BCO6656 IT Project Management For Implementation of SAP in Yes Chemist

Questions:

Your job as the new Project Manager is to:

1. Develop a Charter for the project

2.Develop a comprehensive Project Plan that should meet implementation and training requirements
3. Both Charter and Project plan must be ratified (signed) by the Business Sponsor. Please note, no work could commence without formal ratification of the Charter and Project plan documents.

4. Once the project is in progress, you are required to provide project status updates to your VUISC Manager (tutor), project team members and the business sponsor.

Answer:

Introduction

A project plan is to be prepared for yes chemist that manages a group of independent Pharmacies with a shared value and common philosophy. The business of yes Chemist Pty Ltd had started as a family venture in late 2010s, which has gradually expanded stores in all the major cities of Australia, which includes Sydney, Brisbane Adelaide, Perth and Melbourne. The business of Yes Chemist has been doing well for quite a sometime and therefore, the organization has decided to implement SAP for integrating all the major business operations of the organization. The need of a new accounting, HR and inventory management system is essential as an operational review that was conducted resulted unveiled the weaknesses in the existing system (Schwalbe 2015). The Victoria University Information Systems Consulting mainly secured the contract for implementing the SA S/4HANA for SAP Business All in one.

The main purpose of this project plan is to define the scope of the project including the major project deliverables associated with the project and project quality standards. The quality standards requirement for the project will be discussed as well (Leach 2014). The project Plan outlines the business case for the project that justifies the need of the project. The project schedule and the approach of implementing the project are discussed in the project plan. The project plan further covers the resources, budget and risks associated with a project. A communication matrix is also prepared that includes different communication activities associated with the project. This project plan is prepared to get an overview of the different project activities, schedule and the deliverables.

Project scope

The aim of the project is to implement SAP S/4HANA for SAP Business All in one for Yes chemist Pvt Ltd. The system development life cycle of the project mainly consists of the development, testing and the user acceptance testing as well. The system will be set up on cloud considering the fact that server room refurbishment will take almost three months to complete (Kerzner and Kerzner 2017). The project would be a success only if the hardware and the software installation are complete. The data conversion, which is an important project deliverable should be completed successfully. With the implementation of a new system, it is very essential to train the existing users of the organization about the use of the software in the organization (Harrison and Lock 2017). This process is followed by the user acceptance testing.

The objective of the project is to deliver the identified deliverables of the project on time. The project will be a success only if the major deliverables of the project manages to achieve the desired quality standards for the project. The deliverables and the quality standards required for the acceptance of each deliverables is represented in the following table (Burke 2013).

Deliverables	Acceptance Criteria of Quality Standards
Development of Infrastructure and Equipment	The work should be completed within 15 days as quoted by the contractor started from 3^rd of June
Collection of the functional requirements of the new system design associated with the project	The requirement fetching should incorporate the all the functional requirements of the project.
Data Conversion is another major deliverable of the project. Since the company is integrating all their business processes in a new SAP instance, data extraction, conversion, validation and transitioning is essential. This data conversion will take at least 3 weeks.	The acceptance criteria of this deliverable will be conversion of data according to legacy data structure and proper identification and rectification of the defect in data conversion (if any).
Integration and Testing- Integration and testing is one of the most important deliverables of the project as the success of the project largely depends on the proper integration of the new SAP system will the e-gate feature for corporate banking associated with the organization.	The deliverable will be accepted only after a comprehensive end to end testing within All in one finance module. This should incorporate testing with a live e ate instance and postings in journal ledger.
Documentation of the project work	This deliverable will only be accepted if the documentation process is completed by a technical writer of VUISC. The documentation process should include review standard SAO business All in one end user manuals.
Training the users	Since VUISC is implementing the project, it is essential that the training is imparted by VUISC trainer only as this trainer will have a proper knowledge about the working process of the software.
Maintenance	The acceptance criterion is that a regular maintenance is ensured.

