Project Planning, Estimating, Pricing

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Project Planning, Estimating, Pricing
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Project Life Cycle Phased
Steering Committee
Steering Committee
To Be Determined
To Be Determined
Gatekeeper
Steering Committee
Gate
Goal Decision
Complete Process Review and Identify Major Gaps
Confirm Business Case and Resource Requirements
Deliver a Detailed Workplan
Production Go-Live
Post-Audit Economics and Production Support
Front End Loading Assessment and Planning

• Key Appraise Stage
• Activities
• Understand business caseand implementation
  strategy including drivers
• Identify key resources and availability
• Confirm management understanding and support
• Confirm delivery approach, timing, locations,
  etc.
• Agree upon scope
• ID business process owners
• Confirm cost estimate

• Key Select Stage
• Activities
• Confirm Business Case
• Integrated business assessment
• Conduct common process review with Amoco SAP
• Assess prior entity impact
• Conduct interface assessment
• Conduct conversionassessment
• Identify integration points with legacy systems
• Identify SAP module integration impacts and
  dependencies

• Key Define Stage
• Activities
• Scope lockdown
• Complete detailed scopedocument
• Conduct script fit assessment
• ICE planning
• Conversion planning
• Change management planning
• QA planning
• Agree upon measurementsfor project economicsand
  post-implementation support

• Key Execute Stage
• Activities
• Configuration
• Script Refinement
• Report Design
• User Validations
• ICE
• Interfaces
• Conversions
• EDI
• Training
• Materials
• Environment
• Classes
• Quality Assurance

• Key Operate Stage
• Activities
• Post Audit Project
• Economics
• Post-Implementation
• Support
• Turnover to ASAP
• Production Support

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Project Plans - First What, Then How
W H A T
H O W
1st Understand Client Needs Decide What to Do
Then, Decide How to Do It
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5
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3
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Resource and schedule the custom plan
Agree project objectives
Assign high level responsibilities
Define project activities
Define milestones
What is to be achieved?
What does it take to reach the project Objectives
and by what target dates?
Who needs to be involved and how?
How will the project milestones be achieved?
Who will do What, when, and with what effort?
Integrated Project Plan
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Project Planning Getting Started

• 1st Determine What Work is Required
• Interviews Manager Assigning Work and Customers
• Engage Process/Functional Area Lead(s)
• Collect Decision Support Package Info
• Scope, Objectives, Time Expectations, etc.
• Create a High-level Milestone Timeline (Gantt
  Chart)
• Work from the Knowns . . . to the Unknowns
• Reuse a Prior Plan or Template for Type of
  Project
• Adjust for Project Specifics and High-Risk Areas
  
• Major Deliverables
• Known Dependencies
• Contract Negotiations
• Infrastructure Lead Times
• Availability of Labor (Skills, Number)

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Project Planning Integrated Plan

• Iterative Process
• Detail Only the Current Phase
• Grade Estimates A, B, C
• Refine as Work Detailed and Risks Mitigated
• Drill Down on How to Produce an Integrated Plan
• Engage Those Who Will Do the Work
• Wall Walk Session by Process Area
• Lead Decomposes Milestones Deliverables into
  Activities
• Use Models to Estimate Work Effort (example
  attached)
• Validate with Historical Actual Hours for Similar
  Work
• Level of Detail? Work Assigned lt40 Hours
• Internal QA Before Executing of this Phase

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Project EstimatingSAP ABAP Create Model
Programming Example
Complexity Technical Design Coding Unit Testing Total
Low 4 2 1 7
Medium 8 5 2 15
High 11 6 3 20
Very High 13 8 4 25
Complexity Technical Design Coding Unit Testing Total
Low 5 3 1 9
Medium 9 5 2 16
High 13 7 4 24
Very High 19 12 6 37
Complexity Technical Design Coding Unit Testing Total
Low 5 3 1 9
Medium 9 5 2 16
High 13 7 4 24
Very High 19 12 6 37
Reports
Forms
Interfaces Conversions
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Project Estimating SAP ABAP Enhancement Model
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Project Costing Pricing

• Standard Labor Rates
• Rate Card Varies by Skill and Skill Level
• Fully-burdened Labor, Typically Overhead 15-25
• Plus, Travel, Typically lt10 of Project Costs
• Trend Towards Mix of Offshore Labor
• Add Non-Labor Components
• Infrastructure (eg, Lease Hosting Expenses)
• Add Contingency
• Typically 3 (Depends on Grade of Estimate)
• Add Margins
• Typically 12-25 (Negotiable to Win Business)

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Project Planning Date Commitments

• Work Effort Drives Schedule
• Frequently, Youre Given a Timebox, but
• Integrated Work Plan Should Indicate Achievable
  Delivery Date
• If Different than Expectations, Give Customer
  Options
• 3 Levers to Pull for Scenarios
• Time
• Resources
• Costs
• Document Assumptions/Conditions
• Commit to Completion Dates

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Project Tools
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Tools Templates

• Project Approval Form
• Project Business Case Analysis
• Ascendant Templates
• MS/Project Central
• Sage/Timesheet Professional
• Progress Reporting Discipline
• Lnotes Collaborative Work Group TEAM
• Quarterly Review Stoplight
• KPIs (Key Performance Indicators)
• Project Management Roles, Workflow, Documentation
  Guidelines

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Project Approval Form
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Project Business Case Analysis
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PwC
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Ascendant Templates
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MS/Project Plan
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Sage/Timesheet Professional
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Progress Reporting Discipline
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Lnotes Collaborative Work Group
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Lnotes TEAM
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Quarterly Review Stoplight
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KPIs
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