Sim335 Task 2

Management of Projects
MANAGEMENT OF PROJECTS
SIM 335 Assignments
Task 2
Wroxham boat builders

Development ERP Systems project
Name: Nguyen Dinh Tu

Code student: 159148761/1
Due date: 13 July 2016
Module leader: Dr. Tuan Anh
Workshop Tutor: Mr. Khac Hieu
Word count: 2519 words
Nguyen Dinh Tu
Page 1
Table of Contents
EXECUTIVE SUMMARY ............................................................................................................ 4
I.
INTRODUCTION .................................................................................................................. 5
II.
PROJECT INITIATION ......................................................................................................... 6

1. Project Concept .................................................................................................................... 6
2. Project objective................................................................................................................... 6
III.
PROJECT PLANNING ....................................................................................................... 8
Project planning .......................................................................................................................... 8

Work Breakdown Structure(WBS) ......................................................................................... 8
Sequencing activities .............................................................................................................. 9
Gantt chart ............................................................................................................................... 9
1. Human Resources planning ............................................................................................... 11
2. Financial plan: .................................................................................................................... 13
Cost of Equipment ................................................................................................................ 13
Cost of Licence ..................................................................................................................... 13
Cost of Human Resource ...................................................................................................... 13
IV.
PROJECT EXECUTION ................................................................................................... 15
1. Management plan for the project ....................................................................................... 15

Project team: ......................................................................................................................... 15
Leadership style .................................................................................................................... 15
Motivation ............................................................................................................................. 16
PROJECT CONTROL .............................................................................................................. 16
Time management ................................................................................................................. 16
Cost management .................................................................................................................. 16
Change management ............................................................................................................. 17
Quality management ............................................................................................................. 17
Risk management .................................................................................................................. 17
V.
PROJECT CLOSURE .......................................................................................................... 18
VI.
CONCLUSION .................................................................................................................. 19
VII.
REFERENCES .................................................................................................................. 20
Nguyen Dinh Tu
Page 2
VIII.
APPENDIX .................................................................................................................... 22
Appendix 1: Sequencing Activities .......................................................................................... 22

Appendix 2: Responsibility Matrix ........................................................................................... 24
Appendix 3 Management style ................................................................................................. 27
Appendix 4 Maslows need hierarchy ...................................................................................... 27
Appendix 5 Expenses form...................................................................................................... 28
Appendix 6 Change management Procedure ............................................................................ 29
Appendix 7: Change form ......................................................................................................... 30
Appendix 8: Risk matric ........................................................................................................... 31
Appendix 9: Qualitative Risk.................................................................................................... 31
Appendix 10: Response Risk .................................................................................................... 32
Nguyen Dinh Tu
Page 3
EXECUTIVE SUMMARY
This report was commissioned to make plan build the ERPs system for Wroxham boat builders
in 8 weeks with the budget is 750,000. And the Project Manager (PM) shows the report by
using Project lifecycle.
In Initiation phase, the report helps us know many specialized definitions of ERPs system such
as what are ERPs system, gap analysis, configuration, key-user and end user. And then, PM use
SMART objective to set-up all objective for project.
The second phase is Planning, PM take list and arranges all activities and task to achieve all
objective of project by using Work Breakdown Structure, sequencing activities, from that the
Gantt chart is drawn to manage and control project by PM. Next, the report also show the team
member in project including Information Technology Engineer, Accountant, Human Resource
Manager, Officers, ERP Supervisor, Key-users, End-users and the responsibility matrix. After
that, PM allocate investment into 3 part that are equipment, licence and human resource.
The Execution phase, Project manager and team use suitable leadership as well as motivation
methods to control project and they also control time, cost, quality, risk and change of project to
make sure project finish on time with estimate cost.
Final phase is closure, in this part the PM review whole project to evaluate performance of
project and complete all document to hand-over ERPs project to Wroxham boat builders.
Nguyen Dinh Tu
Page 4
I.
INTRODUCTION
Worxham boat builders is a boat builders designs and builds motor launches company. Recently,
because of the policies of government, the trade barriers are removed and other Globalized
international trade agreements. To increase the competitive advantages with the global
competitor, Worxham boat builders want to build the Enterprise Resource Planning (ERP), to
help their business control and manage the resource well. So, as a Project Manager (PM), the
author will prepare the plan for Worxham boat builders to installation and start up of the new
ERP. In this report, the author will divide ERP s project into 4 phases: Project Initiation, Project
Planning, Project Execution and Project Closure.
Nguyen Dinh Tu
Page 5
II.
PROJECT INITIATION
1. Project Concept
ERP system: is software modules that help business manage and monitor supply chain,
procurement, inventory, finance, product lifecycle, projects, human resources and other missioncritical components through a series of interconnected executive dashboards. However,
deployment ERP, company must involve considerable business process reengineering, employee
retraining and back-end information technology (IT) (Margaret Rouse, 2014).
Gap analysis: it is the most important activity of ERP project, because this is the process through
existing operating model and model-driven disaster in the future. The good thing of Gap analysis
is that helps company estimate functional deficiencies in ERP.
Configuration: this is main part of ERP, in this activity, we synchronize current business
activities of the company with the ERP package is better than they customization the source code
to match the company.
Key-user: people who are taught by supplier and then they train the end-user as well as
participate in monitor ERP system.
End-user: people who directly use ERP to all operation activities of Worxham
2. Project objective
Like any objective of Worxham, the objective of ERPs project build follow SMART (Jim Riley,
n.d)
Nguyen Dinh Tu
Page 6
Figure 1: SMART Objective (Nancy O'Sullivan, 2011)

