PRMA6049: ERP System Implementation Report for Costco Wholesale

This report presents a comprehensive analysis of an ERP system implementation project for Costco Wholesale, detailing the project charter, objectives, and scope, including both functional and technical aspects of SAP module integration. It outlines a detailed work breakdown structure (WBS) and schedule management plan, providing insights into project phases, task durations, and resource allocation. The report also includes a thorough project risk assessment and management plan, identifying and prioritizing potential risks, along with mitigation strategies. Furthermore, it covers project scope management, including procedures for ensuring adherence to the project scope baseline and a post-implementation review. The report also provides documentation details and references to support the project's execution and outcomes. The project's aim is to deliver an integrated enterprise system for managing various aspects of the wholesale business for the Costco Wholesale Corporation and provide a detailed implementation guide of ERP integration. The report provides a training plan and technical support details as well.

Running head: IMPLEMENTATION OF THE ERP SYSTEM
IMPLEMENTATION OF THE ERP SYSTEM
Name of the Student
Name of the University
Authors Note

1
IMPLEMENTATION OF THE ERP SYSTEM
Table of Contents
Section 1: Project Charter:.........................................................................................................3
1. Overview of the organization:............................................................................................3
2. Objectives:..........................................................................................................................3
3. Scope:.................................................................................................................................3
3.1. Functional Scope.........................................................................................................3
3.2. Technical scope:..........................................................................................................6
4. Work breakdown structure:................................................................................................7
5. Schedule management:.......................................................................................................7
Section 2: Project Risk Assessment and Management plan:...................................................15
Identification of risks:..........................................................................................................15
Prioritization of risks:...........................................................................................................17
Risks mitigation plan:..........................................................................................................18
Section 6: Project Scope Management plan including the Post Implementation Review:......21
Scope management plan:......................................................................................................21
Procedures to ensure that the execution of the project is in accordance with the project
scope baseline:.................................................................................................................21
An overview of the activities that are required to executed in the project:......................22
Strategies to execute the activities defined in the WBS:..................................................22
Key performance indicator:..............................................................................................24
Post implementation review:................................................................................................25

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IMPLEMENTATION OF THE ERP SYSTEM
People:..............................................................................................................................25
Process:............................................................................................................................26
Technology:......................................................................................................................26
Documents to be provided in the handover process:...........................................................27
References:...............................................................................................................................28
Section 7: Appendix:................................................................................................................31

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IMPLEMENTATION OF THE ERP SYSTEM
Section 1: Project Charter:
Project charter:
1. Overview of the organization:
The Costco Wholesale Corporation is an international leading membership warehouse club
that supplies a wide range of products from leading brands for the best price possible. The
company has hundreds of locations worldwide which allows the company to allow its clients
to choose from a wide range of merchandise along with speciality departments and exclusive
member services, which enhances the shopping experience for its consumers.
2. Objectives:
The project has considered the following objectives for ensuring success in the project:
 Deliver an integrated enterprise system for managing various aspects of the wholesale
business for the Costco Wholesale Corporation and Provide a detailed implementation
guide of ERP integration
 Integrating important business process with the SAP modules in accordance with the
objectives of the business and Offer enhanced inventory management through
automated inventory system of the ERP software
 Providing context for designing innovative strategies for demand and supply chain
management and offer Enhanced consumer service through ERP module
3. Scope:
3.1. Functional Scope
SAP MODULES SCOPE
The implementation of SAP for the Costco Wholesale will provide the following functions:
 Financial Accounting (FI) & Asset Accounting

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IMPLEMENTATION OF THE ERP SYSTEM
 HR and Payroll
 Materials Management (MM)
 Sales & Distribution (SD)
 Quality Management (QM)
 Workflow
 BIW
SAP module Functionalities it provides
Financial Accounting
(FI) & Asset Accounting
1. General Ledger
2.New General Ledger
3. Account Receivable
4. Account Payable
5.Country Thailand Version
6. Fixed Asset (Asset Management)
7. Bank (Bank Accounting and reconciliation)
HR and Payroll 1. Enterprise Structure
2. Organization Structure
3. Personnel Administration
4. Recruitment
5. Personnel Education
6. Payroll Administration
7. Interface with FI
8. Country USA version
Materials Management
(MM)
1. Master Data
2. Purchasing

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IMPLEMENTATION OF THE ERP SYSTEM
3. Inventory Management
4. Logistics Invoice Confirmation
5. Physical Inventory confirmation
6. Valuation
7. ROP (Reorder Point )
8. Contract Management
9. Service Management
10. Country USA version
Sales & Distribution
(SD)
1. Master Data
2. Sales Support
3. Sales
4. Distribution
5. Shipping and Transportation
6. Billing
7. Credit Management
8.Country USA version
9. Sales Information System
Quality Management
(QM)
Inspection for product quality
Workflow 1. Produce task profile
2. Perform rules related to work items
3. Workflow for object type
4. Work item assigned per task
5. Work item execution duration

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IMPLEMENTATION OF THE ERP SYSTEM
6. Work item monitoring with deadlines
7. Workflow outbox
BIW Developing 10 reports maximum
3.2. Technical scope:
Costco Wholesale Corporation will deploy all of the functionalities provided in the SAP
module so that there is no requirement to consider customization and development of
modules outside the SAP. However, if there are some requirements that is not implemented
through this method, then only the project will consider development or customization
(Altamony et al. 2016). Components that are developed beyond standard SAP modules or
components are considered as customized components in this project. Some of the important
customized components include documents, reports and queries, developments related to data
capture and interfaces as well (Andersson 2016). The technical team in close association with
the Costco Wholesale Corporation will execute the following activities:
 Training plan development
 Providing training to the key users of the Costco Wholesale Corporation
 Integrating important business process with the SAP modules in accordance with the
objectives of the business
 Configuring SAP modules according to the business blueprint
 Designing SAP landscape, setting up procedures and executing the implementation
 Deploying process related to the package implementation, tools, techniques and the
testing procedures as well
 Defining master data requirement
 Designing unit specific test scripts and plans for system testing
 Designing user manuals

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IMPLEMENTATION OF THE ERP SYSTEM
 Providing technical support for 8 weeks after the system is made available for the
Costco Wholesale Corporation and this support includes assistance for the
troubleshooting regarding issues related to the system performance
4. Work breakdown structure:
Development of ERP
system
Initiation phase
creating business case
Cost benefit analysis
developing project
charter
assigning team members
Milestone 1: initiation
phase complete
Planning phase
Project plan design
Resource plan
Financial plan
Quality plan
Risk management plan
Acceptance plan
Communication plan
Procurement plan
Milestone 2: Completion
of planning phase
Execution phase
Business need review
ERP system
Work customization
Data migration
reviewing infrastructure
Customization
Change management
Knowledge and
technology outsourcing
Project management
deatiled analysis
System inteegration
review
User acceptance review
Milestone 3: Completion
of execution phase
Closing phase
Post project review
Stakeholder sign off
Post go-live support
Milestone 4: Completion
of closure phase
5. Schedule management:
A detailed schedule has been developed for this project. The overall project execution will be
done in accordance with this schedule so that it is easier for the project teams for identifying
how to exactly execute various activities of the ERP implementation project and this will
make the overall project consistent with the project schedule and the project budget as well
(Azan Bootz and Rolland 2017).

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IMPLEMENTATION OF THE ERP SYSTEM
WBS
Task
Mode
Task Name Duration Start Finish Predecessors
Resource
Names
Cost
0
Auto
Scheduled
Development
of ERP system
(1)
90 days
Mon
24-
06-
19
Fri
25-10-
19
$ 86,690.00
1
Auto
Scheduled
Initiation
phase
9 days
Mon
24-
06-
19
Thu
04-07-
19
$ 3,800.00
1.1
Auto
Scheduled
Creating
business case
2 days
Mon
24-
06-
19
Tue
25-06-
19
Project
planner,
Project
manager
$ 1,400.00
1.2
Auto
Scheduled
Cost benefit
analysis
2 days
Wed
26-
06-
19
Thu
27-06-
19
2
Financial
manager $ 400.00
1.3
Auto
Scheduled
Developing
project charter
3 days
Fri
28-
06-
19
Tue
02-07-
19
3
Project
planner $ 800.00
1.4 Auto Assigning 2 days Wed Thu 4 Project $ 1,200.00

9
IMPLEMENTATION OF THE ERP SYSTEM
Scheduled team members
03-
07-
19
04-07-
19
planner,
Project
manager
1.5
Auto
Scheduled
Milestone
1: initiation
phase complete
0 days
Thu
04-
07-
19
Thu
04-07-
19
5 $ 8,650.00
2
Auto
Scheduled
Planning
phase
15 days
Fri
05-
07-
19
Thu
25-07-
19
Project
planner,
Supervisor
$ 1,040.00
2.1
Auto
Scheduled
Project plan
design
2 days
Fri
05-
07-
19
Mon
08-07-
19
5
Project
planner,
Financial
manager,
Human
resource
manager
$ 2,100.00
2.2
Auto
Scheduled
Resource
plan
3 days
Tue
09-
07-
19
Thu
11-07-
19
8
Project
planner,
Financial
manager
$ 900.00
2.3 Auto Financial 2 days Fri Mon 9 Supervisor, $ 1,350.00

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IMPLEMENTATION OF THE ERP SYSTEM
Scheduled plan
12-
07-
19
15-07-
19
Financial
manager,
Risk
analyst
2.4
Auto
Scheduled
Quality
plan
2 days
Tue
16-
07-
19
Wed
17-07-
19
10
Risk
analyst,
Tester
$ 960.00
2.5
Auto
Scheduled
Risk
management
plan
2 days
Thu
18-
07-
19
Fri
19-07-
19
11
Project
planner,
Supervisor
$ 1,040.00
2.6
Auto
Scheduled
Acceptance
plan
2 days
Mon
22-
07-
19
Tue
23-07-
19
12
Project
planner,
Supervisor
$ 500.00
2.7
Auto
Scheduled
Communica
tion plan
1 day
Wed
24-
07-
19
Wed
24-07-
19
13
Project
planner,
Supervisor,
Financial
manager
$ 760.00
2.8 Auto
Scheduled
Procuremen
t plan
1 day Thu
25-
Thu
25-07-
14 $ 73,080.00

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IMPLEMENTATION OF THE ERP SYSTEM
07-
19
19
2.9
Auto
Scheduled
Milestone
2: Completion
of planning
phase
0 days
Thu
25-
07-
19
Thu
25-07-
19
15
Supervisor,
Database
manager,
Human
resource
manager
$ 6,000.00
3
Auto
Scheduled
Execution
phase
62 days
Fri
26-
07-
19
Mon
21-10-
19
Supervisor,
Technical
engineer
$ 4,300.00
3.1
Auto
Scheduled
Business
need review
8 days
Fri
26-
07-
19
Tue
06-08-
19
15
Risk
analyst,
Technical
engineer,
Project
planner
$ 12,900.00
3.2
Auto
Scheduled
ERP system 9 days
Wed
07-
08-
19
Mon
19-08-
19
18
Database
manager,
Technical
engineer,
Tester
$ 2,280.00