Statement of Work for ERP Implementation in ACA Health Organization

This statement of work document is prepared for the ERP implementation solution in ACA Health organization. It includes services, deliverables, period of performance, payment schedule, sub-contractors, stakeholders, risks and assumptions, and applicable standards.

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Assessment 1 – Statement of Work
Statement of Work – ERP implementation
This statement of work document is prepared for the ERP implementation solution in ACA
Health organization. It is different from statement of work document for an exhaustive IT
deployment project because it shall deals with only installation, development and
configuration aspects of project. It shall not include major elements of IT projects as defined
in the PMBok principles guide. Hence, this document does not include cost management, risk
management, human resource management, integration and quality management. The
Statement of Work (SOW) does not work on any business problem. However, it will assume
that mentioned organization needs to implement ERP solution.
Services
ERP implementation solution shall install and configure the ERP software on specific ACA
Health organizations’ server and also provide configuration of systems in all its associated
locations. ABC consultancy will be identifying the requirements of the organization for ERP
implementation which is under the scope of work. It will include the timeline of the
implementation and configurations in the locations where it would be deployed (Field &
Keller, 2015).
Deliverables
Plan of installation – After having exhaustive planning session conducted at organization
site by ABC and discussion happened during this session, ABC will prepare an installation
plan on the basis of requirements of ACA Health, Project manager will be responsible for
this planning document after having a discussion with the director of ACA Health.
Implementation preparation – After reviewing the installation plan, next step would to
check for the file sets and partitions which would be required as per this plan. All firewalls
and security settings shall be reviewed to figure out the presence of any blocked ports. These
ports may be required to be open before installation. In order to start installation, security and
procurement heads need to arrange for necessary security and implementation provisions. All
this preparation shall be conducted o the basis of installation plan designed for ACA Health
(Kerzner, 2001).
Solution customization – On the basis of requirements identified, the ERP software needs to
be customized to prepare exact solution for the organization. And then, developers will be

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Assessment 1 – Statement of Work
recruited and involved in the customization of ERP software for ACA Health (Welsh &
Black, 2010).
Customized solution testing – Unit testing and application testing will be conducted to test
the customized solution. These techniques shall be used to check whether the prepared
solution meets the requirements of ACA Health. The testing shall be done by few users
selected from end-user groups and management of ACA Health. All the identified bugs will
be documented and sent to the developers for resolution (Spinner, 1997).
Solution installation and configuration – The identified and required file sets will be
configured and installed on the server. This activity would be conducted by the operational
team. After this, all the installation details will be put in the document along with instruction
set of configuration. It shall be performed by IT manager and project manager will prepare
configuration document.
Period of Performance
The entire project shall be done in 6 months. Resources shall work from Monday to Friday
from 9 am to 6pm. The schedule is mentioned below:
Start Date Item Time in
Hours
Role Responsibility
1st August
2018
Project first
meeting
4 hours Project
manager
Discussion over:
 Deliverables
 Identify the roles and
responsibilities of
project members.
2nd August
2018
Time
schedule
3 hours Project
Manager
Preparation of project plan
along with timeline for ERP
system.
3rd August
2018 – 13th
August 2018
Availability
of hardware
7 days Procurement
manager (IT)
 Get bids for hardware
 Select best bid;
 Get hardware as per the
requirements
 Testing of hardware
 Installation in the
organization
14th August
2018 to 20th
Business
process
6 Days ERP
Consultant
 Get understanding of
business process of the

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Assessment 1 – Statement of Work
August 2018 analysis of
organization
organization
 Convert business
process into requirement
specification.
21st August
2018 to 2nd
Sept 2018
Technical
requirements
8 Days ERP
Designer
 Conversion of
functional requirements
into technical
requirements.
 Prepare documents of all
requirements and
processes
 Prepare model for ERP
software.
3rd Sept 2018
to 20th Oct
2018
Development
of
customized
solution
40 days Developers Coding of ERP software
21st Nov to
25th Nov
2018
Testing 5 days Testers Unit testing and application
testing
26th Nov to
30th Nov
2018
Initialization 4 days DBA Database creation and execution
of scripts.
1st Dec to 5th
Dec 2018
ERP
Installation
and
Configuration
5 days Configuration
IT Manager
(Villarroel,
Rayo,
Loughlin, &
Nguyen,
2007)
 Install ERP solution
 Configure ERP solution
6th Dec to
31st Dec
2018
Migration of
data
14 days IT Manager  Obtain old data
 Place old data into new
system
Payment Schedule
55% payment shall be paid before starting the project and rest of the payment will be paid on
monthly basis (O’Donnell, 2017).
Sub-contractors
Following are 2 sub-contractors required for development of ERP solution:

