PROJECT CHARTER

Client Name

Table of Contents

1 Introduction 1.1 Overview 1.2 Statement of Work Conflicts1.3 Project Objectives 1.4 Benefits 1.5 Project Assumptions and Constraints

2 Scope 2.1 Functional Scope2.2 Technical Scope

2.2.1 Local Area Network 2.2.2 Wide Area Network 2.2.3 Basis 2.2.4 On-line Software Support 2.2.5 Hardware

3 Project Organization & Roles 3.1 Executive Sponsor3.2 Executive Committee3.3 Steering Committee3.4 University Project Director3.5 SAP Project Manager3.6 SAP Project Integration Manager3.7 Project Office3.8 Project Team Leads

3.8.1 Functional Team Leads3.8.2 Technology Project Team

3.8.2.1 R/3 Administration3.8.2.2 Database Administration3.8.2.3 UNIX System Administration3.8.2.4 NT System Administration3.8.2.5 Network Administration3.8.2.6 Desktop Support3.8.2.7 ABAP Programming Support

3.8.3 Change Management Team

4 Project Plan 4.1 Methodology Overview

4.1.1 Proposed Implementation Strategy 4.1.2 Scope Management 4.1.3 Issue Management4.1.4 Complexity Management 4.1.5 Risk Management 4.1.6 Project Planning and Monitoring (Review Meetings) 4.1.7 Quality Assurance

4.2 Implementation 4.2.1 Project Plan 4.2.2 Training Plan

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4.2.3 Knowledge Transfer 4.2.4 Change Management

5 Project Management Standards and Procedures 5.1 Project Monitoring 315.2 System Configuration 5.3 Communication Plan 5.4 System Landscape 5.5 System Authorization Standards 5.6 System Problems and Error Handling 5.7 System Enhancement and Modifications Approval

6 Sign Off - Charter Approval

1. Introduction

1.1 Overview

The CLIENT UOT purchased the SAP R/3 software with the primary purpose of replacing the University’s legacy financial, budgeting, procurement, and human resources systems. Other functionality within the R/3 software may be implemented as the University enhances its business processes.

The objective of this Charter is to set forth the foundation for the implementation of the software by documenting the goals and objectives, scope, project organization and roles, and the project plans necessary to achieve the University’s objective. Approval of this Charter provides authorization for the SAP project to proceed to the Blueprint phase.

1.2 Statement of Work

The Statement of Work and SAP’s response to the University’s Software Implementation Request for Proposals (RFP) form the basis for the Charter. If a dispute arises with regard to scope and/or implementation the Statement of Work and SAP’s response to the RFP will be the sole reference. All other areas such as the project schedule, project organization, resources, and implementation approach will be developed independently of this Project Charter.

1.3 Project Goals and Objectives

The overall goal of this project is to enhance the University’s primary financial, purchasing, budgeting, and human resources functions. The enhancements will be achieved primarily through the implementation of the SAP R/3 software. Specific project goals and objectives include:

Simplifying processes by: Eliminating unnecessary paperwork, reviews, approvals, and duplication of efforts Adopting best practices from SAP and other organizations Implementing electronic routing and approval of documents Providing more effective management information by: Implementing a real-time processing environment Providing departments with direct and easy access to financial, budgeting, procurement,

and human resources data

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Enabling departments to produce their own financial, budgeting, procurement, and human resources reports in a variety of formats (i.e. Business Warehouse)

Delegating approval authority to the departmental level wherever possible Providing employees with a variety of self-service capabilities (e.g. the ability to change

their own addresses and other personnel information) Implementing interactive, on-line help (i.e. On Demand) Implementing a help desk to assist departments Providing additional business functionality Establishing secure and reliable systems that are easy to use and maintain Enabling secure Internet access to the University’s business systems

1.4 Benefits

The primary benefits resulting from this project are:

1. Reduction in administrative overhead through the simplification of processes2. Allowing staff to focus on analysis rather than transactional issues3. Empowerment to end users4. Better decisions due to better access of information5. Construct a business system information infrastructure that will support the evolving

needs of the University into the next millennium (e.g. plant maintenance, e-commerce initiatives including on-line stores, business to business, MySap.com).

1.5 Project Assumptions and Constraints

The University will implement the most current Version of the SAP R/3 software available at the time of installation, currently planned as 4.6B. It is assumed that the University will not upgrade to a new R/3 Release or Version during the implementation. Additional assistance or impact analysis of R/3 Release or Version upgrades will be evaluated as a change order to the contract.

An Executive Committee comprised of Emerson Fly, Executive Vice President, Dwayne McCay, Vice President of Research and Information Technology, and Bob Salvucci, President of Public Sector of SAP America or his representative will be formed to monitor the project.

SAP will work with the University to finalize approach, scope of services and work plan, and team organizational staff plans during the initial planning and Blueprint Phase of the implementation. If, as a result of either Project Preparation or the Blueprint phase, material changes are required in either staffing or scope, a change order will need to be processed.