Because Worxham already set up the cost and time for project, so the objective of ERPs project
build from the top-down.
The objectives of this project can be listed as:
-
Finish the project with the total cost: 750,000
Finish the project with the time: 8 week
ERP system run smootthy such as do not have any error when ERP system run, the report
from ERP correctly.
When PM installation and start up of the new ERP system, all operation of Worxham
must not delay any of the work ongoing to complete existing orders for customers.
Nguyen Dinh Tu
Page 7
III.
PROJECT PLANNING
Project planning
Work Breakdown Structure(WBS)
WBS is a tool that helps PM identify and allocate all activities which must complete to finish
project. Basing on WBS, PM can estimate time, cost and human resource for each activity. In
ERPs project, there are 6 activities: Pre-Evaluation Screening, PACKAGE EVALUATION,
PROJECT PLANNING, PROJECT IMPLEMENTATION, Going-live ERP system and
Inspection and there are many tasks which have to complete to achieve the main activities. As
we can follow:
Nguyen Dinh Tu
Page 8
Sequencing activities
In project, PM must determine all activities which are divided logical and PM arrange all activities in project. Therefore, sequencing
activities help PM control time and cost of each activity to make sure project will finish on time with right estimate cost. In ERPs
project, we determine and arrange the process of 6 main activities (See appendix 1).
Gantt chart
The ERPs project will start on 1 August 2016 and work 5 days in a week, off day include Saturday, Sunday and summer bank holiday
on 29 August 2016 (GOV.UK, 2016). From Gantt chart, the earliest date that project finish is Monday 26th September 2016. Basing on
Gantt chat, PM identify and control time for each activity in project because Gantt chart will show duration of each activity and finish
date of whole project. Moreover, in project there are many unexpected problem, so PM will change to make sure the project dose not
delay. And PM uses the Microsoft Project to build the best Gantt chart for project. The Gantt chart of ERPs project as we can see:
Nguyen Dinh Tu
Page 9
Nguyen Dinh Tu
Page 10
1. Human Resources planning

For Human resource planning, PM need to determine and divide activity for each team member through WBS and Gantt chart, so PM
allocate the work which are suitable for team member and avoid lacking segregation of duties. In addition, PM give clearly and detail
responsibility to each team member by using Responsibility matrix (See appendix 2). For ERPs project needs to have team member
including: 1 Information Technology Engineer, 1 Accountant, 1 Human Resource Manager, 3 Officers, 1 ERP Supervisor, 10 Keyusers, 100 End-users, 1 Marketing Staff and PM also arrange team member to each task in project as we can follow:
Nguyen Dinh Tu
Page 11
Nguyen Dinh Tu
Page 12
2. Financial plan:
There are 3 types of cost which PM needs to consider when they make budget plan for ERPs
project
Cost of Equipment
To build ERP for Worxham, they purchase equipment such as:
-
50 x Laptop: 50*198= 9,900 (amazon, n.d)
10 x Hard disk drive= 129.99*5= 649.95 ( argos, n.d)
2 x Host computer: 332,42 * 2=708.24 (aliexpress, n.d)
Total Equipment cost= 9,900 + 649.95 +708.24=11,258.19

