Part A – Statement of Work (80%)
This statement of work document is prepared for the ERP implementation solution in ACA Health organization. It is different from statement of work document for an exhaustive IT deployment project because it shall deals with only installation, development and configuration aspects of project. It shall not include major elements of IT projects as defined in the PMBok principles guide. Hence, this document does not include cost management, risk management, human resource management, integration and quality management. The Statement of Work (SOW) does not work on any business problem. However, it will assume that mentioned organization needs to implement ERP solution.
ERP implementation solution shall install and configure the ERP software on specific ACA Health organizations’ server and also provide configuration of systems in all its associated locations. ABC consultancy will be identifying the requirements of the organization for ERP implementation which is under the scope of work. It will include the timeline of the implementation and configurations in the locations where it would be deployed (Field & Keller, 2015).
Plan of installation – After having exhaustive planning session conducted at organization site by ABC and discussion happened during this session, ABC will prepare an installation plan on the basis of requirements of ACA Health, Project manager will be responsible for this planning document after having a discussion with the director of ACA Health.
Implementation preparation – After reviewing the installation plan, next step would to check for the file sets and partitions which would be required as per this plan. All firewalls and security settings shall be reviewed to figure out the presence of any blocked ports. These ports may be required to be open before installation. In order to start installation, security and procurement heads need to arrange for necessary security and implementation provisions. All this preparation shall be conducted o the basis of installation plan designed for ACA Health (Kerzner, 2001).
Solution customization – On the basis of requirements identified, the ERP software needs to be customized to prepare exact solution for the organization. And then, developers will be recruited and involved in the customization of ERP software for ACA Health (Welsh & Black, 2010).
Customized solution testing – Unit testing and application testing will be conducted to test the customized solution. These techniques shall be used to check whether the prepared solution meets the requirements of ACA Health. The testing shall be done by few users selected from end-user groups and management of ACA Health. All the identified bugs will be documented and sent to the developers for resolution (Spinner, 1997).
Part B – Project Selection (20%)
Solution installation and configuration – The identified and required file sets will be configured and installed on the server. This activity would be conducted by the operational team. After this, all the installation details will be put in the document along with instruction set of configuration. It shall be performed by IT manager and project manager will prepare configuration document.
The entire project shall be done in 6 months. Resources shall work from Monday to Friday from 9 am to 6pm. The schedule is mentioned below:
Start Date |
Item |
Time in Hours |
Role |
Responsibility |
1st August 2018 |
Project first meeting |
4 hours |
Project manager |
Discussion over: · Deliverables · Identify the roles and responsibilities of project members. |
2nd August 2018 |
Time schedule |
3 hours |
Project Manager |
Preparation of project plan along with timeline for ERP system. |
3rd August 2018 – 13th August 2018 |
Availability of hardware |
7 days |
Procurement manager (IT) |
· Get bids for hardware · Select best bid; · Get hardware as per the requirements · Testing of hardware · Installation in the organization |
14th August 2018 to 20th August 2018 |
Business process analysis of organization |
6 Days |
ERP Consultant |
· Get understanding of business process of the organization · Convert business process into requirement specification. |
21st August 2018 to 2nd Sept 2018 |
Technical requirements |
8 Days |
ERP Designer |
· Conversion of functional requirements into technical requirements. · Prepare documents of all requirements and processes · Prepare model for ERP software. |
3rd Sept 2018 to 20th Oct 2018 |
Development of customized solution |
40 days |
Developers |
Coding of ERP software |
21st Nov to 25th Nov 2018 |
Testing |
5 days |
Testers |
Unit testing and application testing |
26th Nov to 30th Nov 2018 |
Initialization |
4 days |
DBA |
Database creation and execution of scripts. |
1st Dec to 5th Dec 2018 |
ERP Installation and Configuration |
5 days |
Configuration IT Manager (Villarroel, Rayo, Loughlin, & Nguyen, 2007) |
· Install ERP solution · Configure ERP solution |
6th Dec to 31st Dec 2018 |
Migration of data |
14 days |
IT Manager |
· Obtain old data · Place old data into new system |
55% payment shall be paid before starting the project and rest of the payment will be paid on monthly basis (O’Donnell, 2017).
Following are 2 sub-contractors required for development of ERP solution:
- Hardware provider – It includes sellers who would provide infrastructure i.e. server and systems required for ERP implementation.
- Security solution provider – It includes security providing solutions for proposed ERP system.
Following are key representatives of the project:
- Vendors – It will include providers who would be supplying security and hardware solutions.
- CEO – CEO of ACA Health will be responsible for providing and allocating funds for the ERP project implementation.
- Project manager – He/she shall be responsible for planning, preparation, executing and controlling the proposed project.
- Vendors would be representing contracts for hardware and security solution
Following table represents the likely risks that may occur in the proposed ERP implementation. The table includes identified risks, their impact, their probability of occurrence along with the contingency plan:
Risk |
Probability |
Impact |
Contingency/Risk response plan |
Budget exceeding the allocated cost |
High |
High |
CEO shall be contacted when allocated budget fails to meet the assigned budget. CEO shall provide additional budget by keeping extra cost in contingency. |
Changes in scope |
Medium |
High |
ACA Health can change the scope by adding requirements during the development and implementation. But only the approved change requests shall be considered or only those are considered which are very crucial for the ACA Health. Rest may be rejected. |
Deliverables are delayed |
Low |
High |
Monitoring and controlling mechanisms are followed throughout the project development. Delayed deliverables are identified instantly and can be avoided. |
Quality of deliverables is varying. |
Medium |
Low |
Conduct software testing regularly at regular intervals of time and identify bugs. Resolve them within the assigned deadline. |
Conflicts among stakeholders |
Low |
High |
Conduct weekly status meetings with all team members to understand their expectations and concern (Wallmüller, 2011). |
Following stakeholder matrix presents a list of all the stakeholders involved in ERP project, their respective responsibilities and their level of interest and influence over the ERP project. On the basis of given factors, decisions can be taken on the communication among the team members:
Stakeholder Group |
Stakeholder |
Responsibilities |
Interest |
Influence |
Internal |
Sponsor |
Project review – Check for project feasibility. |
High |
High |
Team members |
Execution of all project tasks and achieve milestones and provide deliverables. |
High |
Medium |
|
High level Management |
Project progress review on regular basis; Resolve conflicts; Overcome issues faced by the project team (Liu, 2013). |
Medium |
High |
|
Organization Users |
Helps in gathering requirements. |
High |
Low |
|
External Stakeholders |
Patients/end-users |
Helps in gathering requirements. |
Medium |
High |
Consultants |
Allows ACA Health organization to make an efficient plan for ERP project. |
High |
Low |
|
Vendors |
Provide required hardware and software as per ERP project plan |
Low |
Low (Light, 2001) |
Applicable Standards:
- Quality process should start along with defining the scope of the project.
- The quality must be measured according to the Software Engineering Process Group metrics.
Acceptance Criteria:
- Patients records error has decreased by 20% in the first year of implementation.
- Waiting time for the patients have been reduced by 25% by the end of 2nd
Special Requirements or out of scope items:
- Marketing of the system
A business case justifies the alignment of project with the business strategies. Many project fail because of missing business case with incorrect scope statement. An efficient business case should be prepared so that it can facilitate in project selection. Project selection involves comparison among different projects keeping cost, risks, benefits, etc. as the base.
Following are various techniques used for project selection:
- Scoring model – It involves giving weightage to the selection criteria.
- Benefit/cost ratio – It involves comparing the basis of ratio of cash inflow and outflow.
- Payback period – It is the total average per period cash received with shortest cash back time.
- Economic model – For measuring performance, economic value addition technique is used.
- Benefit measurement – In this method, benefits are compared against the cash flows.
References
Field, M., & Keller, L. (2015). Project management (1st ed., pp. 12-14). Andover, Hants.: Cengage Learning.
Kerzner, H. (2001). Strategic planning for project management using a project management maturity model (2nd ed., pp. 22-23). New York: John Wiley.
Light, B. (2001). The maintenance implications of the customization of ERP software. Journal of software maintenance and evolution: research and practice, :415–429.
Liu, F. (2013). Rutherford Library Renovation Project Plan. University of Alberta Library.
O’Donnell, S. W. (2017). 5 Steps To Successful ERP Implementation . Datacor, Inc.
Spinner, M. (1997). Project management (1st ed., pp. 22-23). London: Prentice-Hall International.
Villarroel, S., Rayo, G., Loughlin, R., & Nguyen, K. (2007). ERP Systems . CSUSM.
Wallmüller, E. (2011′). Risk Management for IT and Software Projects. Qualität und Informatik.
Welsh, W. D., & Black, D. (2010). Engaging stakeholders for a software development project: River Manager model. International Environmental Modelling and Software Society (iEMSs) , (pp. 1-10).