Erp Project Charter: Department: Erp Project Management Title: Erp Project Implementation Plan

ERP Project Charter Department : ERP Project Management SBS PHILIPPINES CORPORATION

Title

: ERP Project Implementation Plan

Reference Code Revision No. Page No.

GL-XXX-XX 00 1 of X

Date

Table of Contents 1.

Overview .................................................................................................................................................................. 2

2.

Description .............................................................................................................................................................. 3

3.

Roles & Responsibilities ...................................................................................................................................... 5

4.

Key Success Factors............................................................................................................................................... 6

5.

Risk Identification ................................................................................................................................................. 6

5.

Project Charter Approval ..................................................................................................................................... 8

ANNEX A – PROJECT TIMELINE ............................................................................................................................... 9

Prepared by:

Reviewed by:

Approved by:

Date

1. Overview Project Title Steering Committee Members

ERP Business Implementation Gerry D. Tan, President Nes Y. Sytengco, VP – Sales & Marketing Aylene Y. Sytengco, Chief Finance Officer Yvonne Lih, Board oversight

Project Sponsor / Owner Project Manager Project Team Members

Aylene Y. Sytengco, Chief Finance Officer Emerson P. Paulino System Business Analysts: John Michael R. Tillo Subject Matter Experts (SME): Nes Sytengco - Sales Dinah Alvarez – Accounting Nimfa B. Castandiello – Finance (Treasury) Princess M. Eduardo – Inventory Management Marianne O. Coroneza – Billing Marivic M. Flores – Purchasing-Imports Johannie L. Agaton / Peter Mesina – Credit & Collection

Stakeholders

Internal stakeholders include all function / departments that will benefit from the automated and improved business processes: Accounting, Warehouse, Treasury, Logistics, Purchasing, Sales and Regulatory External stakeholders include outside parties which have direct or indirect interest or business relationship with the company – Customers, vendors, government agencies, and the investing public.

Prepared by:

Reviewed by:

Approved by:

Date

2. Description 2.1 Background

SBS understands the need to continuously improve its internal process and systems to be able to achieve excellence in meeting its business goals and objectives in the growing market. The company operations have been mostly based on manual systems and procedures for the past years. During the last three years, the management have prioritized and put its efforts in acquiring and implementing an ERP system. However, due to some unexpected problems encountered, the automation project has not been successful. In January 2018, SBS purchased a new ERP system (i.e. Acumatica) and commissioned a new project team to lead and coordinate its implementation.

2.2 Purpose

Implement the proposed ERP Software in working closely with the Vendor's Project Team. The Internal Project Team will handle the Internal Project Management and Functional Analysis Tasks to achieve the following:  Identify risks and areas for improvements in the business processes and design corresponding action plans  Automate the business processes making it more efficient and effective using the newly acquired ERP system  Ensure that there will be no major disruption(s), delays or errors in the ongoing operations, especially in the preparation of financial reports during the course of the project implementation

2.3 Scope

The project will have the following phases and corresponding activities (in conjunction with the vendor's project activity and implementation schedule): Phase I: Business Requirement Analysis  Activity 1 - Process analysis and documentation of current processes prior to ERP implementation  Activity 2 – Risk assessment  Activity 3 – New business process mapping Phase II: Systems Requirement Analysis  Activity 4 - Analysis and installation of hardware requirements  Activity 5 - System set-up and preparation Phase III: Training, Testing & Acceptance  Activity 6 – User training  Activity 7 – User acceptance testing Phase IV: Implementation and Go-Live  Activity 8 – Data migration  Activity 9 – Update of balances Phase V: Maintenance & Support  Parallel simulation, issues monitoring

Prepared by:

Reviewed by:

Approved by:

Date

The major business processes and its related procedures which will be covered in this project are:  Order-to-Cash or Sales cycle  Procure-to-Pay or Expenditure/Purchasing Cycle  Inventory and Warehouse management  Financial Reporting  Fixed asset management  Treasury management  Customer management This project will not include the following:  Processes, functions or inventory items of other companies which may be managed or handled by the same SBS personnel  Payroll cycle, except for recording which is part of the Financial Reporting Cycle  Creation of procedure manuals of in-scope processes (only business process flowcharts and system manuals are included)  Management and user training of subsequent system change or upgrade

2.4 Deliverables

I. Business Requirement Analysis  Business process document (current process pre-implementation)  Risk assessment summary  Business process master document (new process post-implementation) II. System requirement  Hardware requirement checklist  Beta environment setup  User role setup  Approver setup  Chart of accounts  Bank account setup  Master data setup (i.e. inventory, customer, vendor etc)  System configuration / customization  Summary of issues and resolution III. Training, testing & acceptance  User training workshop  System navigation manual  User acceptance testing IV. Implementation & Go-Live  Beginning balance upload  Go Live financial reports

2.5 Timeframe

Start date: 2nd week of April 2018 Estimated project duration: 8 months (subject to monthly evaluation)

See Appendix A for complete timeline

Prepared by:

Reviewed by:

Approved by:

Date

3. Roles & Responsibilities 3.1 Project Sponsor / Owner

    

Provides executive team approval and sponsorship for the project. Budget ownership for the project and is the major stakeholder and recipient for the project deliverables. Provides policy definition to the Project team. Resolves all policy issues with the appropriate policy owners in order to provide a clear, decisive definition. Makes final decisions and resolves conflicts or issues regarding project expectations across organizational and functional areas.

