Implementation of an ERP solution for Woolworths Limited
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This project focuses on the implementation of an ERP solution for Woolworths Limited to resolve operational and functional challenges. It discusses project delivery methods, cost control, and financial contract types.
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Running head: PROJECT MANAGEMENT Project Management: Implementation of an ERP solution for the operational success of Woolworths Limited Name of the student: Name of the university:
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1PROJECT MANAGEMENT Table of Contents Project charter..................................................................................................................................2 Introduction......................................................................................................................................4 1. Selection of the project topic.......................................................................................................4 2. Background of the case project....................................................................................................5 3. Project delivery method...............................................................................................................5 3.1 Project delivery speed............................................................................................................5 3.3 Cost control............................................................................................................................7 4. Evaluation and recommendation of Financial contract type.......................................................8 4.1 Project delivery speed............................................................................................................8 4.2 Cost control............................................................................................................................9 4.3 Quality work..........................................................................................................................9 4.4 Risk/Hazard sharing.............................................................................................................10 5. Best recommended procurement method..................................................................................11 5.1 Project delivery speed..........................................................................................................11 5.2 Quality work........................................................................................................................11 5.3 Selection flexibility..............................................................................................................12 6. Development of risk management plan.....................................................................................13 Conclusion.....................................................................................................................................15 References......................................................................................................................................17
2PROJECT MANAGEMENT Project charter Title of the projectImplementation of an ERP solution for the operational success of Woolworths Limited Project detailsInordertoresolvethefunctionaland operational challenges the company is focused to design and implement an ERP system. The ERP system will help the company to obtain competitiveadvantagesandcommercial revenue. ScopeThe scope of the project is to identify the possiblerisksthatWoolworthsLimitedis constantlyfacingduetooperationaland functional lack. DeliverablesImproved productivity Increased business efficiency Reduced streamline process Risks and issuesTechnical risks Lackofskillsandknowledgeofthe experts ImproperusageofPMtoolsand techniques Inaccurateresource,timeandcost
3PROJECT MANAGEMENT management AssumptionsThe project will take around 4 months to design and implement the ERP solution The net time assumed for the successful completion of the project is $80,000 The scope of the project is to improve the businessefficiency,productivityby decreasingthecostandstreamlining processes Financial assumptionsItisexpectedthattheprojectwillbe accomplished considering the functional and non functional within the budget of $80,000 Milestones scheduleActivitiesTarget dates Projectinitiation phase 12/1/2019-20/1/2019 Projectplanning period 18/1/2019-22/1/2019 Projectdesignand execution 20/1/2019-30/2/2019 Projectmonitoring and control 2/3/2019-30/3/2019 Project closure4/4/2019-24/4/2019
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4PROJECT MANAGEMENT Introduction ThisprojectdepictstheroleofdesigningandimplementinganERPsolutionin WoolworthsLimitedtoresolveddifferentfunctionalandoperationalchallengesthatthe company is continuously facing. The ERP software will help the company to manage their business functionalities in terms of CRM, SCM, financial management, business intelligence and inventory management system (Franz, et al., 2016). A project charter is designed to identify the project delivery method, importance of cost control and seamless communication.Apart from this, based on the criteria listing lump sum contract, guaranteed maximum price contract and cost plus fixed fee contract the financial contract types are elaborated in this report. Various procurement methods are available among them the most suitable procurement method based on the project criteria are elaborated in this report. It will help to evaluate the competitiveness, negotiation and best values of the project.From the current operational analysis it has been determined that Woolworths Limited is facing certain major operational and functional challenges those are required to be resolved sooner (Chen et al., 2015). It is assumed that with design and implementation of an ERP solution the possible risks can be completely resolved.The designed risk register will contain risk quadrants and risk mitigation approaches as well. 1. Selection of the project topic Implementation of an ERP solution for the operational success of Woolworths Limited