SAP will follow the ASAP methodology to implement R/3 at the University. The ASAP methodology may be modified at SAP’s discretion in order to meet project requirements.

SAP will be the prime contractor on a firm fixed price basis. SAP may involve Team SAP partners during the course of this implementation.

The implementation is based upon a fourteen-month schedule. “Go live” for this project is targeted for April 2, 2001.

SAP and the University will design toward one "to-be" process.

It is the intention of The CLIENT UOT and SAP to emphasize knowledge transfer during the implementation.

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A Steering Committee of senior management of the University will be in place to guide and advise the project team. A SAP representative will attend all Steering Committee meetings.

Access to University staff for interviews and other project needs will be provided in a timely manner.

The University's core team will exist throughout the project implementation.

The University team members have a good understanding of the University's business requirements. The University team members are key members of the areas that we are affecting with the implementation of SAP R/3. They understand the current and future business requirements and possess good communication skills to draw information from others in the organization as well as provide feedback on the goals and progress of the project.

The University and SAP will promptly replace inappropriate team members or vacated team slots as deemed necessary during the implementation.

All policy decisions and project issues requiring resolution will be resolved by the implementation team whenever possible. Issues and decisions not resolved by the implementation team will be escalated to the Steering Committee. Issues and decisions not resolved by the Steering Committee will be escalated to the Executive Committee. Any material delay will be cause for a change request and may adversely affect the fixed fee price and project schedule and will require that the project be placed on hold until resolution is reached. It is the intention of both parties to resolve all potential issues affecting the implementation schedule at the Steering Committee level or lower.

It is assumed that SAP R/3 meets the business requirements of the University and the University will adopt SAP R/3 standard processes. It is anticipated that business requirements will be met through system configuration.

No SAP R/3 system Modifications or Extensions are included as part of this implementation.

If gaps in functionality are identified, SAP will consult with the University to identify resolution for the identified gaps.

SAP will provide information to the University on how to archive documents. No archiving services are included within the scope of the implementation.

Business Warehouse (BW) will be used as a repository for converted legacy data from the University. The University is responsible for the definition and creation of the internal BW data structures to house their legacy data and the conversion/loading of this information. SAP will provide support to migrate data from legacy systems to BW. This support is provided for a period of 129 days. If the legacy migration is completed in less than 129 days, the remaining days may be used to activate additional BW functionality.

The University will maintain legacy systems to be replaced for an adequate period in the event they are required as part of any contingency plan.

One of the major goals of the project is to eliminate paper and improve processes. SAP system integration and workflow will be utilized to achieve that goal. SAP will provide support to enable three specific workflows. The workflows are Personnel Action, Travel Expense and Time Approval. The detailed requirements associated with these workflows will be defined during the Blueprint Phase of the Project. If currently planned resources and time allow within the established scope, additional workflows may be activated.

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Security assistance is for SAP R/3 and Business Warehouse security only. Process integrity is not in the scope of this proposal.

Reporting requirements will be met by the delivered system reports. Any custom reporting will be developed by The CLIENT UOT implementation team resources or as a change order to this agreement.

Cross-system reporting (involving coordination among both R/3 and non-R/3 systems) is not part of the implementation scope. SAP and the University will evaluate requirements for any such reporting as required.

SAP will consult with the University in developing a help desk function.

SAP will provide a consultant to support training and change management and to provide guidance and coaching to the University's change management team. The University will be responsible for end user training. SAP is willing to discuss assistance outside of what is provided for in the scope of this proposal with the University if requested.

Training materials will be developed by the University from the Business Process Procedures and will be similar in content, although not in form.

The trained University instructors will conduct just in time end-user training classes with limited assistance from the consultants. Student evaluations of these classes will be used to improve course material and provide useful feedback to the University trainers. University staff will complete revisions to the training material.

The University will provide documentation on existing systems such that an accurate assessment of the work required for data conversions can be completed and any change in timeline or resource requirements can be made to the proposed timelines, resources, and cost estimates. If a material change is required, this will be handled through the change order procedure.

SAP and the University will evaluate the need to convert any historical data as part of the activation of the Business Warehouse. There is no intention, at this time, for the University to load historical data into the R/3 system. If a need is identified requiring historical data to be loaded into the R/3 System, SAP will consult with the University on requirements to address the resolution of the issue. (See Appendix A – UT Business Warehouse Project Description, Goals, and Objectives.)

The University will complete documentation on interfaces and conversions. SAP will provide assistance with the preparation of this documentation.

The CLIENT UOT implementation team members will accomplish data migration, data clean up and data extraction. SAP resources will assist The CLIENT UOT implementation team in loading the data to the R/3 files. The CLIENT UOT agrees that migration of open item history will be minimized as much as is practical.

Interface complexity will be kept manageable and controllable by limiting requirements to only support the key business processes. SAP will assist members of the University's implementation team in defining specifications and developing interfaces. It is assumed that all interfaces are periodic, batch type.

The University will also maintain legacy systems for an adequate period time in the event they are required for historical reporting and query purposes.