The project owner and the project manager have a direct link for all communication. The project manager will work directly with the project owner on all policy clarification.

3.2 Project Manager

 



Provides overall management to the project. Accountable for establishing a Project Charter, developing and managing the work plan, securing appropriate resources and delegating the work and insuring successful completion of the project. Reports regularly the status of the project to the Steering Committee (i.e. weekly) and raise problems that need immediate higher level attention.

All project team members report to the project manager. Handles all project administrative duties, interfaces to project sponsors and owners and has overall accountability for the project.

3.3 Steering Committee

  

3.4 System Project Analysts

Prepared by:

  

Provides direction of the project and assistance in resolving issues that arise beyond the project manager’s jurisdiction. Monitor project progress and provide necessary tools and support when milestones are in jeopardy. Reviews and approves the project deliverables of every phase of the project prior to progressing to the next phase of the project Analyze and document business processes Perform risk assessment and identify process improvement Design and ultimately improve or replaces the business processes. This includes collaborating with teams (especially the SMEs) to develop high level process designs and models, understanding best practices for business processes and partnering with team members to identify appropriate opportunities, challenging the old rules of the business and stimulating creating thinking, and identifying organizational impact areas.

Reviewed by:

Approved by:

Date

3.5 Subject Matter Experts or SMEs

  

Key provider of business requirements and information from their respective function or department Coordinates the project activities with their respective function or department Accountable to ensure that all business documentation relating to their process or procedures are accurately documented

4. Key Success Factors What are the key success factors for the project (i.e. the factors that are a necessary condition for success of the project?    

Committed project team members Adequate resource provision (i.e. equipment, capital and human resource) Adequate project time allocation

How will success be measured?   

Effective and sufficient documentation of current and re-designed business processes and other project deliverables Seamless or smooth transition - minimal (less than one working day) to zero delay of any business transaction or recording due to project activities Completion of deliverables based on project timeline

5. Risk Identification Risk Category

Level

Description

Project team qualification

High

Project team members do not have the sufficient experience and skills to perform the project tasks which may lead to errors or failure to achieve project deliverables



Ensure that project team members (especially the system business analysts) whether externally or internally hired are qualified to perform the project tasks.

Project team availability

High

Priorities are not managed between the regular business activities and the project activities leading to delay or ineffectiveness of results.



Ensure that project team members have clear directives as to objectives and their roles in the project before it gets underway.

Project requirement

High

Resources needed for accomplishment of project tasks are not provided



Ensure that management is made aware of the requirements and are

Prepared by:

Reviewed by:

Action Plan

Approved by:

Date

leading to delay or failure to achieve project deliverables.

committed to provide and prioritize these requirements as indicated in the project charter.

Vendor support

High

ERP application provider’s provision of service is not aligned or not agreed (i.e. SLA) with the project charter leading to delay or failure to achieve project deliverables.



Ensure that project charter is communicated and agreed with the vendor so that needed support are properly and timely provided.

Interim change in human resource

Med

Resignation or termination of key project team member may delay or provide confusion in the achievement of project deliverables.



Ensure proper documentation of project deliverables and progress so that time and effort for turn-over and training is minimized. Provide sufficient incentives for project team especially on the achievement of results



Interim change in project scope

Project team motivation and commitment

High

High

Change requests in the project scope requested by process owners or the management are not in line with the project scope which may result in unnecessary delays and inability of the project team to accomplish the project tasks.



Project team, especially the SMEs, are not motivated and/or committed in effectively and efficiently accomplishing the objectives of the project leading to errors, changes or failure of the project.







Ensure that project charter is communicated to all stakeholders and that they understand and agree on the project scope. Any request to modify (i.e. delete or add) the project scope should be minimized or moved to a separate timeline after the project. Ensure that project charter is understood by the project team Financial incentives are given depending on the success of the project.

Technical system failures

Med

Significant or multiple technical system issues are encountered during the project which may lead to delays or failure of the project.



Vendor agreement should include penalties or any provision in the contract which protects the company in case of significant or total technical system failure

Technical system failures

High

Significant or multiple technical system issues are encountered after system implementation which may lead to failure of the project



User acceptance testing should be well designed and effectively performed by the users prior to accepting the system.

Prepared by:

Reviewed by:

Approved by:

Date

5. Project Charter Approval This Charter is to be reviewed and approved by the Project Steering Committee prior to the project start date. Any changes to the charter after its original approval should be documented by the Project Manager. These changes are subject to the review and approval of the Steering Committee.

Prepared by:

Reviewed by:

Approved by:

Date

ANNEX A – PROJECT TIMELINE

Prepared by:

Reviewed by:

Approved by:

Date

Prepared by:

Reviewed by:

Approved by:

Date

Prepared by:

Reviewed by:

Approved by:

Date