The assumptions are-

A realistic schedule is set
The budget allocation is appropriate

The Constrains are as follows-

Maintenance does not include disaster or data recovery and it is the responsibility of the client.
The budget may not incorporate hike in the wages of the workers.

Business case

The business needs that the project is expected to address (Heagney 2016)-

The Sap system will provide a solution to replace the legacy accounting, HR and inventory management system.
The new SAP system is expected to mitigate the operational weaknesses associated with Yes Chemist.
The process of data storage will be automated that will help in easier data extraction

The project is justified as with the increase in the business units of Yes Chemist, it is essential to upgrade the existing system to make the process of information storage and retrieval easier.

The expected benefits of the project is represented in the following table-

Benefits	Benefit Measures
Significant Cost savings	The SAP software is capable of tracking the company’s data and generates the reports thus reducing the need of human labor.
Consistent Operations	The progress report shows consistent improvement management of the operation
Flexibility in designing the process	With the use of Sap, the employees of the organization are able to design the business processes in an innovative manner
Customizing the solution to suit the business process of Yes Chemist	Customization of the business process becomes easier
Reduction in sales and order processing cost	The regular progress reports showing reduction in order processing cost.
Reduced the order delivery time	Customers are getting faster delivery.

However, there are certain dis –benefit of the new system, which are as follows-

In the initial months after the implementation of the project, the productivity might reduce as the employees will need time to understand the working principle of the new system.
The initial cost of development and installation is huge
The hardware design flow of SAP Hana follows a very specific guideline and therefore, it is essential to train the employees in a proper way.
Point in time recovery feature is absent in SAP HANA.

Project Schedule and Approach (Rollout strategy)

The project will include a number of phases. At first, it is very essential to do a proper research on the feasibility of the project. The project will include the different phases of project management which are requirement analysis, implementation, testing and maintenance.

The details about the different phases of the project and the time allocated for each phase is represented in the following table-