The technical team will include an SAP Basis resource to plan and manage the technical configuration and development efforts. In addition, an ABAP/4 resource will assist the

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University with interface, conversion, and reporting requirements. Finally, a workflow resource will develop the three identified workflows, and a security resource will assist the University with setting up the SAP R/3 Security. The University will provide all remaining resources required to complete development tasks.

The University will provide a work area for the entire project team to be co-located. The work area will be ready for occupancy and full operation on the first day of the project. The work area will include normal office equipment. The University staff and consultants will use the University-provided computers and connectivity to computing resources where the SAP system is installed. In addition to connectivity to the SAP development and test environments, SAP will also require that a LAN be established for central control of project documentation and electronic mail routing within the University's network and analog lines for external dial-up capability.

The University will provide and maintain a fully operational technical environment that allows the implementation team to meet the required project deliverables.

The University will be responsible for the timely installation, configuration, and network connection of all PC's required to fulfill project requirements.

An X.25, frame relay line or ISDN connection to SAP will be installed by the University within 45 days of project start-up to facilitate an Online Software Service (OSS) connection.

The implementation team will use the Microsoft suite of Office software for Windows 95/98.

The University will provide all required subject matter expertise at the central project site so the implementation team can easily gather required information without travel.

The QA system will be available and SAP R/3 will be installed before integration testing. The production system will be available and SAP R/3 will be installed before Final Preparation.

Travel and living expenses are normally estimated at 15% of cost of services. The actual cost may be less since The CLIENT UOT will offer accommodations at a University-owned property or discounted lodging rates at local hotels and motels. Reimbursement per diems for meals and lodging will be in accordance with the University's Travel Policy. That policy and reimbursement per diems are located at: http://solar.cini.utk.edu/ams/5toc.htm, Section 070. Consultants will be required to take advantage of the airline discounts afforded SAP or The CLIENT UOT.

The University will assume responsibility for all expenses associated with the University staff as required by the project, e.g. travel expenses.

The proposed timeline will not be adversely impacted by any legislative changes.

Major milestone deliverables that do not include detailed written deficiency descriptions are deemed to be approved after the agreed upon deliverable review period has expired.

SAP will provide assistance for only seven infotypes to be deployed via Employee Self Service. These will be identified during the Blueprint Phase of the project.

2 Scope

The project scope is defined in three domains:

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1. Functional Scope: defined by the business functions proposed for implementation.2. Technical Scope: defined to support the defined functional activities.3. Geographic and Organizational Scope: defined by the locations within the University into

which it is planned to implement these functions.

2.1 Functional Scope

The following list contains the SAP modules that are to be included in the scope of this project, which in turn will be utilized to meet the University’s business objectives. The precise details and processes will be determined, documented, and agreed upon during the Blueprint phase.

FI - Financial Accounting General Ledger Processing Vendor Handling/Accounts Payable Customer Processing/Accounts Receivable Closing OperationsPeriodic ProcessingTravel ManagementCash Management/Bank Processing

FM – Funds ManagementBudgeting

AM - Asset ManagementHandling Fixed AssetsDirect CapitalizationEDP/Organization ProjectDepreciation

CO - Revenue and Cost ControllingMaster Data Processing (Controlling)Cost CentersActual Cost/Revenue AllocationPeriod-end Closing (Controlling)

PS – Project SystemsGrant and Contract Accounting

SD – Sales and DistributionBilling

MM - ProcurementThird-party ProcurementInternal Procurement with Billing Document and InvoiceInternal Procurement with Stock Transport OrderProcurement on a Consignment BasisProcurement via SubcontractingInternal Procurement via Stock TransferProcurement of Consumable MaterialsProcurement of Stock MaterialProcurement of External ServicesSource Administration for Third-Party ProcurementSource Administration for ConsignmentSource Administration for SubcontractingSource Administration for Consumable MaterialsSource Administration for Stock MaterialSource Administration for Internal ProcurementSource Administration for External Services

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HR - Human ResourcesPersonnel DevelopmentOrganizational PlanBenefits AdministrationBusiness Trip ManagementRecruitmentPersonnel AdministrationPayroll AccountingShift PlanningWorkforce Requirements PlanningEmployee ManagementTime Management HandlingBusiness Event HandlingHR Funds and Position ManagementEmployee Self Service

BW – Business WarehouseLegacy Detail WarehouseR/3 System Warehouse

Knowledge WarehouseOn-Demand

Note: If during the project it becomes necessary to utilize a module to fulfill the initial scope of work that has not been listed above (i.e. administration of grants and contracts), the necessary portions of that module will be implemented as part of the project.

2.2 Technical Scope

2.2.1 Local Area Network

The LAN strategy is currently the responsibility of each geographic location within The CLIENT UOT. Generally, all LANs support TCP/IP and IPX. The quality and bandwidth of each LAN is being investigated by the local support structure. The requirements of the SAP R/3 system will be provided to each to assist them in their planning.

The PC setups are also the responsibility of the local support structure. In some cases that support structure is further delegated to departments. In either case, the PC requirements for SAP R/3 will be distributed to all interested parties for planning.

2.2.2 Wide Area Network

The Wide Area Network (WAN) will be changed in the near future and will be in place when the SAP R/3 rollout begins. The new WAN will be part of the Tennessee Network Information Infrastructure (TNII) project. Those managing the WAN will be provided bandwidth requirements for SAP R/3 for their planning.

2.2.3 Basis

The basis work will be part of the technical team and will involve

SAP software installs and upgrades8 of 23

Software patch installations Performance Tuning and Monitoring Data base configuration, administration and Tuning Release change Management OSS and SAPNET reviewing and processing Technical Change Management and Transport / Correction Operating System administration General problem resolution Job Scheduling Printer environment configuration Desktop support Network Administration and support

2.2.4 On-line Software Support

The University will use the On-line Software Support, which is a remote system that allows customers to access all problem solutions that are known to SAP. The University will provide a communication link to this service.

2.2.5 Hardware

Hardware will be supplied by the University. The sizing and type of hardware is based on configuration exercises to be completed by the University and SAP project consultants.

2.3 Geographic and Organizational Scope

The SAP R/3 implementation will involve a rollout to all of the CLIENT UOT. The initial rollout will begin on April 2, 2001 and will include the units in the Knoxville geographic location. A rollout to all other University units will occur in two-week intervals to be completed by the accounting close of May 2001. This rollout strategy will be reviewed prior to the conclusion of the Blueprint and Realization phases and is therefore subject to further modification. It is expected that the delineation of roles and responsibilities between consultants and the University will be clarified.

3 Project Organization & Roles

See Appendix B for the organizational chart. The project organization roles are as follows:

3.1 Executive Sponsor

The Executive Sponsor: directly communicates the company’s long-term goals and visions is a member of the Executive Committee takes responsibility for the project communicates the importance of the project to the University maintains regular and visible contact with project assists in clearing organizational obstructions to the projects especially those of a political

nature makes business decisions on issues escalated by the Steering Committee accept deliverables on behalf of the University

3.2 Executive Committee

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The Executive Committee will meet once each month during the project to receive an update on the progress of the project and to resolve any issues that may be forwarded to them from the Steering Committee. The Executive Committee is responsible for providing a vision of the University’s long-term goals and objectives, setting priorities, and approving scope. They will aid in promoting the system implementation and provide support to the project throughout the organization.

3.3 Steering Committee

The Steering Committee will meet every two weeks during the project. This committee will be responsible for resolving issues that cannot be resolved within the implementation team and for submitting issues that cannot be resolved by the Steering Committee to the Executive Committee.

3.4 University Project Director

The University Project Director will have primary ownership of the project deliverables and will provide day-to-day direction to the project teams. He will also be responsible for maintaining the project plan, streamlining resolution of issues, and communicating the project status to the Steering Committee. In general, the University Project Director will provide overall project management for the implementation as well as play an active role in the integration between the individual teams.

The University Project Director must proactively anticipate project deviations and be responsible for taking immediate corrective action. It is also his responsibility to obtain an understanding of the overall system business process integration in the University’s environment. The University Project Director has the power/right to decide on all project relevant issues and the budget. He escalates the strategic issues to the Steering and Executive Committees for a common decision. The regular decisions are his domain.

3.5 SAP Project Manager

The primary role of the SAP Project Manager is to assist the University Project Director to manage SAP-provided consulting resources. Other activities include scope definition; development of the project plan and training schedule, attendance at steering committee meetings, acquiring additional SAP trained resources, etc. The SAP Project Manager will assist as needed, not assume responsibility.

The SAP Project Manager is a senior SAP Consultant responsible for ensuring all consultants provide superior advice and performance to the project. The SAP Project Manager will also provide the University Project Director with guidance in implementing an SAP R/3 project. During the project, lifecycle issues may need to be escalated by the University and SAP Project Manager to the Executive Committee for a final decision.

Specific responsibilities of the SAP Project Manager are to:

transfer knowledge and experience in the implementation methodology & tools to the University Project Director

manage the relationship and any contractual issues between SAP America, SAP Business Partner and the University on a day-to-day basis

advise the University Project Director on all aspects of the project requirements including project team organization and training, SAP R/3 configuration and testing, technical infrastructure requirements, system migration issues and requirements, interface and

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data conversion planning, process improvement opportunities and change management opportunities

The joint responsibilities of the University Project Director and the SAP Project Manager are to:

manage project operations according to ASAP methodologies control project scope and monitor project work plans provide leadership and direction to all members of the project team review project plans and deliverables approve significant changes to project plans control costs & expenses to agreed budget analyze project progress locate and secure resources for the project ensure good communication between teams within the project ensure deliverables are completed on schedule and are presented to the Executive

Sponsor for sign-off coordinate the review of the design and configuration of the SAP R/3 software to ensure

compatibility with the business requirements ensure timely issue resolution or appropriate escalation of issues report project status to the Executive Sponsor on a regular basis ensure contractual obligations are met with all project vendors manage the improvement of business processes ensure effectiveness of the project structure and roles

SAP will provide a resource for the project duration to fill the role of SAP Project Manager. The CLIENT UOT will provide a resource for the project duration to fill the role of the University Project Director.

3.6 SAP Project Integration Manager

The primary role of the SAP Integration Manager is to coordinate all functional, technical, change management, and education teams with the ASAP methodology and SAP R/3 functionality. Other activities include responsibility for the issues log, coordination of the ASAP Quality Checks, facilitation of knowledge transfer, attendance at steering committee meetings, advising the Project Director and Project Manager on issues relating to the implementation of R/3.

3.7 Project Office

The Project Office will provide administrative support to the project team. This ensures that project team members can remain focused on delivering project objectives and are not sidetracked on administrative duties. The Project Office will be involved in everything from logistical support to document production, publication of meeting minutes, tracking schedules, developing presentations, interview confirmations, and conference/meeting room bookings. One resource will be provided by the University.

3.8 Project Team Leads

The Project Team Leads with assistance from a senior consultant are responsible for the day-to-day management for each of the project teams. The Project Team Leads will link the technology with the business and will provide significant input to the Change Management process.

The responsibilities of the Project Team Leads are to:11 of 23

directly manage the application project teams manage project operations according to the project management methodology control project scope and monitor project work plans provide leadership and direction to project teams assign tasks and coordinate resources control costs & expenses to agreed budget identify critical resources report project status to the Project Director manage project operations according to ASAP methodologies ensure deliverables are developed and completed on schedule ensure all testing is completed according to the testing methodology ensure that all integration issues are handled and that adequate integration testing is

completed propose changes of planned activities and schedules to the Project Director review design and configuration of the SAP R/3 software to ensure compatibility with the

business requirements assist in the improvement of business processes ensure timely issue resolution or appropriate escalation of issues implement the SAP R/3 system per the approved schedule

Provide input on the form and content of all key project activities:

1. Project Charter2. Business Blueprint3. User Documentation4. User Training5. Conversion plan6. Project plan7. Support the implementation team on issues related to User Documentation, Training, 8. User Acceptance Testing and Conversion.9. Facilitate the collection and analysis of requirements for reports, interfaces, forms,

and implementation strategies as per the project plan.10. Responsible for creation of integration testing plan and actual conduct of the tests.11. Management of all change control items. 12. Management of Issue Log.13. Be in charge of coordinating SAP resources throughout the project14. Provide expertise in the ASAP implementation methodology, training the University

personnel in its use, tailoring the methodology to the University requirements and ensuring that the appropriate documentation is completed.

3.8.1 Functional Team Leads

The Project Team Leads have ownership of the process area(s) and the project deliverables, along with day-to-day management of the business area(s). The Project Team Leads must be able to work with the Project Director to develop and manage scope, assign and schedule resources, and monitor deliverable progress. The Project Team Leads are responsible for identifying the impacts and requirements for the business processes to support the SAP system, and for verifying that the project team is meeting the business objectives.

The Project Teams are as follows:

Finance – Sally Townsend, Team LeadChart of AccountsGeneral LedgerFunds ManagementControllingBudgeting

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Grants ManagementAccounts ReceivableAccounts PayableEndowmentsPurchasingTravelContract ProcessingAsset ManagementInvestmentsTreasuryWorkflow

Human Resources - Lester Mathews and John Rich, Team LeadsPersonnel DevelopmentOrganizational PlanBenefits AdministrationBusiness Trip ManagementRecruitmentPersonnel AdministrationPayroll AccountingShift PlanningWorkforce Requirements PlanningEmployee ManagementTime Management HandlingBusiness Event HandlingHR Funds and Position ManagementEmployee Self ServiceWorkflow

Budget – Sylvia Davis, Team LeadSalary BudgetOperating BudgetPosition Control

Security – Sheila McNeil, Team LeadR/3 Security ProfilesBusiness Warehouse Security Profiles

Business Warehouse - John Jarrard, Team LeadSystem Integration

3.8.2 Technology Project Team

Mike McNeil, Team Lead

The Technical Project team has ownership of the Basis and ABAP functions within the SAP R/3 project. The Technical Team Lead will work with the Project Director and functional Team Leads to manage work and work assignments. The Technical Project Team is composed of the following areas:

Basis Support R/3 Administration Database Administration UNIX System Administration NT System Administration Network Administration Desktop Support

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ABAP Support Financial Human Resources Purchasing

The responsibilities of the Technology Project Team are to:

provide relevant technical resources for the SAP Implementation Project build a comprehensive support program for development, Q/A, production and training

report project status to the Project Directors assist the other project teams in delivering their systems through expert advice and

guidance provide programming support for conversion, interfaces, and system extensions

3.8.2.1 R/3 Administration

The R/3 Administration role will be responsible for the following functions:

R/3 system installation R/3 system upgrades Applying and testing R/3 patches Day-to-day monitoring of service levels Analyze overall system performance Tuning service as needed Transport management (program moves) OSS reviews Technical security support (security profile management) R/3 printer support Functional team consultation and support

3.8.2.2 Database Administration

The Database Administration role will be responsible for the following functions:

Day-to-day monitoring of the database Database tuning services as needed Database problem research Data warehouse administration Data transfer support

3.8.2.3 UNIX System Administration

The UNIX System Administration role will be responsible for the following functions:

Major root tasks Maintain operating system patches Monitor system logs Operating system security administration Disk systems management Backup and recovery administration Printer support (UNIX)

3.8.2.4 NT System Administration

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The NT System Administration role will be responsible for the following functions:

Maintain operating system patches Monitor system logs Operating system security administration Disk systems management Backup and recovery administration

3.8.2.5 Network Administration

The Network Administration role will be responsible for the following functions:

Maintain Routers Network monitoring Firewall and router coordination

3.8.2.6 Desktop Support

The Desktop Support role will be responsible for the following functions:

Install and maintain SAP client software Support project team desktops Support for user desktops

3.8.2.7 ABAP Programming Support

The ABAP Programming Support role will be responsible for the following functions for all functional areas of the project:

Conversion programs Interface programs (see Appendix D – Interface Topology) System enhancements

3.8.3 Change Management Team

Judy Burns, Team Lead

The Change Management team will consist of University employees assisted by an SAP consultant. The primary responsibility of the team is to manage (1) communications about the project to the University community, (2) end-user training, (3) project documentation, and (4) University policy and procedural changes. The Project Director, Project Manager, application and technical team leads and their teams will work with and support the Change Management team.

Responsibilities of the Change Management team are to:

develop a comprehensive profile for constituencies within the University system develop a comprehensive communications strategy develop a comprehensive training strategy determine optimal approach for using training technology (i.e. Knowledge Warehouse,

On-demand) produce a communications, training, and documentation plan

develop a role based training curriculum to meet the Project training needs either utilizing or modifying SAP’s training programs or by developing new courses

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schedule and communicate the Project end user training communicate information about the project to the University community on a regular

basis determine requirements for training facilities design materials for end user training deliver training to end users

plan for a post-implementation program for ongoing user training design and prepare a help desk to support the system after it is in production prepare end user documentation to meet user needs

4. Project Plan

4.1 Methodology Overview

4.1.1 Proposed Implementation Strategy

The project will use the Accelerated SAP (ASAP) implementation process. Accelerated SAP was built from SAP’s best implementation practices and will empower the University with tools, templates, questionnaires and the skills to exploit the power of the R/3 models already built into the R/3 system. The following is a brief outline of the phases of Accelerated SAP:

1. Project Preparation

This phase will "kickoff" the project and will include the following tasks:

Review and refine Implementation Strategy Establish Project Team working environment Determine Project Organization Conduct Team Training Define Project Management standards and procedures Define Implementation standards and procedures Define System Landscape strategy Kickoff meeting Project Team standards meeting Identify technical requirements Procure Hardware

This phase will kickoff the project and will include the following deliverables:

Deliverable Responsibility Review & Sign off byProject Charter Project Management Executive CommitteeProject Plan Project Management Team LeadsTraining Plan Change Management Team LeadsPerform Quality Check Project Management/ SAP Executive Committee

2. Business Blueprint

In this phase, the Project Team will define the University’s business practices and parameters, review the business goals and business structure, and how SAP will realize those processes. The resultant design will be a "blueprint" of the University’s future state. Tasks in this phase include the following:

Review and refine Training Plan Setup Development Environment Conduct Team Training

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Initial set up of System Landscape Systems Administration Initialize IMG (Implementation Guide) Conduct Business Process workshops Conduct Detailed Requirements workshops

This phase will include the following deliverables:

Deliverable Responsibility Review & Sign off byCreate Technical Design Technical Team Lead Project ManagmentBusiness Blueprint Project Management/

Team LeadsProject Management/ Team Leads

Perform Quality Check Project Management/ SAP Project Management/ Team Leads

3. Realization

In this phase, the system will be configured to the University’s requirements as defined in the Blueprint. This is also the main window of opportunity for knowledge transfer from SAP consultants to the University project team members. Tasks in this phase include:

Initial planning for Production Support (Help Desk) Baseline configuration and confirmation System management including test plans, service level commitments, QA & Production

environment setups and system administration functions Develop conversion programs Develop interface programs Develop enhancements Create reports and layout sets Establish authorization concept Establish archiving management End user documentation and training material

This phase will include the following deliverables:

Deliverable Responsibility Review & Sign off byFinal configuration and confirmation

Project Management/ Team Leads

Project Management/ Team Leads

Final Integration Test Project Management/ Team Leads

Project Management/ Team Leads

Perform Quality Check Project Management/ SAP

Executive Committee

4. Final Preparation

In this phase, the Project Team will prepare for implementation of the system. Tasks within the phase include:

