Blach Construction: Project Management Plan for Cloud-Based ERP System

This document presents a comprehensive project management plan for the development and implementation of a cloud-based ERP system for Blach Construction, an Australian construction company with offices in Silicon Valley and the Central Coast. The plan addresses the challenges of their current ERP system, including high installation costs, data sharing resistance, and accessibility issues. It outlines the system's capabilities, such as customization, data migration, and infrastructure checks, and details the expected business benefits like improved accessibility, reduced staff time, and enhanced data backup. The plan includes a quantification of project approval factors, including estimated time for project completion (85 days), a detailed budget (AUD49,440.00), and estimated annual operating costs ($15,000). A cost-benefit analysis is provided, highlighting both tangible and intangible benefits. Furthermore, the document performs a risk and feasibility analysis, addressing organizational, technological, and resource risks. The project environment is established, and a work breakdown structure (WBS) and Gantt chart are included to schedule the work effectively.

Running head: PROJECT MANAGEMENT
Development of cloud-based ERP system for Blach construction company
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
1. Identification of the problem..................................................................................................2
1.1 Description of the problem...............................................................................................2
1.2 System capabilities...........................................................................................................2
1.3 Expected business benefits...............................................................................................2
2. Quantify project approval factors...........................................................................................3
2.1 Estimated time for project completion.............................................................................3
2.2 Development cost of the project......................................................................................6
2.3 Estimated annual operating costs...................................................................................10
2.4 Cost benefit analysis......................................................................................................10
2.4.1 Anticipated benefits................................................................................................10
2.4.2 Table for estimated annual benefits........................................................................11
3. Perform a risk and feasibility analysis.................................................................................11
3.1 Determine organizational risks and feasibility...............................................................11
3.2 Evaluating technological risks and feasibility................................................................12
3.3 Asses resource risks and feasibility................................................................................12
3.4 Identify schedule feasibility and project risks................................................................13
4. Establish project environment..............................................................................................13
4.1 Table outlining the information.....................................................................................13
4.2 Describe the work environment.....................................................................................14
4.3 Description of the procedures and processes that will be utilized.................................14
5. Schedule the work................................................................................................................15

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PROJECT MANAGEMENT
5.1 Work breakdown structure.............................................................................................15
5.2 Gantt chart......................................................................................................................17
Bibliography.............................................................................................................................18

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1. Identification of the problem
1.1 Description of the problem
The paper mainly reflects on the development of cloud ERP system within the
organization “Blach construction company” which is one of the construction company of
Australia that has its offices in Silicon Valley and Central coast. It is identified that the
organization uses ERP system in order to manage its operations. However, the use of ERP
system creates number of challenges as well as issues including expensive installation,
resistance in sharing data, difficulty in using the system as well as problem is accessing
information outside the office. In order to resolve the problem, the organization wants to
move its ERP system within cloud so that the operations of the organization can be managed
quite effectively.
1.2 System capabilities
The system capabilities of the cloud-based ERP system mainly include:
 Customization of work
 Migrating the data and information into cloud
 Transferring knowledge as well as technology
 Checking the infrastructure of cloud
1.3 Expected business benefits
The benefits that are expected from the development of cloud-based ERP system are
elaborated below:
Access from anywhere: It is found that important information and data of the
organization can be accessed from anywhere, anytime by the staffs as well as customers of
the organization.