5PROJECT MANAGEMENT 2. Background of the case project In this new era of technology, the numbers of online users are increasing simultaneously and managing huge numbers of users have become a major challenge from the business perspectives. In order to resolve the challenges the target company Woolworths Limited is focused on designing and implementing an ERP solution connected with a central database to ensure that the operational and functional efficiency, ROI and productivity rate is increasing (Suprapto et al., 2015). The expected outcomes from the project include simplified compliance, riskmanagement,happierconsumers,andproductivityimprovementwithimproved collaboration, better analytics opportunities. Apart from this, the production planning and resource management plan will be improved along with an improved inventory monitoring. 3. Project delivery method The project delivery method is referred to as a comprehensive process model which is assigning the contractual responsibilities useful to design and construct any type of project. 3.1 Project delivery speed This specific project is comprises of 3 different phases, first phase is project initiation phase, second phase is project planning phase and the third phase of the project design and development phase. It implies that the project will be successfully accomplished within 5 months. Design bid build: This is one of the most widely used traditional project delivery models uses in United Kingdom’s business organizations. This is mostly paired up with lower bid procurement approaches. The services offered by the contractors include jobsite supervision,
6PROJECT MANAGEMENT speciality trade work (Mesa, Molenaar & Alarcón, 2016).Some other project management services are also available in the target market those are to be primarily provided to the assigned project team members. The selection process emphasizes short price range. In order to play nice with the project owners the general contractors own lower incentives rate. It also protects the owners from temptation of the lower bidders. Design build: The design build approach is characterized with single accountability point that helps the owners from both the constriction and construction services. The design bid build involves single contract among the design builder and owners. It gives opportunities to the owners to fight against the difficulties and functional challenges. ContractManageratRisk:Thecontractmanageratriskmodelinvolvesmany preconstruction services (Chen et al., 2015). In this case the owners do not wait until the contractor is hired to complete the design. The dynamics between the contractors and owners changes drastically with the changing selection method. 3.2 Seamless communication At the initiation phase, many contractors are found interested in their application field. In order to operate the project seamless communication approaches are determined as very crucial from the business perspectives. Design bid build: The design bid build (DBB) configuration team provides opportunities to build those groups that are not well associated. For any practical project implementation this conveyance strategy is not at all beneficial.
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7PROJECT MANAGEMENT Design build:It is an individual contract build between design services, proprietors and constructions that helps to reach one contractor to create positive impart speedier and to assemble the specialist group including system designer, developer and tester. Contract Manager at Risk: This is one of the greatest advantages because in this approach all elements do not lose the project cash. In this approach the project contractor gets an opportunity to choose worked beforehand team. 3.3 Cost control The ERP system development project is paid by known 3 sponsor companies in United Kingdom. The net cost assigned for the project is $80,000 and from this the cost used for the design and development is $50,000. Design bid build: This approach provides cost beforehand as soon as the project is introduces to the project team members and sponsors (Yu, Shen & Shi, 2016). The way through which numerous numbers of staffs can be undertaken and managed with increment expenses is measured with the help of design bid build cost control approach. Design build:The design build technique can be highlighted as a configuration which assembles the proprietor elements that may control the value contracts and overall expenses as well of the company. Contract Manager at Risk:Each price danger is lies on supervisor’s supervision and it may be highlighted as the motivation behind the workers. It gives reasons for which the project supervisor needs to attempt join strategies are also highlighted. Selection criteria for the project delivery method
8PROJECT MANAGEMENT FactorsWeightProject delivery method Design build Scoreweight Design bid build Scoreweight CR@risk Scoreweight Project delivery speed 50425063008420 Cost control3071005708125 Seamless communication 20725031008250 Net100-600-470-795** For this section the factor which has been selected is construction manager at risk that scores 795. While constructing the ERP system this specific approach is much beneficial from the business and operational perspectives.The CM@Risk approach helps to reduce the risks of the project owners (Dougherty & Boyd, 2017). The net investment rate get reduces and gives accessibility to all the pre construction services. 4. Evaluation and recommendation of Financial contract type 4.1 Project delivery speed This is an association partner project among the project sponsors and UK government. Lump sum: In order to resolve the issues of smaller payments and installment cost this approach is used where single time payment is done by the project sponsor.