Cost of Licence
Price licence for ERP: 302,329.45 (Forrest Burnson, 2016)
Cost of Human Resource
For this cost, PM bases on the activities and duration day of each member in project. PM also use
Microsoft Project and information of Gantt chart to calculate the cost of each position in project.
As we can follow:
Nguyen Dinh Tu
Page 13
Figure 4: Human resources cost (Totaljobs Group Ltd , 2016)

After making budget plan for all cost of ERPs project, PM will draw the S-curve diagram to
control and manage cost well:
Moreover, PM uses 19% total investment to make the Contingency funding for ERPs. The
contingency funding=19%*750,000= 142,500
Thus, total budget of ERP equal 289,090+302,329.45 + 11,258.19 +142,500= 750,000
Nguyen Dinh Tu
Page 14
IV.
PROJECT EXECUTION
1. Management plan for the project

Project team:
Human resource is an important part in project because it helps PM determine and allocate the
best person for each activities of project. Therefore, to achieve all objective of project with the
best result, PM needs to set up the team with clearly and detail mission, PM also control and
monitor the team directly to avoid problem and conflict in team. In ERPs project, because team
member come from many department in company, so PM needs to set-up team base on multidisciplinary team. However, to make team work with high performance, PM also considers some
factor in Belbins team role to select team member for project. (University of Sunderland, 2014)
Leadership style
The manager including the PM and team leader must have influence to all team member to lead
the project successfully. So, if PM wants to control and manage their project well, PM needs to
choose the suitable leadership style. According to Business Essentials (2010), there are 4 types of
leadership styles including Tell, Sell, Consults and Join (BPP Learning Media, 2010) (See
appendix 3), and the suitable leadership style for this project is Consults style because PM can
share all problem with team members and PM receive many ideas from team member to improve
and make good final decision. Besides, PM must have many skills to control and manage project
well such as (University of Sunderland, 2014):
-
People skills: PM must expert at communication skill to solve the conflict and give and
collect the orders to team member. Moreover, PM also has skill to build good team and
they also communicate with many stakeholder such as owner, supplier in project to meet
all requirements in project.
Project management skill: PM must have knowledge about estimate cost and budget plan
process to make the good plan for project. From that, PM is easy to control and manage
project to achieve objective
Nguyen Dinh Tu
Page 15
Knowledge of the organisation: PM needs to understand the organisation inside out, they
are easy to set-up suitable objective and build the good team for project
Technical skill: PM has technical area of the project because it makes PM know what
they need to do and not do. From that, PM is easy to make plan and avoid some mistake
as well as estimate risk of the project.
Motivation
Motivation is a tool to help PM improve the performance of team member, so PM must know
about motivation theory and apply them into project. Therefore, PM should use Maslows need
hierarchy motivation theory (See appendix 4) because this theory help PM easily identify the
level of team members needs, from that PM can give the right motivation ways to motivate
them.
PROJECT CONTROL
Time management
As the author mention, Gantt chart is a good method to control time of ERPs project, because
Gantt of Microsoft Project not only shows the position and duration of each activity, but it also
shows the progress of all activity. Moreover, PM make sure the project does not delay by
ensuring all activities in critical path that does not delay. When any activity in project delay
especial activities in critical path, PM give solution as soon as we can to make sure project finish
on time.
Cost management
Cost management is one of the most important objectives of project, so PM needs to control cost
well. In this project, S-curve method is a good tool to help PM control cost, so PM try to manage
and control the actual cost curve coincide with S-curve. In the ERPs project, the volatility of the
budget focus on the human resources cost, because company already sign contract with supplier
to supply equipment, ERPs module and licence, so both of them have low rate to change. To
manage cost, PM uses Variance analysis to find the exactly problem and make the best solution
for problem. Moreover, PM uses the general form in expense of each activity in project (See
Nguyen Dinh Tu
Page 16
appendix 5), and then they sent to project team then project team fill down all expense that occur
in project.
Change management
In the project, because of unexpected factor such as environment, new requirement of owner in
this case is Worxham impact to project. PM changes some objective or activities to meet all
requirements without affecting to project. Thus, PM identify the problems from the early stage
and give the best solution to continue the project and meet the requirement of owner. To do that,
PM always discuss to owner about the new change to ensure project finish on time with the
estimate budget, so PM can set up a procedure of change management (See appendix 6).
Moreover, PM will send the change request to all stakeholders to identify all problem or new
ideas of project (See appendix 7).
Quality management
Quality is a part that PM needs to control careful, because this is also factor to identify project
success or not. From that, PM set-up quality management system or quality gateway to test and
examine the project, to make sure project meet the required condition and objectives to fulfil the
project objective. PM sets-up the quality standard for project base on the types of project and the