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PROJECT MANAGEMENT
No staff time: No staff time is mainly needed for maintaining or upgrading the
hardware the organization grows.
Current functionality: Current functionality is always present as the cloud vendor
maintains as well as updates the software.
Backup: Data can be quite easily backed up with the help of proper disaster recovery
plan of the organization.
2. Quantify project approval factors
2.1 Time that is estimated for completion of project
The time that is generally required for the cloud ERP system development is generally
given in the below table.
WBS Task Name Duration Start Finish
0
Development of cloud-based ERP
system in Blach construction
company, Australia
85 days Thu 22-11-18 Wed 20-03-19
1 Initiation phase 15 days Thu 22-11-18 Wed 12-12-18
1.1
Development of project business
plan
3 days Thu 22-11-18 Mon 26-11-18
1.2 Cost benefit analysis 3 days Tue 27-11-18 Thu 29-11-18
1.3
Establishing the charter for the
project
4 days Fri 30-11-18 Wed 05-12-18
1.4 Recruiting the staffs 5 days Thu 06-12-18 Wed 12-12-18
1.5
Milestone 1: Completion of
initiation phase
0 days Wed 12-12-18 Wed 12-12-18

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PROJECT MANAGEMENT
2 Planning phase 24 days Thu 06-12-18 Tue 08-01-19
2.1
Developing the plan for the
project
3 days Thu 06-12-18 Mon 10-12-18
2.2
Developing plan for project
resources
2 days Tue 11-12-18 Wed 12-12-18
2.3 Development of financial plan 4 days Thu 13-12-18 Tue 18-12-18
2.4 Developing project quality plan 3 days Wed 19-12-18 Fri 21-12-18
2.5 Planning for risk management 2 days Mon 24-12-18 Tue 25-12-18
2.6 Project acceptance planning 3 days Wed 26-12-18 Fri 28-12-18
2.7 Project communication plan 4 days Mon 31-12-18 Thu 03-01-19
2.8
Developing plan for project
procurement
3 days Fri 04-01-19 Tue 08-01-19
2.9
Milestone 2: Completion of
planning phase
0 days Tue 08-01-19 Tue 08-01-19
3 Execution phase 41 days
Wed 09-01-
19
Wed 06-03-19
3.1
Identifying the requirements for
the business
5 days Wed 09-01-19 Tue 15-01-19
3.2 Cloud based ERP system 4 days Wed 16-01-19 Mon 21-01-19
3.3 Customization of work 4 days Tue 22-01-19 Fri 25-01-19
3.4 Data migration 5 days Mon 28-01-19 Fri 01-02-19
3.5 Checking of infrastructure 4 days Mon 04-02-19 Thu 07-02-19
3.6 Customization 3 days Fri 08-02-19 Tue 12-02-19
3.7 Managing change 4 days Wed 13-02-19 Mon 18-02-19

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PROJECT MANAGEMENT
3.8
Transfer of knowledge and
technology
4 days Tue 19-02-19 Fri 22-02-19
3.9 Testing of project management 3 days Mon 25-02-19 Wed 27-02-19
3.10 Testing system integration 2 days Thu 28-02-19 Fri 01-03-19
3.11 Testing user-acceptance 3 days Mon 04-03-19 Wed 06-03-19
3.12
Milestone 3: Completion of
execution phase
0 days Wed 06-03-19 Wed 06-03-19
4 Closing phase 10 days Thu 07-03-19 Wed 20-03-19
4.1 Reviewing the project 4 days Thu 07-03-19 Tue 12-03-19
4.2 Sign off the project stakeholders 4 days Wed 13-03-19 Mon 18-03-19
4.3 Post go-live support 2 days Tue 19-03-19 Wed 20-03-19
4.4
Milestone 4: Completion of
closure phase
0 days Wed 20-03-19 Wed 20-03-19

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PROJECT MANAGEMENT
2.2 Development cost of the project
The budget that is generally needed in order to develop the cloud-based ERP system
are provided below.
WBS Task Name Duration Resource Names Cost
0
Development of cloud-based
ERP system in Blach
construction company,
Australia
85 days AUD49,440.00
1 Initiation phase 15 days AUD3,800.00
1.1
Development of project
business plan
3 days
Project planner,
Project manager
AUD1,320.00
1.2 Cost benefit analysis 3 days Financial manager AUD480.00
1.3
Establishing the charter
for the project
4 days Project planner AUD800.00
1.4 Recruiting the staffs 5 days Project manager AUD1,200.00
1.5
Milestone 1:
Completion of initiation
phase
0 days AUD0.00
2 Planning phase 24 days AUD9,960.00
2.1
Developing the plan for
the project
3 days
Project planner,
Supervisor
AUD1,128.00
2.2 Developing plan for
project resources
2 days Project planner,
Financial
manager, Human
AUD1,040.00

