Development of ERP System for a Retail Store in Saudi Arabia

This project management assignment details the development of an ERP system for a retail store in Saudi Arabia. It begins with a project charter outlining project goals, scope, constraints, deliverables, key stakeholders, and potential risks, such as schedule slippage and budget shortfalls. The project then employs project management tools, including a work breakdown structure (WBS), a project baseline, and a Gantt chart for scheduling and task visualization. A project network diagram is used to identify the critical path. The assignment also includes an earned value analysis, calculating planned value (PV), earned value (EV), actual cost (AC), and key performance indicators (SPI and CPI) to assess project performance. The project concludes with a bibliography of relevant sources. The aim is to improve efficiency, data security, and customer service by replacing the manual system with an ERP system.

Running head: PROJECT MANAGEMENT
Development of ERP system for a retail store in Saudi Arabia
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
Project title.......................................................................................................................................2
Scenario overview...........................................................................................................................2
Question one: Project charter...........................................................................................................2
Question two: Project management tool..........................................................................................5
2a) Work breakdown structure....................................................................................................5
2b) Project baseline and Gantt chart............................................................................................6
2c) Project network and critical path...........................................................................................8
Question three: Earned value...........................................................................................................8
Bibliography..................................................................................................................................11

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Project title
The paper mainly reflects on the project “development of ERP system in a retail store of
Saudi Arabia”.
Scenario overview
The paper mainly reflects on the development of an ERP system for a retail store in Saudi
Arabia. It is found that presently the store utilizes manual system for managing its operational
functions however due to the use of manual system, security is considered as the main issue that
is faced by the store due to which confidential and sensitive information of the organization get
leaked. In addition to this, other issues like time consumption, insufficient storage space as well
as difficulty in data modification creates challenges in proper functioning of the store. In order to
resolve the challenges, the higher authority of the store wants to implement an ERP system. It is
found that the new ERP system will be helpful in improving efficiency, customer service, data
security and also helps in storing information and data effectively.
Question one: Project charter
Project name: Development of ERP system in a retail store of Saudi Arabia
Project manager: <Please fill>
Date of project approval: <13-04-2020>
Project description: The retail store operates and manages its entire store operation by using
a manual system however with increasing demands from the customers, it become quite
difficult to operate efficiently by using manual system. In addition to this, issues like security,
time consumption as well as insufficient storage space also creates obstruction for the store
and as result the retail store is unable to operate. In order to improve the operations of the

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store, the organization wants to develop an ERP system. The new system which will be
developed will be helpful in improving efficiency, customer service as well as security of the
information that is stored.
Scope: The scope includes:
 Development of business case and project plan
 Determination of risks and development of communication plan
 Setting objectives and proper evaluation of the options
 Checking infrastructure and undertaking proper change management
 Transferring knowledge and technology
 Testing project management
Constraints: The constraints include:
 If the entire work of ERP development does not get completed within 80 days of
timespan then the stakeholders faces a lot of issues in handling the project work and
therefore the project work can get delayed.
 If the changes in the project are done without using proper procedure then the project
can face scope creep that further can cause schedule slippage and budget shortage
during project progress.
Deliverables:
 Project charter
 Project management plan
 Feasibility report
 Project report
 Baseline report

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 Progress report
Key stakeholders: The key stakeholders who are associated with the project are listed below:
Project manager
 Planner
 Finance manager
 HR manager
 IT manager
 Application manager
 Database administrator
 Operational manager
Risks: The risks are:
 Schedule slippage: Insufficient tracking of schedule can cause slippage of project
tasks and as a result the project can face delay and as a result the project delivery can
get late.
 Inexperienced team: The team members who are involved in knowledge and
technology transfer if are not experienced then the operation of the retail store will not
be managed effectively.
 Budget shortfall: Lack of resource management during progress of the project
activities can cause shortage of budget and due to which financial issues can arise.

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Question two: Project management tool
2a) Work breakdown structure
Figure 1: WBS
(Source: Created by Author)

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PROJECT MANAGEMENT
2b) Project baseline and Gantt chart
Project baseline
Figure 2: Project baseline
(Source: Created by Author)

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Gantt chart
Figure 3: Gantt chart
(Source: Created by Author)

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2c) Project network and critical path
Figure 4: Project network showing critical path
(Source: Created by Author)
Question three: Earned value
The calculation for earned value for ERP system development is provided in the below
table:
Work packages Years
2wk
s 4wks 6wks 8wks
10wk
s
12wk
s
14wk
s
16wk
s
Kick off phase
4,00
0 936
Project planning 3,608 2,000
Project execution phase
10,00
0
10,00
0
10,00
0
10,00
0 7,336
Closure phase 2000 656

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Monthly planned value
(PV)
4,00
0 4,544
12,00
0
10,00
0
10,00
0
10,00
0 9,336 656
Cumulative Planned value
(PV)
4,00
0 8544
2054
4
3054
4
4054
4
5054
4
5988
0
6053
6
Earned Value (EV) as
60% work completed
therefore (%of work
completed) X (planned
value)
2,40
0 2,726 7,200 6,000 6,000 6,000 5,602 394
Cumulative Earned Value
(EV)
2,40
0 6,400
13,60
0
19,60
0
25,60
0
31,60
0
37,20
2
37,59
5
Actual cost
4,00
0 4,544
12,00
0
10,00
0
10,00
0
10,00
0 9,336 656
Cumulative Actual cost
4,00
0 8544
20,54
4
30,54
4
4054
4
50,54
4
59,88
0
6053
6
CV=EV-AC 0.62
SV=EV-PV 0.62
CPI= EV/AC 0.62
SPI=EV/PV 0.62
EAC
97475.
40
Estimate time to complete 12.88

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A) From the above table SPI= 0.62
B) From the above table EAC= 97475.40

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Bibliography
Badewi, A., 2016. The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management, 34(4), pp.761-778.
Bryde, D., Unterhitzenberger, C. and Joby, R., 2018. Conditions of success for earned value
analysis in projects. International Journal of Project Management, 36(3), pp.474-484.
Chen, H.L., Chen, W.T. and Lin, Y.L., 2016. Earned value project management: Improving the
predictive power of planned value. International Journal of Project Management, 34(1), pp.22-
29.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring
and monitoring project performance. John Wiley & Sons.
Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics applied to
project management. International Journal of Project Management, 35(2), pp.169-179.