Assignment on Project Management - ERP

PROJECT
MANAGMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Work request................................................................................................................................1
Charter.........................................................................................................................................3
Scope statement...........................................................................................................................5
Communication Plan...................................................................................................................7
Break even analysis.....................................................................................................................9
Quality Assurance Plan..............................................................................................................10
Risk management plan...............................................................................................................12
Milestone report.........................................................................................................................13
Lesson learned...........................................................................................................................13
ROI analysis...............................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCS.................................................................................................................................17
APPENDIX....................................................................................................................................18

INTRODUCTION
Project management is the set of activities that include planning, controlling and
monitoring in order to meet with success criteria. Present study is based on changes in financial
accounting procedure and implementation of ERP software in the hospital in order to minimise
cost and enhance revenues. Study will include quality management, budget, charter, risk and
mitigating strategies.
TASK
Work request
Project Work Request (Business Case)
Title of Project:
Changes in financial accounting system by
implementing ERP system
Request Date: 10/08/2018
Requestor Name: Mr. John Requesting Department: Administration
Requestor Phone: [phone] (Office use) Request tracking number:
254578
Business Need:
Recently, ABC hospital is managing the records of patients manually. This increases the errors
at workplace. ERP is the electronic software that can help in keeping electronic records of all
patients and their health. This can support in reducing administrative cost of hospital and can
improve the care services as well.
Project Description:
In the recent era, it is very important for companies and health care sector to implement latest
financial accounting software so that accounting errors can be minimized and entity can
manage records properly. This supports in minimising the cost and raising profit of business
unit. Changes in financial accounting system by implementing ERP is the great project. It will
help in utilising the resources well and improving profitability of hospitals to a great extent.
Business Value (check all that apply) Estimated Benefits
☐Satisfy regulatory requirements It will help in minimising the future
1

complexities.
☐Increase revenue This will enhance profit of ABC hospital
because it will be able to reduce the cost (Tsai
and et.al, 2015).
☐Improve Productivity It will enhance the services of hospital to a
great extent because saved money will be
utilised to improve health care services at
workplace.
☐Increase retention This saves time of existing staff and they feel
satisfied. Thus, they can be retained in firm
for longer duration.
☐Support additional capacity Changes in financial accounting system aids
in utilising resources well
☐Improve competitiveness This would support in providing the quality
services to patients that will be beneficial in
gaining competitive advantage (Elbanna,
2013).
☐Decrease expenses By implementing ERP, hospital will be able
to minimise the wastage by utilising resources
well and thus, it will be beneficial in
decreasing cost (ERP Project Management,
2017).
Project Estimates (+/- 25%):
1. Total cost: 112,600.00
2. Length of time: 95 days
3. ROI: 15.5
4. Payback Period: 4 year 5 months
Constraints
 Scheduling
 Cost
 Scope
2

Assumptions
It will raise profit of hospital and will reduce its cost as well.
High-level risks
 Financial risk
 Human resource risk
 Technical risk
Key Stakeholders
Project sponsor
Chief accountant
Patients
Departments affected:
Administration
Finance
Human resource department
Customer care department
Request Sponsor:(VP accountable for
project)
Mr. havan
Sponsor signature
Requester’s Name
Mr.John
Requester’s signature
Charter
Project Charter Project Serial Number:
Title of Project:
Changes in financial accounting system by
implementing ERP system
Start Date: 10/08/2018
Finish Date: 21/12/2018
Project Manager:
Mrs. Riya
Total Cost (+/- 10%): 112,600.00
ROI (+/- 10%): 15.5 Payback Point (+/- 10%): 4 year 5
months
3

Project Purpose or Justification:
 To reduce the expenses in hospitals
 To raise profit of the care home by utilising resources well
Measurable Project Objectives:
 To enhance profit of company by 25% till the end of 2019
 To minimize accounting errors 100% till the end of 2019
High-Level Requirements:
 Skilled employees
 Technical expertise
 Financial resources
Summary of Milestones:
Deliverable Deadline Who is responsible
Software installation 11/8/2018 Technical executive
Arranging training 13/8/2018 Project manager
Information circulation 15/08/2018 Project manager
Success Criteria (Sponsor Acceptance Criteria):
 Reduction in cost
 Improvement in return on investment
High-level risks:
Risk Mitigation Strategy
Technical risk Proper monitoring during installation of
software and timely training for staff
members
Human resource risk Recruitment of more technically sound
staff in administration and finance
department who can operate ERP
effectively (Elragal, 2014).
Budget Summary:
Budget Category Source Cost
Primary and secondary Fixed and variable $910,800.00
4

