Raed Project

Project Management Team

King Fahd University of Petroleum & Minerals

Dhahran 31261, Saudi Arabia

June 13, 2005

2nd Meeting ofThe Executive Steering Committee

Progress and Cost To Date Project Management Plan

Methodology Scope management Schedule management Cost management Organization & team development Procurement plan Quality management Risk management Communication plan Earned value management Professional responsibility

Critical Issues

Outline

Progress To-Date

Cost To-DateDateItemAmount

March 30, 2005Lunch for kick-Off meeting (46 persons) 1,380

April 24, 2005Coffee break during seminar by Dr. Andijani (90 persons) 90

April 24, 2005Lunch followed by seminar by Dr. Andijani (90 persons) 900

April 27, 2005Telephone charges for SunGard SCT Conference calls 785.55

May 25, 2005Exit & Re-entry visa (6 persons @ SR 200) 1,200

May 25, 2005PeopleSoft Demo Meeting (43 persons @ SR 120) 5,160

Total 9,516

Methodology

SelectERP System

SelectImplementer

Review Processes

Configure/CustomizeSystems

MigrateData

TrainEnd Users

Improve Business Processes

Goals& Objectives

As-Is Workshop

To-Be Workshop

System Orientation

Finalize Processes

Modeling & Analysis of AS-Is Processes

Objectives

• Provide a framework for understanding processes • Model as-is business process • Model business objects/entities • Effectively measure and analyze processes • Identify areas for process improvement • Map interfaces • Model and analyze as-is processes • Team building• Give the project a jumpstart

Emil Ansarov

Schedule: July 2 - 6, 2006

Drive intense competition among vendors Acquire licenses in stages Maximize use of current server hardware Engage technical resources from within the University Model, analyze and renew processes prior to implementation

Cost Strategy

ERP system software SR 2,700,000Hardware SR 200,000ERP consulting services SR 5,500,000Change management SR 1,300,000

Total SR 9,700,000

Organization

Executive Steering Committee

Project Management Team

Implementation Group 1

Implementation Group 2

Implementation Group n

Team Development

• Project Name: Raed• Focusing on Teams not Individual• Training Programs• Social Activities• Reward & Recognition• Performance Appraisal• Incentive Plan

Procurement Plan

• Procurement Requirements

• Request for Proposals

• Vendor Selection Criteria

• Administration of Contracts

• Contract Closure

Procurement Plan

# ItemScheduleEst. Cost 1ERP system software license (Initial)July 20051,000,000

2Annual maintenance (Initial)July 2005200,000

3Business process consulting servicesJuly 2005250,000

4Hardware for project officeOct. 2005150,0005ERP system implementation servicesNov. 20055,500,000

6Annual maintenance (Initial)July 2006200,000

7ERP system software license (additional)Sep. 20061,000,000

8Annual maintenanceSep. 2006200,000

9Project souvenirs and give-awaysAs needed20,000

Quality Plan

• Quality of the Product- the ERP System

• Quality of the Project

• Deliverables

• Quality Material

• Quality Event

• External Quality AuditsExternal Quality Audits

Quality of Deliverables #DeliverableType• PurposeQuality EventQuality Material1• Project

charterProject• Formal initiation of the project with

approval on scope, cost and duration, etc.

• Review by Executive Steering Committee

• Presentation to Executive Steering Committee

2• Project management plan

Project• To document all initiation, planning, controlling and closing processes of the project.

• Review by Project Management Team

• Workshop

3• Monthly progress reports

Project• To update the project sponsor on progress made in respect of tasks and milestones, issues and concerns, cots, schedule, and upcoming activities.

• Review by Chair, Project Management team, and the project sponsor

• Template for monthly progress report

4• RFP for ERP system

Project• To seek proposals from ERP vendors and compare their offerings.

• Review by Project management Team, Business process Owners and Director Purchasing

• International standard for preparing RFP for ERP systems

5• Contract for ERP system license

Project• To agree on scope of software modules and commercial terms and safeguard KFUPM against risks.

