ERP Project Charter

Reference Code GL-XXX-XX

Department : ERP Project Management Revision No. 00
Page No. 1 of X
SBS PHILIPPINES Title : ERP Project Implementation Plan Date
CORPORATION

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

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1. Overview

Project Title ERP Business Implementation

Steering Committee Members Gerry D. Tan, President
Nes Y. Sytengco, VP – Sales & Marketing
Aylene Y. Sytengco, Chief Finance Officer
Yvonne Lih, Board oversight

Project Sponsor / Owner Aylene Y. Sytengco, Chief Finance Officer

Project Manager Emerson P. Paulino
Project Team Members 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.

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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

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 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

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3. Roles & Responsibilities

3.1 Project Sponsor /  Provides executive team approval and sponsorship for the project.
Owner  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  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

3.4 System Project  Analyze and document business processes

Analysts  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.

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 3.5 Subject Matter  Key provider of business requirements and information from their respective
Experts or SMEs 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 Action Plan

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  Ensure that management is
of project tasks are not provided made aware of the
requirements and are

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 leading to delay or failure to achieve
project deliverables.
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.
Interim change in human Med Resignation or termination of key
resource project team member may delay or
provide confusion in the achievement
of project deliverables.
Interim change in project High Change requests in the project scope
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 motivation High Project team, especially the SMEs, are
and commitment not motivated and/or committed in
effectively and efficiently
accomplishing the objectives of the
project leading to errors, changes or
failure 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.
Technical system failures High Significant or multiple technical system
issues are encountered after system
implementation which may lead to
failure of the project
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committed to provide and
prioritize these requirements as
indicated in the project charter.
 Ensure that project charter is
communicated and agreed with
the vendor so that needed
support are properly and timely
provided.
 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
 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.
 Vendor agreement should
include penalties or any
provision in the contract which
protects the company in case of
significant or total technical
system failure
 User acceptance testing should
be well designed and effectively
performed by the users prior to
accepting the system.
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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.

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 ANNEX A – PROJECT TIMELINE

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