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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# 12048

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

(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

(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

(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.

(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)

(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

(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

(15)

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

(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

(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

(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

(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

(26)

Questions?

Comments?

(27)

THANK YOU

Edward Charity, Jr., PMP

[email protected]

www.pmsc-llc.com

703-244-9407

References

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