ERP Module: Supply Chain Management System Implementation Report

This report details the design and development of a Supply Chain Management (SCM) system within an Enterprise Resource Planning (ERP) module. The project, aiming for completion within a budget of 100K, encompasses strategic management planning, Activity on Node (AON) diagrams, Work Breakdown Structure (WBS), and activity duration tables. The report also includes a Gantt chart and resource management program to illustrate project timelines and resource allocation. Key components include a cost management plan, schedule module, work breakdown structure, direct labor hourly rate table, time-phased budget with S-curve, resource usage analysis, and an Earned Value Management (EVM) update report. These elements provide a comprehensive overview of the SCM implementation process, focusing on effective decision-making and interactive opportunities for suppliers, consumers, and distributors.

Running head: SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Module of an ERP (Enterprise Resource Planning) Software Implementation: Supply
Chain Management System Implementation
Name of the student:
Name of the university:

1SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Table of Contents
Introduction..................................................................................................................................2
1. Cost management plan.................................................................................................................2
1.1 Schedule Module...................................................................................................................3
1.1 Project schedule model maintenance.....................................................................................3
1.2 Control thresholds..................................................................................................................3
1.3 Rules for performance measurement.....................................................................................4
1.4 Reporting formats..................................................................................................................4
2. Work breakdown structure..........................................................................................................5
3. Direct labour hourly rate table.....................................................................................................7
4. Time phased budget and “S curve” sheet..................................................................................14
5. Resource usage, views, screenshots and tables.........................................................................15
Tracking Gantt chart view.........................................................................................................21
6. EVM Update Report..................................................................................................................23
Conclusion.....................................................................................................................................23
References..................................................................................................................................25

2SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Introduction
This report depicts the design and development of Supply Chain Management System in
the business organization that helps to provide more interactive opportunities to the suppliers,
consumes and distributors as well. The Module of Enterprise Resource Planning system that has
been chosen is Supply Chain Management (SCM).
In order to develop the SCM system the activities those have been selected to take
effective decision making are considered in this assignment. The Supply Chain Management
(SCM) system is required to be accomplished within 100K. A Strategic Management Plan,
Activity on Node (AON), WBS, Activity duration tables are all elaborated in this assignment. In
addition to this, a Gantt chart and a resource management program are elaborated in this
assignment.
1. Cost management plan
In this new era of technology mostly for managing information, material details, raw
material and cash flow Supply Chain management (SCM) is widely used in both the medium and
large sized enterprises. SMC is an implementation action or integrative business philosophy used
for managing mainly materials. In other words SCM helps to reduce operational cost and delay
distribution by improving the supply flow to satisfy global consumers. The current globalization
scenario shows that, SCM and customer service has become a significant aspect in corporate
world. The SCM will give direct interacting opportunities to the consumers, distributors and
suppliers.

3SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
1.1 Schedule Module
AON (Activity on Node) diagram
Figure 1: Activity on Nodes (AON) for the SCM implementation project
(Source: Created by author)
1.1 Project schedule model maintenance
Project schedule model
maintenance
Update frequency By who
Monthly System developer, project
manager
1.2 Control thresholds
Variance
measured
Project level When Units

4SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Control
thresholds
Project time Management level Execution phase 50%
Project cost Audit level Project initiation
phase
45%
Project scope Management level Project planning
phase
40%
1.3 Rules for performance measurement
EVM measurement rules Frequency Who
Analysis of the EVM
requirements
Project initiation phase Project manager
Identification of the
components
Planning phase Marketing manager
Variance analysis Planning Management analysis
Performance indicator
identification
Planning Resource manager
1.4 Reporting formats
Report content To whom Done by whom Frequency
Progress status
report
Project manager Team workers Monthly

5SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Project timeline
management
Project team lead Project team Monthly
Additional needful
resources
Resource manager Project associates Weekly
2. Work breakdown structure
WBS Task Name Description
1.0 Project design phase
1.1 Implementation of project team
1.1.1 performance analysis The performance of the project team
members are analyzed in this phase
1.1.2 Worker's skill measurement The skills of the workers are measured in
this phase
1.2 communication management program
1.2.1 Inventory management plan The inventory management plan for the
project is planned
1.2.2 Team meeting A meeting among the project team members
1.3 Resource identification
1.3.1 Gathering The needful resources are identified in this
activity
1.3.2 Analysis The gathered information are all analyzed in
this phase
1.4 Identification of supply chain
characteristics
1.4.1 Project planning phase In outline of the project is documented in
this phase
1.4.2 SCM tool selection
Specific tools required for the
implementation of the SM are selected in
this phase
1.4.3 Developing strategic objectives The strategic objectives for the project team
are developed
1.4.4 Constructing supply chain structure The exact structure of the supply chain is
designed in this phase
1.4.5 Milestone 1: Project outline submission
1.5 Feasibility study

6SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
1.5.1 Contract with suppliers and distributors An accurate contract to the distributors and
suppliers are needed to be established
1.5.2 audit planning The fixed cost of the project is planned in
this phase
1.5.3 Milestone 2: Completion of design phase
2 Project Execution and monitoring phase
2.1 Extraction of suitable attributes
2.1.1 Detailing evaluation contents The content to be evaluated are detailed
2.1.2 Screening the unqualified The unqualified elements are all screened in
this phase
2.2 Closure phase
2.2.1 Monitoring program The program to be executed is monitored in
this phase
2.2.2 Project monitoring The project is properly controlled and
monitored in this phase
2.2.3 Milestone 3: Completion of development
and implementation phase
2.3 Stakeholders signoff
2.3.1 Final SMC document presentation The final document of SCM is presented in
this phase
2.3.2 feedback analysis
The needful feedback are collected from the
consumers and users to understand the
changes that are to be done
2.4 change management plan
2.4.1 change management implementation The change management program is planned
2.4.2 maintenance planning The requested changes are all maintained in
this phase
2.4.3 change management plan
implementation
How to implement the changes are planned
in this phase
2.4.4 Milestone4: Final document submission
2.5 training
2.5.1 technical training
If any additional technical changes are
identified then the technical training should
be planned by the project manager for the
team members
2.5.2 non technical training
Apart from this, during the project ongoing
phase no technical training should also be
arranged.

7SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
Developing project
schedule for SCM
Project design phase
Implementation of project
team
performance
analysis
Worker's skill
measurement
communication
management program
Inventory
management plan
Team meeting
Resource identification
Gathering
Analysis
Identification of supply
chain characteristics
Project planning
phase
SCM tool selection
Developing strategic
objectives
Constructing supply
chain structure
Milestone 1: Project
outline submission
Feasibility study
Contract with
suppliers and
distributors
audit planning
Milestone 2:
Completion of
design phase
Project Execution and
monitoring phase
Extraction of suitable
attributes
Detailing evaluation
contents
Screening the
unqualified
Closure phase
Monitoring program
Project monitoring
Milestone 3:
Completion of
developmet and
implementation
phase
Stakeholders signoff
Final SMC document
presentation
feedback analysis
change management plan
change management
implementation
maintenance
planning
change
management plan
implemenation
Milestone4: Final
document
submission
training
technical training
non technical
training
Figure 2: WBS for the SCM development project
(Source: Created by author)
3. Direct labour hourly rate table
The hourly rates of the labours are as follows:
Resource Name Wages Rate Overhead factor Personal time
factor
Resource manager $22.00/hr Indirect labour Good work life
project manager $35.00/hr Employee Fringe Benefits Learning
development
Finance manager $18.00/hr Indirect labour Good fixed salary
Worker's tool $50.00 Payroll taxes Financial stability
distributors $18.00/hr Indirect labour Job security
suppliers $25.00/hr Payroll taxes Good relationships
with others
Hardware requirements $3,000.00 Indirect labour Good fixed salary
Software requirements $5,500.00 Employee Fringe Benefits Financial stability
System developer $35.00/hr Payroll taxes Balanced work life

8SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
System tester $35.00/hr Employee Fringe Benefits Good work life
designer $22.00/hr Payroll taxes Learning
development
computers $36,010.00 Payroll taxes Good fixed salary
additional cost $40,000.00 Employee Fringe Benefits Financial stability
workers $35.00/hr Payroll taxes Job security
other cost $10,500.00 Payroll taxes Good work life
The activity precedence table for the SCM (ERP module) development from the
supplier’s end is elaborated in the below section:
WBS Task Name Predecessors Lead/lag Rationale
1.2.1 Inventory management plan 4FS-1 day
Lag The task will
be completed
1 day late
1.2.2 Team meeting 6FS+1 day
Lead The task will
be completed
one day
earlier
1.4.1 Project planning phase 10FF+1 day
Lead The task will
be completed
one day
earlier
(Laudon &
Laudon,
2016)
1.4.2 SCM tool selection 12SS-1 day
Lag This task will
start 1 day
late
2.1.1 Detailing evaluation contents 19SS+1 day
Lead This task will
start 1 day
earlier
2.2.2 Project monitoring 26FF-1 day
Lag This task will
finish 1 day
later
2.4.1 change management implementation 31,30FF+2 Lead This task will

9SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
days finished 2
days earlier
2.5.1 technical training 34SS-1 day
Lag This task will
start 1 day
later
Schedule
WB
S Task Name Duratio
n Start Finish Predecesso
rs Resource Names
1.0 Project design
phase 56 days
Tue
11/20/1
8
Tue
2/5/19
1.1 Implementati
on of project
team
12 days
Tue
11/20/1
8
Wed
12/5/18
1.1.1 performance
analysis
10 days
Tue
11/20/1
8
Mon
12/3/18
Resource
manager,suppliers,Worker's
tool[1],designer,Finance
manager,additional cost[1]
1.1.2
Worker's
skill
measurement
2 days Tue
12/4/18
Wed
12/5/18 3
Resource manager,workers,other
cost[1],System developer,computers
[1],designer
1.2
communicatio
n
management
program
23 days Wed
12/5/18
Fri
1/4/19
1.2.1
Inventory
management
plan
12 days Wed
12/5/18
Thu
12/20/1
8
4FS-1 day
Finance manager,Software
requirements[1],Worker's
tool[1],additional cost[1]
1.2.2 Team
meeting 10 days
Mon
12/24/1
8
Fri
1/4/19
6FS+1
day,4
additional cost[1],Software
requirements[1],System
developer,other cost[1],Finance
manager,Worker's tool[1],workers
1.3 Resource
identification 5 days Mon
1/7/19
Fri
1/11/19
1.3.1 Gathering 2 days Mon
1/7/19
Tue
1/8/19 7
project manager,additional
cost[1],other cost[1],System
developer,Worker's tool[1]

10SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
1.3.2 Analysis 5 days Mon
1/7/19
Fri
1/11/19 7
System developer,computers
[1],Hardware
requirements[1],Software
requirements[1]
1.4
Identification
of supply
chain
characteristic
s
15 days Thu
1/10/19
Wed
1/30/19
1.4.1 Project
planning phase 2 days Fri
1/11/19
Mon
1/14/19
10FF+1
day,9
System tester,project
manager,suppliers,additional cost[1]
1.4.2 SCM tool
selection 6 days Thu
1/10/19
Thu
1/17/19 12SS-1 day
Hardware requirements[1],other
cost[1],project
manager,workers,Worker's
tool[1],additional cost[1],designer
1.4.3
Developing
strategic
objectives
10 days Tue
1/15/19
Mon
1/28/19 12
System developer,additional
cost[1],designer,Hardware
requirements[1],Worker's tool[1]
1.4.4 Constructing
supply chain
structure
2 days Tue
1/29/19
Wed
1/30/19 13,14
Software
requirements[1],workers,designer,pr
oject manager,System tester,other
cost[1]
1.4.5
Milestone
1: Project
outline
submission
0 days Fri
1/11/19
Fri
1/11/19 8
1.5 Feasibility
study 4 days Thu
1/31/19
Tue
2/5/19
1.5.1
Contract
with suppliers
and
distributors
2 days Thu
1/31/19
Fri
2/1/19 15
project manager,workers,Worker's
tool[1],additional cost[1],System
developer,Hardware requirements[1]
1.5.2 audit
planning 2 days Mon
2/4/19
Tue
2/5/19 18
additional cost[1],designer,project
manager,System developer,Resource
manager,Worker's tool[1],suppliers
1.5.3
Milestone
2: Completion
of design
phase
0 days Tue
2/5/19
Tue
2/5/19 19
2
Project
Execution and
monitoring
phase
35 days Tue
2/5/19
Mon
3/25/19
2.1 Extraction 11 days Tue Tue

11SUPPLY CHAIN MANAGEMENT SYSTEM IMPLEMENTATION
of suitable
attributes 2/5/19 2/19/19
2.1.1
Detailing
evaluation
contents
6 days Tue
2/5/19
Tue
2/12/19
22,19SS+1
day
Hardware requirements[1],Software
requirements[1],distributors,System
developer,Worker's
tool[1],additional cost[1],project
manager,designer
2.1.2 Screening
the unqualified 5 days Wed
2/13/19
Tue
2/19/19 17,23
designer,Finance
manager,workers,additional
cost[1],Worker's tool[1]
2.2 Closure
phase 21 days Thu
2/14/19
Thu
3/14/19
2.2.1 Monitoring
program 2 days Wed
2/20/19
Thu
2/21/19 24 Resource manager,suppliers,System
tester,Worker's tool[1],other cost[1]
2.2.2 Project
monitoring 5 days Thu
2/14/19
Wed
2/20/19 26FF-1 day
Finance manager,System
developer,Worker's tool[1],project
manager
2.2.3
Milestone
3: Completion
of developmet
and
implementatio
n phase
0 days Thu
3/14/19
Thu
3/14/19 34
2.3 Stakeholders
signoff
6 days Thu
2/21/19
Thu
2/28/19
2.3.1
Final SMC
document
presentation
6 days Thu
2/21/19
Thu
2/28/19 27
project manager,Finance
manager,Software
requirements[1],System
tester,additional cost[1],Worker's
tool[1]
2.3.2 feedback
analysis 5 days Thu
2/21/19
Wed
2/27/19 27
designer,suppliers,Finance
manager,additional cost[1],Software
requirements[1]
2.4
change
management
plan
14 days Thu
2/28/19
Tue
3/19/19
2.4.1
change
management
implementatio
n
6 days Thu
2/28/19
Thu
3/7/19
31,30FF+2
days
additional cost[1],other
cost[1],project manager,Software
requirements[1],suppliers,System
developer,workers
2.4.2 maintenance
planning
5 days Fri
3/8/19
Thu
3/14/19 33
Hardware requirements[1],System
developer,additional
cost[1],Worker's tool[1],designer