Diploma of Accounting FNS50217

Establish and maintain accounting information systems-FNSACC505

Develop and Present an ERP Project Plan

Student

Professor:
Part A:

 Executive summary
The following plan has the goal to set up all the steps of the SAP Business One
ERP implementation in Cockatoo Ridge Wines Company as well as understand
how it will meet the company’s expectations.

It is important for all directives analyse and review the scope to first have a macro
view of the project and also a better understanding of how the implementation will
look like.

The Project plan will encompass project details, background to the problem,
goals and objectives, key strategies and a comprehensive implementation
schedule.

 Background
Cockatoo Ridge Wines is a business on the move. With more than 20 years of
business and following strong sales to the United States in 2002 and 2003, the
company recently started exporting wine to Britain. It will also begin sales to
Europe later this year. With plans to increase its exports from 25% of distributions
to over 50% within the next 12 months and occupy a larger proportion of the
domestic market, Cockatoo Ridge needed a faster, more streamlined and more
reliable financial management tool which will help the company to reach its goals.

 Project goals and objectives

This project aims to meet the expectations of Cockatoo Ridge Wine Company in
what concern its needs for a specific software that could provide financial, sales
and distribution package, allow the company to report on any area within its
operations as well as could be tailored to the company’s needs.

An important request also is that the software has a simple and friendly interface
that make ease to all employees to use in the same time that reduce their time of
training.
  Key stakeholders and consultation process

Stakeholders are generally divided into two groups: internal and external
stakeholders. As the terms suggest, internal stakeholders come from within the
corporation (all the areas and key employees that the project concerns) and
external stakeholders are those outside the corporation but with a vested interest
in it (suppliers, customers and also shareholders).

Among the relevant areas it could be found HR for training purposes, Audit and
Legal for compliance purposes as well as all the areas that will receive the
packages, such as Financial, Sales and Distribution areas.

Core business functions that should be consulted:

 Assets management
 Finance & Accounting
 Holding company and multi-company structured environment
  Human Resource
 Payroll
 Procurement Processes
 Sales
 Vendor Management
 Warehousing & Inventory Management

 The solution
SAP Business One designed for all your small and midsize company’s needs

The SAP Business One® application offers an affordable way to manage your
entire business – from accounting and financials, purchasing, inventory, sales
and customer relationships, and project management, to operations and human
resources. SAP Business One helps you to streamline processes, gain a greater
insight into your business, so that you can act fast and make decisions based on
real time information, to help you drive profitable growth.

SAP Business One is a single, integrated solution that provides clear visibility into
your entire business and complete control over every aspect of your operations. It
captures all critical business information for immediate access and use company-
wide. Unlike accounting packages and spreadsheets, it delivers what you need to
manage your key business areas.Because every business is different, SAP
Business One is designed with flexibility in mind. Whether it’s deployed on
premise or in the cloud, you can access SAP Business One at anytime,
anywhere via any mobile device. And because SAP Business One runs on both
the SAP HANA® and Microsoft SQL server platforms, you can choose the one
that suits your business best.What’s more, your employees can start using it from
day one. As your business grows, you can customize and extend SAP Business
One to meet your evolving needs.Do you want to grow your business overseas?
SAP Business One supports 28 languages and 44 country-specific versions,
delivered and supported locally by our extensive network of over 800 SAP
Business One partners.
  Compliance Features

Forms of compliance management our platforms have been used to

address when using SAP Business One include:

 Industry compliance (statutory or voluntary): Automation of tasks associated

with the attainment or retention of ISO statuses
 Company compliance: Automation of compliance procedures that are unique
to the company, management procedures or product/service processes
 Regulatory compliance: Automation of business processes surrounding SOX
compliance and other regional legal requirements

Commercial advantages organizations can attain by automating

compliance management procedures include:

 Removal of costly, repetitive tasks for employee workloads

 24/7 enforcement of business rules and procedures
 Reduction in company exposure to risk
 Improvement in company performance
 Key implementation strategies
1. Identify the problems / Set the objective(s)

