Post on 19-Jul-2015
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 1
MASOUD ZAKERMOSHFEGH
mmoshfegh@yahoo.com
Feb,15,2015
ir.linkedin.com/pub/masoud-zakermoshfegh/36/96/628/en
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 2
Content
Enterprise Influences on ERP
Pre Implementation Processes
During Implementation Processes
Post Implementation Processes
3M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Holding
Project Mgmt.
Project Base
ERP
Out of Frame
• What is ERP?• Why ERP?• ERP Benefits• Detail life cycle
Discussion Frame
4M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
1. Organizational Culture & Style
• Ownership
• Business Style
• Industry Segment (Manufacturing, Operation, Project Base, etc.)
• Project Type (GC / EPC / Drilling / Construction)
2. Governance
• Authority to Change
• Decision making
• Clash of Priorities
3. Organizational Communications
• Common language
• Communication Channels
Organizational Influences on ERP Project Management
5M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
4. Organizational Structures
• Clarification of Black Connection Lines
• Pay attention to the white spaces (unofficial relationships)
Organizational Influences on ERP Project Management (2)
6M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
5. Organizational Process Assets
• BPM
• Process Diversification
7. Stakeholders
• BOD
• CEO
• Senior & Executive Managers
• ERP team members
• Key-users
• Staff
• Vendors / Contractors
• Clients / Customers
6. Enterprise Environmental Factors
• Political & Economical climate
• Enterprise Stability
• Marketplace Conditions (International & Domestic)
Organizational Influences on ERP Project Management (3)
7M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Diagnostic Analysis DesignDevelop-
mentDeploym-
entOperation
Bid Transition
Scope Mgmt
Financial Mgmt
Work Mgmt
Risk Mgmt
Staff Mgmt
Project Preparation
Business Blueprint
Realization
Final Preparation
Go Live Support
Run
Commun-ication
Quality Mgmt
Configur-ation
Infrastruc-ture
Procure-ment
OCM
Microsoft Sure Step Methodology
SAP AG (ASAP)
ORACLE Unified Method (OUM)
ERP Project Lifecycle & Implementation Methodology
8M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Pre-implementation Implementation Post-implementation
Project
IntegrationManagement
<<< Preliminary Studies Post Implementation SupportCutover Plan
Project Plan Technical Support
IT Strategy & Arc. Cutover
Project
ScopeManagement
<<< Business Process ManagementERP Configuration / Development
Identify Biz. Needs Blueprinting
Project
TimeManagement
Scheduling time intervals and important milestones / Schedule Control
Project
CostManagement
Cost Estimating / Budgeting / Cost Control
Project
QualityManagement
Benefits Realization Development
Quality Gates Determination Performance Mgmt. / Benefit Realization Audit
Project
Human Resources
Management
Develop Training Materials and PlanEnd-user Training
Key-user Training
Organizational Chart Re-designERP Project Team Development
Roles and Responsibilities Matrix
ProjectCommunication
Management
Communication
Data Gathering and CleansingData Migration
Project
RiskManagement
Risk Assessment and Evaluation
Project
ProcurementManagement
ERP Consultancy Service Contracting and Award
ERP Consultancy Service Contract Administration
Project
StakeholderManagement
<<< Organizational Change Management >>>
Stakeholder Analysis and Executive Alignment
Legend : Business / Managerial Activities Technical Activities
ERP PROJECT MANAGEMENT PROCESSES – PMBOK Approach
Pre-Implementation Implementation Post-Implementation
9M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Pre-implementation Implementation Post-implementation
Project
IntegrationManagement
<<< Preliminary Studies
IT Strategy & Arc.
Project
ScopeManagement
<<< Business Process Management
Identify Biz. Needs
Project
TimeManagement
Project
CostManagement
Project
QualityManagement
Benefits Realization Development
Project
Human Resources
Management ERP Project Team Development
ProjectCommunication
Management
Project
RiskManagement
Risk Assessment and Evaluation
Project
ProcurementManagement
ERP Consultancy Service Contracting and Award
Project
StakeholderManagement
Legend : Business / Managerial Activities Technical Activities
ERP PROJECT MANAGEMENT PROCESSES – Pre ImplementationPre-
ImplementationImplementation Post-Implementation
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 10
Statement of the problem?
Is ERP the best solution?
Readiness assessment
Identify Expectation
Choose the right ERP Software
• Functional
• Technical
• Cost
• Vendor Viability
• Risks
Develop ERP Project Charter
Pre Implementation - Preliminary Studies
Don’t forget:• Do Agile • Do Collaborative• Document Events• Benchmark similar cases
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 11
Business needs are changing, do it rapidly
Avoid Dreams
Manage Conflicts of needs
Focus on Value Chain Processes
Focus on Unique business requirements
Focus on Long-term strategic goals
Prioritize the requirements
Use Well-known Process References (APQC)
Pre Implementation – Business Needs
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 12
Do BPM regardless of ERP scope
Focus on Process pain points
Try to Simplify the processes
BPM Deliverables to ERP:
• Processes
• Workflows
• KPI
• Procedures
• Role & Responsibilities
• Forms / Reports
Pre Implementation – Business Process Management
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 13
(Available & Qualified) Resources
Clear Role & Responsibilities & Job description
Effective Communication
Staff Retention
CEO
Steering Committee
ERP Project manager
ERP Team Members
(Dedicated)
Functional members
(Part time)
ERP Implementer
ERP Consultant
• Competencies
• Knowledge (Business, Technical)
• Dedication
• Loyalty
• Motivation & Interest
• Skills
• Teamwork
• Negotiation
• Good Communication
• Effective Follow-Up
Pre Implementation – Project Team
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 14
Top Management Commitment & Support
Change of Stakeholders or their interest / power
OCM
Initial Scope
Data Migration
Competence of ERP’s consultants
Resources
Project Management
BPM
Training
. . . . .
Pre Implementation – Risk Assessment
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 15
Bid Evaluation & Prequalification
Outsourcing Strategy
Tendering Process SOW
RFP
TBE
CBE
Contract Award
Pre Implementation – ERP Service Contracting and Award
16M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
ERP PROJECT MANAGEMENT – Implementation ProcessesPre-implementation Implementation Post-implementation
Project
IntegrationManagement
Cutover PlanProject Plan
Project
ScopeManagement
ERP Configuration / Development
Blueprinting
Project
TimeManagement
Scheduling time intervals and important milestones / Schedule Control
Project
CostManagement
Cost Estimating / Budgeting / Cost Control
Project
QualityManagement Quality Gates Determination
Project
Human Resources
Management
Develop Training Materials and PlanEnd-user Training
Key-user Training
Organizational Chart Re-design
Roles and Responsibilities Matrix
ProjectCommunication
Management
Communication
Data Gathering and CleansingData Migration
Project
RiskManagement
Project
ProcurementManagement ERP Consultancy Service Contract Administration
Project
StakeholderManagement
<<< Organizational Change Management >>>
Stakeholder Analysis and Executive Alignment
Legend : Business / Managerial Activities Technical Activities
Pre-Implementation Implementation Post-Implementation
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 17
Considerations:
Rolling Wave Planning
Combination of Short-term Achievements
Be realistic despite environmental forces
Identify & Focus on the Critical Path
Implementation – Project Management Plan
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 18
What is Business Blue Print?
BPM VS BBP
Challenges
Integration of processes which are doing by others?
Endless BBP discussion
Trade off
Level of Efforts VS. Level of Control
Level of Efforts VS. Wanting every things
StandardizationVS. Flexibility
Avoid Scope Creep VS. Stockholder Satisfaction
Best Practice VS. Best Fit
Implementation – Business Blue Print
19M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Implementation – Blue Print
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 20
Common Reasons for Timeline Overages• Scope Change
• Ineffective Issue Management
• Ignoring real critical path (e.g OCM, Data Migration)
• Unrealistic Timeline
• Inadequate Qualified Resources
• Poor BPM
2010 2011 2012 2013
14.316
17.816.3
Average duration of ERP Implementations within 2010 ~ 2013: 16.1 Months
Planned Duration(Months)
%61
%72
%61%54
Implementation – Schedule
21M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
ERP Implementation Strategy
Big bang
Pilot
Phased
– Functional Wise
– Organizational Wise
Depends on:
• Size (Functional , Organizational)
• Readiness Considerations
• Priorities (Managerial , Technical)
• Organizational Structure
• Resource Allocation
• Geographical Locations
Implementation – Schedule
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 22
Cost Breakdown: ICT Infrastructure (Network/Server/Client/Storage)
Implementation• License (less than 10%)
• BPR • Customization/Development• Test• Training• Data Migration
OCM Support
Main Reasons for Cost Overrun
Scope Change
Unrealistic Project Budget
Project Timeline Overage
2010 2011 2012 2013
5.5
10.5
7.1
2.8
Average Cost of ERP Implementations within 2010 ~ 2013: $6.5
Planned Budget…% Cost Overruns
%54%53%56%74
Implementation – Cost
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 23
Keep stakeholders informed & engaged
Change Vision
Business Change Impacts
New Processes
Procedures
MOM
Tasks
Issues
Documents (BBP, Books, Articles, etc.)
Progress Report (Monthly)
Implementation – Communication Management
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 24
Identification
Gathering
Cleansing- Validate (consistency)
- Consolidate
Convert
to Templates
Migrate
Test & Accept
Implementation – Data Gathering Migration
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 25
Types of CHANGES:
Visible – How to Work:
• Software
• BPR
• Organizational Chart redesign
• New Role & Responsibilities
Invisible – Paradigm shift:
• Integration
• Transparency
• Control
• Power shifting
Implementation – Organizational Change Management
26M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran
Pre-implementation Implementation Post-implementation
Project
IntegrationManagement
Post Implementation Support
Technical Support
Cutover
Project
ScopeManagement
Project
TimeManagement
Project
CostManagement
Project
QualityManagement Performance Mgmt. / Benefit Realization Audit
Project
Human Resources
Management
ProjectCommunication
Management
Project
RiskManagement
Project
ProcurementManagement
Project
StakeholderManagement
Legend : Business / Managerial Activities Technical Activities
ERP PROJECT MANAGEMENT – Post Implementation ProcessesPre-Implementation Implementation
Post-Implementation
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 27
Legacy system retirement or Parallel using?
Team member Motivation & Retention
Hand over the system
Closing of the implementation contract
Post Implementation – Run & Support
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 28
User Performance
Business Process Performance (KPI)
System Performance
Training needs
Reporting needs
Benefit Realization
Effective Enterprise Governance
Increase Enterprise Transparency
Increase Availability of Data
Improved Data Reliability
Improved Productivity
Less Duplication of Efforts
. . . . .
Continues Improvement
Post Implementation – Performance Management & Audit
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 29
Success Factors: (Executive point of view)
Effective Follow up
Dedication
Continuation
ERP Issues
Conclusion
M.Z. Moshfegh, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran 30
MASOUD ZAKERMOSHFEGH
mmoshfegh@yahoo.com
ir.linkedin.com/pub/masoud-zakermoshfegh/36/96/628/en
Thank you for your attention
M. Z. MOSHFEGH, The Lesson Learned from Implementation of ERP in Project-Based Holdings, 10th International Project Management Conference, Tehran, Iran,
15-16 Feb 2015