Implementation of Cloud Based ERP System

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Running head: PROJECT MANAGEMENT
Project: Implementation of Cloud based ERP system within CustomInk” organization in
Australia
Name of the Student
Name of the University
Author’s note
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PROJECT MANAGEMENT
Table of Contents
1. Project background.................................................................................................................2
2. Project scope..........................................................................................................................2
3. Stakeholder register................................................................................................................2
4. Business case..........................................................................................................................5
5. Project charter........................................................................................................................6
5.1 Objectives.........................................................................................................................6
5.2 Duration............................................................................................................................6
5.3 Budget estimate................................................................................................................8
5.4 Assumptions, Constraints and risks...............................................................................11
6. Organizational Structure......................................................................................................13
7. Application of balanced score card......................................................................................14
8. Recommendation for project governance............................................................................15
References................................................................................................................................17
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PROJECT MANAGEMENT
1. Project background
The paper mainly reflects on the organization “CustomInk” that is one of the t-shirt
company of Australia. It is identified that they utilizes innovative tools like design lab as well
as dedicated team of artist for creating perfect design of the t-shirts (CustomInk, 2018).
CustomInk uses Enterprise resource planning system for handling as well as supervising its
functions and business operations. With time, the organization expanded and with expansion,
it becomes quite difficult for the company to handle the information as well as data of
different departments of the organization properly at a specific time and as a result,
“CustomInk” faces lot of issues as well as challenges. In order to resolve this problem, the
higher authority of CustomInk wants to implement cloud based ERP system so that the
information as well as data related with various departments can be accessed at any time.
2. Project scope
The scope of the project includes:
Development of cloud based ERP system within the organization “CustomInk”
Increasing security of the entire system
Sharing data as well as information between various departments of the
organization
Providing the facility of accessing information from anywhere
3. Stakeholder register
The stakeholders who are involved in the project are listed in the table below with
their roles and responsibilities.
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PROJECT MANAGEMENT
Roles Responsibilities
Project manager The responsibility of the project manager
mainly includes initiation, planning,
execution, designing of the project. Their
duties also include recognition of the risks
that directly affect the success of the project.
In addition to this, they are also responsible
for team leadership, strategic influencing as
well as controlling quality of the project
properly (Walker, 2015).
Project planner The project planner is mainly responsible for
planning as well as tracking the cost of the
project by keeping the entire project
resources on track (Mir & Pinnington, 2014).
Furthermore, they are assists in providing
regular updates about the project and engage
in maintaining contact with the staff of the
project.
Database manager The database manager is the person who
mainly engages in storing and organizing the
data of the organization. Their
responsibilities mainly include database
design, data migration, security,
troubleshooting as well as installation
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PROJECT MANAGEMENT
(Snyder, 2014).
Supervisor Supervisor is the person who is mainly
responsible for reviewing responsibilities of
the project. They involve in personnel
policies and procedures and as well, as
provides proper training to the staffs of the
organization (Hornstein, 2015).
Human resource manager The human resource manager is mainly
responsible for recruitment, training as well
as skill development of the staff who are
mainly involved with the project.
Additionally, they also maintain work culture
and assists in resolving conflicts that are
associated with the project (Svejvig &
Andersen, 2015).
Risk analyst Risk analyst identifies as well as analyzes
the risks that are related with the project.
They also prioritize and uses risk mitigation
procedure in order to resolve or mitigate the
risks as well as challenges that are related
with the project (Joslin & Muller, 2015).
Financial manager The financial manager responsible for
creating financial reports develops strategies
and directing investment activities. In
addition to this, they also plan long-term
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PROJECT MANAGEMENT
financial goals of the organization.
Tester The tester is the person who engages in
testing the project in order to analyze the
results for ensuring that the developed project
is helpful in mitigating the risks as well as
challenges that are related with the project
(Too & Weaver, 2014).
Technical engineer The technical engineer is mainly responsible
of coordinating all types of design
development by following the time schedule
of the project. They also assist in
coordinating the approval of the changes
within the project. Furthermore, prepares as
well as takes proper follow up on various
types of technical queries that are related
with the consultant of the project (Sanchez,
2015).
4. Business case
The paper mainly focuses on the development of cloud based ERP system for the
organization “CustomInk”. It is found that CustomInk utilizes ERP system for managing its
operations and functions however with expansion it become quite difficult to manage as well
as handle the data and information of different departments at a time (CustomInk, 2018).
Thus, the organization faces challenges lot of challenges. For resolving this issue, the
organization wants to develop cloud based ERP system, which assists in facilitating data and
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PROJECT MANAGEMENT
information access from anywhere. In addition to this, with the development of cloud based
ERP, CustomInk will be able to provide proper security, scalability as well as greater
availability of data. Moreover, the utilization of cloud based ERP enhances performance and
minimizes operating costs of the organizations.
5. Project charter
5.1 Objectives
The objectives of the project are as follows:
To develop cloud based ERP system for the organization CustomInk for mitigating
the challenges as well as issues of the organization.
