Figures are attached. pg. 375 Projet Management 1st edition

Case Study: Information Systems SAP Project at NIBCO, Inc.

NIBCO had planned to go live with the ERP project on December 1, 1997, the Monday after the Thanksgiving holiday.7 The baseline project schedule is shown in Figure 8-12. The four phases (preparation, analysis, design, and implementation) were scheduled as shown with a post-live date of March 31, 1998, the actual end date of the SAP project. After the go-live date of December 1, 1997, the project team had to spend time on the project in post-production activities and quality assurance. The post-live activities also included:

- Check system performance on a daily basis;

- Validation of business processes and their configuration;

- Follow-up training for users;

- Signoffs;

- Add new application components; and

- Automating and improving business processes.

NIBCO wanted to schedule the project closure dates with anticipated possible problems. The project leadership team spent a lot of time planning the end date. It developed extended versions of the schedule in order to mitigate the risk of possible extension; the following are the various scenarios of schedule proposed by the project team:

1. A first plan where the organization has to perform at a very superior level to attain the maximum performance possible that coincided with the baseline schedule;

2. A second plan where the organization has to perform at a standard level to attain the standard performance; and

3. A third plan where the organization can perform at a lower level to attain the minimum performance.

All three plans are shown in Figures CI-8-3 through CI-8-5. The difference in schedule between the first plan and the second plan was four months. The difference in schedule between the second plan and the third plan was another three months. On the whole, the project plan was presented to the stakeholders with a project schedule that varied from 18 months to 24 months.

Case Questions

1. If you have a project team of 40 members consisting of 10 SAP experts, 10 SAP power users who are also experts in various NIBCO processes, 10 end-users who are familiar with some process knowledge, and 10 information systems staff, how would you allocate resources in Figures CI-8-1 through CI-8-5?

2. What are the criteria and drivers that would ensure project completion for each one of the plans proposed in Figures CI-8-1 through CI-8-5?

Fi CI-8-1 ERP Proje ct Timeline: Baseline 1997 un Jul 1996 1998 Major Phases Preparation Oct Nov Decl Jan Feb Mar Oct Nov Dec Jan Feb Mar Apr May JunJul Aug Sepl Oct nalysis Design Implementation Post-Live Date Figure CI-8-2 ERP Project: Critical Path 1996 1997 Jun Jul 1998 Apr May Jun Jul A Major Phases Trained Core Team Trained End-Users Tested ERP Solution Stabilized Infrastructure Qualified On-site Support Oct Nov Dec Jan Feb Mar A Level 2 Level 3 Basics Testers Unit Testing Stress Testing Test Support Available Figure Cl-8-3 ERP Project Timeline: Maximum Perfomance 1997 un Jul 1996 1998 Major Phases Preparation Oct Nov Decl Jan Feb MarA Oct Nov Dec Jan Feb MarApr May Jun Jul Aug Sep Oct nalysis Design Implementation Post-Live Date CI-8-4 ERP Project Timeline: Standard Performance 1996 1997 Jun Jul Au 1998 Major Phases Preparation Oct Nov Dec Jan Feb Mar A Oct Nov Decl Jan Feb Mar Apr May Jun Jul Aug Sep Oct nalysis Design Implementation Post-Live Date Figure CI-8-5 ERP Project Timeline: Minimum Perfomance 1996 1997 Jun Jul Au 1998 Major Phases Preparation Oct Nov Dec Jan Feb Mar A Oct Nov Dec Jan Feb Mar |Apr May JunJul Aug Sepl Oct nalysis Design Implementation Post-Live Date Fi CI-8-1 ERP Proje ct Timeline: Baseline 1997 un Jul 1996 1998 Major Phases Preparation Oct Nov Decl Jan Feb Mar Oct Nov Dec Jan Feb Mar Apr May JunJul Aug Sepl Oct nalysis Design Implementation Post-Live Date Figure CI-8-2 ERP Project: Critical Path 1996 1997 Jun Jul 1998 Apr May Jun Jul A Major Phases Trained Core Team Trained End-Users Tested ERP Solution Stabilized Infrastructure Qualified On-site Support Oct Nov Dec Jan Feb Mar A Level 2 Level 3 Basics Testers Unit Testing Stress Testing Test Support Available Figure Cl-8-3 ERP Project Timeline: Maximum Perfomance 1997 un Jul 1996 1998 Major Phases Preparation Oct Nov Decl Jan Feb MarA Oct Nov Dec Jan Feb MarApr May Jun Jul Aug Sep Oct nalysis Design Implementation Post-Live Date CI-8-4 ERP Project Timeline: Standard Performance 1996 1997 Jun Jul Au 1998 Major Phases Preparation Oct Nov Dec Jan Feb Mar A Oct Nov Decl Jan Feb Mar Apr May Jun Jul Aug Sep Oct nalysis Design Implementation Post-Live Date Figure CI-8-5 ERP Project Timeline: Minimum Perfomance 1996 1997 Jun Jul Au 1998 Major Phases Preparation Oct Nov Dec Jan Feb Mar A Oct Nov Dec Jan Feb Mar |Apr May JunJul Aug Sepl Oct nalysis Design Implementation Post-Live Date