ERP provides a vast solution to many issues faced by companies. However, it is very
important to identify the real objective for implementing ERP. The question is less about
“should we implement” and but more about “what should ERP be implemented for”. The
Key Performance Indicators (KPI) have to be analyzed in order to understand the
necessity of the software intervention. Key objectives are necessary; not only with
respect to the present but also because future projections are included in the requisition
list, which allows a business to factor in the scalability and accommodating changes in
the future of the business/industry. So again, it is essential to identify the problem or the
exact necessity motivating the ERP.

2. Define scope/team

The objectives can be many, ranging from bringing in the transparency of operations to
having financial control, supporting organic expansion, supporting acquisition or
supporting common processes. As per Panorama study, 61.1% of ERP implementations
take longer than expected and 74.1% of ERP projects exceed budget. The primary
cause of the delays and over budgeting is the unclear definition of the ERP requirement.
The ERP features must be evaluated in accordance with the barometer of
synchronization within the needs of company. Depending upon the budget and core
necessity, the ERP demand list should be generated which achieves a smooth and
hurdle less ERP implementation.

3. Brainstorm/evaluate the options

As per Capterra, approximately 33% of ERP buyers did not demo a product before
buying it and approximately 22% of companies surveyed reported they bought the first
system they looked at. These are dangerous statistics, not only for those who implement
the ERP but also for the vendors, as optimal utilization of ERP software remains a
dream. For successful utilization of ERP software, the management of the company has
to invest its time in evaluating the options available.

In the 2015 ERP report, it was found that 93% of the companies customized their ERP
software to some degree according to their intended use. The customization could
sometimes lead to an increase in the failure of the ERP system as it may increase the
complexities. The organization needs to understand the difference between ERP
package configuration and customization clearly because many times the requirement is
fulfilled by the purchased of the ERP system and no customization is needed. Evaluating
ERP options is a very important task, as options are to be evaluated based on current
needs, as well as against future requirements. New additions, like cloud ERP solution or
SaaS ERP, are the current preference of customers, as these options –are available in
different scope and flexibilities to accommodate future requirements. Thus, a company
needs to brainstorm with the ERP vendors/ consultants to bring in the best system in the
organization.

4. Data migration

Once an ERP solution is identified, the next biggest and most important step is of data
migration, which provides for a smooth transition and future utilization of the software.
Implementing an ERP can be a huge change, especially if the company is trying the
software for the first time. Identifying which data are necessary for successful transition
to the common software problem is very important. Most software allows the input of
data but entire data shifting may burden the software. Therefore, only the necessary and
most important data should be transferred to the software, and great care should be
taken to ensure that the data is retrieved from the software, whenever required.

5. Check infrastructure

Preparing the company for the ERP implementation is at the core of all of the steps of
ERP implementation and plays a vital role in the process, be it a success or failure. After
detailed brainstorming between the vendor and its management, the requisite
infrastructure is installed. According to Mint Jutras, 23% are unable to grow their
business as quickly as they would like and believe this to be because they lack the tools
they need in their current ERP system. The infrastructure on which the software will run,
has to have the scope of scalability along with options to update as per the demand.
Such requirement should not be limited.

6. Customization

ERP software is designed after a significant amount of research and according to the
needs of the specific industry. In some cases, there may be no need for the
customization. Implementing an ERP solution is a big investment decision by the
company involving a large pool of resources, therefore, management has to continuously
maintain tabs on the ERP software and maintenance schedule. During the pilot testing,
management has to evaluate the realization of the value of the system against the
desired value of the company. One should have a check on the system adopted by the
company since its inception – so long as the company is following best practices OR it
un-follows some unconventional/old methods regarding the ERP being fit-as-it-is-
bought? These questions should be answered prior to customization as there is a
chance that even before understanding the software, the system and making positive
changes, and the need may never arise to customize the software.
7. Change management

