Project Management: Development of ERP system

This document provides knowledge questions and project tasks related to project management and the development of an ERP system for Blach Construction Company. It includes information on project plans, operational plans, PMBOK phases, policies and procedures, stakeholder consultation, team involvement, and gaining approval from customers and sponsors.

Running head: PROJECT MANAGEMENT
Project: Development of ERP system
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Assessment part 1: Knowledge Questions.......................................................................................2
1.1 Difference between project plans and operational plans...............................................2
1.2 Different phases of PMOK that are outlined.................................................................2
1.3 Policies, procedures and guidelines that are used by the organization.........................2
1.4 Questions that are asked to the sponsor for clarifying objectives.................................3
1.5 Reason behind consulting stakeholders such as the customer, project sponsor and
project team.............................................................................................................................4
1.6 Steps of ensuring that colleagues and team members are involved in the project........4
1.7 Gaining approval from the customer and project sponsor to commence project..........4
Assessment part 2: Project tasks......................................................................................................5
Task 1: Project plan.....................................................................................................................5
a.) Project charter.....................................................................................................................5
b) Project team structure..........................................................................................................9
c) Schedule.............................................................................................................................10
d) Budget...............................................................................................................................11
e) Communication plan..........................................................................................................12
f) Risk management plan.......................................................................................................13
Task 2: Monitoring and managing your project........................................................................16
a) Monitor project performance.............................................................................................16
b) Report project progress.....................................................................................................16
c) Potential or actual risks......................................................................................................17
d) Making changes and adjustment to resources...................................................................17
e) Project records...................................................................................................................18
f) Close out............................................................................................................................19
Task 3: Finalize and review project...........................................................................................19
a) Finalize the project............................................................................................................19
b) Outcomes compared with actual project...........................................................................20
c) Evaluation of the project success.......................................................................................20
d) Strategies to ensure for transitioning new project.............................................................21
Bibliography..................................................................................................................................22

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Assessment part 1: Knowledge Questions
1.1 Difference between project plans and operational plans
A project plan is mainly defined as one of the essential document that is used in order to
keep the entire project on track. Within the entire project plan, It is quite necessary to determine
the goals, scope, deliverables as well as deadlines of the project (Kerzner and Kerzner 2017). On
the other hand, operational plan is mainly defined as one of the procedure that helps in planning
the strategic goals and objectives. It further helps in giving proper clear picture of how a team,
section as well as department helps in contributing to the achievement as per the goals of the
organization.
1.2 Different phases of PMOK that are outlined
The five phases of the project that are generally outlined in PMBOK are mainly listed below:
 Initiation phase
 Planning phase
 Execution phase
 Monitoring and controlling phase
 Closing
1.3 Policies, procedures and guidelines that are used by the organization
The policies, procedures as well as guidelines that are used by the organization within the
project are generally listed below:
Workplace safety policies: The organization generally utilizes workplace safety policies in
order to mitigate the damage of the lawsuits but generally helps in providing proper guidance to
the employees which general act as proper preventive measures.

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Disciplinary policies: This policy is generally utilized in order to protect the company
against the unfair dismissal or the various types of damage that is generally inflicted on the
business
Work hours and turnaround time: This policy is utilized by the organization within the
project in order to properly fostering a better culture within the company for developing better
relations with the client (Hornstein 2015).
Utilization of strategic direction: The procedures are applied by the organization within the
project for making sure that the daily activities of the project are inline and are appropriate for
the strategic goals of the organization. It is found that that it does not helps in improving the
practices of the project but also helps in creating proper culture within the company.
Utilization of processes for aligning with the resources of the company: It is found that
proper processes are generally utilized within the project in order to align the resources of the
project properly with the project resources for completing the project on time (Svejvig and
Andersen 2015).
1.4 Questions that are asked to the sponsor for clarifying objectives
The questions that are asked to the project sponsor as well as project customers for clarifying
the objectives and scope of the project are generally listed below:
 What are the requirements that are needed to be achieved for meeting project objectives?
 How much time and money is generally required for completing the project work?
 What are the resources that are required for finishing the project?