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PROJECT MANAGEMENT
resource manager
2.3
Development of financial
plan
4 days
Project planner,
Financial manager
AUD1,440.00
2.4
Developing project quality
plan
3 days
Supervisor,
Financial
manager, Risk
analyst
AUD1,488.00
2.5
Planning for risk
management
2 days
Risk analyst,
Tester
AUD624.00
2.6
Project acceptance
planning
3 days
Project planner,
Supervisor
AUD1,128.00
2.7
Project communication
plan
4 days
Project planner,
Supervisor
AUD1,504.00
2.8
Developing plan for
project procurement
3 days
Project planner,
Supervisor,
Financial manager
AUD1,608.00
2.9
Milestone 2:
Completion of planning
phase
0 days AUD0.00
3 Execution phase 41 days AUD33,520.00
3.1
Identifying the
requirements for the business
5 days
Supervisor,
Database
manager, Human
resource manager
AUD2,480.00

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PROJECT MANAGEMENT
3.2 Cloud based ERP system 4 days
Supervisor,
Technical
engineer
AUD1,344.00
3.3 Customization of work 4 days
Risk analyst,
Technical
engineer, Project
planner,
Additional cost[1]
AUD14,080.00
3.4 Data migration 5 days
Database
manager,
Technical
engineer, Tester
AUD2,360.00
3.5 Checking of infrastructure 4 days
Supervisor, Risk
analyst, Technical
engineer, Tester
AUD2,592.00
3.6 Customization 3 days
Database
manager, Project
manager,
Technical
engineer
AUD1,680.00
3.7 Managing change 4 days Project planner,
Supervisor,
Database
manager, Risk
analyst, Technical
AUD3,424.00

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PROJECT MANAGEMENT
engineer
3.8
Transfer of knowledge
and technology
4 days
Supervisor,
Database
manager, Risk
analyst, Technical
engineer
AUD2,624.00
3.9
Testing of project
management
3 days
Risk analyst,
Tester
AUD936.00
3.10 Testing system integration 2 days
Supervisor,
Database
manager,
Technical
engineer
AUD992.00
3.11 Testing user-acceptance 3 days
Supervisor,
Technical
engineer
AUD1,008.00
3.12
Milestone 3:
Completion of execution
phase
0 days AUD0.00
4 Closing phase 10 days AUD2,160.00
4.1 Reviewing the project 4 days Project planner AUD800.00
4.2
Sign off the project
stakeholders
4 days Project manager AUD960.00
4.3 Post go-live support 2 days Project planner AUD400.00

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PROJECT MANAGEMENT
4.4
Milestone 4:
Completion of closure phase
0 days AUD0.00
2.3 Estimated annual operating costs
The operating cost that is generally needed by the cloud-based ERP system are
provided below.
Recurring expenses Amount
Hosting in the server $6,000
Internet connection $3,000
Training $3,000
Renewal (Equipment) $3,000
Total Costs $15,000
2.4 Cost benefit analysis
2.4.1 Anticipated benefits
The benefits that are achieved from the cloud-based ERP system deployment are
given below. It is found that the anticipated benefits generally include both tangible as well as
intangible benefits.
Tangible benefits: The tangible benefits that are achieved from the cloud-based ERP
system development are listed below.
 Provide access of information from anywhere irrespective of the location
 Reduces staff employment
 Reduces extra expenses on various technological needs
Intangible benefits: The intangible benefits which are generally achieved from the
cloud-based ERP system development are provided below: