Project Charter: ERP Implementation in ABC Consultancy - Report

This project charter outlines the ERP implementation plan for ABC Consultancy, addressing issues of poor communication, time-consuming processes, and data inefficiencies. The project aims to integrate various departments, streamline processes, and reduce costs through the implementation of an ERP system. Key deliverables include integrating business functionalities, defining functional requirements, and managing potential risks. The charter details strategic alignment, estimated costs, and a comprehensive project timeline, including phases for initiation, planning, development, testing, and closure. The project emphasizes the benefits of ERP, such as improved scalability, collaboration, and data integrity. The charter also includes a requirements traceability matrix and risk management strategies to ensure the successful implementation of the ERP system and improve ABC Consultancy's overall business performance. This document, available on Desklib, provides a detailed analysis of the project's scope, objectives, and implementation strategy.

[First Name, Last name]
[Student Number]
Part A
PROJECT CHARTER
Sponsor: <Please fill>
Project Title: ERP implementation in ABC Consultancy
Prepared By: <Please fill> Date: <Please fill>
Problem/Opportunity Statement
Problem statement: The business efficiency of ABC Limited was suffering due to very poor
communication. Thus, the employees working for the organization were failing to transfer their ideas and
thoughts with the rest of the employees. As a result negative outcome, order lost, customers failing to
receive calls, fail in sales and quality were facing. In addition to this, with the frequent expansion of the
company it has been found that some of the processes involved to it were very much time consuming.
The company uses manual data entry which is again very much time consuming and at the same time,
there was chances of data repetition. It is identified that the manual data entry and its processing has
become much error prone whenever it is carried out on a larger scale. Not only tis but also in some
cases the users use desperate standalone software systems those may make a business very much
complicated. Due to lack of managerial, operational and functional activities the ABC Limited was unable
to create secured relationship between the consumers and the service providers. The company was also
unable to attain proper answers to the big level questions that are preventing to make better decision
making approach. Additionally the current business information was failing to improve the business
values. These are the problems that the ABC Limited was facing widely in the current days those are to
be resolved or even mitigated very soon.
Opportunity statement: After analysing the current status of the company it has been found that, the
strength of the company will provide effective opportunities in terms of business values, competitive
advantages, high level revenue etc. The objectives of the company are to improve its productivity,
streamlined processes and cost lowering. With the help of Enterprise Resource Planning these
nominated objectives can be easily achieved by the company. Currently ABC Limited use different
software for serving the objectives of different departments. In this case the activity of departmental
software was not meshed up with the other. With the help of Enterprise Resource Planning, the ABC
Limited will be able to create a link between the finance, HR, logistic and marketing department of the
company. Thus, it can be said that, after incorporating ERP software to ABC Limited it will get the
following opportunities:
 The issues of manual data entry will be resolved
 The payroll cost involved to the system will get reduce
 ABC Limited will get huge storage for storing its credentials including the financial data and the
employee’s and consumer’s personal information
 The product delivery time will be speed up accordingly
 Inventory management system of the company will be optimized
 The number of charge backs for particular orders cuts down
 It gives opportunity to maximize the internal relationship between the customers and the
suppliers
 Create consumer focused system that can make the consumers happy and loyal to their
services
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[First Name, Last name]
[Student Number]
Key Deliverables: The key deliverable of the project is to install ERP system to integrate, transform and
scale up the business. With the successful implementation of the ERP system it can integrate all the
business functionalities together. In order to implement the ERP system in ABC Consultancy, a proper
schedule in terms of work package is delivered in this report. It is expected if the work packages or
schedule based activities are followed properly then the company will be able to meet the objectives
easily. The functional requirements, strategic alignment, estimated cost and timeframe that are needed
to implement the ERP are also delivered in this report. Apart from this, there are certain risks that the
company may face during the implementation and processing the ERP system in ABC Consultancy,
those are also elaborated and delivered in this company.
Key Functional Requirements
After adopting proper functional requirements the company is expected can synchronize its reporting
and automation system. It offers the employees synchronized database instead of spreadsheet and
separate database. In order to implement the ERP system in ABC Limited the functional requirements
are as follows:
 Business rules
 Correction in transaction
 Proper adjustment after cancellation
 Administrative functions
 Historical information or data
 Regulatory and legal requirements
 Authentication
 Authorization
 Reporting and certification requirements
 Audit tracking
 External interfaces needed for ERP system implementation
BENEFIT KPIs
Competition: ERP software needs high range
capital investment but they investors invest more
to reduce the capital required. ERP increases the
overall business efficiency which competitive
advantages to those companies who use the ERP
system for serving their business functionalities.
Centralized project mapping and timeline
Increases scalability and collaboration:
Properly structured ERP system allows the
collaboration of new users and functionalities
those are helpful for the growth of the solution that
is initially implemented. The centralized and
consistency of the ERP system also offers
collaboration between the important business
components.
Standardized and aligned business processes
Information integrity: The issues of separated
database, spread data easily get reduces with the
help of the ERP system. ABC Limited can
integrate the different platforms such as CRM,
SCM etc to keep the data consistent and customer
engaged to the products and services.
Consistent data tagging
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[First Name, Last name]
[Student Number]
Strategic Alignment
Strategic alignment is referred to as a process through which different business organizations can linked
up together based upon the organizational structure and resources. Not only this but also it deals with
the business environment in terms of regulatory and physical resources. In order to accomplish the ERP
implementation project success the considered steps for the strategic alignment are as follows:
 Based on the business values the project manager should recommend necessary financial,
CRM, SCM, and all other distributive application.
 At a subsequent stage Human resource and payroll should be implemented
 Solid business strategies should be considered to ensure that accurate economics are
experiencing by the company
 ABC Limited should focus on risk management, stakeholders management and HR
management approaches to avoid productivity and quality level issues
PRJM 6000 ASSIGNMENT 2 3