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1.5 Reason behind consulting stakeholders such as the customer, project sponsor and
project team
Yes, in the project planning phase, one needs to consult with the project stakeholders
including the customers, project sponsor as well as the project team members in order to get
proper information about the entire procedure of gathering data as well as information of the
project. Consultation with the stakeholders is generally required for properly planning as well as
designing the project in order to achieve the goals and project objectives effectively (Kaiser,
M.G., El Arbi and Ahlemann 2015).
1.6 Steps of ensuring that colleagues and team members who are associated with the
project
The steps that helps in reflecting that the stakeholders who are involved with the project are
clear about their responsibilities and roles of the project are generally listed below:
 The project stakeholders perform their roles and responsibilities effectively within the
project for completing the project work
 The stakeholders can be able to properly execute the project activities as per the initial
plan of the project (De Carvalho et al. 2015).
 The work that is performed by the project stakeholders helps in reflecting that that project
goals can be achieved successfully.
1.7 Gaining approval from the customer and project sponsor to commence project
The steps that are required to be performed by the project sponsor as well as the customers of
the project for successfully commencing the work of the project:

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Determining as well as analyzing the needs as well as requirements of the customers
 Identifying the key influencers and their needs and requirements
 Analyzing the business requirements and alternatives
 Developing proper business case as well as proper investment story
 Developing proper objectives and aim of the project
Assessment part 2: Project tasks
Task 1: Project plan
a.) Project charter
Project Name: Development of ERP System for Blach construction company
Prepared by: Project manager (Name: Please fill)
Date: 05-03-2019
Initiation The name of the project is development of ERP system in Blach
Construction company which is mainly developed by the project
manager within the assumed budget and time.
Synopsis The project mainly reflects on the Blach construction company that is
one of the commercial builder who generally helps in providing
reimbursement for approved certifications and coursework. It is
found that the organization manages its operations with the help of
paper based system and due to which the organization faces number
of problems as well as issues including misinterpretation, human

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error, inconsistency in data entry, reduction in sharing information,
improper security as well as chances of data duplication. In order to
resolve this issue, the organization wants to develop ERP system for
the organization. The main purpose of the organization to manage its
operations with the help of ERP system so that the problems that are
faced by the construction company can be resolved easily. It is found
that the development of ERP system will get completed in 2 months
by utilizing budget of around $60,000. The resources that are
generally utilized within the project include technical resources,
human resources as well as financial resources for completing the
project work within the assumed time and budget.
Purpose/
Business Need
The main purpose of the project is to develop an ERP system for the
organization “Blach construction company”. It is found that the
organization mainly uses manual system for successfully managing
the operations however due to the utilization of manual system, it
faces number of problems like misinterpretation, inconsistency,
duplication and more. For minimizing the issues and for properly
managing the operations, the organization aims to develop an ERP
system.
Product
Description and
Deliverables
The deliverables of the project are elaborated below:
 Development of ERP system
 Proper change management plan

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 Proper project plan
 End user training document
Project
Management
It is found that agile project management methodology is mainly
utilized in order to manage the development of ERP system
successfully. It is found that agile development is generally integrated
during the testing cycle that helps in reflecting that development of
ERP is tracked regularly for making sure that all activities are
executed properly. Moreover, the paper also helps in eliminating the
chances of project failure as agile methodology helps in eliminating
the risks and challenges.
Assumptions,
Constraints,
Risks
Assumptions
The assumptions include:
 Completion of project within 2 months
 All the team members will work actively for completing the
work
 The project team will follow the scope of the project properly
Constraints
The constraints of the project include:
 Inappropriate availability of time for project
 Inappropriate presence of project budget
 Chances of scope creep
 Improper management due to which rising number of project

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risks
Risks
The risks that are associated with the project mainly include:
 Improper scheduling of project budget
 Lack of project budget for completing the project
 Improper management of the project
 Inexperienced team members of the project
 Improper testing after the development of the project
Resources Financial resources: It is found that $60,000 is needed for
developing the ERP system for the organization.
Material resources: The material resources that are needed include:
 Equipment
 Supplies
 Other materials
Personnel resources: The human resources who are involved with
the project are listed below:
 Project manager
 Project planner
 IT manager
 Developer
 Risk manager

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Project manager
Project
planner
Database
manager
HR
manager
Risk
analyst Tester Technical
engineer
 HR manager
b) Project team structure
The project team structure is generally reflected below:
Figure 1: Project team structure
(Source: Created by author)