requirement of owner. From that, PM uses quality standard to manage the quality of whole
project.
Risk management
The risk is a factor which the project cannot avoid and risk not only gives the negative influence
but it also give the possible influence. Therefore, PM set-up plans to identify all available risk
and manage it by giving suitable action to get benefit from positive risk and prevent negative risk
from project. Moreover, PM does not have enough resource to solve all the negative risk because
they determine risk which have large influence and usually occur in project, to make suitable
action, so PM can use the risk matrix to allocate the risk (See appendix 8). Besides, PM also
analyse the risk to be easy to manage and control risk. There are 4 steps to manage the risk:
Identify risk: Determine all available risk include positive and negative that occur in
project. Try to list detail all the risks as much as possible.
Nguyen Dinh Tu
Page 17
Qualify risk: PM use the Risk matrix to calculate the rate of all the risk in step 1. (See
appendix 9)
Develop response: after qualify all risk, PM will focus on the risk that have high rate to
make plan to solve with the risk. PM can use 4 responses to solve risk such as accept risk, reduce
risk, transfer risk and avoid risk. (See appendix 10)
Implement: PM base on the plan to make the suitable action to solve each risk to
prevent the influence of risk to project.
V.
PROJECT CLOSURE
In the end of project, PM prepare final report and present it to the Worxham. In this report, PM
has to show detail result of all projects objective and performance of each activity in project to
evaluate the level of success of the project. From that, the owner can know the ERPs project
success or not by looking at the result such as how many complete objective and the project meet
the requirement and the standard of Worxham. Besides, in report, PM present all necessary
information to Worxham such project plan, project concept, project control, risk and solution of
each problem as well as change in project. In addition, PM needs to complete all document with
the stakeholder such as government and pay the account payable to supplier.
Nguyen Dinh Tu
Page 18
VI.
CONCLUSION
In the report, PM use 4 phase of project life cycle to make plan for ERPs project of
Worxham boat builders. By implement the project follow the project life cycle, the project
can achieve all requirement of company as well as get the high result. Besides, to manage the
project better, PM also use Microsoft Project to arrange the activities for team member and
control cost and time of project to make sure project finish on time with estimate budget.
Nguyen Dinh Tu
Page 19
VII. REFERENCES
argos. (n.d). Seagate Expansion 500GB USB 3.0 Portable Hard Drive - Black. Retrieved June
20, 2016, from argos: http://www.argos.co.uk/static/Product/partNumber/1339361.htm
aliexpress. (n.d). Mini computer host high definition htpc small computer dual-core hd htpc
computer.
Retrieved
July
20,
2016,
from
aliexpress:
http://www.aliexpress.com/item/Mini-computer-host-high-definition-htpc-smallcomputer-intel-dual-core-hd-htpccomputer/1359337587.html?spm=2114.40010508.4.7.egX3Uy
amazon. (n.d). Lenovo Ideapad 100-15IBY 15.6 inch Notebook (Intel Celeron N2840, 4 GB
RAM, 500 GB HDD, DVDRW, WLAN, Camera, Integrated Graphics, Windows 10 Home)
- Black. Retrieved June 25, 2016, from .amazon: https://www.amazon.co.uk/Lenovo-10015IBY-Notebook-Integrated-Graphics/dp/B015Q3BDSI
BPP Learning Media. (2010). Management Styles. In B. L. Media, Business Essentials:
Organisation and Behaviour (2nd ed., p. 170). London: BPP Group.
BPP Learning Media. (2010). Motivation theory. In B. Group, Business essentials (p. 197).
London: BPP Group.
Emily Bonnie. (2014, August 12). Project Risk Management Tools (Ultimate Guide to Project
Risk, Part 2). Retrieved July 3, 2016, from wrike: https://www.wrike.com/blog/ultimateguide-to-project-risk-part-2-risk-management/
Forrest Burnson. (2016). How Much Does ERP Implementation Cost? Retrieved July 7, 2016,
from
softwareadvice:
http://www.softwareadvice.com/resources/erp-implementation-
cost-calculator/
GOV.UK. (2016). UK bank holidays. Retrieved June 27, 2016, from GOV.UK:
https://www.gov.uk/bank-holidays
Nguyen Dinh Tu
Page 20
Jim
Riley.
(n.d).
Marketing Objectives.
Retrieved June 20, 2016, from tutor2u:
http://www.tutor2u.net/business/reference/marketing-objectives
Margaret Rouse. (2014). ERP (enterprise resource planning). Retrieved June 28, 2016, from
searchsap.techtarget: http://searchsap.techtarget.com/definition/ERP
Nancy O'Sullivan. (2011). Making Plan and Seting SMART Goals. Retrieved June 20, 2016,
from
cod.edu:
http://www.cod.edu/people/faculty/osulliva/phys1554/WeightMatters/plan.html
PayScale, Inc. (2016). Software Engineer Salary. Retrieved June 20, 2016, from PayScale:
http://www.payscale.com/research/UK/Job=Software_Engineer/Salary#pageTop
prospects.
(2016).
IT
consultant.
Retrieved
June
20,
2016,
from
prospects:
20,
2016,
from
Prospects:
https://www.prospects.ac.uk/job-profiles/it-consultant
Prospects.
(2016).
Job
profiles.
Retrieved
June
https://www.prospects.ac.uk/job-profiles/human-resources-officer
Taylor
J.
(n.d).
Status
Reporting.
Retrieved
july
3,
2016,
from
flylib:
http://flylib.com/books/en/3.290.1.82/1/
Totaljobs Group Ltd . (2016). Salary results for Project Manager. Retrieved June 20, 2016, from
cwjobs.co: http://www.cwjobs.co.uk/salary-checker/average-project-manager-salary
University of Sunderland. (2014). Forming teams. In W. Ltd, Managing Projects (pp. 82-84).
Sunderland: University of Sunderland.
University of Sunderland. (2014). The concept of a project. In U. o. Sunderland, Managing
Project (p. 11). Sunderland.
Nguyen Dinh Tu
Page 21
VIII. APPENDIX
Appendix 1: Sequencing Activities
Task mode
Task Name
Duration Predecessors
PRE-EVALUATION SCREENING
1
Analyzing
the
ERPs
supplier and ERP system

2
Set-up the standard for

ERP
3 days
2 days
PACKAGE EVALUATION
3
Notification and receipt

of bidding
7 days
Evaluation the supplier
1 day
Choosing the supplier
1 day
PROJECT PLANNING
6
Set-up Time
1 day
Budgeting all cost
2 days
Allocate
3 days
the
human
resource
PROJECT IMPLEMENTATION
9
Starting Project
1 day
6,7,8
10
Key user training
4 days
11
Gap Analysis
2 days
12
CONFIGURATION
7 days
13
TESTING
6 days
10,11,12
Going-live ERP system

14
End user training
5 days
10
15
Going live ERP system
7 days
13,14
Nguyen Dinh Tu
Page 22
Inspection
16
Nguyen Dinh Tu
Inspection
2 days
15
Page 23
Officer
End-users
Key-users
Marketing Staff
Resource
ERP Supervisor
I=Informed
Manager
C = Consulted
Human
A = Accountable
Accountant
Information Technology
R= Responsible
Engineer
Project Manager
Appendix 2: Responsibility Matrix
PRE-EVALUATION SCREENING
R
Analyzing the ERPs supplier and ERP system

A
Set-up the standard for ERP
PACKAGE EVALUATION
A
Notification and receipt of bidding
24
A
Evaluation the supplier

A
Choosing the supplier
PROJECT PLANNING
Set-up Time
Budgeting all cost

A
Allocate the human resource
PROJECT IMPLEMENTATION
A
Starting Project
25
A
Key user training
Gap Analysis
CONFIGURATION
TESTING
Going-live ERP system

