Project Management: ERP System Development at Blach Construction

This project focuses on the development and implementation of an Enterprise Resource Planning (ERP) system for Blach Construction Company. The project begins with an analysis of the company's current manual systems and the problems they present, such as data inconsistency, high training costs, and security issues. The project scope, both in-scope and out-of-scope, is clearly defined. A detailed stakeholder register identifies key individuals, their responsibilities, and their impact on the project. A comprehensive business case justifies the need for the ERP system, highlighting its benefits in streamlining business processes and improving efficiency. The project charter outlines the project's justification, scope, duration, budget estimation, assumptions, constraints, and potential risks, along with mitigation strategies. The project is structured with phases for initiation, planning, execution, and closure, with a detailed work breakdown structure (WBS) and timeline. The estimated budget is provided, along with a risk management plan to address potential challenges. The project also includes an organizational structure, the design and implications of a Balanced Scorecard, and recommendations for project governance. The project aims to provide a structured approach to the successful implementation of the ERP system within Blach Construction Company.

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Project background......................................................................................................................3
2. Project scope................................................................................................................................3
3. Draft stakeholder register............................................................................................................4
4. Business case...............................................................................................................................8
5. Project charter..............................................................................................................................8
5.1 Justification of the project.....................................................................................................8
5.2 Project scope..........................................................................................................................9
5.3 Project duration......................................................................................................................9
5.4 Budget estimation................................................................................................................11
5.5 Assumptions, constraints and project risks..........................................................................13
6. Organizational structure.............................................................................................................18
7. Design and implications of Balanced score card.......................................................................18
8. Recommendations of project governance..................................................................................19
Bibliography..................................................................................................................................21

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1. Project background
The paper mainly showcases on the ERP system development within an organization
named “Blach Construction Company” which generally assist in giving both construction
management services as well as commercial building services. Currently, the company utilizes
manual system for managing its commercial operations as well as services but it is analyzed that
because of the utilization of system that can be handled manually, the organization mainly
experiences a lot of problems as well as issues including inconsistency in data entry, high
training cost, lack of proper security and high chance of data duplication. In order to mitigate the
problems that the Blach construction company uses, it is very much necessary to implement ERP
system. The implementation of ERP system generally helps in eliminating repetitive procedures
which greatly helps in minimizing the need of entering data manually within the system. In
addition to this, the system is considered to be beneficial in streamlining the entire business
procedures which makes it much easier as well as efficient for the organization to collect data.
Furthermore, the utilization of ERP system will be supportive in providing high quality of
service to the customers as well as the clients.
2. Project scope
The categorization of project scope is done into in-scope and project out scope which are
listed below
In-scope: The project in-scope are showcased below:
 Data migration
 Checking of the project infrastructure’
 Managing the changes that are generally needed within the project

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PROJECT MANAGEMENT
 Development of ERP system within the construction company
 Technology transfer as well as deployment that are required for the project
 Providing proper facility of training to the project team
Out-scope: The project out-scope is showcases below:
 The details about the suppliers are not included in the project
 The information associated with project contract is also not included in the project
3. Draft stakeholder register
The stakeholder register that is mainly documented for the ERP development mainly
contains information about the project stakeholders. The table that is provided below identifies
people, group, their interest as well as involvement within the project.
Stakeholders Responsibilities Impact Power
Project manager The project manager
takes the responsibility
of managing the cost,
budget as well as
project scope for
executing the work that
is related with ERP
implementation.
High High
Project planner The project takes the
responsibility that is
mainly related with
High High

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PROJECT MANAGEMENT
proper planning,
tracking as well as
scheduling the activities
of the project
Developer The project developer
mainly performs project
design as well as helps
in different kinds of
development activities
as per the specifications
of the customers.
High Low
System analyst The system analyst is
the individual who
defines the application
related problems by
properly conferring the
clients as well as by
properly evaluating the
different types of
procedures.
High Low
Tester The tester undertakes
the testing of the system
for analyzing, reviewing
Low High

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PROJECT MANAGEMENT
as well as assessing the
requirements as well as
design specifications.
Human resource
manager
The human resource
manager takes the entire
responsibility of
recruiting, staffing as
well as managing the
performance and
making the required
improvements within
the system.
Low Low
Technical engineer The technical engineer
is the individual who
helps in resolving
network issues by
properly configuring the
operating system by
utilizing the remote
desktop connections.
High High
Operational manager The operational
manager is the person
who generally took the
Low High

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PROJECT MANAGEMENT
responsibility of
planning and controlling
chances by managing
the quality assurance
programs.
Application
programming
manager
They generally engages
themselves within the
work for accomplishing
the project objectives
quite effectively.
Low High
Finance manager The financial manager
takes the responsibility
of managing the fiancé
by improving
profitability as well as
analyzing the business
opportunities.
Low Low
4. Business case
The organization Blach construction company that mainly provides construction and
commercial services utilizes manual system for effectively manage the business operations.
However, it is found that the utilization of different types of manual system creates a lot of

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PROJECT MANAGEMENT
problems including security issues, inconsistency related with data entry, data duplication, costly
training as well as more time consumption. Due to these type of issues, the organization is facing
difficulty in the management of the business operations and therefore the organization decided to
utilize ERP system for managing the business operations. The utilization of ERP system not only
resolves the problems that the organization because the manual system use, but also helps in
streamlining the business processes as well as assists in improving productivity of the
organization.
5. Project charter
5.1 Justification of the project
The ERP system is required to be implemented within the organization as with the
utilization of ERP system the applications are integrated for managing all the departments as
well as the functions of the organization including production, purchasing, sales as well as
inventory control warehouse (Rajan and Baral 2015). Due to the use of ERP system, the
organization will be able to get automatic as well as coherent workflow for ensuring smooth
transition and quicker execution of the project processes. In addition to this, the utilization of
ERP system helps in improving performance and helps in saving time as well as optimizing the
control and helps in taking proper decisions by reducing the cost for the organization (Conforto
et al. 2016).

