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Chapter 6: ERP Project Management

Chapter 6: ERP Project Management. Fundamental project management concepts. ERP Installation Projects. Need aggressive implementation Organization needs to start gaining benefits Need clear definition of objectives Avoid scope creep – incremental changes in system during installation

angela-gillespie
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Chapter 6: ERP Project Management

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  1. Chapter 6:ERP Project Management Fundamental project management concepts

  2. ERP Installation Projects • Need aggressive implementation • Organization needs to start gaining benefits • Need clear definition of objectives • Avoid scope creep – incremental changes in system during installation • Steering committee very important • Management • Users • Consultants as needed

  3. Critical Path Method • Identify the fastest schedule to complete a project • Makes a lot of assumptions • Accurate time estimates • Unlimited resources • Develop activity list • Durations • Predecessor relationships • Network of activities

  4. Network Diagrams • activity duration • milestone • immediate predecessors identified by arrows leading into • durations can include in parentheses activity (duration) milestone

  5. networks • networks make a good visual • they are UNNECESSARY for identifying • early starts earliest an activity can be begun • late finishes latest an activity can finish • slack spare time • critical paths activities with no slack

  6. Project Scheduling MODEL COMPONENTS • activitieswhat needs doing • predecessorswhat this activity waits on • durations how long • durations are PROBABILISTIC • CPM DETERMINISTIC • assumes unlimited resources

  7. Critical Path Method • INPUTS: activities, durations, immediate predecessors • ALGORITHM forward passschedule all activities with no unscheduled predecessors ES/EF determine early starts & early finishes (start ASAP, add duration) backwards pass schedule in reverse (schedule all activities with no unscheduled FOLLOWERS) LF/LS determine late finishes, subtract duration to get late starts slack difference between LS-ES (same as LF-EF) critical path all chains of activities with no slack

  8. CPM Example FORWARD PASS activity duration predecessor A requirements analysis 3 weeks - B programming 7 weeks A C get hardware 1 week A D train users 3 weeks B, C schedule A start 0 finish 0+3 =3 schedule B 3 3+7 =10 & C 3 3+1 =4 schedule D 10 10+3 =13

  9. CPM Example backward pass schedule D finish 13 late start= 13-3 = 10 schedule B 10 10-7 = 3 & C 10 10-1 = 9 schedule A 3 3-3 = 0 slack A LF= 3 EF= 3 3-3 = 0 B LF= 10 EF= 10 10-10 = 0 C LF= 10 EF= 4 10-4 = 6 D LF= 13 EF= 13 13-13 = 0 critical path: A-B-D

  10. Gantt Chart

  11. CPM • can have more than one critical path activity duration predecessor A requirements analysis 3 weeks - B programming 7 weeks A C get hardware 7 weeks A D train users 3 weeks B, C • critical paths A-B-D A-C-D both with duration of 13 weeks

  12. Buffers • Assure activities completed on time (Goldratt, 1997) • Project Buffers:after final project task • Feeding Buffers: where non-critical activities lead into critical activities • Resource Buffers: before resources scheduled to work on critical activities • Strategic Resource Buffers: assure key resources available

  13. Project Buffer

  14. Resource Constraining • CPM assumes unlimited resources NOT TRUE • may have only a finite number of systems analysts, programmers • RESOURCE LEVELING - balance the resource load • RESOURCE CONSTRAINING - don’t exceed available resources

  15. unleveled leveled Resource Leveling

  16. Criticisms of CPM • Rarely to activities proceed as planned • critical path therefore very volatile • options to speed some activities available • crashing • resource limits not reflected • resource leveling • schedule likely to be very lumpy • resource smoothing

  17. Effective ERP Implementation • Motwani et al. [2002] • Incremental, bureaucratic, strategy-driven • Support with • User preparation • Inter-organizational linkages • Careful change management • Redefinition of project • Respond to identified needs • Improve project management • More meetings, tighter control

  18. Effective ERP Implementation • Motwani et al. [2002] • Subdivide project into manageable parts • Add or remove resources as needed • Time layoff & hiring • Especially external consultants • Training critical

  19. Summary • ERP can be very beneficial • Implementing ERP (no matter how) is a project • CPM provides a useful tool for project scheduling & management

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