Task Name	Duration	Start	Finish
SAP Implementation Project in Yes Chemist	251 days	Fri 01-06-18	Fri 17-05-19
Project starts	1 day	Fri 01-06-18	Fri 01-06-18
Feasibility Study	8 days	Mon 04-06-18	Wed 13-06-18
Operational Feasibility	5 days	Mon 04-06-18	Fri 08-06-18
Technical Feasibility	6 days	Mon 04-06-18	Mon 11-06-18
Documenting the report	1 day	Tue 12-06-18	Tue 12-06-18
Drafting the report	1 day	Wed 13-06-18	Wed 13-06-18
Requirement Analysis	14 days	Mon 04-06-18	Thu 21-06-18
Understanding the resource requirements	5 days	Mon 04-06-18	Fri 08-06-18
Preparation of the project plan	3 days	Mon 11-06-18	Wed 13-06-18
Obtaining Functional Requirements	4 days	Mon 11-06-18	Thu 14-06-18
M1: Collection of the functional requirements of the new system design associated with the project	0 days	Thu 14-06-18	Thu 14-06-18
Preparation of project schedule	3 days	Fri 15-06-18	Tue 19-06-18
Documenting the reports	2 days	Wed 20-06-18	Thu 21-06-18
Implementation	102 days	Mon 04-06-18	Tue 23-10-18
Server room demolition	15 days	Mon 04-06-18	Fri 22-06-18
Permission for cloud hosting	10 days	Mon 25-06-18	Fri 06-07-18
M2: Development of Infrastructure and Equipment	0 days	Fri 06-07-18	Fri 06-07-18
Designing the interface	15 days	Mon 09-07-18	Fri 27-07-18
Coding the software	30 days	Mon 30-07-18	Fri 07-09-18
Coding database	30 days	Mon 10-09-18	Fri 19-10-18
linking the data base with the software	2 days	Mon 22-10-18	Tue 23-10-18
connection of new servers with the existing network	10 hrs	Mon 25-06-18	Tue 26-06-18
Data Conversion	22 days	Wed 24-10-18	Thu 22-11-18
Understanding the legacy of data structures	3 days	Wed 24-10-18	Fri 26-10-18
Setting up the data extractor and script development	2 days	Mon 29-10-18	Tue 30-10-18
Data validation and cleansing	3 days	Wed 31-10-18	Fri 02-11-18
Development of the automated script for loading data into B1 instance	2 days	Mon 05-11-18	Tue 06-11-18
Testing in real time instance	3 days	Wed 07-11-18	Fri 09-11-18
Defect rectification	2 days	Mon 12-11-18	Tue 13-11-18
Post data migration analysis	4 days	Wed 14-11-18	Mon 19-11-18
Manual data rectification by client	3 days	Tue 20-11-18	Thu 22-11-18
M3: Successful Data Conversion	0 days	Thu 22-11-18	Thu 22-11-18
Integration and Testing	35 days	Fri 23-11-18	Thu 10-01-19
Integration of new SAP system with e-gate feature for corporate banking	5 days	Fri 23-11-18	Thu 29-11-18
Testing	30 days	Fri 30-11-18	Thu 10-01-19
unit testing	5 days	Fri 30-11-18	Thu 06-12-18
system testing	6 days	Fri 07-12-18	Fri 14-12-18
black box testing	5 days	Fri 07-12-18	Thu 13-12-18
alpha testing	5 days	Fri 14-12-18	Thu 20-12-18
end to end testing with live e-gate instance	10 days	Fri 21-12-18	Thu 03-01-19
System integration Testing	5 days	Fri 04-01-19	Thu 10-01-19
M4: Completion of Integration and testing of SAP	0 days	Thu 10-01-19	Thu 10-01-19
Documentation and training	61 days	Fri 04-01-19	Fri 29-03-19
Documenting the project progress and project reports	7 days	Fri 04-01-19	Mon 14-01-19
Development of functionality manuals	10 days	Fri 04-01-19	Thu 17-01-19
Reviewing the standard of SAP business All in one end user manuals	20 days	Fri 18-01-19	Thu 14-02-19
Customization of the manuals based on client's delivery requirements	10 days	Fri 15-02-19	Thu 28-02-19
Training by VUISC trainer to the staffs of Yes Chemist	21 days	Fri 01-03-19	Fri 29-03-19
M5: Completion of Documentation and training Phase	0 days	Fri 29-03-19	Fri 29-03-19
Acceptance Testing and Client Sign off	15 days	Mon 01-04-19	Fri 19-04-19
Performing acceptance testing on the application developed	10 days	Mon 01-04-19	Fri 12-04-19
Sign Off	5 days	Mon 15-04-19	Fri 19-04-19
Completion of hardware and software installation	2 days	Mon 15-04-19	Tue 16-04-19
Checking whether data conversion and training is successfully completed	2 days	Mon 15-04-19	Tue 16-04-19
Documenting the report	5 days	Mon 15-04-19	Fri 19-04-19
M6: Completion of Acceptance Testing and successful client sign off	0 days	Fri 19-04-19	Fri 19-04-19
Application go live	20 days	Mon 22-04-19	Fri 17-05-19
server equipments tested by VUISC technical staff before SAP installation	2 days	Mon 22-04-19	Tue 23-04-19
Installation by Frontline Engineer	2 days	Wed 24-04-19	Thu 25-04-19
go live	1 day	Fri 26-04-19	Fri 26-04-19
Maintenance post go live	3 wks	Mon 29-04-19	Fri 17-05-19
Project Ends	0 days	Fri 17-05-19	Fri 17-05-19

The work activities marked in red in the Gantt chart above depict the critical path of the project (Larson and Gray 2013)

Resources

The human resources associated with this project is represented below-

Resource Name	Std. Rate	Cost/Use
IT Project Manager VUISC	$75.00/hr	$0.00
VUISC Programmers	$30.00/hr	$0.00
VUISC Testers	$35.00/hr	$0.00
VUISC business Analyst	$50.00/hr	$0.00
VUISC Technical writers	$30.00/hr	$0.00
VUISC End user trainers	$25.00/hr	$0.00
Jacob and Sons Pty Ltd subcontracting staffs	$0.00/hr	$15,000.00
Peter Cables Pty Ltd	$60.00/hr	$0.00
Frontline Engineer	$30.00/hr	$0.00
VUISC technical staffs	$20.00/hr	$0.00

The resource report is represented below-

The above report gives an overview of the resources associated with the project and the responsibilities of each resource.