[First Name, Last name]
[Student Number]
Approximate Cost
Task Name Duration Resource Names Cost
ERP project implementation in ABC
Limited 150 days $20,016.00
Project initiation phase 24 days $4,560.00
Defining project scope and
objectives 6 days operation manager $672.00
Project resource gathering 3 days Finance manager, Project manager $600.00
Resource analysis 5 days Project manager $600.00
Project team development 6 days HR manager $480.00
Preparing project outline 3 days system developer $288.00
Basic system architecture design 6 days application programmer, operation manager,
system developer $1,920.00
Project planning 55 days $6,440.00
Feasibility study and finance
management plan 8 days Finance manager $640.00
Defining functional requirements 7 days Project manager $840.00
Defining non-functional
requirements 8 days operation manager $896.00
Communication management plan 9 days HR manager $720.00
Risk management 6 days HR manager $480.00
Contingency management 8 days operation manager $896.00
Procurement management 8 days Project manager $960.00
Identifying system environment 9 days operation manager $1,008.00
Project development phase 40 days $6,080.00
Developing technical
environment 32 days $4,416.00
Developing quality assurance
environment 10 days HR manager $800.00
Outlining the project prototype 12 days application programmer, system developer $2,496.00
Modeling the prototype 10 days application programmer $1,120.00
Coding 8 days application programmer, system developer $1,664.00
Testing 20 days $1,760.00
Unit testing 10 days system tester $880.00
Integrated testing 10 days system tester $880.00
Project closure plan 11 days $1,176.00
Stakeholder signoff 3 days HR manager $240.00
Final documentation of the project 5 days Project manager $600.00
Post ERP project maintenance
plan 3 days operation manager $336.00
Approximate Timeframe
W
BS Task Name Durati
on Start Finish Resource Names
0
ERP project
implementation
in ABC Limited
150
days
Mon
10/12/09
Fri
5/7/10
PRJM 6000 ASSIGNMENT 2 4

[First Name, Last name]
[Student Number]
1 Project
initiation phase
24
days
Mon
10/12/09
Thu
11/12/09
1.1
Defining
project scope and
objectives
6 days Mon
10/12/09
Mon
10/19/09 operation manager
1.2
Project
resource
gathering
3 days Tue
10/20/09
Thu
10/22/09
Finance manager,
Project manager
1.3 Resource
analysis 5 days Fri
10/23/09
Thu
10/29/09 Project manager
1.4 Project team
development 6 days Fri
10/23/09
Fri
10/30/09 HR manager
1.5 Preparing
project outline 3 days Mon
11/2/09
Wed
11/4/09 system developer
1.6
Basic system
architecture
design
6 days Thu
11/5/09
Thu
11/12/09
application programmer,
operation manager,
system developer
2 Project
planning
55
days
Fri
11/13/09
Thu
1/28/10
2.1
Feasibility
study and finance
management plan
8 days Fri
11/13/09
Tue
11/24/09 Finance manager
2.2
Defining
functional
requirements
7 days Wed
11/25/09
Thu
12/3/09 Project manager
2.3
Defining non-
functional
requirements
8 days Wed
11/25/09
Fri
12/4/09 operation manager
2.4
Communicatio
n management
plan
9 days Fri
12/4/09
Wed
12/16/09 HR manager
2.5 Risk
management 6 days Thu
12/17/09
Thu
12/24/09 HR manager
2.6 Contingency
management 8 days Fri
12/25/09
Tue
1/5/10 operation manager
2.7 Procurement
management 8 days Wed
1/6/10
Fri
1/15/10 Project manager
2.8
Identifying
system
environment
9 days Mon
1/18/10
Thu
1/28/10 operation manager
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[First Name, Last name]
[Student Number]
3
Project
development
phase
40
days
Fri
1/29/10
Thu
3/25/10
3.1
Developing
technical
environment
32
days
Fri
1/29/10
Mon
3/15/10
3.1
.1
Developing
quality assurance
environment
10
days
Fri
1/29/10
Thu
2/11/10 HR manager
3.1
.2
Outlining
the project
prototype
12
days
Fri
2/12/10
Mon
3/1/10
application programmer,
system developer
3.1
.3
Modelling
the prototype
10
days
Tue
3/2/10
Mon
3/15/10 application programmer
3.2 Coding 8 days Tue
3/16/10
Thu
3/25/10
application programmer,
system developer
4 Testing 20
days
Fri
3/26/10
Thu
4/22/10
4.1 Unit testing 10
days
Fri
3/26/10
Thu
4/8/10 system tester
4.2 Integrated
testing
10
days Fri 4/9/10 Thu
4/22/10 system tester
5 Project closure
plan
11
days
Fri
4/23/10
Fri
5/7/10
5.1 Stakeholder
signoff 3 days Fri
4/23/10
Tue
4/27/10 HR manager
5.2
Final
documentation of
the project
5 days Wed
4/28/10
Tue
5/4/10 Project manager
5.3
Post ERP
project
maintenance plan
3 days Wed
5/5/10
Fri
5/7/10 operation manager
PRJM 6000 ASSIGNMENT 2 6