9PROJECT MANAGEMENT Cost plus fixed fee: For the normal expense this specific approach of investment is appliedbythecontractor.Thisapproachallowsobtainingcommercialbenefitsandalso encourages the commercial production. Guarantee maximum price: In this cost contract type the contractors are compensated for the actual cost that has been acquired along with a fixed fee subject to a ceiling price range. 4.2 Cost control In order to increase the commercial profit rate by reducing and identifying the business expenses the practice of cost control is applied by the project sponsors and contractor. Lump sum: This singular amount is useful for legislature because the company owners require extra project implementation cost (Ogunsanmi, 2016). Though, the values will be manipulated if a huge amount change occurs. Cost plus fixed fee:This specific cost control type is not appropriate for the project as the sponsors are not aware of the actual expense. Guarantee maximum price: Under the most extreme value it ensures maximum rate of cost. 4.3 Quality work Project quality is referred to as one of the most crucial aspects for Woolworths Limited. With this approach the speed and quality both will be adjusted accordingly. Lump sum:If the investors invest expected cost for the project in once go then for the mutual investment no such future issues will raise.
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10PROJECT MANAGEMENT Cost plus fixed fee:The cost plus fixed fee approach has ability to convert the final cost lower than normal contract because the contractors will never inflate the price for covering the risks. Guarantee maximum price:This approach ensures that even if the ERP system designer and developer hold the expenses under maximum value. 4.4 Risk/Hazard sharing Lump sum: The ideas and view points of the contractors always changes with the changing time and development phases it may cause major operational risks or hazards. Cost plus fixed fee: Additional cost can be requested as in each phase of development the sponsor may claim more features to the ERP solution. Guarantee maximum price:If the initial contract sum gets exceed in the design and development phase then financial risk may occur ad interrupt the regular and expected project success. Selection criteria for the project delivery method FactorsWeightProject financial contract type Lump sum Scoreweight Cost plus fixed fee Scoreweight Guarantee maximum price Score weight Project delivery speed 50425062008320
11PROJECT MANAGEMENT Cost control 2071005708200 Hazard sharing 20720032008250 Quality control 10620022007200 Total100-750-670-975** For financial contract type the best suited solution selected is guaranteed maximum price as it avoids future risks and also allows the project team members to assume the net expected investment at the very initiation phase. 5. Best recommended procurement method 5.1 Project delivery speed Competitive bidding:This process is issued with an intention that companies put in their final proposal (Perrenoud et al., 2017). Negotiated contract: Negotiated contract is referred to as a contract type used to govern services for selecting the performing entity. Best value: This is referred to as one of the most valuable strategies which require much financial support.
12PROJECT MANAGEMENT 5.2 Quality work Competitive bidding: The proprietor takes least rate of expensive bidder which may not meet the project criteria. Negotiated contract: The contractual workers can alter working group at the same time that may negotiate the contract. Best value: his strategy is referred to as one of the best possible approaches used t ensure the quality of the work (Hoff et al., 2016). 5.3 Selection flexibility Competitive bidding: The competitive bidding process will provide a flexible and transparent company environment. Negotiated contract: The negotiated contract will govern the entire services to evaluate the focused offers. Best value:It is referred to as a best strategy that helps to meet possible expenditure to bring down the rate of risks and hazards (Flammer, 2018). Selection criteria for the procurement method FactorsWeightProject delivery method Competitive bidding Scoreweight Negotiated contract Scoreweight Best value Scoreweight Project delivery 50430062008300
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13PROJECT MANAGEMENT speed Quality work 30715032008200 Selection flexibility 20615022007200 Total100-600-600-700** Best value is referred to as the most suitable best value that helps to portray the actual focus of company and its benefits that may be obtained from design and implementation of an ERP system (Ballesteros-Pérez et al., 2016). 6. Development of risk management plan Risk id Risk description Probability /likelihood Impact/ conseq uence ScoreEMVRisk owner Risk response DaysCost R2Inadequate skillsand knowledge amongthe projectteam members Possible (3) Major (4) High (12) 10$5000HR manager Thecompanyshould arrangeandimplement professional training and developmentprogram fortheworking employeestoensure theyareawareofthe
