1 / 19

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
Download Presentation

Chapter 6: ERP Project Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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

More Related