[First Name, Last name]
[Student Number]
Key Risks
While implementing ERP system in ABC Limited the company may face certain risks that are needed to be
resolves immediately after identification. The identified risks for this project are as follows:
Inaccurate budget development: The company may face serious risks, if the project budget is not estimated
appropriately at the very initiation phase. Based on the functional, non-functional requirements and resources the
budget should be prepared. In addition to this, extra budget should also be allotted to make sure that no loss will
occur if extra resource is required.
Incorrect resource allocation: If the project manager fails to identify all necessary project resources (human and
physical), then the ERP implementation project will not be accomplished successfully within estimated time and
budget.
Lack of experience and skills: If the selected project team members are not enough experienced and skilled
then technical level errors may occur. In order to resolve this issues proper training and development program
should be organized by the project manager.
APPROVAL Yes / No
Authority: <Please fill>
______________________________ Date: <Please fill>
Sponsor
REQUIREMENTS TRACEABILITY MATRIX
Non-Functional Requirements Deliverable component
To increase the scalability and reliability of ABC
Limited
In order to increase the scalability and reliability of
the company ERP system should be implemented.
ERP allows improving the range of storage capacity
in terms of computing processing. Again it also
increases the trustworthiness between the
consumers and the service providers.
To enhance the security and recoverability of ABC
Limited
It offers high level of data security to the company.
With the help of this security none of the external
unauthenticated attackers can enter to the system
and hijack information from the server without
permission. It will also offer disaster recovery, data
backup to the company. If any information is found to
be lost from the server then that can be easily
recovered.
To improve the integrity of storing data for the
company
The ability to store and integrate necessary data
becomes easier with the help of the ERP system. It
can be said that, ERP offers huge storage to the
users, where different information can be collected
and stored regardless of the type of the information.
The ERP server can store safely both financial and
persona; credentials.
PROJECT
WBS # WBS – ELEMENT
PRJM 6000 ASSIGNMENT 2 7

[First Name, Last name]
[Student Number]
0 ERP project implementation in ABC Limited
1 Project initiation phase
1.1 Defining project scope and objectives
1.2 Project resource gathering
1.3 Resource analysis
1.4 Project team development
1.5 Preparing project outline
1.6 Basic system architecture design
2 Project planning
2.1 Feasibility study and finance management plan
2.2 Defining functional requirements
2.3 Defining non-functional requirements
2.4 Communication management plan
2.5 Risk management
2.6 Contingency management
2.7 Procurement management
2.8 Identifying system environment
3 Project development phase
3.1 Developing technical environment
3.1.1 Developing quality assurance environment
3.1.2 Outlining the project prototype
3.1.3 Modelling the prototype
3.2 Coding
4 Testing
4.1 Unit testing
4.2 Integrated testing
5 Project closure plan
5.1 Stakeholder signoff
PRJM 6000 ASSIGNMENT 2 8

[First Name, Last name]
[Student Number]
5.2 Final documentation of the project
5.3 Post ERP project maintenance plan
SCOPE CHANGE
After analysing the detail of ERP system that has been planned to be implemented in ABC Limited, certain changes are
identified. It is expected that with these changes least issues those may interrupt the system efficiency and business
growth of ABC Limited will be mitigated completely. The list of scopes need changes are as follows:
 While designing the project outline, the total activity is to be broken up into smaller chunks so that the delivery
approach become easier
 The project team members should work along with the internal project resources for investigating the scope
changes
 Based on the unique requests of the clients creative solution should be prepared
 Advanced technical excellence should be incorporated along with the ERP system
PRJM 6000 ASSIGNMENT 2 9

[First Name, Last name]
[Student Number]
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