14PROJECT MANAGEMENT projectdetailsand expected outcomes. R4Improper resource allocation Catastroph ic (5) Likely (4) Extrem e (20) 8$10000Resource manager Theresourcemanager must analyze the project detailsandscope statementandthen accordinglyassign resources(physical, human) to each project development activities R1Improper time management Major (4)Rare (1) Low (4) 5$5000Project manager Attheinitialphase project manager should estimatethepossible designand implementationtime analyzingtheproject complexity. R5Inaccurate cost management Major (4)Unlikel y (2) Modera te (8) 5$5000Finance manager The finance manager is responsible to design a feasibilitystudyatthe preliminarystageto realizethatwhether implementationofan
15PROJECT MANAGEMENT ERP solution will stand beneficialfor Woolworths Limited or not. R8Lackof security amongthe projectteam members Catastroph ic (5) Likely (4) Extrem e (20) 10$8000Informati on security manager Basedontheproject designandsolution strategies the developers should identify accurate toolsandsecurity mechanismtoensure thatthesystemis completely secured from the external attackers. Conclusion From the overall discussion it can be concluded that, for managing all business functions construction of an ERP solution is the best option. The goal of ERP solution is not dissimilar from others but the unique features of ERP promote distinctive competition in the target market. In these recent days, there are many vendors who introduce flexible pricing range though the ERP solution is one of the big investments. It is assumed that the ERP solution provides excellent Return on Investment (ROI) rate. ERP unifies most of the systems that might be fragmented in the organization. The employees of Woolworths Limited would be able to access
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16PROJECT MANAGEMENT all needful tools and techniques starting from the product development to the payable accounts. The working staffs would be able to utilize and manage time much effectively and efficiently. The stored information will be collected and retrieved in a much easier way with a central database. Unwanted risks would all be eliminated with implementation of an ERP based solution. It will also serve the company application resilience, data backup and disaster recovery opportunities.
17PROJECT MANAGEMENT References Anuar, A. N. A., & Muhaidar, F. S. (2018). The procurement method used for maintenance in publicpark:Localauthorityperspectives.JournalofEngineeringandApplied Sciences,13(6), 1451-1461. Ballesteros-Pérez, P., Skitmore, M., Pellicer, E., & Zhang, X. (2016). Scoring rules and competitivebehaviorinbest-valueconstructionauctions.JournalofConstruction Engineering and Management,142(9), 04016035. Chen, Q., Jin, Z., Xia, B., Wu, P., & Skitmore, M. (2015). Time and cost performance of design– build projects.Journal of Construction Engineering and Management,142(2), 04015074. Chen, Q., Jin, Z., Xia, B., Wu, P., & Skitmore, M. (2015). Time and cost performance of design– build projects.Journal of Construction Engineering and Management,142(2), 04015074. Clayson, D. S., Thal, Jr, A. E., & White III, E. D. (2018). Cost performance index stability: insights from environmental remediation projects.Journal of Defense Analytics and Logistics,2(2), 94-109. Dougherty, B., & Boyd, M. (2017). Model (At Least) Twice, Build Once: Experiences With the Design–Bid–BuildProcessforSolarPhotovoltaicArrays.JournalofSolarEnergy Engineering,139(3), 035001. Flammer, C. (2018). Competing for government procurement contracts: The role of corporate social responsibility.Strategic Management Journal,39(5), 1299-1324.
18PROJECT MANAGEMENT Franz, B., Leicht, R., Molenaar, K., & Messner, J. (2016). Impact of team integration and group cohesion on project delivery performance.Journal of Construction Engineering and Management,143(1), 04016088. Hoff, R., Hammond, G., Feng, P., & White, E. (2016).Wartime construction project outcomes as a function of contract type. 628th Civil Engineer Squadron Joint Base Charleston United States. Mesa, H. A., Molenaar, K. R., & Alarcón, L. F. (2016). Exploring performance of the integrated project delivery process on complex building projects.International Journal of Project Management,34(7), 1089-1101. Molavi, J., & Barral, D. L. (2016). A construction procurement method to achieve sustainability in modular construction.Procedia engineering,145, 1362-1369. Naoum, S., & Egbu, C. (2015). Critical review of procurement method research in construction journals.Procedia Economics and Finance,21, 6-13. Ogunsanmi, O. E. (2016). Risk classification model for design and build projects.Covenant Journal of Research in the Built Environment,3(1). Perrenoud, A., Lines, B. C., Savicky, J., & Sullivan, K. T. (2017). Using best-value procurement to measure the impact of initial risk-management capability on qualitative construction performance.Journal of Management in Engineering,33(5), 04017019. Suprapto, M., Bakker, H. L., Mooi, H. G., & Moree, W. (2015). Sorting out the essence of owner–contractorcollaborationincapitalprojectdelivery.InternationalJournalof Project Management,33(3), 664-683.
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