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PROJECT MANAGEMENT
5.2 Project scope
The project scope is categorized below:
 Data migration
 ERP system development within the construction company
 Technology transfer as well as deployment
 Providing proper facility of training to the project team
 Checking of the project infrastructure’
 Managing the changes
5.3 Project duration
As per the schedule that is provided below, it is identified that the ERP which will be
successfully developed within 62 days.
WBS Task Name Duration Start Finish
0
Development of ERP system in Blach
construction company
62 days Tue 30-04-19
Wed 24-07-
19
1 Project initiation phase 11 days Tue 30-04-19 Tue 14-05-19
1.1 Creating business case for the project 2 days Tue 30-04-19 Wed 01-05-19
1.2 Feasibility study 3 days Thu 02-05-19 Mon 06-05-19
1.3 Project charter development 2 days Tue 07-05-19 Wed 08-05-19
1.4 Team members appointment 4 days Thu 09-05-19 Tue 14-05-19
1.5
Milestone 1: Completion of initiation
phase
0 days Tue 14-05-19 Tue 14-05-19
2 Project planning phase 21 days Wed 15-05- Wed 12-06-

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19 19
2.1 Developing the project plan 4 days Wed 15-05-19 Mon 20-05-19
2.2 Developing the project financial plan 4 days Tue 21-05-19 Fri 24-05-19
2.3 Resource plan 3 days Mon 27-05-19 Wed 29-05-19
2.4 Developing plan for managing risk 2 days Thu 30-05-19 Fri 31-05-19
2.5 Risk mitigation plan 2 days Mon 03-06-19 Tue 04-06-19
2.6 Quality plan development 2 days Wed 05-06-19 Thu 06-06-19
2.7 Communication plan 2 days Fri 07-06-19 Mon 10-06-19
2.8 Plan for acceptance 1 day Tue 11-06-19 Tue 11-06-19
2.9 Plan for project procurement 1 day Wed 12-06-19 Wed 12-06-19
2.10
Milestone 2: Completion of planning
phase
0 days Wed 12-06-19 Wed 12-06-19
3 Project execution phase 26 days Thu 13-06-19 Thu 18-07-19
3.1 Brainstorming sessions 3 days Thu 13-06-19 Mon 17-06-19
3.2 Migrating information and data 2 days Tue 18-06-19 Wed 19-06-19
3.3
Checking the data of the
infrastructure
2 days Thu 20-06-19 Fri 21-06-19
3.4 Proper customization 3 days Mon 24-06-19 Wed 26-06-19
3.5 Managing the changes 2 days Thu 27-06-19 Fri 28-06-19
3.6
Technology as well as knowledge
transfer
3 days Mon 01-07-19 Wed 03-07-19
3.7 Proper setting as well as 4 days Thu 04-07-19 Tue 09-07-19

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PROJECT MANAGEMENT
development
3.8 Training facility 3 days Wed 10-07-19 Fri 12-07-19
3.9 Deployment 4 days Mon 15-07-19 Thu 18-07-19
3.10 Milestone 3: Execution phase 0 days Thu 18-07-19 Thu 18-07-19
4 Closure phase 4 days Fri 19-07-19
Wed 24-07-
19
4.1 Review of post project 2 days Fri 19-07-19 Mon 22-07-19
4.2 Sign off the project stakeholders 1 day Tue 23-07-19 Tue 23-07-19
4.3 Project documentation 1 day Wed 24-07-19 Wed 24-07-19
4.4 Milestone 4: Closure phase 0 days Wed 24-07-19 Wed 24-07-19
5.4 Budget estimation
In order to develop the ERP system, it is found that budget of around $70,040 is required
for completing the project. The below table showcases the budget that is needed for completion
of each of the project activities.
WBS Task Name Duration Cost
0
Development of ERP system in
Blach construction company
62 days $70,040.00
1 Project initiation phase 11 days $7,080.00
1.1
Creating business case for the
project
2 days $1,440.00
1.2 Feasibility study 3 days $1,800.00
1.3 Project charter development 2 days $1,440.00

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PROJECT MANAGEMENT
1.4 Team members appointment 4 days $2,400.00
1.5
Milestone 1: Completion of
initiation phase
0 days $0.00
2 Project planning phase 21 days $16,720.00
2.1 Developing the project plan 4 days $2,880.00
2.2
Developing the project financial
plan
4 days $2,240.00
2.3 Resource plan 3 days $1,800.00
2.4 Developing plan for managing risk 2 days $1,840.00
2.5 Risk mitigation plan 2 days $2,080.00
2.6 Quality plan development 2 days $2,080.00
2.7 Communication plan 2 days $2,080.00
2.8 Plan for acceptance 1 day $720.00
2.9 Plan for project procurement 1 day $1,000.00
2.10
Milestone 2: Completion of
planning phase
0 days $0.00
3 Project execution phase 26 days $44,720.00
3.1 Brainstorming sessions 3 days $3,000.00
3.2 Migrating information and data 2 days $11,920.00
3.3
Checking the data of the
infrastructure
2 days $2,000.00
3.4 Proper customization 3 days $9,880.00