Prepare and conduct end user training Refine system management Refine cut over plans and production support Cut over to production system Perform Quality Check

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This phase will include the following deliverables:

Deliverable Responsibility Review & Sign off byCut over to production system

Project Management/ Team Leads

Project Management/ Team Leads

GO / No Go decision Project Management Project ManagementPerform Quality Check Project Management/

SAPExecutive Committee

5. Go Live & Support

In this phase, the Project Team will assure that end-users needs are being met. Tasks in this phase include:

Production support Follow up training Define long term plans Perform project review

4.1.2 Scope Management

The scope of the project is as defined in section 2 of this document. It is critical that the project is restricted to this scope. Any development outside this agreed scope could threaten the project. As the Project progresses it may be necessary to request a change to the scope of the Project. Any change to the scope will be governed by strict scope control procedures. These control procedures are intended to reduce the impact of the work on the Implementation Team and the schedule. All requests for scope change must be submitted to the Project Director and Project Manager. All requests will be investigated to determine its impact on the project workload and schedule. If the change is outside of the scope of the project then a cost will also be determined. Input from SAP Product Experts and the University business people will be required to determine these costs and impacts The Project Directors will then present their findings to the Executive Committee who will approve the change or reject it.

4.1.3 Issue Management

Issues relating to subjects not related to changes in scope will be tracked within the Issues section of the ASAP Question and Answer Database (QADB).

4.1.4 Complexity Management

The implementation of SAP R/3 at the University will be kept as simple as possible. This means not only sticking to standard SAP R/3 by limiting customizations and ABAP/4 development but also using SAP R/3 as simply as possible. All members of the implementation team need to be vigilant in keeping project complexity as low as possible.

4.1.5 Risk Management

In a project of this nature, there are always risks. Management of the risks is a critical factor in ensuring the success of the project. Below are listed a number of potential risks and the strategy for managing and minimizing them.

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1. Commitment of User Community – University employees that may be affected by the implementation of SAP R/3 must be involved in and informed about change to ensure commitment and ownership.

2. Complexity of Requirements - Business requirements must be kept as simple as possible. As stated in section 2 (Scope) of this document the implementation will be kept simple. Issues will be resolved within the implementation teams, if possible. If the team is unable to come to resolution, the issue will be forwarded to the Steering Committee. Any issue that cannot be resolved within the Steering Committee will be forwarded to the Executive Committee.

3. Interfaces - The development of interfaces pose a potential risk to the project and is a critical path for this project. Interface development will be given a high priority during the project to ensure that appropriate resources are allocated and that development is completed before integration testing commences.

4. Knowledge of Methodology - the Accelerated SAP methodology will be utilized for this project. One of the Integration Project Manager's main responsibilities will be to ensure appropriate use of the methodology and to educate University staff on the methodology.

5. Executive Sponsor - The project has one Project Sponsor who has a stake in the project to ensure clear and timely decision making process. His ongoing support must continue.

6. Loss of Project Team staff before April 2001. Maintaining a knowledge base within the University is a high priority for the ongoing success and support of the project.

7. SAP upgrade to SAP R/3 4.6C during the project - During the project, the risks / justifications etc will be assessed and the decisions will be made whether to upgrade.

4.1.6 Project Planning and Monitoring (Review Meetings)

This section defines the types of review meetings and reporting which will occur, their purpose and their frequency. Regular meetings include:

Meetings of the Project Director, Project Manager, and the Executive Sponsor – twice monthly. The purpose is to keep the Executive Sponsor aware of issues affecting the project, and to make prompt decisions on those issues that are internal to the CLIENT UOT.

Meetings of the Project Director, Project Manager, and the Executive Committee – monthly. The purpose is to keep the Executive Committee aware of the progress of the project and to forward any issues unresolved by the Steering Committee, and to make prompt decisions on those issues.

Meetings of the Project Director, Project Manager, and the Steering Committee – bi-weekly. The purpose is to keep the Steering Committee aware of the progress of the project and to resolve any issues that cannot be resolved by the project teams. Any issues that cannot be resolved by the Steering Committee will be forwarded to the Executive Committee.

Meetings of the Project Director and Project Manager - daily. The purpose is to manage and identify issues and to make prompt decisions on those issues.

Meetings of the Project Team Leaders, including Project Director, Project Manager, and Integration Manager – twice weekly.

Meetings of the implementation team with the User community to keep them appraised of the project progress - as required.

Regular reports include:

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Weekly project management report, and Project Plan status review Monthly project management report, and Project Plan status review

4.1.7 Quality Assurance

The Quality Assurance process for the Project will be two tiered with internal quality assurance using the ASAP methodology, and external quality assurance by SAP specialist Consultants providing formal project health checks. In short, the quality assurance support will provide:

a comprehensive project health check at milestones greater awareness of potential implementation issues and risks recommendations for alternate implementation options consistent reporting across all phases of the project increased confidence in project delivery by both the project team and University

management a link to University quality and audit initiatives an audit trail of the project decision process.

