI and PMBOK PMBOK Project Management Process Groups and Knowledge

Areas Together

{Insert Chart Here}

Knowledge

Areas

Initiating Planning Executing Monitoring Closing

Project

Management

Integration

Scope

Time

Cost

Quality

Human

Resource

Communications

Risk

Procurement

Stakeholder

ERP Implementation Projects • Systems Development Life Cycle (SDLC)

• Waterfall

• Sequential series of phases or stages to get from the start of

the project to the end

Phase 1 Phase 3 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

Analysis

Design

Build

Test

Train

Transition

Support

ERP Implementation Projects • Custom Development Vs. Commercial-Off-The-Shelf

(COTS) Software

• Custom Development (aka Home Grown)

• Built from the ground up

• Commercial-Off-The-Shelf (COTS) Software (aka Packaged

Applications)

• Pre-developed by Venders

• Built based on Vendor’s Assessment of “Best Practice”

• Configured (Setup) based on Client Requirements

• Extended (Customized) for Gaps

ERP Implementation Projects • ERP Methodologies

• Software Developer-based

• Oracle – Unified Method (OUM); Application Implementation

Methodology (AIM); and Application Implementation Program

(AIP)

• Systems Integrators (SIs)

• Usually modified versions of Software Developer-based

Methodologies

• Client Organizations

• Most geared toward Custom Development work and retrofitted

to COTS/ERP Implementation Projects

PMBOK Concepts Applied to ERP Implementation Projects

• Ten Reasons Why ERP Implementation Projects Go Bad

and some PMBOK Concepts to Address Them

• Poor Communications

• Communications Management Plan

• Stakeholders Management Plan

• Unclear/Incomplete Business Requirements

• Scope Management Plan

• Requirements Documentation/Traceability Matrix

Note: Define Initial Requirements Before Apps

Consultants are brought on board !!!!!



and some PMBOK Concepts to Address Them (Continued)

• Lack of specific ERP Implementation Project

Management Knowledge and Experience

• Project Charter

• Human Resource Management Plan

Note: Hire an experienced ERP Project Manager!!!!

• Unrealistic Timeframes

• Time Management Plan – Including Project Schedule

• Accurate Duration Estimating




• Inadequate/poor estimating skills/experience

• Quality Management Plan – with Development

Standard

• Human Resource Management Plan – with specific

resource requirements and standards




• Inadequate client resource commitments

• Human Resource Management Plan – Specifically the Activity

Resource Requirements and Project Staff Assignments

• Risk Mitigation Strategy – Back-fill Key Project Resource

• Lack of Training

• HR Management Plan and Stakeholders Management Plan

identifies who needs to be trained and the form of training

• Procurement Management Plan for Make versus Buy decision

on training development and delivery

• Time Management Plan determines optimal times for training




• Unqualified Consulting Resources

• Procurement Documents – Actively client participation

in consulting resource selection

• HR Management Plan – Activity Resource

Assignments and Project Staff Assignments

• Inadequate Executive Support/Leadership

• Project Charter identifies Project Sponsor

• Project Sponsor out front at key events, i.e. Project

Kickoff and regularly scheduled Project Updates




• Inadequate Client Information Technology/Infrastructure

Support

• Procurement Plan for Make-versus-Buy analysis (in

house hosting versus off-site hosting

• Oracle On-Demand (OOD) is an viable option, but

know the downsides before signing up. Talk to a lot

folks who’ve done this and get their feedback

Conclusion

• Oracle ERP implementation projects are complex

undertakings that benefit from a proven, structured project

management approach

• PMI’s PMBOK is a structured approach that can be adapted

to meet this purpose

• A number of common ERP Project failure areas have been

identified

• A number of PMI PMBOK concepts have been put forward

as solutions to help alleviate these ERP Project failure areas

• See White Paper for additional details

Questions?

Comments?

THANK YOU

Edward Charity, Jr., PMP

[email protected]

www.pmsc-llc.com

703-244-9407

mailto:[email protected]