Employees of any company are accustomed to the same kind of activities performed
through a defined process in their daily routine and any changes may not be easily-
accepted, especially when it is something as influential as ERP and that is when Change
Management becomes crucial. ERP is not a fixed asset like a computer which is
purchased and set up in the company office; it's actually a system that would change the
environment and the working-style for the better, which affects not only one or two
operations but all. Management should involve their employees and prepare them
mentally to answer the critical questions like - Why is it important for the organization to
include ERP? OR How would an ERP boost productivity? OR How would an ERP
automate back-office functions and save time? A series of brainstorming sessions,
updates on related developments and resolving queries would build employees'
confidence and prepare them to welcome the good change with open arms. Change is
for one and all and communicating this positively to the employees will make things
easier as an ERP can only provide optimal results when every employee accepts the
change. Therefore, care must be taken to ensure a smooth, yet successful transition by
building employee consensus and confidence.

8. Technology & Knowledge Transfer

21% of ERP implementations fail to deliver significant business benefits. The reasons
vary, starting with improper customization for non-optimal software utilization resulting
from ill-trained personnel operating/feeding data to the solution. Training is the most
important aspect of the ERP software implementation process. It ensures there are
fewer issues and more success, especially when ERP is implemented for the first time in
the company or when the platform is changed from one ERP solution to another. The
company’s management must ensure proper vendor detailing and technological know-
how to the company’s in-house IT support staff. Proper use of technology and an
effective knowledge transfer, along with proper training should be considered since they
are the parties responsible for the entire project's success. Considering the consultant to
be a part of the project would not only assist in a smooth and unhurdled operation, but
would also reduce the time gap between the untimely glitch and the solution.

9. Project management and Testing

After evaluation of all available options, selecting the best-suited and then training the
employees, the real aspect of implementation is the project implementation itself.
According to a Panorama Research study, 40% of ERP implementations cause major
operational disruptions after go-live; therefore, proper implementation is imperative. The
rigidity may backfire since there are a lot of time gaps between the processes of
selection, evaluation and implementation. . There is also a lateral improvisation which
should be incorporated. Simultaneously, the core objective should not be diluted or
 changed. Testing is an important phase of the implementation process, which takes
care of system and user acceptance testing.

10. Final touch (go live) & on-going support

Once the ERP solution is properly-checked and implemented, it is the time to go live. It is
advisable to pursue one additional functionality test, just as a safety precaution. An ERP
solution is not a one-time event, but rather a continuous process. It is something that the
company has to continuously keep tabs on to avoid any aberrations or systemic glitches
which could affect the ERP software functionality.

 Implementation schedule
This Program a high-level preliminary estimate of the ERP Program Timeline
prior to the ERP solution trials – more accurate one can be drafted only post-trials

Cockatoo Ridge Wines    

Name Begin date End Date
Program initiation 01/02/2019 01/02/2019
ERP Solutions Evaluation 02/02/2019 08/02/2019
ERP Preselection for Trials 09/02/2019 20/02/2019
ERP Solution Trials 21/02/2019 01/03/2019
Workflows Finalization 02/03/2019 10/03/2019
Program Planning 11/03/2019 25/03/2019
Program & Project management 26/03/2019 05/04/2019 
Process design & Tests 06/04/2019 20/04/2019
Tech Solution management  21/04/2019 30/04/2019
Program execution 01/05/2019 08/05/2019
Final Preparation & Testing 09/05/2019 15/05/2019
Support & Training 16/05/2019 15/06/2019
Closing off 16/06/2019 16/06/2019
     

 Data migration process

The purpose of Data Migration involves the analysis of external data sources,
mapping of these data sources, design of data load scripts, and final execution of
the data loads into the production environment to enable the solution deployment.
It also includes the analysis of requirements and creation of the Master Data
Management process. It is very important to define the master data elements and
gain consensus on their meaning and usage with the customer. The Data Entity
and related Taxonomy includes the master data elements, their definitions, and
how they will be used in the new solution.
When you implement SAP B1 and wants to migrate transactions data also for
batter analysis or its statutory requirement to have data of specified time period in
your accounting software, the tool used for migration is Data Transfer Workbench
(DTW) offered by SAP free of cost within installation package and same licenses
and users can be used as used to use SAP B1.

