Project Management Plan: Financial Accounting ERP Implementation

This project management plan details the implementation of an Enterprise Resource Planning (ERP) system within a hospital setting. The plan begins with a work request and project charter, outlining the business need to reduce costs and improve efficiency by transitioning from manual to electronic patient record management. The scope statement defines project boundaries and objectives, followed by a communication plan to ensure stakeholder alignment. A break-even analysis assesses the financial viability, while a quality assurance plan ensures the system meets quality standards. The risk management plan identifies potential risks and mitigation strategies. The document includes milestone reports, lessons learned, and a return on investment (ROI) analysis to measure project success. The project aims to enhance profitability, minimize errors, and improve patient care by streamlining financial accounting procedures.

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
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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
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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)
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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
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