Using Project Management Best Practices to Manage Oracle Enterprise Resource Planning (ERP) Projects Session ID# 12048

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1 Using Project Management Best Practices to Manage Oracle Enterprise Resource Planning (ERP) Projects Session ID# Edward Charity, Jr., PMP Project Management Systems Consultants (PMSC) LLC

2 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

3 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

4 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

5 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

6 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

7 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

8 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.

9 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

10 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

11 PMI and PMBOK PMBOK Project Management Knowledge Areas (Continued) Project Time Management Inputs: Project Charter and Project Management Plan 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 Inputs: Project Charter and Project Management Plan Outputs: Cost Baseline and Cost Forecasts Tools: Estimating Tools such as: Analogous; Parametric; Bottom-up; and Three-Point Estimating

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

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

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

15 PMI and PMBOK PMBOK Project Management Process Groups and Knowledge Areas Together Knowledge Areas Project Management Integration Scope Time Initiating Planning Executing Monitoring Closing {Insert Chart Here} Cost Quality Human Resource Communications Risk Procurement Stakeholder

16 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

17 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

18 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

19 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!!!!!

20 PMBOK Concepts Applied to ERP Implementation Projects Ten Reasons Why ERP Implementation Projects Go Bad 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

21 PMBOK Concepts Applied to ERP Implementation Projects Ten Reasons Why ERP Implementation Projects Go Bad and some PMBOK Concepts to Address Them (Continued) Inadequate/poor estimating skills/experience Quality Management Plan with Development Standard Human Resource Management Plan with specific resource requirements and standards

22 PMBOK Concepts Applied to ERP Implementation Projects Ten Reasons Why ERP Implementation Projects Go Bad and some PMBOK Concepts to Address Them (Continued) 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

23 PMBOK Concepts Applied to ERP Implementation Projects Ten Reasons Why ERP Implementation Projects Go Bad and some PMBOK Concepts to Address Them (Continued) 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

24 PMBOK Concepts Applied to ERP Implementation Projects Ten Reasons Why ERP Implementation Projects Go Bad and some PMBOK Concepts to Address Them (Continued) 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

25 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

26 Questions? Comments?

27 THANK YOU Edward Charity, Jr., PMP

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