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c) Schedule
The schedule that is provided below reflects that the ERP system for the Bach
construction company will be developed within 60 days.
Figure 2: Schedule
(Source: Created by author)

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d) Budget
The budget that is needed for developing the ERP system for Blach Construction
Company is around $60,000 which is shown in the below figure:
Figure 3: Project budget
(Source: Created by author)

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e) Communication plan
Audience Message Frequency Vehicle Responsibility
Project manager The project team
member
discusses the
issues and
problem that
they face while
involving with
the project so
that the
problems can be
resolved
effectively.
Whenever
necessary
Email, Face to
face
Project team
members
Project team
members
The project
manager
discusses the
scope and
objectives of the
project so that
they can be able
to work
effectively on
Before the
project initiation
Email, Face to
face
Project manager

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the project.
Financial
managers
The team leaders
generally
discusses the
financial issues
that they face
while
completing the
work of the
project.
Whenever
required
Email, Face to
face
Team leaders
Project manager The project
planner
discusses the
project status
with the project
managers so that
they can be able
to keep track on
the project
Monthly Email, Face to
face
Project planner
f) Risk management plan
Risk Description Impact Probability Responsible Mitigation
Schedule If the High High Project If the schedule

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slippage schedule of
the project is
not managed
properly then
it will be quite
difficult to
finish the
project.
planner of the project
is properly
managed then
the problem of
schedule
slippage can
be avoided.
Lack of
budget
Due to lack of
budget, it will
be quite
difficult to
develop the
ERP system
effectively on
time.
High High Financial
manager
It is quite
necessary to
manage the
budget of the
project
properly for
avoiding
financial
issues.
Technical
issue
If testing is
not done
properly then
it will be quite
difficult to
finish the
High High Tester It is quite
necessary to
conduct
testing
properly for
avoiding

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project
successfully.
technical
issues and
challenges.
Inexperienced
team
members
If the project
team staffs are
inexperienced
then they face
lot of
challenges in
finishing the
work.
Medium Medium Project
manager
It is quite
important to
hire
experienced
team members
within the
project for
avoiding
challenges
Improper
management
If proper
management
is not done
then it will be
very much
difficult to
manage the
project work
successfully.
Medium Medium Human
resource
manager
It is necessary
to use proper
management
strategies for
developing the
ERP system
properly.

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Task 2: Monitoring and managing your project
a) Monitor project performance
The methods that are mainly utilized for monitoring the performance of the project in
context to finances, resources as well as quality of the project are mainly listed below:
Tracking schedule: After the project commencement, it is the responsibility of the
project team to track the project progress on a weekly basis for making sure that the expenditure
that is mainly incurred or the time that is needed for completing the project can be monitored
quite easily (Bucero and Englund 2015).
Cost-schedule-milestone graph: It generally helps in representing the planned cost of
various project milestones. It generally helps in reflecting the actual cost that is generally needed
for achieving the milestone. By comparing the cost that is planned to the cost that is estimated
for tracking the project progress.
Earned value method: It is generally used to track the schedule as well as cost of the
project quite properly. During the project progress, the progress of the overall project can be
monitored quite easily (Conforto et al. 2016).
b) Report project progress
The method that is utilized for reporting the progress of the project to the relevant
stakeholders are generally elaborated below:
Monthly progress report: The monthly progress report is used by the project planner for
reflecting the progress of the schedule and for reflecting that the entire schedule in on track and it
will be completed on proper time (Kivila, Martinsuo and Vuorinen 2017).

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Weekly progress report: The weekly progress report is mainly used for reflecting the
financial progress of the project and further it helps in showing that the budget that is mainly
assigned for the project is appropriate for finishing the project.
c) Potential or actual risks
The methods that are used for managing as well as monitoring the potential as well as
actual risk that may arise in the project are generally elaborated below:
Budget overspend: If the budget of the project is not managed properly by the financial
manager of the project then the budget that is generally needed for the project increases which
further enhances number of issues and challenges in the project (Samset and Volden 2016).
Missed deadline: If the project managers are unable to track the schedule of the project
properly then the chances of missed deadline within the project increases.
Unacceptable outcomes: If the project is not managed properly due to lack of proper
management strategies, then the outcome of the project will be unacceptable as it will be quite
difficult to achieve the goals and objectives of the project (Andersen 2016).
Inappropriate training facility: If proper facility of training is not provided to the team
members, then it will be quite difficult to manage the project activities properly.
d) Making changes and adjustment to resources
The methods that are mainly utilized for making changes as well as for making
adjustments in context to the resources are generally elaborated below:

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Tracking: Tracking is considered as one of the important step that is needed to be
utilized by the manger in order to deliver the project effectively even some adjustments or
changes are done in context to allocated budget and time.
Proper scheduling: Proper scheduling is considered as one of the important methods for
making sure that the project schedule is on track and it will be finished as per the initial project
plan (Fleming 2019).
Weekly progress update: Weekly progress update is found to be necessary for updating
the details as well as progress of project in order to make sure that the entire project is on track
and it will be completed on time.
e) Project records
The various types of project records that is needed for retaining the reference purpose are
generally elaborated below:
Records of customer communication: The communication that is done with the
customers are documented as well as recorded so that it can be used in the future if any need
arises.
Project issues: It is found that issues that are faced during the progress of the project
must be properly documented in the form of record (Meng and Boyd 2017).This is generally
necessary as it mainly helps in providing proper idea about the risks that generally occur within
the project so that the problems can be resolved in the initial stage of the project.
Progress update: It is quite necessary to record the weekly progress of the project
properly for using the idea in future projects for avoiding issues that mainly occur due to
schedule slippage and lack of budget management.

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f) Close out
The methods that are utilized for closing out the project properly including the project
documentation as well as sign off of the project are reflected below:
Customer meeting: In order to close out the project properly including documentation
and sign off the project, it is quite necessary to undertake customer meeting in order to review
the outcomes of the project. This step is generally needed for making sure that the project
objectives and goals are met successfully (Zheng et al. 2016).
Confirms acceptance: This step is generally undertaken for making sure that the project
goals as well as objectives are successfully achieved such that project documentation as well as
sign off the project is performed effectively.
Task 3: Finalize and review project
a) Finalize the project
The actions which are needed to be used for finalizing the entire project are mainly
elaborated below:
Reconciliation of project budget: Cost budgeting is considered as one of the important
step in project management that generally helps the stakeholders in determining the cost of the
project. There are number of tools that must be used by the project managers to do the cost
budgeting properly so that the project can be finalized easily.
Final project report: Final project report is generally necessary for making sure that the
entire project is properly finalized so that goals and objectives of the project can be achieved
effectively (Niazi et al. 2016).

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Archiving project records: Archiving project records are necessary in order to finalize
the project effectively. This step is generally necessary for keeping track on the project
effectively.
b) Outcomes compared with actual project
The actual project outcomes are different with planned project outcomes. It is found that
the actual project outcome differs from the planned project outcome due to number of challenges
or issues that arises while executing the project including inappropriate project planning,
improper management, lack of resources and more.
It helps in providing appropriate insight in relation to budgeting, resource allocation as
well as risks of the project. The budget, resource allocation as well as project risks may vary in
the actual project when it is compared with the planned project and this inaccuracy occurs due to
inappropriate estimation and lack of experience of the project team members (Sunder 2016).
c) Evaluation of the project success
The success of the project can be evaluated with the help of the steps that are generally
elaborated below:
Meeting project objectives: If the objectives of the project are met by the tea, for
making sure that the undertaken project is quite successful.
Meeting the project scope: If the scope of the project is met by the project team
members then it can be ensured that the undertaken project will be successful (Bjorvatn and
Wald 2018).
The project that is undertaken helps in reflecting that it is quite essential to complete the
project in the assumed deadline and budget for meeting the project objectives successfully.

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Moreover, it is the responsibility of the project manager to hire experienced team members so
that they can be able to complete the work of the project effectively on time. In addition to this,
the information as well as knowledge that is achieved from the project will guide me in my
future projects.
d) Strategies to ensure for transitioning new project
The strategies that is used for ensuring the transition of the new project are generally
elaborated below:
Proper actions: It is quite necessary to take proper actions in order to make sure that the
business is quite confident to utilize the procedure so that the transition of the new project can be
done quite easily (Conforto and Amaral 2016).
Proper support: Proper support is quite necessary for transitioning the new project
effectively.

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