Budget

The cost estimated for the project is represented in the following table –

WBS	Task Name	Duration	Cost
0	SAP Implementation Project in Yes Chemist	251 days	$109,845.00
1	Project starts	1 day	$600.00
2	Feasibility Study	8 days	$7,000.00
2.1	Operational Feasibility	5 days	$2,800.00
2.2	Technical Feasibility	6 days	$3,360.00
2.3	Documenting the report	1 day	$240.00
2.4	Drafting the report	1 day	$600.00
3	Requirement Analysis	14 days	$9,480.00
3.1	Understanding the resource requirements	5 days	$3,000.00
3.2	Preparation of the project plan	3 days	$1,800.00
3.3	Obtaining Functional Requirements	4 days	$2,400.00
3.4	M1: Collection of the functional requirements of the new system design associated with the project	0 days	$0.00
3.5	Preparation of project schedule	3 days	$1,800.00
3.6	Documenting the reports	2 days	$480.00
4	Implementation	102 days	$40,305.00
4.1	Server room demolition	15 days	$15,000.00
4.2	Permission for cloud hosting	10 days	$6,000.00
4.3	M2: Development of Infrastructure and Equipment	0 days	$0.00
4.4	Designing the interface	15 days	$3,600.00
4.5	Coding the software	30 days	$7,200.00
4.6	Coding database	30 days	$7,200.00
4.7	linking the data base with the software	2 days	$480.00
4.8	connection of new servers with the existing network	10 hrs	$825.00
5	Data Conversion	22 days	$4,760.00
5.1	Understanding the legacy of data structures	3 days	$480.00
5.2	Setting up the data extractor and script development	2 days	$320.00
5.3	Data validation and cleansing	3 days	$480.00
5.4	Development of the automated script for loading data into B1 instance	2 days	$320.00
5.5	Testing in real time instance	3 days	$1,320.00
5.6	Defect rectification	2 days	$480.00
5.7	Post data migration analysis	4 days	$640.00
5.8	Manual data rectification by client	3 days	$720.00
6	M3: Successful Data Conversion	0 days	$0.00
7	Integration and Testing	35 days	$11,480.00
7.1	Integration of new SAP system with e-gate feature for corporate banking	5 days	$800.00
7.2	Testing	30 days	$10,680.00
7.2.1	unit testing	5 days	$1,400.00
7.2.2	system testing	6 days	$1,680.00
7.2.3	black box testing	5 days	$1,400.00
7.2.4	alpha testing	5 days	$1,400.00
7.2.5	end to end testing with live e-gate instance	10 days	$2,800.00
7.2.6	System integration Testing	5 days	$2,000.00
7.3	M4: Completion of Integration and testing of SAP	0 days	$0.00
8	Documentation and training	61 days	$18,620.00
8.1	Documenting the project progress and project reports	7 days	$1,120.00
8.2	Development of functionality manuals	10 days	$2,400.00
8.3	Reviewing the standard of SAP business All in one end user manuals	20 days	$8,000.00
8.4	Customization of the manuals based on client's delivery requirements	10 days	$2,400.00
8.5	Training by VUISC trainer to the staffs of Yes Chemist	21 days	$4,700.00
9	M5: Completion of Documentation and training Phase	0 days	$0.00
10	Acceptance Testing and Client Sign off	15 days	$4,640.00
10.1	Performing acceptance testing on the application developed	10 days	$2,800.00
10.2	Sign Off	5 days	$1,840.00
10.2.1	Completion of hardware and software installation	2 days	$320.00
10.2.2	Checking whether data conversion and training is successfully completed	2 days	$320.00
10.2.3	Documenting the report	5 days	$1,200.00
11	M6: Completion of Acceptance Testing and successful client sign off	0 days	$0.00
12	Application go live	20 days	$12,960.00
12.1	server equipments tested by VUISC technical staff before SAP installation	2 days	$320.00
12.2	Installation by Frontline Engineer	2 days	$480.00
12.3	go live	1 day	$760.00
12.4	Maintenance post go live	3 wks	$11,400.00
13	Project Ends	0 days	$0.00

The following report gives an overview of the resource cost overview associated with the project-

The cost of work is huge since the schedule of the project is long and the project work is quite complex.

Risk

Every project is associated with a certain amount of risk that needs to be properly managed in order to eliminate the chances of project failure (McNeil, Frey and Embrechts 2015). A risk register is prepared for documenting the different risks that is associated with the SAP implementation project in Yes Chemist. A risk register is a master document that is created in the early stages of the project and is therefore an important part of Risk management plan (Alhawari, S., Karadsheh, Talet and Mansour 2012). A risk register helps in addressing the different risks and problems as they arise.

The risks associated with the SAP implementation are as follows (Galliers and Leidner 2014) –

S.No	Security Threat/Risk Description	Likelihood	Impact	Priority	Preventive Actions
1.	Any problem in data conversion and data transfer might result in the permanent data loss	Medium	High	High	As a preventive action, the data conversion and transfer which is a significant project deliverable should be completed in a controlled environment
2.	Technical risk in testing of the developed modules	Medium	High	High	As a mitigation approach, the testing phase is allocated with a considerable times
3.	Schedule risk due to delay in the resources availability	Low	Medium	Medium	As a risk mitigation approach, the daily progress of the project is needed to be tracked
4.	Operational Risk due to inexperienced employees	High	High	High	The training should be imparted to the maximum number of employees
5.	The SAP system is not providing the expected output	Low	High	High	As a risk mitigation approach, proper requirement analysis and research about SAP HANA is to be made prior to its implementation.
6.	Project Experiencing frequent delays and slippage in deadline	Medium	Medium	Medium	The project manager should have a clear visibility of the project progress and timely completion of the deliverable.

Communication

Proper communication flow among the team members is essential in measuring the success of the project (Binder 2016). A communication matrix is a tool that is designed to get an overview on how an individual in communicating. The communication matrix for this project in represented in the following table (Martinelli and Milosevic 2016)-

Communication activities	Target Audience	Description/Purpose	Frequency	Distribution Vehicle
Weekly status report	Project Team	Communicate updated project status	Weekly	email
Project Progress Report	Project Team along with project manager	Communicate the project progress	In every two weeks	Email, face to face communication
Delivery or communication of key messages	The project team	Any recent development in the project needs to be communicated	Regularly	Phone calls
Impact assessment report	Project team and stakeholders	Communicating the impact assessment report	Bi-weekly	Email
Updated schedule	Project team members	Communicating any update in schedule	As required	Email

Summary

The project plan demonstrates the different phases and activities associated with the project of Yes Chemist. A SAP application will be implemented for integrating all the business processes associated with the organization. The project plan gives an overview of the project scope, business case, schedule, resources and budget, associated risks and the project communication plan.

References

Alhawari, S., Karadsheh, L., Talet, A.N. and Mansour, E., 2012. Knowledge-based risk management framework for information technology project. International Journal of Information Management, 32(1), pp.50-65.

Binder, J., 2016. Global project management: communication, collaboration and management across borders. Routledge.

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.

Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.

Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.

Heagney, J., 2016. Fundamentals of project management. AMACOM Div American Mgmt Assn.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Larson, E.W. and Gray, C., 2013. Project management: The managerial process with MS project. McGraw-Hill.

Leach, L.P., 2014. Critical chain project management. Artech House.

Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

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