Templates with sample data applicable with DTW can be found on following path
on same machine where DTW is installed C:\Program Files (x86)\sap\Data
Transfer Workbench\Templates

The Methodology used during migration is EFI (Export, Filtration, Import) and
your legacy system’s database needs to be in SQL Server.

1- Export (E): First you export Open Purchase Orders from your legacy system
to excel while exporting develop your query according to Data Transfer Work
Bench (DTW) templates i.e 1 query for header and one query for rows with
reference of header record number and line number for each row.

Fields which should be mandatory in your header templates are Document

Number, Vendor Code, Posting Date, Due Date, Document Date, Document
Discount, Document Total and Vendor reference Number or any remarks any
other fields according to your business process.

Further regarding required fields you can post some transactions in your test
company with you consultant to know which fields you need to import

Fields mandatory for rows are Document Number, Line number, Item Code, Item
Description, ,Quantity (Open Only), Warehouse, Unit of Measure, Unit Price,
Discount , Line total and Line remarks if any or any other fields according to your
business process

2- Filtration (F): Now you have your data in excel you need to do filtration and
some updates according to SAP B1 like if there is change in item codes, vendor
codes or UOM Codes, Whs Code,Update codes and descriptions according to
new system, adjust charterer size of remarks fields as may be SAP B1 have short
field lengths as compare to legacy system in this case you need to revise
remarks or add UDF in SAP B1 according to character size of legacy system.

In Header File add additional column of Old document number From legacy
system in your template and duplicate document number as its in legacy system.

Deploy a UDF for Old Ref number so in future user can easily track documents
between legacy and new system.

3- Import (I): Now you have your data ready to import you just need to link
column with relevant fields while importing i.e CardCode with vendor code and
Cardname with vendor Name and so on
 Cost-benefit analysis
 Reporting delivery time cut by 95%;
 Possibility to customize the system for the company needs;
 Simple and friendly interface;
 A less manual system that gather all the areas in a interlinked process
while it permits to create individual reports for each area within the
company;
 Eliminates the need for replicating data necessary to produce reports.

 Staff training requirements

SAP company provide free online training for SAP Business One as well as online
support.

When SAP ERPs are implemented, the company branch hired to follow the
process provides training in loco that varies according to the package(s)
purchased.

 Support documentation requirements

https://www.sap.com/products/business-one/support.html

 IT support requirements
http://softcoresolutions.com/downloads/SAP
%20B1%20Hardware_Requirements_Guide_for%20March_2016.pdf

 Perceived risks and a contingency plan

Perceived risks:

 Requirements not completely defined or captured or stable

 Overstretched client resources resulting in inability to complete required
tasks satisfactorily or on time
 A myriad of modification/enhancement requests
 Complex interfaces to other systems
 Significant data conversion requirements
 Inadequate preparation for testing and inadequate testing

Contingency plan

 Calculate Regenerative Plan: This function processes or regenerates the

material plan. This process starts by deleting all planned supply orders that
are currently loaded. All items in the database are replanned.
 Calculate Net Change Plan: This function processes a net change plan.
Items are considered in net change planning from two types of changes:
 Demand/supply changes: These include modifications to quantities on
sales orders, production forecasts, assembly orders, production orders, or
purchase orders. An unplanned inventory level change is also considered
a quantity change.
 Planning parameter changes: These include changes in safety stock,
reorder point, routing, bill of material, and changes to the time bucket or
lead time calculation.
 Get Action Messages: This function serves as a short-term planning tool
by issuing action messages to alert the user of any modifications made
since the last regenerative or net change plan was calculated.
Part B:

Production:

Sales:
Financial:

Part C:

Details on PPT.