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Assessment 1 – Statement of Work
 Hardware provider – It includes sellers who would provide infrastructure i.e. server
and systems required for ERP implementation.
 Security solution provider - It includes security providing solutions for proposed ERP
system.
Representatives
Following are key representatives of the project:
 Vendors – It will include providers who would be supplying security and hardware
solutions.
 CEO – CEO of ACA Health will be responsible for providing and allocating funds for
the ERP project implementation.
 Project manager – He/she shall be responsible for planning, preparation, executing
and controlling the proposed project.
 Vendors would be representing contracts for hardware and security solution
Risks and Assumptions
Following table represents the likely risks that may occur in the proposed ERP
implementation. The table includes identified risks, their impact, their probability of
occurrence along with the contingency plan:
Risk Probability Impact Contingency/Risk response plan
Budget exceeding
the allocated cost High
High CEO shall be contacted when allocated
budget fails to meet the assigned budget.
CEO shall provide additional budget by
keeping extra cost in contingency.
Changes in scope
Medium
High
ACA Health can change the scope by
adding requirements during the
development and implementation. But
only the approved change requests shall be
considered or only those are considered
which are very crucial for the ACA
Health. Rest may be rejected.
Deliverables are Low Monitoring and controlling mechanisms

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Assessment 1 – Statement of Work
delayed
High are followed throughout the project
development. Delayed deliverables are
identified instantly and can be avoided.
Quality of
deliverables is
varying. Medium
Low Conduct software testing regularly at
regular intervals of time and identify bugs.
Resolve them within the assigned
deadline.
Conflicts among
stakeholders Low
High Conduct weekly status meetings with all
team members to understand their
expectations and concern (Wallmüller,
2011).
Stakeholders
Following stakeholder matrix presents a list of all the stakeholders involved in ERP project,
their respective responsibilities and their level of interest and influence over the ERP project.
On the basis of given factors, decisions can be taken on the communication among the team
members:
Stakeholder
Group
Stakeholder Responsibilities Interest Influence
Internal Sponsor Project review – Check for
project feasibility.
High High
Team
members
Execution of all project tasks
and achieve milestones and
provide deliverables.
High Medium
High level
Management
Project progress review on
regular basis; Resolve
conflicts; Overcome issues
faced by the project team (Liu,
2013).
Medium High
Organization
Users
Helps in gathering
requirements.
High Low

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Assessment 1 – Statement of Work
External
Stakeholders
Patients/end-
users
Helps in gathering
requirements.
Medium High
Consultants Allows ACA Health
organization to make an
efficient plan for ERP project.
High Low
Vendors Provide required hardware and
software as per ERP project
plan
Low Low
(Light,
2001)
Applicable Standards:
 Quality process should start along with defining the scope of the project.
 The quality must be measured according to the Software Engineering Process Group
metrics.
Acceptance Criteria:
 Patients records error has decreased by 20% in the first year of implementation.
 Waiting time for the patients have been reduced by 25% by the end of 2nd year.
Special Requirements or out of scope items:
 Marketing of the system
Significance of business case
A business case justifies the alignment of project with the business strategies. Many project
fail because of missing business case with incorrect scope statement. An efficient business
case should be prepared so that it can facilitate in project selection. Project selection involves
comparison among different projects keeping cost, risks, benefits, etc. as the base.
Project selection techniques
Following are various techniques used for project selection:
 Scoring model - It involves giving weightage to the selection criteria.
 Benefit/cost ratio – It involves comparing the basis of ratio of cash inflow and
outflow.
 Payback period – It is the total average per period cash received with shortest cash
back time.
 Economic model – For measuring performance, economic value addition technique is
used.
 Benefit measurement – In this method, benefits are compared against the cash flows.

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Assessment 1 – Statement of Work
References
Field, M., & Keller, L. (2015). Project management (1st ed., pp. 12-14). Andover, Hants.:
Cengage Learning.
Kerzner, H. (2001). Strategic planning for project management using a project management
maturity model (2nd ed., pp. 22-23). New York: John Wiley.
Light, B. (2001). The maintenance implications of the customization of ERP software.
Journal of software maintenance and evolution: research and practice, :415–429.
Liu, F. (2013). Rutherford Library Renovation Project Plan. University of Alberta Library.
O’Donnell, S. W. (2017). 5 Steps To Successful ERP Implementation . Datacor, Inc.
Spinner, M. (1997). Project management (1st ed., pp. 22-23). London: Prentice-Hall
International.
Villarroel, S., Rayo, G., Loughlin, R., & Nguyen, K. (2007). ERP Systems . CSUSM.
Wallmüller, E. (2011'). Risk Management for IT and Software Projects. Qualität und
Informatik.
Welsh, W. D., & Black, D. (2010). Engaging stakeholders for a software development
project: River Manager model. International Environmental Modelling and Software
Society (iEMSs) , (pp. 1-10).