To enhance the access to information
To enhance security of data and information
5.2 Duration
The cloud based ERP system development within the organization “CustomInk” will
be finished within 41 days as per the assumption. The table below reflects on the time that is
required for finishing each of the activities of the project successfully.
Task Name Duration Start Finish
Development of Cloud based ERP system
within "CustomInk” organization in
Australia
41 days Thu 03-05-18 Thu 28-06-18
Initiation phase 14 days Thu 03-05-18 Tue 22-05-18
Development of business case 4 days Thu 03-05-18 Tue 08-05-18
Undertaking feasibility study 4 days Wed 09-05-18 Mon 14-05-18
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Project charter establishment 5 days Wed 09-05-18 Tue 15-05-18
Appointing team members 6 days Tue 15-05-18 Tue 22-05-18
Milestone 1: Initiation phase completion 0 days Mon 14-05-18 Mon 14-05-18
Project planning phase 13 days Tue 15-05-18 Thu 31-05-18
development of project plan 5 days Wed 16-05-18 Tue 22-05-18
Development of resource plan 7 days Wed 16-05-18 Thu 24-05-18
Creating financial plan for the project 6 days Wed 23-05-18 Wed 30-05-18
Development of quality management plan 5 days Wed 23-05-18 Tue 29-05-18
Development of risk management plan 7 days Tue 15-05-18 Wed 23-05-18
Development of acceptance plan 6 days Tue 15-05-18 Tue 22-05-18
Development of communication plan 5 days Wed 23-05-18 Tue 29-05-18
Procurement plan development 7 days Wed 23-05-18 Thu 31-05-18
Milestone 2: Completion of planning
phase of the project
0 days Tue 22-05-18 Tue 22-05-18
Project execution phase 24 days Wed 23-05-18 Mon 25-06-18
Identifying business needs 15 days Fri 25-05-18 Thu 14-06-18
Selection of cloud based ERP system 12 days Thu 31-05-18 Fri 15-06-18
Work customization 15 days Wed 30-05-18 Tue 19-06-18
Data migration 16 days Thu 24-05-18 Thu 14-06-18
Checking infrastructure 17 days Thu 24-05-18 Fri 15-06-18
Customization 19 days Wed 23-05-18 Mon 18-06-18
Change management 18 days Wed 23-05-18 Fri 15-06-18
Technology and knowledge transfer 17 days Wed 30-05-18 Thu 21-06-18
Testing project management 15 days Wed 30-05-18 Tue 19-06-18
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System integration testing 16 days Fri 01-06-18 Fri 22-06-18
User acceptance testing 17 days Fri 01-06-18 Mon 25-06-18
Milestone 3: Completion of execution
phase
0 days Thu 31-05-18 Thu 31-05-18
Closing phase 27 days Wed 23-05-18 Thu 28-06-18
Post project review 3 days Wed 23-05-18 Fri 25-05-18
Stakeholder sign off 3 days Tue 26-06-18 Thu 28-06-18
Post go-live support 3 days Fri 15-06-18 Tue 19-06-18
Milestone 4: Completion of closure
phase
0 days Thu 14-06-18 Thu 14-06-18
5.3 Budget estimate
The cloud based ERP system development will be completed by utilizing budget of
around $207,840. It is identified that the budget that is needed for executing each of the
activities of the project phases is provided in the table below:
Task Name Duration Resource Names Cost
Implementation of Cloud
based ERP system within
"CustomInk” organization in
Australia
41 days $ 207,840.00
Initiation phase 14 days $ 9,360.00
Development of business
case
4 days
Project planner, Project
manager
$ 2,720.00
Undertaking feasibility 4 days Financial manager $ 960.00
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PROJECT MANAGEMENT
study
Project charter establishment 5 days Project planner $ 1,600.00
Appointing team members 6 days
Project planner, Project
manager
$ 4,080.00
Milestone 1: Initiation
phase completion
0 days $ 0.00
Project planning phase 13 days $ 32,640.00
development of project plan 5 days Project planner, Supervisor $ 3,000.00
Development of resource
plan
7 days
Project planner, Financial
manager, Human resource
manager
$ 5,880.00
Creating financial plan for
the project
6 days
Project planner, Financial
manager
$ 3,360.00
Development of quality
management plan
5 days
Supervisor, Financial
manager, Risk analyst
$ 4,000.00
Development of risk
management plan
7 days Risk analyst, Tester $ 3,920.00
Development of acceptance
plan
6 days Project planner, Supervisor $ 3,600.00
Development of
communication plan
5 days Project planner, Supervisor $ 3,000.00
Procurement plan
development
7 days
Project planner, Supervisor,
Financial manager
$ 5,880.00
Milestone 2: Completion of 0 days $ 0.00
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planning phase of the project
Project execution phase 24 days $ 162,840.00
Identifying business needs 15 days
Supervisor, Database
manager, Human resource
manager
$ 13,200.00
Selection of cloud based
ERP system
12 days
Supervisor, Technical
engineer
$ 6,720.00
Work customization 15 days
Risk analyst, Technical
engineer, Project planner
$ 13,200.00
Data migration 16 days
Database manager,
Technical engineer, Tester
$ 14,080.00
Checking infrastructure 17 days
Supervisor, Risk analyst,
Technical engineer, Tester
$ 19,040.00
Customization 19 days
Database manager, Project
manager, Technical
engineer
$ 18,240.00
Change management 18 days
Project planner, Supervisor,
Database manager, Risk
analyst, Technical engineer
$ 26,640.00
Technology and knowledge
transfer
17 days
Supervisor, Database
manager, Risk analyst,
Technical engineer
$ 19,720.00
Testing project management 15 days Risk analyst, Tester $ 8,400.00
System integration testing 16 days Supervisor, Database $ 14,080.00
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PROJECT MANAGEMENT
manager, Technical
engineer
User acceptance testing 17 days
Supervisor, Technical
engineer
$ 9,520.00
Milestone 3: Completion
of execution phase
0 days $ 0.00
Closing phase 27 days $ 3,000.00
Post project review 3 days Project planner $ 960.00
Stakeholder sign off 3 days Project manager $ 1,080.00
Post go-live support 3 days Project planner $ 960.00
Milestone 4: Completion of
closure phase
0 days $ 0.00
5.4 Assumptions, Constraints and risks
Assumptions
The assumptions that are made before initiating the project are as follows:
The development of cloud based ERP system will be finished in 41 days
The budget that is used for finishing the project will be around $207,840.00
The project will follow the scope wile progressing
The development of cloud based ERP system will enhance data access facility
Constraints
The project constraints are as follows:
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PROJECT MANAGEMENT
Budget: The project of “cloud based ERP system development” must be finished
within the budget of around $207,840.00 . If the entire project is not completed within this
budget then number of financial issues can occur.
Time: The project must be finished within the 41 days. If the project manager are
unable to finish the project within the assumed time then the budget related with the project
will also increase.
Scope: It is quite necessary to follow the scope of the project in order to finish the
entire project within the expected time and budget. If the project managers are unable to
follow the scope then the project will face lot of complexities in accomplishing its objectives
as well as goals.
Risks
Risk Description Probability Impact Mitigation
Improper
budget
estimation
If the budget of
the project is not
properly
estimated then it
will be quite
difficult to finish
the project
within the
approved
budget.
High High Proper market
analysis for
analyzing the
cost of resources
of the project so
that the budget
of the project
must be
estimated
accurately.
Inexperienced
project
If the project
managers are
Medium Medium Experienced
project
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PROJECT MANAGEMENT
managers not experienced
then they will
face difficulty in
finishing the
project on time.
managers must
be hired so that
they can be
capable of
managing the
activities of the
project quite
effectively
within the
assumed budget
as well as time.
Schedule
slippage
If the project
schedule is not
managed
properly then
there are
chances of
schedule
slippage.
High High Proper tracking
of project
schedule on a
weekly basis is
required for
avoiding
schedule
slippage;
6. Organizational Structure
The organizational structure is mainly utilized by the organization “CustomInk” in
order to group similar packages of work that is mainly related with the organization structure.
The organization structure assists in defining different types of responsibilities that are
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PROJECT MANAGEMENT
mainly related with budgeting, management as well as project control (Van der Voet, 2014).
It is identified that the hierarchical structure of the organization is quite helpful in allowing
proper aggregation of information to higher level of the organization. The structure that is
mainly created generally assists in establishing proper operation as well as function of the
organization that generally helps in obtaining proper goals of the organization (O'Neill et al.,
2016). The organization structure for the organization “CustomInk” is provided below:
Figure 1: Organizational Structure
(Source: Created by author)
7. Application of balanced score card
Balanced scorecard is defined as one of the management system as well as structured
report that generally aligns with the strategy of the company in context to different tactical
activities. The balanced score card generally helps in maintaining focus and helps in moving
in different cohesive as well as consistent direction (Hoque, 2014). The each four different
elements that are identified to be aligned with the company’s mission, vision as well as
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PROJECT MANAGEMENT
values generally assists in developing four different perspectives including customer,
financial, internal business as well as learning and growth. The balanced scorecard for this
project is provided below:
Objectives Measures Targets Initiatives
Financial To utilize the
budget that is
approved for the
project.
Utilization of
budget
appropriately
Proper use of
project resources
To complete the
project within
the budget of
around
$ 207,840.00
Weekly
tracking of the
project budget
Customer Proper service
to the customer
Development of
cloud based
ERP system
Managing
demands of the
customers
properly;
Getting
feedback from
the customers
Internal
business
process
To have proper
accessibility of
data and
information
Development of
cloud based
ERP system
To access both
data and
information
from anywhere
at any time;
Transfer of data
to cloud.
Learning and
growth
Importance of
proper
management
strategies within
project;
Utilization of
proper
management so
that the project
can be finished
on time;
Achieving
proper skills and
knowledge in
project
management;
Documenting
the strategies
that are utilized
within the
project.
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