End user training
C
Going live ERP system

Inspection
Inspection
26
Appendix 3 Management style
Figure 1: Manager Style continuum (BPP Learning Media, 2010)
Appendix 4 Maslows need hierarchy
Figure 2: Maslows need hierarchy theory (BPP Learning Media, 2010)
27
Appendix 5 Expenses form
28
Appendix 6 Change management Procedure
Figure 6: Changes procedure (Taylor J., n.d)
29
Appendix 7: Change form
30
Appendix 8: Risk matric
Figure 7: Risk Matrix (Emily Bonnie, 2014)
Appendix 9: Qualitative Risk

Types
Influence
Frequency Severity Rate
Fire
Staff injuries from smoke inhalation
10
Electric
Staff may suffer serious and possibly 1
12
20
The project will stop even not 1
15
faulty electric
Human
The activity will delay, so the project 4
illness
does not finish on time
Equipment
Increase the cost to repair or buy new 4
failure
and time of project increase.
Natural
The time and cost of project increase
disaster
Legal
completing the objective

ERP system The objective of project does not 3
error
achieve and project fail.
31
Appendix 10: Response Risk

Rate
Types
Action Plan
Responsibility
10
Fire
Do not allow team member to PM, Team leader,

smoke or use fire in office.
supervisor,
another
team member
12
Human
Check the health of all team Team leader, Human
illness
member every week and make a resource manager.

backup plan for human resource
20
Equipment
Having the insurance for all PM,
Failure
equipment
and
the
IT,
supplier,
good team member.
engineer in project.
15
ERP
Managing and monitoring all PM,
IT,
supplier,
System
activities in project to make team leader and tea
error
sure no wrong activity and member.

make directly solution when
project has problem.
32

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Management of Projects

Wroxham boat builders

Name: Nguyen Dinh Tu

PROJECT INITIATION ......................................................................................................... 6

PROJECT PLANNING ....................................................................................................... 8

Project planning .......................................................................................................................... 8

PROJECT EXECUTION ................................................................................................... 15

1. Management plan for the project ....................................................................................... 15

PROJECT CLOSURE .......................................................................................................... 18

Appendix 1: Sequencing Activities .......................................................................................... 22

Figure 1: SMART Objective (Nancy O'Sullivan, 2011)

Finish the project with the total cost: 750,000

Finish the project with the time: 8 week

1. Human Resources planning

50 x Laptop: 50*198= 9,900 (amazon, n.d)

10 x Hard disk drive= 129.99*5= 649.95 ( argos, n.d)

2 x Host computer: 332,42 * 2=708.24 (aliexpress, n.d)

Total Equipment cost= 9,900 + 649.95 +708.24=11,258.19

Figure 4: Human resources cost (Totaljobs Group Ltd , 2016)

1. Management plan for the project

supplier and ERP system

Set-up the standard for

Notification and receipt

Evaluation the supplier

Choosing the supplier

Budgeting all cost

Key user training

Going-live ERP system

End user training

Going live ERP system

Appendix 2: Responsibility Matrix

Analyzing the ERPs supplier and ERP system

Set-up the standard for ERP

Notification and receipt of bidding

Evaluation the supplier

Choosing the supplier

Budgeting all cost

Allocate the human resource

Key user training

Going-live ERP system

Going live ERP system

Appendix 3 Management style

Figure 1: Manager Style continuum (BPP Learning Media, 2010)

Appendix 4 Maslows need hierarchy

Figure 2: Maslows need hierarchy theory (BPP Learning Media, 2010)

Appendix 5 Expenses form

Appendix 6 Change management Procedure

Figure 6: Changes procedure (Taylor J., n.d)

Appendix 7: Change form

Appendix 8: Risk matric

Figure 7: Risk Matrix (Emily Bonnie, 2014)

Appendix 9: Qualitative Risk

Frequency Severity Rate

Staff injuries from smoke inhalation

Staff may suffer serious and possibly 1

The project will stop even not 1

The activity will delay, so the project 4

does not finish on time

Increase the cost to repair or buy new 4

and time of project increase.

The time and cost of project increase

completing the objective

achieve and project fail.

Appendix 10: Response Risk