• Reviews by Bids & Tenders Committee and Project Management Team

• KFUPM regulations for procurement of software systems

6• Business goals and objectives

Product• To create clarity on how the ERP system will enable business processes of various departments in the University.

• Reviews by heads of departments and Project Management Team

• Template for preparation of goals & objectives

Risk Management#Description of RiskProb.ImpactMitigation Strategy1Users expectations are not met

0.6HighSet expectations right and communicate to all.

2Capability of users to understand concepts of business processes and the ERP system 0.8High

Conduct training workshops and initiate a coaching program

3Users departments resist to change and adoption of new system

0.7HighExecute change management plan

4Turnover of critical members of project team0.5High

Plan back-ups and contingency

5Turnover of vendor team0.8HighNegotiate effective contracts

6Data migration takes longer time than planned0.6Medium

Add more resources

7Quality of data is not as desired0.6Medium

Apply quality assurance standards

8Scope creeps significantly0.6MediumAdd more resources9Lack of support from heads of departments

0.7HighCreate awareness and seek help from the sponsor as needed

10Transfer of knowledge and skills0.7HighMaintain hybrid teams11End user resistance

0.8HighExecute change management plan

12Cost escalates more than 30% than planned0.6LowSeek approval for more funds

Communication Plan#StakeholderInformation RequirementsMethods of CommunicationFrequency

1Sponsor-Performance-Performance reportMonthly2Member, Executive

Steering Committee

-Progress-Meeting of Ex. Steering Committee

As needed

-Staff utilization & performance-Performance Appraisal-Minutes of BPO meetings

MonthlyAs scheduled

-Achievement of goals-ReportProject end3Project Management

Team

-Performance of BPOs-Minutes of BPO meetingsAs scheduled-Performance of Vendors-Vendor performance evaluationMilestones-Perceptions and image of project-Feedback from all stakeholdersContinuous

4Head of Department-Awareness on ERP system-Progress of work-Impact of the system

-MeetingsQuarterly

5Business Process Owner

-Role and responsibilities-Purpose and level of involvement-Schedule of activities-What-is-in-it-for-me

-Project documents-ERP Project Web site-Reward & recognition plan

Project span

6Key User / Applications Developer

-Role and responsibilities-Schedule of work-What-is-in-it-for-me

-Project documents-ERP Project Website-Reward and recognition plan

Implementation span

7End User-Role and responsibilities-Training schedule-What-is-in-it-for-me

-Project documents-Reward and recognition plan

As scheduled

8Consultants- Functional & technical scope- Project documentsAs scheduled9 The University

CommunityUsefulness and status of the project-Project web site

-Newsletters and the University press

Major milestone

10General PublicHow it will improve the quality and efficiency of the

-ERP project web site-Press

Start & end of the project

Earned Value Management

Time

SAR

Earned Value Management

Building EVM Matrix

Charting Planned Value

Earned Value Management

Plotting PV vs EV

Super Imposing Actual Cost

Earned Value Management

Integrating Scope, Schedule and Cost

Planned ValueEarned ValueActual Cost

Earned Value Management

Project Analysis and Forecasting

Project Performance Indicators

Professional Responsibility

• Ensuring that there is no conflict to interests while evaluating a product/service or a vendor.

• Avoid taking any undue favor from vendors involved.

• Maintain complete documentation and transparency for all the business transactions and decisions.

• Help the fellow team members in enhancing their ability to perform better

• Adhere to the great values of the Kingdom and the University

Professional Responsibility

• Be truthful all the time and in all situations

• Maintain professional integrity and respect confidentiality of sensitive information

• Understand that perceptions and behaviors are different between cultures

• Respond to ethical challenges by choosing to ‘do the

right thing.’

Critical Issues

• Availability of Business Process Owners and Key Users

• Availability of Space for the Project Office

• Role and Readiness of the ITC

Thank You