Internal Quality Assurance

1. Management and implementation team will review Project Charter2. Applicable project teams and project management will review Business Blueprint design.3. User documentation will be reviewed by the applicable project team.4. Training Program - review by applicable project team 5. Integration test plan - review by applicable project team 6. Acceptance test plan - review by applicable project team

External Quality Assurance

1. External QA reviews to be performed by SAP America at the indicated project milestones.

2. Possible reviews of organizational readiness, fit for purpose, risk assessment or other specific Quality Assurance reviews as required by the University.

4.2 Implementation

4.2.1 Project Plan

Business functions identified, as part of Blueprint must be fully supported by R/3 implementation as of April 2, 2001. The initial rollout is planned for April 2, 2001. Full implementation at all areas of the University is expected by the close of the May accounting period. Interface to University systems is also expected by April 2, 2001. More details for Implementation Strategy will be defined in the Business Blue Print Design document.

4.2.2 Training Plan

University staff, assisted by SAP consultants as necessary, will conduct training. The Change Management team will have primary responsibility for end-user training. Instructors for training will consist of members of the implementation team and others who will work on configuration of the system. Other trainers will be recruited from the applicable functional areas throughout the University as needed.

4.2.3 Knowledge Transfer

During the project, achieving knowledge transfer to CLIENT UOT staff is an important goal of the SAP Consultants involved.

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Transfer of knowledge will occur:

from the SAP Project Manager to the CLIENT UOT management of the project. This will be one of the main objectives of the SAP Project Manager's consultancy.

from the SAP Basis consultants to the University’s technical staff. Much of the SAP Basis role is to advise the client on how to manage the new system.

from the SAP Product Experts to business users, business analysts and other project team members. This will occur particularly in the joint design sessions and prototyping sessions. Knowledge transfer is an explicit goal of these sessions.

Business Users involved in the project will also return to the workplace both during and after the project where their detailed knowledge of the system will be invaluable. They will consciously engage in activities, which spread knowledge about the system.

4.2.4 Change Management

The CLIENT UOT is responsible for the change management process. To achieve acceptance of SAP R/3, the project team will incorporate business users into relevant phases of the project and perform awareness sessions throughout the span of the project, culminating with "just in time" user training. In addition, the implementation team will communicate the project status and other relevant issues to the University community throughout the project. Issues of change management that are relevant to the success of the project but outside the authority of the implementation team will be directed to the Project Director, Project Manager, Steering Committee, and Executive Sponsor/Committee, if needed, for resolution within defined timeframes.

5 Project Management Standards and Procedures

5.1 Project Monitoring

Project Management will monitor progress via the ASAP toolkit and the Project Plan.The Implementation Guide (IMG) will be used to monitor configuration progress throughout the project.

5.2 System Configuration

The Implementation Team will use the ASAP Question and Answer Database (QADB) during the Blueprint to determine the required processes and control scope, and use the Business Process Master List and the IMG during Realization to control configuration and document configuration decisions with SAP itself.

A detailed plan encompassing all interfaces, system architecture and interface issues have been devised.

5.3 Communication Plan

A method of keeping the user community informed of the project impacts will be maintained.

5.4 System Landscape

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A plan for the rollout of all infrastructures has been developed. A schematic of the planned hardware configuration is illustrated (See Appendix C).

A detailed plan encompassing all interfaces, system architecture and interface issues has been issued.

5.5 System Authorization Standards

The authorization plan for the implementation is to give the project teams open access in the development system and to progressively secure access in the test, training, and production environments.

All members of the implementation team who will be involved in project management, configuration, or development will be given the SAP_NEW profile, a modified version of the SAP_ALL profile, in the development system. The R/3 Administrators will be given the SAP_ALL profiles. The security administrator(s) will also be given the SAP_NEWprofile. Persons brought in from outside the core team may be given more restrictive profiles. Profiles for the quality assurance and pre-production systems will be established so that the implementation team members may view and enter data. However, the profiles will not allow changes to configuration. The implementation team members will be able to view data in the production environment, but they will be prohibited from entering or modifying data. Generic profiles will be available in the training system.

5.6 System Problems and Error Handling

If the problem source is known to be with a specific area such as with the desktop, network, or operating system, it should be reported to the appropriate Basis point of contact. Otherwise, system problems should be reported to the R/3 Administrator.

5.7 System Enhancements and Modifications Approval

No SAP R/3 system Modifications or Extensions are included as part of this implementation. If any are required, a change request must be processed according to the Statement of Work.

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6 Sign Off - Charter Approval

Signing this document records your agreement to the contents of the Project Charter, and confirmations the order to proceed with the remainder of the project.

Emerson FlyCLIENT UOTExecutive Sponsor

Date

Dwayne McCayCLIENT UOTExecutive Committee Member

Date

Neal WormsleyCLIENT UOTProject Director

Date

Bob Salvucci SAPExecutive Committee Member

Date

John Solms SAPProject Manager

Date

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