Page 152 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes (c) Schedule: Assess whether the project can be developed by a specified date
(i) Focus is on third dimension of project success

(ii) Utilizes project management techniques to assess if the project is on track
(iii) Assessment of the time of the year to install the system
(d) Other Issues:
(i) Availability
(ii) Reliability

(iii) Security
(iv) Responses required
(v) Return on investment
(e) Risk:

(i) Address purpose of project, scope, overall feasibility
(ii) High/low on impact on operations, impact on competition, etc.

Cost Benefit Analysis

Economic: Assess cost/benefits of project overtime, legal feasibility involved with it and analyses
the following:
1. Present value analysis

2. Development, operations, labour related cost
3. Determine benefits
4. Represent both cash flows as present values
5. Intangible benefits
6. Contracts, service level agreements

7. Vendor and consultant performance
Financial: Assess financial viability of the project and the implication thereof:
1. Return on investment-a ratio indicating financial performance
2. Internal rate of return

3. Payback-is the time taken until the total investment is recovered through revenues
4. Break even equals the number of units that must be sold to recover the investments using
profits.

Task “ERP implementation is a special event since it involves the entire organization
over a period of time.” Discuss

146 LoveLy professionaL university