Key Stakeholder List:
Name Role Position Contact Info MBTI Type
John Sina Champion Chief
accountant
245789 Delegator
Mrs. Riya Management Project
manager ,Super
visory authority
789654 Mentor and
leader
Project Team Members
Name Role Position Contact Info MBTI Type
Mr. Ravi,
Rehan
Installation and
monitoring of
software
Technical
executives
787878 General
Helen Schedule team
leader
Team leader 252525 General
Funding Sponsor:(VP accountable for
project)
Mr. Havan
Sponsor Signature
Scope statement
Scope Statement Project Serial Number:
Title of Project:
Changes in financial accounting system by
implementing ERP system
Start Date:
Finish Date:
Project Manager: Mrs. Riya Total Cost (+/- 10%): 112,600.00
ROI (+/- 10%): 15.5 Payback Point (+/- 10%): 4 year 5 month
5

Project Description:
Changes in financial accounting system by implementing ERP software is the project. In ABC
hospital, staff is keeping the records of patients manually and there are no electronically records
maintained. This increases the cost of business and thus, hospital is planning to implement ERP
in hospital so that it can utilise resources well and minimize expenses.
Product Characteristics:
 Use of advance software
 Minimised cost
 Enhanced revenues
Product Scope:
Product Milestones:
Deliverable Deadline Who is responsible
Software installation 11/8/2018 Technical executive
Arranging training 13/8/2018 Project manager
Information circulation 15/08/2018 Project manager
Project Limits and Exclusions:
 Financial resources can limit this project
 Scheduling issue can limit this project
Success Criteria (Sponsor Acceptance Criteria):
 Reduction in cost
 Improvement in return on investment
Project Administration Scope:
Project Administration Milestones:
Deliverable Deadline Who is responsible
Hiring of staff 12/08/2018 Project manager
documentation 20/08/2018 Project sponsor, manager
Receiving funding for the
project
18/08/2018 Chief accountant and project
manager
6

PM: PM Signature
Funding Sponsor:(VP accountable for
project)
Mr. Havan
Sponsor Signature
Communication Plan
Project Communication Plan Project Serial Number:
Title of Project:
Changes in financial accounting system by
implementing ERP system
Start Date:10/08/2018
Finish Date: 21/12/2018
Project Manager:
Mrs. Riya
Total Cost (+/- 10%): 112,600.00
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
Sponsor Mr. Havan Adviser Overall budget,
people require,
estimated return
Fax,
email and
personal
meeting
11.00PM 456789
Notes:
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
Champio
n
John Sina monitor Return over
investment,
allocation of
budget
Email 12.00PM 245789
7

Notes:
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
Schedule
Team
Leader
Helen monitor Scheduling of
activities,
resource
allocation,
progress
Meeting
face to
face
1.00PM 252525
Notes:
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
Budget
Team
Leader
Mr. Shen Financial
superviso
r
Total estimated
budget,
progress, cash
flow, expenses
detail, ROI
Email 12.00 789456
Notes:
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
Quality
Team
Leader
Mrs. Rita Quality
assurance
Progress, actual
quality, desired
quality
Personal
meeting
2.00 123456
Notes:
Project
Role
Name MBTI Information
Desired
Method
of
Delivery
Timing or
Frequenc
y
Contact
Informatio
n
8

Technical
executive
Mr. Ravi,
Rehan
General Software to be
installed, actual
software
condition
Email,
fax
3.00 414152
Notes:
Funding Sponsor:(VP accountable for project)
Mr. Havan
Sponsor Signature
Break even analysis
Year 2018
Sales Price Per Unit 100,000.00
Sales Volume Annually 1
Total Sales $100,000
Less Variable Expenses Remaining Balance
Items 1,000.00 $99,000
Staff 10,000.00 $89,000
Fuel Costs 5,000.00 $84,000
Transportation 7,000.00 $77,000
Loans and other obligations 45,000.00 $32,000
Fixed Expenses Remaining Balance
Salaries to staff 20,000.00 $12,000
Employee Benefits 4,000.00 $8,000
Payroll taxes 2,500.00 $5,500
Permits 2,100.00 $3,400
costs of Equipment 2,000.00 $1,400
Insurance 500.00 $900
Telephone 500.00 $400
Office supplies 3,000.00 ($2,600)
Advertising 500.00 ($3,100)
CPA 1,000.00 ($4,100)
Bank Charges 2,500.00 ($6,600)
Interest Expense 5,000.00 ($11,600)
Miscellaneous Expenses 1,000.00 ($12,600)
9

Results
Total Fixed Expenses 44,600.00
Total Variable Expenses 68,000.00
Total Expenses Ratio 112.60%
Break-Even Sales 78%
Operating Profit ($12,600.00)
Year 1 2 3 4 5 6
Sales
volume
annuall
y 1 7 10 17 23 35
Sales
price
per
home
100,000.0
0
109,000
.00 118,810.00
129,502.
90 141,158.16 153,862.40
Fixed
Cost
Per
House 44,600.00
46,384.
00 48,239.36
50,168.9
3 52,175.69 54,262.72
Variabl
e Cost
Annual
ly 68,000.00
69,700.
00 71,442.50
73,228.5
6 75,059.28 76,935.76
Total
Cost
112,600.0
0
116,084
.00 119,681.86
123,397.
50 127,234.97 131,198.48
Total
Sales
of
Homes
10
0,000.00
763,000
.00
1,188
,100.00
2,
201,549.
30 3,246,637.70
5,38
5,183.84
Net
profit/l
oss
(1
2,600.00)
646,916
.00
1,068
,418.14
2,
078,151.
80 3,119,402.73
5,25
3,985.36
Quality Assurance Plan
Quality Management Plan Project Serial Number:
Title of Project:
Changes in financial accounting system by
implementing ERP system
Start Date: 10/08/2018
Finish Date: 21/12/2018
10

Project Manager:
Mrs. Riya
Quality Team Leader:
Mrs. Rita
Project Description:
The project is implemented to reduce the expenses and enhance revenues of hospitals.
Recently, hospital is not utilising its resources well and unable to provide quality services to
patients. By using this software, it will be able to minimise the cost and will be able to
improve quality of services.
Quality Objectives:
 To utilise the resources properly
 To minimise the wastage
Project Quality Team Members:
Name Role Position Contact Info MBTI Type
Mrs. Rita Quality Control
Team Leader
Quality team
leader
123456 Supervisor
Mr. Jen Quality
Improvement
Quality
executive
123457 General
Mr. Hishn Internal Quality
Control
Internal quality
executive
123458 General
Mrs. Florence External Quality
Assurance
External quality
executive
123459 General
Mr. Poppy Process Quality
Team Leader
Process Team
leader
123456 Supervisor
Quality Metrics Criteria (Sponsor Acceptance Criteria):
 Improvement in quality standards
 Patient’s satisfaction
Project Quality Administration Deliverables:
Deliverable Deadline Who is responsible
Quality standards 15 days Mrs. Rita
Patient satisfaction 2 months Mr. Jen
11

Process quality standards 1 month Mrs. Rita
PM: PM Signature
Funding Sponsor:(VP accountable for
project)
Mr. Havan
Sponsor Signature
Risk management plan
Technical risk
High Moderat
e
400000
0
Added
cost: 2500
Added
time:
5months
Added cost:
3000
Added
time:3
months
Technica
l
manager
Human resource risk
Moderat
e
Moderat
e
2000
Added
cost: 1500
Added
time:3
month
Added cost:
2000
Added
time: 4
months
Project
manager
Quantitative
12

Deliverables report
Milestone report
Milestone Report for Project Name
Prepared by: Date:
Milestone Date Status Responsible Issues/Comments
Deliverables 21/11/2018 Completed Mrs. Riya All deliverables
are meet with the
objective but have
taken little much
time as expected.
Trends 18/12/2018 Finished Mrs. Riya No issue
Lesson learned
Lessons Learned Report
Prepared by: Date: 10/082018
Project Name: Implementation of ERP in hospital
Project Sponsor: Mr. Havan
Project Manager: Mrs. Riya
Project Dates: 10/08/2018- 21/12/2018
Final Budget: $910,800.00
1. Did the project meet scope, time and cost goals?
Yes, project meets with actual scope, time and cost goal.
2. What was the success criteria listed in the project scope statement?
Reduction in cost and improve in return over investment.
3. Reflect on whether or not you meet the project’s success criteria.
Yes, I meet these success criteria and by implementing this, ERP software hospital is able
to minimize the cost and enhance its profit.
4. In terms of managing the project, what were the main lessons your team learned?
13

Significance of effective communication and close monitoring lessons have been learned
by team.
5. Describe one example of what went right on this project.
When project manager had communicated with all stakeholders then they have given
their suggestions. This clear communication has supported in ensuring quality and
meeting with the success criteria.
6. Describe one example of what went wrong on this project.
People were not having knowledge of ERP that was initially problematic to deal with.
7. What will you do differently on the next project based on your experience
working on this project?
I will schedule activities properly and will monitor progress closely so that issues can be
resolved on time.
____________________________ (signature)
Project Participant
ROI analysis
Net present value:
Year Profit Pvfactor
1 -12,600.00 0.909 -11454.5
2 646,916.00 0.826 534641.3
3 1,068,418.14 0.751 802718.4
4 2,078,151.80 0.683 1419406
5 3,119,402.73 0.621 1936904
6 5,253,985.36 0.564 2965738
7647952
initial investment 5500000
2147952
Return on Investment (ROI)
Year Costs Cumulative Benefits Cumulative
Costs Benefits
0 - (12,600)
1 112,600.00 112,600 -12,600.00 634,316
2 116,084.00 #REF! 646,916.00 1,702,734
3 119,681.86 #REF! 1,068,418.14 3,780,886
4 123,397.50 #REF! 2,078,151.80 6,900,289
14

5 127,234.97 #REF! 3,119,402.73 12,154,274
6 131,198.48 #REF! 5,253,985.36 #REF!
730,197 12,154,274
ROI: 15.64520286
Pay Back Analysis
Year Costs
Cumulativ
e Benefits Cumulative
Costs Benefits
0 - -
1 112,600.00 112,600 -12,600.00 (12,600)
2 116,084.00 228,684 646,916.00 634,316
3 119,681.86 348,366 1,068,418.14 1,702,734
4 123,397.50 471,763 2,078,151.80 3,780,886 4
5 127,234.97 598,998 3,119,402.73 6,900,289 1,719,114
6 131,198.48 730,197 5,253,985.36 12,154,274 0.6
Hence, it can be said that project will require 4 years and 9 months in order to recover the
cost.
CONCLUSION
From the above study, it can be concluded that project manager is required to improve
communication and have to monitor activities and progress closely. This can help in gaining
benefits and completing this project within specified period of time.
15

REFERENCS
Books and Journals
Elbanna, A., 2013. Top management support in multiple-project environments: an in-practice
view. European Journal of Information Systems. 22(3). pp.278-294.
Elragal, A., 2014. ERP and big data: The inept couple. Procedia Technology. 16. pp.242-249.
Tsai, W. H. and et.al., 2015. Performance of the internal audit department under ERP systems:
empirical evidence from Taiwanese firms. Enterprise Information Systems. 9(7). pp.725-
742.
Online
ERP Project Management. 2017. [Online] Available through:
<https://lumeniaconsulting.com/services/erp-implementation/erp-project-management>.
16

APPENDIX
Project summary
Completed Task
Task
Mode WBS Task Name Duration Start Finish Predecessors
Auto
Scheduled ERP Implementation 96 days Fri
8/10/18
Fri
12/21/18
Auto
Scheduled A Project preparation 38 days Fri
8/10/18
Tue
10/2/18
Auto
Scheduled A.a Defining scope and
objectives 5 days Fri 8/10/18 Thu
8/16/18
Auto
Scheduled A.b Identifying team 7 days Fri 8/17/18 Mon
8/27/18 2
Auto
Scheduled A.c Identifying
stakeholders 6 days Tue
8/28/18 Tue 9/4/18 3
Auto
Scheduled A.d Identifying project
procedure 5 days Wed
9/5/18
Tue
9/11/18 4,3
17

Auto
Scheduled A.e System architecture
design 10 days Wed
9/12/18
Tue
9/25/18 5
Auto
Scheduled A.f Technical
infrastructure preparation 5 days Wed
9/26/18
Tue
10/2/18 6
Auto
Scheduled B Business blueprint 23 days Wed
10/3/18
Fri
11/2/18
Auto
Scheduled B.a Scope document 5 days Wed
10/3/18
Tue
10/9/18 7,5,6
Auto
Scheduled B.b Gap analysis 15 days Wed
10/10/18
Tue
10/30/18 9
Auto
Scheduled B.c Sign off 3 days Wed
10/31/18 Fri 11/2/18 10
Auto
Scheduled C Realization 18 days Mon
11/5/18
Wed
11/28/18
Auto
Scheduled C.a Training programs 5 days Mon
11/5/18 Fri 11/9/18 11
Auto
Scheduled C.b Configuration and
development 6 days Mon
11/12/18
Mon
11/19/18 13
Auto
Scheduled C.c Infrastructure
implementation 7 days Tue
11/20/18
Wed
11/28/18 14
Auto
Scheduled D Final preparation 15 days Thu
11/29/18
Wed
12/19/18
Auto
Scheduled D.a End user training 2 days Thu
11/29/18
Fri
11/30/18 15
Auto
Scheduled D.b Business simulation 3 days Mon
12/3/18
Wed
12/5/18 17
Auto
Scheduled D.c Data migration to
production 5 days Thu
12/6/18
Wed
12/12/18 18
Auto
Scheduled D.d Complete check 5 days Thu
12/13/18
Wed
12/19/18 19
Auto
Scheduled E Project closing 2 days Thu
12/20/18
Fri
12/21/18
Auto
Scheduled E.a Closure 2 days Thu
12/20/18
Fri
12/21/18 20
Cash flow
18

Budget
Resource usage
19

20

Critical path
WBS
21