Using Project Management Best Practices to Manage
Oracle Enterprise Resource Planning (ERP) Projects
Session ID# 12048
Edward Charity, Jr., PMP
Project Management Systems Consultants
(PMSC) LLC
Agenda • Introduction
• Overview of The Project Management Institute (PMI) and
The Project Management Body of Knowledge (PMBOK)
• Overview of ERP Implementation Projects
• Application of PMBOK Concepts to ERP Implementation
Projects
• Conclusion
• Questions and Answers
Introduction • Edward Charity, Jr, Project Management Professional (PMP)
• Certified Public Accountant (CPA)
• Close to 20 years experience with ERP Implementation Projects
• Worked for Oracle Consulting and Big-6/4 Consulting
• Oracle Projects (Project Accounting) Suite SME/Oracle R12
Projects Certified Implementation Specialist
• Project Management Systems Consultants (PMSC), LLC
• Founded in 2001
• Exclusively focused on ERP Implementation Projects
PMI and PMBOK • The Project Management Institute (PMI)
• One of the world’s largest professional membership
organizations
• ½ Million Members and Credential Holders in 185 Countries
• Non-Profit Organization That Advances the Project
Management Profession through:
• Globally Recognized Standards and Certifications
• Collaborative Communities
• Extensive Research Programs
• Professional Development Opportunities
PMI and PMBOK • The Project Management Body of Knowledge (PMBOK)
• One of the globally recognized standards established by PMI
• Contains the fundamental practices that Project Managers
(PMs) need to attain high standards and project excellence
• Gives PMs the essential tools to practice project management
and deliver organizational results
• The formal title for the PMBOK is “A Guide to the Project
Management Body of Knowledge (PMBOK ® Guide) – Fourth
or Fifth Edition”
• Fifth Edition – Published in 2013 – is the latest guidance and
is the source of information contained in this presentation
• Future Project Management Professional (PMP) Exams
based on the Fifth Edition
PMI and PMBOK • PMBOK Project Management Process Groups
• Initiating Process Group – Those processes performed to define
a new project or a new phase of an existing project by obtaining
authorization to start the project or phase.
• Project Manager Assigned; Project Charter and Stakeholder
Register Initiated
• Planning Process Group – Those processes required to
establish the scope of the project, define and refine the objectives,
and define the course of action required to attain the objectives
that the project was undertaken to achieve
• Project Management Plan, including all sub-plans will be
initiated
PMI and PMBOK • PMBOK Project Management Process Groups (Continued)
• Executing Process Group – Those processes performed to
complete the work defined in the project management plan to
satisfy the project specifications.
• People and Non-Human Resource Coordination
• Majority of Project Budget Expended performing these
processes
• Monitoring and Controlling Process Group – Those processes
required to track, review and regulate the progress and
performance of the project.
• Most interaction with other Process Groups
PMI and PMBOK • PMBOK Project Management Process Groups (Continued)
• Closing Process Group – Those processes performed to finalize
all activities across all Process Groups to formally close the project
or phase.
PMI and PMBOK • PMBOK Project Management Knowledge Areas
• Represent a complete set of concepts, terms, and
activities that make up a professional field, project
management field, or area of specialization.
• There are detailed processes unique to that knowledge
area (47 in total across all 10 knowledge areas)
• The PMBOK ® Guide defines the important aspects of
each Knowledge Area and how it integrates with the five
Process Groups (See Chart)
• Defined by 1) Process Inputs; 2) Process Outputs; and 3)
Tools and Techniques
PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)
• Project Integration Management
• Outputs: Project Charter and Project Management Plan
• Tool: Project Management Information System (PMIS)
• Project Scope Management
• Inputs: Project Charter and Project Management Plan
• Outputs: Scope Management Plan; Requirements
Documentation/Traceability Matrix; and Scope Baseline (aka
Work Breakdown Structure (WBS)
• Tools: Facilitated Meetings; Interviews; and Questionnaires
PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)
• Project Time Management
• Inputs: Project Charter and Project Management Plan
• Outputs: Activity Resource Requirements/Resource Breakdown
Structure (RBS); Schedule Baseline; and Project Schedule
• Tools: Critical Path Method or Critical Chain Method and
Scheduling software/tools
• Project Cost Management
• Inputs: Project Charter and Project Management Plan
• Outputs: Cost Baseline and Cost Forecasts
• Tools: Estimating Tools such as: Analogous; Parametric;
Bottom-up; and Three-Point Estimating
PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)
• Project Quality Management
• Inputs: Stakeholder Register and Requirements
Documentation/Traceability Matrix
• Outputs: Change Requests and Validated Deliverables
• Tools: Quality Audits and Inspection
• Project Human Resource Management
• Inputs: Project Management Plan and Activity Resource
Requirements
• Outputs: Change Requests and Project Staff Assignments
• Tools: Observation & Conversation and Negotiation
PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)
• Project Communication Management
• Inputs: Project Management Plan and Stakeholder Register
• Outputs: Project Communications and Change Requests
• Tools: Communications Technology; Communications Models
and Methods; and Performance Reporting
• Project Risk Management
• Inputs: Project Management Plan; Project Charter; and
Stakeholder Register
• Outputs: Risk Register and Change Requests
• Tools: SWOT Analysis and Risk Probability & Impact
Assessment
PMI and PMBOK • PMBOK Project Management Knowledge Areas (Continued)
• Project Procurement Management
• Inputs: Project Management Plan and Requirements
Documentation (for Make or Buy Decisions)
• Outputs: Selected Sellers and Change Requests
• Tools: Bidder Conferences and Proposal Evaluation
Techniques
• Project Stakeholder Management
• Inputs: Project Management Plan and Project Charter
• Outputs: Project Communications and Change Requests
• Tools: Stakeholder Analysis and Meetings
PMI and PMBOK PMBOK Project Management Process Groups and Knowledge
Areas Together
{Insert Chart Here}
Knowledge
Areas
Initiating Planning Executing Monitoring Closing
Project
Management
Integration
Scope
Time
Cost
Quality
Human
Resource
Communications
Risk
Procurement
Stakeholder
ERP Implementation Projects • Systems Development Life Cycle (SDLC)
• Waterfall
• Sequential series of phases or stages to get from the start of
the project to the end
Phase 1 Phase 3 Phase 3 Phase 4 Phase 5 Phase 6 Phase 7
Analysis
Design
Build
Test
Train
Transition
Support
ERP Implementation Projects • Custom Development Vs. Commercial-Off-The-Shelf
(COTS) Software
• Custom Development (aka Home Grown)
• Built from the ground up
• Commercial-Off-The-Shelf (COTS) Software (aka Packaged
Applications)
• Pre-developed by Venders
• Built based on Vendor’s Assessment of “Best Practice”
• Configured (Setup) based on Client Requirements
• Extended (Customized) for Gaps
ERP Implementation Projects • ERP Methodologies
• Software Developer-based
• Oracle – Unified Method (OUM); Application Implementation
Methodology (AIM); and Application Implementation Program
(AIP)
• Systems Integrators (SIs)
• Usually modified versions of Software Developer-based
Methodologies
• Client Organizations
• Most geared toward Custom Development work and retrofitted
to COTS/ERP Implementation Projects
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them
• Poor Communications
• Communications Management Plan
• Stakeholders Management Plan
• Unclear/Incomplete Business Requirements
• Scope Management Plan
• Requirements Documentation/Traceability Matrix
Note: Define Initial Requirements Before Apps
Consultants are brought on board !!!!!
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them (Continued)
• Lack of specific ERP Implementation Project
Management Knowledge and Experience
• Project Charter
• Human Resource Management Plan
Note: Hire an experienced ERP Project Manager!!!!
• Unrealistic Timeframes
• Time Management Plan – Including Project Schedule
• Accurate Duration Estimating
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them (Continued)
• Inadequate/poor estimating skills/experience
• Quality Management Plan – with Development
Standard
• Human Resource Management Plan – with specific
resource requirements and standards
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them (Continued)
• Inadequate client resource commitments
• Human Resource Management Plan – Specifically the Activity
Resource Requirements and Project Staff Assignments
• Risk Mitigation Strategy – Back-fill Key Project Resource
• Lack of Training
• HR Management Plan and Stakeholders Management Plan
identifies who needs to be trained and the form of training
• Procurement Management Plan for Make versus Buy decision
on training development and delivery
• Time Management Plan determines optimal times for training
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them (Continued)
• Unqualified Consulting Resources
• Procurement Documents – Actively client participation
in consulting resource selection
• HR Management Plan – Activity Resource
Assignments and Project Staff Assignments
• Inadequate Executive Support/Leadership
• Project Charter identifies Project Sponsor
• Project Sponsor out front at key events, i.e. Project
Kickoff and regularly scheduled Project Updates
PMBOK Concepts Applied to ERP Implementation Projects
• Ten Reasons Why ERP Implementation Projects Go Bad
and some PMBOK Concepts to Address Them (Continued)
• Inadequate Client Information Technology/Infrastructure
Support
• Procurement Plan for Make-versus-Buy analysis (in
house hosting versus off-site hosting
• Oracle On-Demand (OOD) is an viable option, but
know the downsides before signing up. Talk to a lot
folks who’ve done this and get their feedback
Conclusion
• Oracle ERP implementation projects are complex
undertakings that benefit from a proven, structured project
management approach
• PMI’s PMBOK is a structured approach that can be adapted
to meet this purpose
• A number of common ERP Project failure areas have been
identified
• A number of PMI PMBOK concepts have been put forward
as solutions to help alleviate these ERP Project failure areas
• See White Paper for additional details
Questions?
Comments?
THANK YOU
Edward Charity, Jr., PMP
www.pmsc-llc.com
703-244-9407
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