mis677 - 11-8 947a
TRANSCRIPT
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Ta Ron BarnesTa Ron Barnes -- John CasielloJohn Casiello -- Ching-Wang Hung -- RonRonZanardoZanardo 1
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Agenda & Introduction
Project OverviewProject Management Methodology
Organizational Structure
Work Breakdown StructureHigh Level Project Plan
Detailed Project Plan (Financial Mgmt)
Summary
Q&A
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Destination:Chicago
HUB #1
HUB #2
HUB #3
4
100%
50%
125%
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ERP System for Warehouse Management & Delivery OptimizationInventory and Delivery SystemsFunctional Area:
Project Name:Project Sponsor: COO
TBDProject Manager:
DESCRIPTION
KEY BENEFITS:
Streamlined core value chain processes
Improved Business process
Reduced costs Improved customer service, satisfaction and intimacy
Improved tools for operational and administrative functions
Customer retention
Improved management information and reporting capabilities
RESOURCES: Internal order management, internal IT, and external resources are needed. A full-time project manager is needed to managethe project.
PREREQUISITES / DEPENDENCIES: An effective ERP system must be highly integrated with all of the other supply chain systems; temporarybridges will be required. Extensive training of IT staff and business unit end users will be required. New technology infrastructure must be in
place.
OBJECTIVES / SCOPE: Enterprise-wide
Analysis, design, construction, and implementation of Inventory systems and Warehouse Management using new ERP package software
Define data model: structure, access, and conversion; convert/scrub/import legacy data
Implementation of ERP system and Logistical Consolidation of warehousing and shipping that positions AGL for competit ive
advantage and enhanced its business. Key functionality includes automated order fulf illment, inventory tracking, and delivery schedules. The
phased project will include training, planning, analysis, design, construction and implementation of the new ERP and WMS.
ISSUES: Some new technologies (e.g. RFID) and Oracle Database. Infrastructure lead-times on datacenter consolidation may affect ERP startdates.
Current Condition: Fair(good) (fair) (poor)
Risk: High(high) (medium) (low)
Strategic Value: High(high) (medium) (low)
Business Impact: High(high) (medium) (low)
COST RANGE: $_____(includes software, DB, trainingand systems integration)
DURATION: 30 36 months
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Investment Year 1 Year 2 Year 3 Year 4 Year 5
Business Case Development 120,000
PMO Deployment 400,000
ERP System Implementation 6,000,000
Data Center Consolidation 4,200,000
Salaries &Wages 230,000 1,500,000 1,760,000 1,000,000 1,000,000
Tools &Technology 200,000 1,500,000 150,000 2,300,000 2,300,000
Other Expenses 250,000 165,000 190,000 260,000 260,000
Total Investments 11,400,000 3,165,000 2,100,000 3,560,000 3,560,000
Cost Saving
Project Synergy 300,000 660,000 770,000 870,000 870,000
Minimized Project Over-runs 500,000 550,000 670,000 670,000 670,000
Enterprise Standardization 220,000 330,000 500,000 600,000 600,000
Acquisition Integration 670,000 1,000,000 1,133,000 1,000,000 1,000,000
Risk Management - 270,000 300,000 400,000 400,000
Improved Reporting &Decision Capabilities 40,000 70,000 400,000 400,000 400,000
Total Cost Savings 1,730,000 2,880,000 3,773,000 3,940,000 3,940,000
Net Cash Flows (9,670,000) (285,000) 1,673,000 380,000 380,000
Discount Rate 18%
Net Present Value 12,998,300
Internal Rate of Return 114%
Pay Back (in years) 5.5
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AGLs IT strategy implementation plan will bring business unit integration and provideopportunities for growth and reduced expenses.
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A dedicated team and subsequent organizational structure will help to improvedecision making, enhance communications, and focus the team for success
ExecutiveCommittee
SteeringCommittee
Project Director
Project MgmtOffice
PROJECTMANAGER
Team LeadDATACENTER
Team Member
QA / Testers
Team LeadINVENTORY
Team Members
QA / Testers
Team LeadWAREHOUSE
Team Members
QA / Testers
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